Artificial Intelligence
Stingray Reports Third Quarter 2020 Results
Third Quarter Highlights
MONTREAL, Feb. 05, 2020 (GLOBE NEWSWIRE) — Stingray Group Inc. (TSX: RAY.A; RAY.B) (the “Corporation”; “Stingray”), a leading business-to-business multi-platform music and in-store media solutions provider, today announced its financial results for the third quarter ended December 31, 2019.
“Q3 results were in-line with our expectations, with revenues increasing by 14.9%, driven by the acquisition of Newfoundland Capital Corporation Inc. (“NCC”) and increase in subscriptions, and with adjusted free cash flow increasing by over 23.8%. Our solid cash flow generation for the quarter and year to date coupled with a positive business outlook, provided support for an increase in the dividend to $0.075 per share, 15.4% above the same quarter last year. Furthermore, we took advantage of a lower share price to acquire $6.1 million in shares during the quarter,” said Eric Boyko, President, CEO, and Co-Founder of Stingray.
“Despite lower radio sales related to challenging market conditions in Western Canada, our Radio segment continues to perform well in its other key markets such as Toronto and Ottawa.”
“As the over the top (“OTT”) streaming trend accentuates and viewers are overwhelmed by new TV streaming services, FAST or free ad-supported TV platforms are also gaining momentum among viewers and reaching an inflection point. Last December, we signed an agreement with Sinclair Broadcasting for STIRR representing our first ad-supported OTT platform in the US. Ambiance and Qello Concerts are currently available on Samsung TV Plus in the U.S., and other countries and platforms will be added. We have also deployed a number of channels on XUMO/LG and Pluto TV. As these new digital networks require content, Stingray is extremely well positioned to leverage its audio and TV linear channels, significantly expand its share of advertising dollars and reach millions of new listeners.”
“As another indication of our rapidly evolving business model, the subscription model in B2C and B2B2C now generates annualized revenues north of $40.0 million. We will continue to expand distribution to new platforms and markets and deliver new innovative products.“ “We look forward to this new year with great confidence as we continue to extend the reach of our rich content to new platforms and further diversify our revenue sources to ad- and subscription-based models,” concluded Mr. Boyko.
Third Quarter Results For the quarter, revenues in Canada increased $10.7 million or 23.1% to $57.5 million, from $46.8 million for Q3 2019. Revenues in the United States in Q3 2020 increased $0.8 million or 8.4% to $9.6 million, from $8.8 million for Q3 2019. Revenues in Other countries in Q3 2020 decreased $(1.0) million or 6.4% to $14.2 million, from $15.2 million for Q3 2019 with the decrease primarily due to lower commercial music sales and to the termination of some low margin contracts.
Total Broadcasting and Commercial Music revenues increased $1.0 million or 2.6% to $39.9 million from $38.9 million for Q3 2019. The increase was primarily due to organic growth in subscriptions.
Radio revenues increased $10.2 million or 32.7% to $41.4 million from $31.2 million for Q3 2019. Adjusted EBITDA in Q3 2020 increased $3.8 million or 14.0% to $31.0 million from $27.2 million for Q3 2019. Adjusted EBITDA margin was 38.2% compared to 38.5% for Q3 2019. The increase in Adjusted EBITDA was primarily due to the adoption of IFRS 16, to the acquisition of NCC, to organic growth in subscriptions and to reduced operating expenses in the Broadcasting and Commercial Music segment, partially offset by the reversal of certain accrued liabilities in the Radio segment in Q3 2019. Excluding the impact of IFRS 16, the Adjusted EBITDA would have been $29.3 million with a margin of 36.0%.
Net income in Q3 2020 was $8.1 million ($0.11 per share) compared to a net loss of $18.1 million ($(0.26) per share) for Q3 2019. The difference was mainly due to the non-recurring CRTC Tangible benefits expense of $25.3 million related to the NCC acquisition recorded in Q3 2019. The difference is also explained by lower acquisition expenses, positive change in mark-to-market on derivative instruments, positive change in fair value of investments and higher operating results, partially offset by higher legal expenses due to the settlement with Music Choice and higher income taxes expense. Adjusted Net income in Q3 2020 was $16.7 million ($0.22 per share), compared to $12.4 million ($0.18 per share) for Q3 2019. The increase is mainly due to the higher operating results and to the gain in foreign exchange, partially offset by higher income taxes.
Cash flow generated from operating activities amounted to $28.8 million for Q3 2020 compared to $13.8 million for Q3 2019. Adjusted free cash flow generated in Q3 2020 amounted to $21.0 million compared to $17.0 million for Q3 2019. The increase was mainly related to the acquisition of NCC, to higher operating results and to lower capital expenditures.
As of December 31, 2019, the Corporation had cash and cash equivalents of $7.3 million, a subordinated debt of $39.6 million and credit facilities of $380.0 million, of which approximately $48.3 million was available.
Nine Months Results Adjusted EBITDA for the first nine months of Fiscal 2020 increased $40.1 million or 80.4% to $89.9 million from $49.8 million for the same period last year. Adjusted EBITDA margin was 37.7% compared to 35.6% for the same period in Fiscal 2019. The increase in Adjusted EBITDA was primarily due to the acquisition of NCC, to the adoption of IFRS 16, to the organic growth in subscriptions and to reduced operating expenses in the Broadcasting and Commercial Music segment, partially offset by the reversal of certain accrued liabilities in the Radio segment in Q3 2019. Excluding the impact of IFRS 16, the Adjusted EBITDA would have been $84.9 million with a margin of 35.6%.
Adjusted net income for the first nine months of Fiscal 2020 was $45.8 million ($0.60 per share), compared to $25.0 million ($0.40 per share) for the same period in Fiscal 2019. The increase is mainly due to the higher operating results, partially offset by higher interest, income taxes and depreciation expenses.
Declaration of Dividend The Corporation’s dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities and other factors that the Board of Directors may deem relevant.
The dividends paid are designated as “eligible” dividends for the purposes of the Income Tax Act (Canada) and any corresponding provisions of provincial and territorial tax legislation Additional Business Highlights On January 27, 2020, the Corporation purchased all of the outstanding shares of Chatter Research Inc., a Toronto-based leader in the design, development, and implementation of artificial intelligence driven real-time customer feedback solutions for retail and hospitality businesses. Total consideration consists of an amount of $2.1 million paid upon closing and a contingent consideration.
On November 6, 2019, the Corporation announced that it had concluded a long-term deal to provide custom music programming and in-store messaging for over one thousand of METRO’s leading grocery and pharmacy establishments. Retailers under the agreement include Metro and Metro Plus in Quebec, Metro in Ontario, Super C, Food Basics, Adonis, Les 5 Saisons, Brunet, and Jean Coutu.
In early October 2019, the Corporation announced that its highly-rated music app is now available to all Canadians and Americans. Previously available exclusively to pay-TV subscribers, the Stingray Music app offers an unparalleled listening experience of local and international content. The app is available for free or with an upgrade to Premium for a monthly subscription fee.
Conference Call About Stingray Forward-Looking Information Non-IFRS Measures Our method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.
Note to readers: Condensed interim consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at www.stingray.com and on SEDAR at www.sedar.com. Contact information:
Mathieu Péloquin
Financial Highlights
(in thousands of dollars, except per share data)Three months ended
December 31Nine months ended
December 31
2019
2018
%
2019
2018
%
Revenues
81,313
70,772
14.9
238,323
139,920
70.3
Recurring revenues(1)
33,728
33,364
1.1
101,238
94,811
6.8
Adjusted EBITDA(2)
31,033
27,219
14.0
89,869
49,827
80.4
Net income
8,089
(18,053
)
22,456
(15,930
)
Per share – diluted ($)
0.11
(0.26
)
0.29
(0.26
)
Adjusted Net income(3)
16,710
12,396
34.8
45,813
25,002
83.2
Per share – diluted ($)(3)
0.22
0.18
22.2
0.60
0.40
50.0
Cash flow from operating activities
28,833
13,809
108.8
74,083
26,631
178.2
Adjusted free cash flow(4)
21,033
16,983
23.8
60,377
28,989
108.3
(1)
Recurring Broadcasting and Commercial Music revenues include subscriptions and usage in addition to fixed fees charged to our customers on a monthly, quarterly and annual basis for continuous music services. Non-recurring revenues mainly include advertising, support, installation, equipment and one-time fees.
(2)
Adjusted EBITDA is a non-IFRS measure and is defined as net income (loss) before net finance expense (income), change in fair value of investments, income taxes, depreciation and write-off of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, share-based compensation, performance and deferred share unit expense, CRTC Tangible benefit, and acquisition, legal, restructuring and other expenses.
(3)
Adjusted Net income is a non-IFRS measure and is defined as net income before change in fair value of investments, mark-to-market losses (gains) on derivative instruments, amortization of intangible assets, share-based compensation, performance and deferred share unit expense, CRTC Tangible benefit, and acquisition, legal, restructuring and other expenses, net of related income taxes.
(4)
Adjusted free cash flow is a non-IFRS measure and is defined as cash flow from operating activities less capital expenditures, interests paid and repayment of lease liabilities, plus acquisition, legal, restructuring and other expenses, and adjusted for unrealized gain or loss on foreign exchange and for the net change in non-cash working capital items.
Revenues in Q3 2020 increased $10.5 million or 14.9% to $81.3 million, from $70.8 million for Q3 2019. The increase was primarily due to the acquisition of NCC, combined with organic growth in subscriptions.
Revenues for the first nine months of Fiscal 2020 increased $98.4 million or 70.3% to $238.3 million, from $139.9 million a year ago. The increase was primarily due to the acquisition of NCC, DJ Matic and Novramedia, combined with organic growth in subscriptions, partially offset by the termination of some low margin international contracts.
On February 5, 2020, the Corporation declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share and multiple voting share. The dividend will be payable on or around March 16, 2020, to shareholders on record as of February 28, 2020.
On February 3, 2020, the Corporation and Music Choice executed and exchanged a Settlement Agreement which puts definitive end to the parties’ patent litigation in the United States and fully and finally settles all claims, counterclaims and defenses asserted in connection with that litigation. The settlement amount of US$13.3 million ($17.2 million), will be paid in two equal instalments; the first payment was made on the date of settlement and the second payment is to be made on or before February 15, 2021. Accordingly, an amount of $17.1 million was booked as part of the acquisition, legal, restructuring and other expenses in Q3 2020. The terms of the settlement do not impact the services currently offered by Stingray in the United States, which shall continue uninterrupted.
The Corporation will hold a conference call to discuss these results on Thursday, February 6, 2020, at 10:00 AM (ET). Interested parties can join the call by dialing 647-788-4922 (Toronto) or 1-877-223-4471 (toll free). A rebroadcast of the conference call will be available until midnight, March 5, 2020, by dialing (800) 585-8367 or (416) 621-4642 and entering passcode 3870897.
Montreal-based Stingray Group is a leading music, media and technology company with over 1,200 employees worldwide. Stingray is a premium provider of curated direct-to-consumer and B2B (business to business) services, including audio television channels, more than 100 radio stations, subscriptions content, 4K UHD television channels, karaoke products, digital signage, in-store music and music apps, which have been downloaded over 140 million times. Stingray reaches 400 million subscribers (or users) in 156 countries.
This news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray’s goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray’s control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray’s Annual Information Form for the year ended March 31, 2019, which is available on SEDAR at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray’s business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
The Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted net income and Adjusted net income per share are important measures as it demonstrates its core bottom-line profitability. The Corporation believes that Adjusted free cash flow is an important measure when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Adjusted EBITDA are important measures when analyzing the significance of debt on the Corporation’s statement of financial position. Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS.
Adjusted EBITDA and Adjusted Net income reconciliation to Net income
3 months
9 months
(in thousands of Canadian dollars)
Dec. 31,
2019
Q3 2020Dec. 31,
2018
Q3 2019
Dec. 31,
2019
YTD 2020Dec 31,
2018
YTD 2019
Net income (loss)
8,089
(18,053
)
22,456
(15,930
)
Net finance expense (income)
(4,383
)
7,208
9,359
10,039
Change in fair value of investments
(4,781
)
(840
)
(4,636
)
(901
)
Income taxes
1,897
(6,117
)
5,857
(5,061
)
Depreciation and write-off of property and equipment
2,876
2,469
8,687
4,912
Depreciation of right-of-use assets
1,402
–
4,192
–
Amortization of intangible assets
5,494
6,401
17,548
16,243
Share-based compensation
238
263
743
796
Performance and deferred share unit expense
677
(147
)
2,252
738
CRTC Tangible benefits
–
25,306
–
25,306
Acquisition, legal, restructuring and other expenses
19,524
10,729
23,411
13,685
Adjusted EBITDA
31,033
27,219
89,869
49,827
Net finance expense (income), excluding mark-to-market losses (gains) on derivative financial instruments
(4,184
)
(7,208
)
(16,146
)
(10,039
)
Income taxes
(1,897
)
6,117
(5,857
)
5,061
Depreciation of property and equipment and write-off
(2,876
)
(2,469
)
(8,687
)
(4,912
)
Depreciation of right-of-use assets
(1,402
)
–
(4,192
)
–
Income taxes related to change in fair value of investments, share-based compensation, performance and deferred share unit expense, amortization of intangible assets, CRTC Tangible benefits, mark-to-market losses (gains) on derivative financial instruments and acquisition, legal, restructuring and other expenses
(3,964
)
(11,263
)
(9,174
)
(14,935
)
Adjusted Net income
16,710
12,396
45,813
25,002
Adjusted free cash flow reconciliation to Cash flow from operating activities
3 months
9 months
(in thousands of Canadian dollars)
Dec. 31,
2019
Q3 2020Dec. 31,
2018
Q3 2019
Dec. 31,
2019
YTD 2020Dec. 31,
2018
YTD 2019
Cash flow from operating activities
28,833
13,809
74,083
26,631
Add / Less :
Acquisition of property and equipment
(1,479
)
(1,972
)
(4,551
)
(5,688
)
Acquisition of intangible assets other than internally developed intangible assets
(495
)
(1,272
)
(1,306
)
(3,002
)
Addition to internally developed intangible assets
(1,286
)
(1,827
)
(4,368
)
(4,422
)
Interest paid
(4,150
)
(4,649
)
(13,623
)
(5,509
)
Repayment of lease liabilities
(1,295
)
–
(3,693
)
–
Net change in non-cash operating working capital items
(17,702
)
1,180
(9,431
)
5,949
Unrealized loss on foreign exchange
(917
)
985
(145
)
1,345
Acquisition, legal, restructuring and other expenses
19,524
10,729
23,411
13,685
Adjusted free cash flow
21,033
16,983
60,377
28,989
Senior Vice-President, Marketing and Communications
Stingray
(514) 664-1244, ext. 2362
[email protected]
Artificial Intelligence
DevEx Connect Launches Series of U.K. Events to Elevate the Developer Experience and Support Software Communities
Manchester Summit Marks the First Event by DevEx Connect to Bring the Developer Community Together to Connect and Share Ideas and Experiences
LONDON, Oct. 9, 2024 /PRNewswire/ — DevEx Connect, the global Developer Experience event series, today announced its first series of events to foster the growth and health of software communities. The first event will occur in Manchester at etc.venues on October 29. DevEx Connect events will bring developers, industry influencers, and software providers together to share knowledge, collaborate, and drive innovation within the tech ecosystem.
For more information about Manchester Summit and to register, please visit: https://devexconnect.io/conferences/manchester-summit/
“At DevEx Connect, we know developer communities thrive through meaningful interactions and peer support,” said Ethan Sumner, CEO of DevEx Connect. “Our events create spaces where innovation flourishes, and knowledge is freely shared. We believe uniting the developer community can drive positive change and enhance the overall Developer Experience.”
The Manchester Summit agenda addresses the latest ideas in developer experience, DevOps, SRE, platform engineering, and AI/ML. Sessions will include deep-dive case studies, in-depth discussions, and technical walk-throughs. Attendees can expect real-life stories from some of the biggest U.K.-based brands about the obstacles, roadblocks, and unexpected wins in their DevEx journeys.
Speakers at the Manchester Summit include:
Peter Brown, Head of Engineering, Smarter Journeys Lab at Lloyds Banking GroupHolly Smith, Developer Advocate at DatabricksSarah Schlobohm, Head of AI at The Citation GroupRachael Ainsworth, Orgnaiser, HER+Data MCR & Senior Product Manager at Kraken FlexAndy Norton, Senior Engineering Manager at FlipdishToli Apostolidis, Principal Engineer at FlipdishPhil Simpson, Interim Head of Software Engineering at Transport for Greater ManchesterVincent Declercq, Co-Founder & CEO at FirstMateDevelopers and organizations interested in participating in DevEx Connect events can contact the team at [email protected] to learn more about speaking and sponsorship opportunities.
DevEx Connect Events Schedule
The following events are scheduled. For more information, please visit https://devexconnect.io/conferences/.
October 29, 2024: DevEx Connect Manchester SummitOctober 30, 2024: Cloud Roadshow ManchesterFebruary 23-24, 2025: Cloud Roadshow LondonFebruary 25, 2025: DevOps Leadership SummitFebruary 27-28, 2025: DevEx Connect London SummitJune 11-12, 2025: DevEx Connect San Francisco SummitAbout DevEx Connect
DevEx Connect is a community-driven organization that enhances the Developer Experience (DevEx) by fostering strong, vibrant communities. Through high-quality events, research and analysis, DevEx Connect provides developers with the tools and connections they need to innovate and excel. DevEx Connect is committed to building a global network where developers can collaborate, share ideas and find inspiration, contributing to a thriving tech landscape. For more information, please visit https://devexconnect.io/.
Media ContactOlivia [email protected]
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Artificial Intelligence
DeepL is 2024’s Most-Used Machine Translation Provider Worldwide among language service companies
Language AI tools are transforming the industry, boosting efficiency, cutting costs, and driving growth – with DeepL usage far outpacing Google, Microsoft and more
COLOGNE, Germany, Oct. 9, 2024 /PRNewswire/ — DeepL, a leading global Language AI company, has been named the #1 most-used machine translation (MT) provider among global language service companies in a new 2024 ALC Industry Survey report by the Association of Language Companies (ALC) and Slator. The company’s rise to market leadership, coupled with its exponential growth – DeepL now serves over 100,000 business and government customers worldwide – highlights the growing significance of AI-powered translation solutions in transforming industries, including language services, manufacturing, legal, healthcare and more.
“This exciting milestone highlights the accuracy and reliability of DeepL’s specialized Language AI platform, which is trusted by businesses worldwide for critical translation projects. It also is a testament to our positive impact on their cost savings, efficiency, and growth,” said Jarek Kutylowski, CEO and Founder, DeepL. “As AI in language services gains in popularity, we are honored to be the industry’s preferred Language AI partner and are committed to providing industry-leading, cutting-edge, specialized tools for translation, AI-driven content creation, and more.”
The new ALC report surveyed 127 language service companies (LSCs) from 28 countries*. The results underscore the expanding role of machine translation in the services offered by LSCS to key industries such as healthcare, law, and education.
Key findings of the report include:
– DeepL is the most-used machine translation provider among LSCs, with 82% of them using its technology in 2024, far surpassing companies including Google (46%), Microsoft (32%), and Amazon AWS (17%).- DeepL’s traction has grown significantly over the last 12 months, rising from third place in 2023 to the top provider in 2024.- This growth aligns with an increasing focus on AI within the industry overall, with 75% of LSCs receiving proactive customer inquiries about AI in the last six months.
The ALC report also revealed that 40% of LSCs see offering additional AI services as crucial for maintaining competitiveness, with one in three planning to introduce new services over the next three years. Key drivers of this accelerated adoption include notable advancements in generative AI and LLM technology; increased executive-level prioritization of language services; growing customer demand; as well as cost, time, and productivity efficiencies.
“It’s striking that a specialized language AI company like DeepL has overtaken tech giants like Google and AWS as the top machine translation provider among language service companies surveyed by Slator on behalf of the ALC. As AI adoption speeds up and language AI becomes a key value driver, this shift suggests that agile, focused companies can outpace larger competitors by delivering impact in critical areas,” said Anna Wyndham, Head of Research, Slator
Since its inception in 2017, DeepL has become the Language AI provider of choice for businesses across multiple industries including language services, manufacturing, legal, retail, healthcare, technology, and professional services. The company’s specialized Language AI platform has become a critical investment for global businesses today, addressing a variety of communication challenges ranging from internal communications to customer support and international market expansion. Unlike general-purpose AI systems, DeepL’s cutting-edge translation and writing solutions rely on specialized AI models specifically tuned for language, resulting in more precise translations for a variety of use cases and a reduced risk of hallucinations and misinformation. In business translation and writing, accuracy is paramount, making specialized AI models the most reliable and preferred solution for language challenges.
DeepL’s Language AI platform is also proven to drive significant cost savings and efficiencies. A 2024 Forrester study revealed that the use of DeepL delivered 345% ROI for global companies, reducing translation time by 90% and driving a 50% in workload reduction, underscoring, in our opinion, the power of its platform for businesses looking to grow their revenue and enter new markets faster and at scale.
Learn more about how DeepL and how it can transform your business here.
About DeepL DeepL is on a mission to break down language barriers for businesses everywhere. Over 100,000 businesses and governments and millions of individuals in 228 global markets trust DeepL’s Language AI platform for human-like translation and better writing. Designed with enterprise security in mind, companies around the world leverage DeepL’s AI solutions that are specifically tuned for language to transform business communications, expand markets, and improve productivity. Founded in 2017 by CEO Jaroslaw (Jarek) Kutylowski, DeepL today has over 900 passionate employees and is supported by world-renowned investors including Benchmark, IVP, and Index Ventures.
*The 2024 report by the Association of Language Companies (ALC) and Slator is based on a survey of 127 language service companies from 28 countries, conducted between June 17 and July 29, 2024.
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Artificial Intelligence
Proteine Resources secures €1.36 million in funding to accelerate the insect revolution in CEE
KRAKÓW, Poland, Oct. 9, 2024 /PRNewswire/ — Proteine Resources, a Polish innovative biotech company revolutionizing the animal nutrition market through sustainable and autonomous production of insect protein, has raised €1.36 million from SMOK Ventures and Bitspiration Booster VC, bringing its total funding to €1.8 million. The company targets a goal of achieving €62 million in annual revenue from insect protein sales by 2030.
The firm has developed a scalable production technology and an operational pilot line, planning to launch construction of its first factory in 2025 near sources of insect feed. With global protein demand projected to rise by 60% by 2050, Proteine Resources aims to address the challenges of sustainable protein production for both animal feed and human consumption.
Co-CEO Bartłomiej Roszkowski emphasizes the company’s commitment to climate neutrality and the reduction of greenhouse gases. His partner, Konrad Włodarczyk, brings 15 years of expertise in autonomous production technology. Their approach results in insects containing nearly 70% protein, 3–5 times more essential amino acids than competing products, unsaturated fatty acids and a quick rearing cycle of just four weeks, using a proprietary feeding system based on agri-food by-products.
Company’s innovations also include patented multispectral analysis technology, allowing real-time monitoring of insect health and quality. This level of automation enables large-scale breeding while ensuring consistent product quality and enhancing efficiency. Insect protein has many applications and can revolutionize the animal feed and pet food markets, providing a nutritious alternative that is both sustainable and eco-friendly.
Investors see significant scalability potential in Proteine Resources’ model, with SMOK Ventures and Bitspiration Booster VC recognizing the market opportunity driven by rising climate awareness. Its strategy involves developing a franchise system for modular factories located near feed sources, aiming to establish a global network of autonomous breeding units managed by advanced AI algorithms.
By 2030, Proteine Resources targets €62 million in annual sales and expects its first revenues in 2026. To meet strong demand, the company is already securing pre-orders for its products, allowing it to operate with 80% of its production capacity reserved for customers, leaving the remaining 20% as a buffer.
This innovative approach positions Proteine Resources as a leader in the future of sustainable protein production, addressing both ecological needs and market demands. The potential impact on food security and environmental sustainability makes the company’s vision crucial in the context of global challenges.
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