Making Science’s gross margin was 28.4M euros, an increase of 91.7% YOY, continues strong organic growth with like for like growth in recurring EBITDA of 34.2%

Making Science, a technology and digital marketing consultancy specializing in e-commerce and digital acceleration, has presented its financial results for the 2021 financial year. The consultancy achieved record growth almost doubling its net sales, reaching 108.2 million euros, which is an 87.7% increase from 2020.

Additionally, the gross margin amounted to 28.4 million euros, which represents an increase of 91.7% compared to 2020. Recurring EBITDA was 5.1 million euros between January and December, 40.4% more than in the same period of the previous year. Recurring EBITDA represents 18.3% of the gross margin and has been reduced by 6.7 points as a consequence of the internationalization and integration expenses that Making Science has incurred in 2021. Without taking into account the aforementioned corporate operations, the EBITDA margin on gross margin is 22.7%.

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The seven acquisitions last year [2021] enabled us to continue working toward achieving our objective of being present in the 20 main digital marketing markets by 2026.”

— José Antonio Martínez Aguilar, CEO Making Science

MIAMI

According to the company’s annual report, the figures reflect significant organic growth in 2021. In “like-for-like” terms (compared to the existing scope as of December 31, 2020), net sales increased 52.9%, and the recurring EBITDA stood at 6.4 million euros, 34.2% more than in 2020. Additionally, the gross margin was 23.4 million euros, 40% more than in the same period of the previous year.

Likewise, it should be noted that in 2021 the company’s R&D activity doubled, growing over 100% compared to 2020. This increase is related to the development of high-value technological tools for Making Science’s clients.

Solid plan for internationalization
The company’s internationalization plan required significant investments throughout the year. The objective of the investments was to provide a structure within the acquired companies and implement integration programs. The international acquisitions resulted in sizable growth in all indicators of the international business income statement.

Notably, the pro forma gross margin contributed by the international businesses (business done outside of Spain) was 9 million euros, 29.4% of the Group’s pro forma gross margin, compared to 12.9% in 2020. Additionally, the pro forma EBITDA reached 2.2 million euros, which represents 31% of the Group’s pro forma EBITDA (excluding the e-commerce business).

Ventis
In May 2021, Making Science acquired the Ventis Group and applied its digital capabilities to increase Ventis Group’s profitability. Between May and December 2021, Making Science implemented improvements in Ventis’ digital marketing strategy and execution, process automation, data generation, and CRM strategy.

Combined, these actions resulted in an increase in GMV (the total volume of marketplace transactions). This figure rose 30% between October 2021 and January 2022. Throughout 2022, Making Science will continue to apply its knowledge of electronic commerce to reach a transaction volume of 18 million euros in 2022, 7 million euros more than what was registered in 2019.

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José Antonio Martínez Aguilar, CEO of Making Science, said, “The results for 2021 reflect our solid path, as reflected in our business plan that we are fulfilling year after year. The seven acquisitions last year enabled us to continue working toward achieving our objective of being present in the 20 main digital marketing markets by 2026. We also increased our headcount by hiring new talent, which is fundamental in the technology industry and gives us a competitive edge.”

In 2021, Making Science completed seven acquisitions, which were framed within its strategic plan. Some of these acquisitions included Celsius in France, the purchase of 360 Conversion Analytics in the United States, the Italian platform Ventis, and the purchase of Sweeft Digital, a Georiga-based company.

Furthermore, in July 2021, the firm registered its first bond program worth 30 million euros in the Alternative Fixed Income Market (MARF), with the aim of diversifying financing sources. The call generated widespread interest among investors, and demand exceeded supply by 33%. Making Science has already raised 12 million euros that it will allocate to executing its inorganic growth plan.

The company will continue its aggressive international expansion strategy and has announced a plan to raise 30M euros of debt and capital to take on this expansion. These 30 million euros of financing, together with the 12 million euros obtained in 2021, will provide the company with the necessary funds to achieve its objective of exceeding 20 million euros in EBITDA in 2023. The company has appointed Renta 4, Alantra, and EBN as placement agents for this financing round.