artnet AG: Artnet Shareholder Meeting 2023

Artnet Shareholder Meeting 2023

• Strong audience growth and successful core product developments reinforce market leadership

• Revenue stability and cautiously optimistic outlook despite global economic uncertainty and constrained art market performance

New York/ Berlin, August 31, 2023: Artnet AG, listed on the Prime Standard of the Frankfurt Stock Exchange, yesterday held its Annual General Meeting. Shareholders were given a full picture of the 2022 and 2023 YTD performance as well as outlook for the remainder of the year. As shown during the meeting, Artnet was able to expand its position as the leading trading platform for the art market in the past fiscal year 2022 and in the first half of 2023. Artnet’s CEO Jacob Pabst expressed that, "Our goal for the months and years ahead is to further expand Artnet's market leadership as the world's largest platform for fine art. We are driving the digitization of the art market as it matures into a global industry, and are providing the informational transparency and transactional efficiency to cater to it." During the presentation of the 2023 half-year figures, Pabst warned that the current global economic situation in the second half of the year will continue to have an impact on the art market in the short term.

Revenue increases in 2022 and the first half of 2023: The company's revenue totaled $26.3 million in 2022, which represents a 6,6% increase. During the 2022 financial year, Artnet saw strong increases in Media segment revenue. In the first half of 2023, the company's revenue increased 1% to $13 million compared to the same period last year.

Data: Update with new content and new features: The Database reached more than 16 million auction results in 2022. Revenue in this segment decreased 3% to $7.4 million in 2022. In the first half of 2023, the Data segment revenue declined 1,8% YoY to $3.7 million. However, Artnet expects revenue to increase due to the release of the renewed Price Database product. "The redesigned Price Database has been very well-received industry-wide, featuring in-depth data analysis and radically improved search capabilities on a new mobile optimized UX," says Pabst.

Marketplace: softer  market conditions impact performance: In the Marketplace segment, Artnet revenue was $9.6 million in 2022 (-6% compared to 2021). In the first half of 2023, the constrained economic situation continued to have a negative impact on the global art market, and thus also on Artnet’s Marketplace segment. Revenue was $4.6 million, down 5% from the same period in 2022. Jacob Pabst explained, "we have seen solid results with prints & multiples and photographs. However, sales of unique works have been more challenging in an increasingly selective contemporary art market"

Media: Growth and returning clients: The Media segment reported a 38% year-on-year increase in revenue to $9.1 million in 2022. The number of pageviews increased by 58% to 158 million. "Deep customer loyalty and strong brand positioning are driving very positive momentum in our Media segment," Pabst reported. Due to continued demand from advertisers, Artnet’s Media segment achieved 10% revenue growth to $4.6 million in the first half of 2023.

Outlook: Management will continue to invest in its technology and product development in 2023 in line with its strategic goal of creating a unified platform that drives growth through the realization of the clear and formidable synergies between its segments. An improved user experience in 2023 will drive traffic, user engagement, and conversion to Artnet’s marketplace and subscription products. Investments in Sales and Marketing will also improve conversion and brand recognition in 2023, whiletight expert curation of Artnet’s marketplace will continue to generate trust from buyers and sellers.

Editorial note

All key company figures can be found at: http://www.artnet.com/investor-relations/

About Artnet

Artnet has an unparalleled 60 million users annually, making it the largest global platform for fine art. Founded in 1989, Artnet has revolutionized the way people discover, research, and collect art today. Artnet’s Data provides mission-critical resources for the art industry, encompassing more than 16 million auction results and AI- and ML-driven analytics, further driving transparency and insight into the art market. Artnet’s marketplace connects leading galleries and auction houses with its global audience, offering a curated selection of over 250,000 artworks for sale worldwide. Artnet Auctions, the pioneering online-only auction platform, offers unprecedented reach, liquidity, and efficiency for buyers and sellers. Artnet News covers the events, trends, and people shaping the global art market with up-to-the-minute analysis and expert commentary. It is the single most-read news publication in the fine art industry, with a rapidly growing, dedicated audience. Together, Artnet’s broad synergistic product offering provides a comprehensive ecosystem that drives and informs the modern art market.

Artnet AG is listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest transparency standards. The majority of operations are headquartered in New York at its  wholly-owned subsidiary, Artnet Worldwide Corporation, a New York based entity founded in 1989. Artnet Worldwide Corp. owns a London based subsidiary, Artnet UK Ltd.

ISIN: DE000A1K0375

LEI: 391200SHGPEDTRIC0X31

Contact:

Sophie Neuendorf

sneuendorf@artnet.com