CM.com H1 2020 results: Further geographical expansion and strong revenue growth among across all core segments

PRESS RELEASE

H1 2020 results

Further Geographical Expansion And Strong Revenue Growth

Across All Core Segments

BREDA, 26 AUGUST 2020

Financial highlights

• Strong CPaaS growth of 46% compared to H1 2019, demonstrating CM.com's ability to capture customers and market share in a rapidly growing market
• Core1 revenue, consisting of CPaaS, Payments and Platform, grew with € 15.8 million (+41%) compared to H1 2019 to € 54.5 million
• Total revenue amounted to € 57.8 million in H1 2020
• Global expansion continued with 70% of core revenue growth generated outside The Netherlands (€ 11.1 million)
• Core gross profit increased by 7% compared to H1 2019 to € 11.9 million in H1 2020
• Adjusted EBITDA came in at € (0.4) million
• CM.com reiterates its guidance, including the medium-term revenue growth target of more than 30%

Business highlights

• Despite the negative impact of Covid-19 on customers active in Travel, Leisure, and Retail, the acceleration of the digitization of our customers offers numerous opportunities for the future
• CPaaS Net Dollar Retention rate of 130% indicates strong revenue growth among existing customers
• In line with our global expansion strategy regional hubs were opened in Los Angeles (USA) and Nairobi (Kenya) in H1 2020
• The execution of our ambitious recruitment trajectory has successfully turned CM.com into a company with over 50% of personnel in Sales & Marketing as we grow our sales force globally
• New enterprise customer wins include multinationals such as LVMH and Adidas
• We launched Rich Communication Services (RCS) in Germany in partnership with Vodafone Germany, becoming the first CPaaS company to do so
• Through the acquisition of Global Ticket, CM.com services important segments of the ticket market including museums and other cultural institutions
• The acquisition of CX Company enhances our Conversational Commerce proposition with AI and rule-based chatbot functionalities

1 Core revenue is Total revenue minus Other revenue

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H1 2020 Financials

x € million	H1 2020	H1 2019	% H1 - H1
Revenue	57.8	44.3	+30%
Core Revenue	54.5	38.7	+41%
Gross Profit	12.5	12.4	+1%
Core Gross Profit	11.9	11.1	+7%
Gross Margin	22%	28%
Core Gross Margin	22%	29%
Operating expenses	12.9	9.6	+34%
Adjusted EBITDA	(0.4)	2.9	(114)%
IPO/ Listing expenses	(1.4)	-
EBITDA	(1.8)	2.9	(161)%
Net profit	(5.7)	0.0

H1 2020 KPIs

x € million	H1 2020	H1 2019	% H1 - H1
CPaaS net dollar retention rate2 (%)	130%	113%*
CPaaS enterprise churn rate3 (%)	4.4%	4.2%*
Total number of CPaaS enterprise customers4	536	500	+7%
Number of messages (billions)	1.6	1.1	+53%
Number of voice minutes (millions)	89.4	69.4	+29%
Total payments processed (€ millions)	348.6	294.4	+18%

* at year-end 2019

2 Represents the ratio of the revenue of CPaaS customers in comparable twelve months between the actual and preceding year for customers that generated more than € 10,000 in revenue in the actual year

1. represents the ratio of revenue from CPaaS customers that generated more than € 10,000 in revenue in the preceding year but that generated less than € 10,000 in the actual year or were no longer customers in the actual year, to total revenue in the previous year
2. Total number of CPaaS customers with an annual revenue of more than € 10,000

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Message from the CEO

In the first half year of 2020 we continued full speed ahead. With the listing on Euronext Amsterdam and connected capital raise of

• 73 million, we are able to accelerate our global expansion strategy. We opened additional hubs in the USA and Kenya and boosted recruitment of talented and experienced salespersons, which has increased our sales force by almost 50%. Our revenue outside Europe more than doubled and while revenue in the Netherlands showed the strongest growth in absolute terms, more than 55% of revenue was generated outside our home country.

The new normal has further accelerated the digitization of the work floor and of customer contacts. For businesses it is crucial to stay connected to their customers, which became more challenging with employees working remotely and at more flexible business hours. With our CM.com "Together Suite", we could quickly offer fit-for-purpose solutions. In addition, we developed tools for our Ticketing customers to deal with the enormous amount of questions, refunds, and voucher requests, as soon as it became apparent that all events for the year were cancelled. We are particularly proud to have supported the Dutch National Health Institute (GGD), which used our voice services in the battle against the Covid-19 pandemic.

We believe that many companies will bolster their investments in customer communication going forward as customer engagement is paramount. Our communication platform including all the preferred communication channels like WhatsApp, Apple Business Chat, and WeChat, is ready to serve companies around the world.

Whilst the future impact of Covid-19 on businesses and the economy remains uncertain, we believe that the pandemic is also an irreversible accelerator of the digital transformation for which we are well- positioned. We have signed promising contracts with multinationals such as LVMH and Adidas for Mobile Marketing, worldwide OTP codes and OTT channels, starting in the second half of 2020. Also BMW Connected Drive went live at the beginning of July.

The integration with Global Ticket and CX Company is running smoothly and the cooperation between the different teams is already paying off. I would like to conclude by thanking my colleagues for their hard work and effort in these unprecedented times and look forward to the next steps that lie ahead of us.

Jeroen van Glabbeek

CEO CM.com

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