CM com N : Halfjaarlijkse financiële verslaggeving

PRESS RELEASE

H1 2023 Results.

CM.com to become EBITDA positive over H2 2023

This document has not been audited

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PRESS RELEASE

H1 2023 Results

CM.com to become EBITDA positive over H2 2023

CM.com reports H1 2023 normalized EBITDA of -€ 3.7m, well within the given EBITDA guidance of -€3 to -€5m. Contributions to profitability in H1 2023 came mostly from high margin products in SaaS, Payments and Ticketing. Overall, gross profit grew 8% YoY and gross margins improved 1.9 percentages points to 27.8% in H1 2023. Total revenue H1 2023 was slightly higher YoY, offsetting COVID-related tailwinds in H1 2022. OPEX in H1 2023 was lower YoY and will decrease further in H2 2023. CM.com, therefore, expects normalized EBITDA to be positive over H2 2023.

BREDA, 25 JULY 2023

H1 2023 financial highlights

• Normalized EBITDA of -€3.7 million, before €0.8 million restructuring costs, well within guided EBITDA range for H1 2023;
• Gross profit grew by 8% YoY to €38.2 million, supported by SaaS +19%, Payments +11%, and Ticketing +31%;
• Gross margin improved by 1.9 percentage points to 27.8%;
• Revenue grew by 1% YoY to €137.3 million, supported by SaaS +19%, Payments +22%, and Ticketing +35%;

•	In CPaaS, the increased gross profit on SMS messaging business replaced most of the COVID-related
	gross profit on Voice minutes in H1 2022, and resulted in a 3% decrease in revenue and gross profit YoY;

• Cost reduction is well underway, as OPEX before restructuring costs decreased YoY and will decrease further in H2 2023.

Q2 2023 financial highlights

• Gross profit grew by 11% YoY to €19.2 million;
• Gross margin increased by 2.5 percentage points YoY to 29.1%;
• Revenue grew by 1% YoY to €65.9 million.

Business highlights H1 2023

• CM.com launched Generative AI products for a first group of selected clients in the Travel - & E-commerce industry, enabling them to better interact with their audience;
• CM.com completed the setup with Visa and Mastercard and launched its in-house developed payment processing platform to give clients a better payments experience;
• CM.com sold more tickets than ever before in Ticketing.

Outlook

• CM.com expects normalized EBITDA to be positive over H2 2023 (upgraded from positive by year- end 2023);
• CM.com expects OPEX to further decrease in H2 2023 to reach -10% YoY for FY 2023, before restructuring cost;
• CM.com expects to be free-cash-flow positive by H2 2024 (upgraded from positive by year-end 2024).

This document has not been audited

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KEY FIGURES
	Q2 2023	Q2 2022	Δ Y-Y	H1 2023	H1 2022	Δ Y-Y
(x € million)
Revenue	65.9	65.4	1%	137.3	135.9	1%
Gross Profit	19.2	17.4	11%	38.2	35.2	8%
Gross Margin	29.1%	26.6%		27.8%	25.9%
Operating expenses	-	-		(41.9)	(42.6)	(2%)
(before restructuring cost)
Normalized EBITDA	-	-		(3.7)	(7.4)
One-offs	-	-		(0.8)	(4.2)
EBITDA	-	-		(4.5)	(11.6)
Net profit	-	-		(18.1)	(21.8)
CAPEX	-	-		(12.2)	(16.8)

KPIs
	Q2 2023	Q2 2022	Δ Y-Y	H1 2023	H1 2022	Δ Y-Y
CPaaS net dollar retention	-	-	-	100%	115%	-
rate (%)
CPaaS enterprise churn	-	-	-	5%	5%	-
rate (%)
Number of messages	1.6	1.7	(6%)	3.3	3.4	(3%)
(billions)
Number of voice minutes	74	99	(25%)	153	262	(42%)
(millions)
Annual Recurring	30.9	27.6	12%	30.9	27.6	12%
Revenue (ARR)
(€ millions)
Total online payments	543	479	13%	1,069	833	28%
processed (€ millions)
Number of tickets	4.6	3.9	18%	8.6	6.4	34%
(millions)

This document has not been audited

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Message from the CEO

The global adoption of new technology has never been as fast paced as Artificial Intelligence in the first six months of 2023. A new and exciting era is emerging. An era, CM.com has anticipated on with the acquisitions of CX Company and Building Blocks.

Ever since, AI has become the core of our proposition, as CM.com has been developing new applications to improve customer experience for our clients.

CM.com also recently announced the release of newly developed Generative AI applications for its client base in the Travel - and E-commerce industry. A selective group of clients from those sectors is now integrating these new developments into its marketing and sales setup. It is vital for our clients to integrate this technology into their setup, as it will improve their ability to serve their customers in the best possible way.

These technological developments come at a time where the world continues to face the threat of a recession, which affects the pace of growth in various markets. In the events sector, we notice that consumers' behavior has returned to a more normalized level after the strong recovery in 2022 following the end of the COVID lockdowns. It is therefore a strong signal that CM.com continues to grow its presence in the event business, as CM.com and Pukkelpop expand their cooperation and we expect to announce more news around our involvement with the Dutch Grand Prix soon.

The macro-economic developments cause a shift in priority with some of our clients towards client retention and cost optimization. CM.com's products and services help clients achieve those goals, as especially our SaaS solutions primarily cater to economic expansion and contraction. The shift in priority results in longer sales cycles and requires a partnership in knowledge sharing and reliability. Good examples are the partnerships CM.com has with big tech firms like Google, Microsoft and Salesforce.

In light of these market developments, we are pleased with the performance of CM.com in the first six months of this year. CM.com is on track to realize its goals and adapt the organization to the changing world as we realign sales capacity and rationalize headcount to drive incremental profitability improvements. This focus on profitability led to the reduction in number of global offices to 19, as CM.com decided to close its local offices in Kenia and Mexico. Our improved performance in higher margins products and regions, while controlling our OPEX, resulted in a normalized EBITDA well within the guided range for the first half of 2023.

As a result, our OPEX and FTE levels decreased below levels in H1 2022 for the first time. This decrease is set to accelerate in H2 2023, as we will continue to realign global sales capacity to drive our profits. CM.com therefore expects its FY 2023 OPEX to be at least 10% lower YoY.

These measures will result in a future-proof CM.com. In this process, we will continue to underline the importance of initiatives such as our Talent Program and Female Leadership sequences. CM.com reiterates its commitment to finding the right balance between capabilities and opportunities within our workforce, independent of gender, age, or origin.

Considering everything, CM.com now expects normalized EBITDA to be structurally positive in the second half of 2023, sooner than expected. We expect our FY 2023 OPEX to be at least 10% lower YoY and following all this, CM.com expects to be structurally free-cash-flow positive in H2 2024, also sooner than expected.

CM.com strives to reach those goals, as this will enable CM.com to monetize future opportunities better.

Jeroen van Glabbeek

CEO CM.com

This document has not been audited

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Gross profit development

(x € million)

34.8 35.2 36.8 38.1

27.9

20.9

12.5

H1	H2	H1	H2	H1	H2	H1
	2020		2021	2022		2023
		Q1	Q2	Q3		Q4

Gross margin development

35%

30%

25%

20%

15%

10%

5%

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q3	Q2
2020	2020 2020	2020	2021	2021	2021	2021	2022	2022	2022	2022	2023	2023

Revenue development

(x € million)		147.3
135.9	137.3
	125.0
	112.0

83.8

57.8

H1	H2	H1	H2	H1	H2	H1
	2020		2021	2022		2023
		Q1	Q2	Q3		Q4

This document has not been audited

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