Q1 Trading

Update 2024

CM.com reports record EBITDA in Q1 2024,

expects further improvement EBITDA

CM.com reports record EBITDA

in Q1 2024, expects further

improvement EBITDA

In Q1 2024, CM.com kept a tight grip on costs, while growing gross profit. The product mix remained skewed towards higher margins business, resulting in higher gross profit. OPEX came in lower compared to Q1 2023. As a result, normalized EBITDA reached a record level in Q1 2024. CM.com expects year-over-year revenue development to improve as of Q2 2024. Normalized OPEX is expected to decrease approximately 15% in full year 2024 versus 2023. CM.com reiterates to become free cash flow positive by H2 2024 as EBITDA growth is expected to continue.

Breda, 17 April 2024

CM.com Press Release

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Q1 2024 Financial Highlights

  • Normalized EBITDA grew to a record level of €3.3 million (€-2.4 million in Q1 2023).
  • Gross Profit reached €19.5 million, +3% YoY.
  • Gross margin was strong at 30.8% (26.5% in Q1 2023).
  • Normalized OPEX came in at €16.3 million, -23% YoY.
  • Revenue reached €63.5 million, -11% YoY following the shift to value over revenue. Annual Recurring Revenue grew 6% YoY to €32.0 million.

Q1 2024 Business Highlights

  • Juniper Research recognized CM.com as 'Established leader' in CPaaS vendor space.
  • In the business unit Connect (former CPaaS), focus remained on improving margins. Total number of messaging grew 18% YoY and WhatsApp grew to 30% of total messaging volume.
  • In the business unit Engage (former SaaS), new order intake developed well. One of the largest soft drink companies in the world signed up for CM.com's Marketing Cloud product for its global direct marketing communication. GenAI is now an integrated part of the offering as over 50% of all new contracts signed include GenAI.
  • In the business unit Pay (former Payments), migration onto the new processing platform is in final stages of completion. POS sales has good traction. Total volume of payments processed grew 31% YoY.
  • In the business unit Live (former Ticketing), growth momentum remained good. Number of tickets sold grew 10% YoY and the app development service expanded its services to more international.

Outlook

  • CM.com expects normalized EBITDA to grow further in 2024.
  • Normalized OPEX is expected to decrease approximately 15% in 2024 versus 2023.
  • CM.com expects year-over-year revenue development to improve as of Q2 2024.
  • CM.com reiterates its target to be free cash flow positive by H2 2024.

CM.com Press Release

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Q1 2024 Key financial figures

Q1 2024 KPIs (Key Performance Indicators)

CM.com Press Release

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Message from the CEO

Today CM.com releases its Q1 2024 trading update. In Q1 2024, we are reporting a record EBITDA, as the value over revenue strategy continued to support overall performance, while costs remained under control.

Operational excellence continued. With the launch of Business Units in Q1 2024, the interaction between different disciplines intensified, which has already resulted in improved offerings to clients. Clients express the wish to connect to one place that offers multiple services seamlessly. That lies at the core of the CM.com proposition. As an example, GenAI has, within six months, become a standard feature in the software proposition of Engage and a good driver for growth already. The Pay proposition is now an integrated part of the product offering, especially within Live. Clients that purchase CM.com's software solutions also seek ways to improve their communication with their end users. CM.com's messaging offering via Connect is then a compelling addition, enabling the combination of multiple services into one place. This is increasingly the case with WhatsApp. In Q1 2024, 30% of the total messaging volume was generated through CM.com's WhatsApp offering. What is interesting to note here is that clients see the WhatsApp product now increasingly as a viable alternative to SMS, given the possibilities it offers, but also given the rising rates for SMS in certain regions. CM.com is proud to be recognized again as "Established Leader" in CPaaS by Juniper Research.

As efficiency continues to improve and new orders are being won, CM.com has full confidence that it will be able to meet its financial milestones in 2024 and beyond. That is why CM.com expects normalized EBITDA to grow further throughout 2024, and reiterates its guidance to be free cash flow positive by H2 2024.

Historic Financial Performance Development

Revenue Development (€ million)

Gross Profit Development (€ million)

CM.com Press Release

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Messages (billion)

Voice Minutes (million)

CM.com Press Release

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Tickets (€ million)

Total Payments Processed (million)

CM.com Press Release

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Annual Recurring Revenue (€ million)

FTE Development

888

936

930

918

881

857

723

755

786

720

650

680

473

462

440

420

591

441

466

370

383

396

339

319

325

355

303

337

335

344

332

301

298

268

253

238

255

188

207

78

88

102

104

115

119

126

133

134

129

118

113

108

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2021

2021

2021

2022

2022

2022

2022

2023

2023

2023

2023

2024

FTE General & Admin

FTE Research & Development

FTE Sales & Marketing

CM.com Press Release

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2024 Financial Calendar & Events

19

April 2024

AGM CM.com

23

July 2024

Release HY 2024 results + webcast

18

October 2024

Release Q3 2024 Trading Update (no webcast)

Contact Investor Relations

Serge Enneman Investor.relations@cm.com+31 643280788

CM.com Press Release

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Disclaimer

CM.com NV published this content on 17 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 05:03:04 UTC.