CM.com, a global leader in Conversational Commerce, announces its financial results for the first half of 2024, demonstrating ongoing strength in EBITDA, and Gross profit growth to record levels, while controlling OPEX. Momentum in topline performance improved since previous quarters. CM.com executed several eye-catching projects in Q2 2024, amongst others a large worldwide WhatsApp campaign. For FY 2024 CM.com expects a Normalized EBITDA of €14-18 million, and Free cash flow to turn positive by H2 2024.
Breda, the Netherlands, 23 July 2024
Q2 2024 Financial Highlights
Revenue reached €70.8 million, +7% YoY
Gross profit reached €20.7 million, +8% YoY
Gross margin improved to 29.3%, up from 29.1% YoY
Normalized OPEX reached €15.8 million, -23.2% YoY
Normalized EBITDA reached €4.9 million, versus -€1.4 million in Q2 2023
H1 2024 Financial Highlights
Revenue reached €134.4 million, -2% YoY
Gross profit reached €40.3 million, +6% YoY
Gross margin improved to 30.0%, up from 27.8% YoY
Normalized OPEX reached €32.1 million, -23.3% YoY
Normalized EBITDA reached €8.2 million, versus -€3.7 million in H1 2023
H1 2024 Business Highlights
The introduction of business units is leading to better internal alignment, resulting in an ongoing strong order intake while focus on bottom-line performance remains
CM.com supported various leading events in H1 2024, amongst others the ticketing and payment services for the KLM Dutch Open Golf, a DP World Tour golf tournament, the ticketing for various festivals, and the execution of one of the largest WhatsApp campaigns worldwide in Q2 2024
CM.com signed deals with various strong brands, such as Prénatal, a leading brand in Europe in childcare and toys, and Hedon, one of the larger venues in the Netherlands for concerts and events with over 100,000 visitors per year
CM.com developed valuable new software features such as, amongst others, a store and forward mechanism for point-of-sale payments to enable offline payments for festivals and other applications where stable internet connectivity is not always a given
Pipeline for H2 2024 is developing well, especially in Europe
Outlook
CM.com expects Normalized EBITDA to grow to a record €14-18m for FY 2024
from -€0.9 million in FY 2023
CM.com expects Normalized OPEX to decrease at least 15% YoY for FY 2024
CM.com expects to be Free cash flow positive by H2 2024
CM.com expects no restructuring costs going forward as the restructuring program
had been concluded
Key Performance Indicators (KPIs) Show Strong Growth
The number of messages processed increased by 33% YoY to 4.4 billion, reflecting the Company’s strong market position
Despite a 17% decrease in voice minutes, the Company’s focus on profitable segments mitigates this impact on overall performance
Annual Recurring Revenue (ARR) grew by 6% YoY to €32.6 million, highlighting the strength in new order intake in H1 2024
Total payments processed surged by 29% YoY to €1,382 million, a record level
The number of tickets sold increased by 8% YoY to a record 9.3 million, showcasing the success of the Ticketing platform
Message from the CEO
CM.com had an excellent first 6 months of 2024. Our commitment to operational excellence and strategic focus on high-margin products continued to drive the Company’s performance in a sustainable way. Our software development teams and engineers did a great job at integrating various functions of our platform coming from earlier acquisitions. These evolving integrations lowered the barriers for our clients to use more of our platform. As a result, we see more clients in the business unit Live use our Engage suite, more clients in our business unit Engage use our Connect channels, and the first clients in our business unit Connect use our Payment capabilities and vice versa. All to improve our up- and cross-sell capabilities.
As a result, Gross profit and EBITDA reached record levels over H1 2024. All this was realized while Normalized OPEX and FTE levels declined 23% YoY. CM.com managed to do more with less.
At the beginning of 2024, CM.com successfully introduced business units into its organizational setup. The ambition of this new structure is to better deploy all the talents within CM.com and to improve the match between our product offering and the needs of our clients. A positive impact on the new order intake is already visible when looking at the new sign ups of Prénatal, Hedon, and the contracts we executed in Q2 2024, such as the KLM Open and a worldwide WhatsApp campaign for a renowned brand.
To make sure these developments are sustainable in the future, CM.com continues to invest in its workforce. Recently, this year’s group of young professionals completed their inhouse CMBA course. We continue to take great interest in the well-being of our employees and how to make sure they use their talents in the optimal way for CM.com.
Regarding our financial position, we saw a considerable reduction in our net cash outflow in H1 2024, compared to previous years. The cash position of CM.com at the end of H1 2024 was close to €21 million, with a Free cash flow that is close to positive.
That means for the outlook, that CM.com reiterates its target to be Free cash flow positive by H2 2024. Next to that, CM.com expects its Normalized OPEX to decrease further in 2024 YoY by at least 15%, and Normalized EBITDA to grow further in 2024 towards a record level in the range between €14-18 million for FY 2024.
Jeroen van Glabbeek
CEO CM.com
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