Q1 2023 Highlights

CM.com continued to execute on its Path to Profitability in the quarter
Gross profit grew +6% YoY to € 18.9 million, as margins recovered in SMS and volumes in high margins products grew YoY
Gross margins improved consequently by 1.3 percentage point YoY to 26.5%
Revenue grew +1% YoY to € 71.4 million , with Annual Recurring Revenue growing 15%
Overall underlying growth was strong, compensating for the loss of Covid-related tailwinds in Q1 2022 and given seasonality in Ticketing and Payments in the quarter
FTE continued to decline as a result of strong focus on cost control and efficiency improvements


Outlook

CM.com expects OPEX in 2023 to come in below 2022 OPEX levels excluding one offs following continued FTE decline and lower non-personnel costs
CM.com will continue on its Path to Profitability to grow its revenue in a profitable way
CM.com expects to see the negative gap in EBITDA narrowing on a monthly basis, supported by improving gross margins and strict cost control
For H1 2023, CM.com therefore expects an EBITDA between € 3 – 5 million negative
For H2 2023, CM.com reiterates its guidance to be structurally EBITDA positive by year-end 2023
Message from our CEO

"With 2023 well underway, we are proud to see that we are making good progress on our Path to Profitability. Our balanced growth strategy is starting to bear fruit, with YoY growth in targeted areas, improving margins and strict cost control. Organizational efficiency improvements result in a better use of resources and better employment for our workforce. As our clients clearly seek ways to improve customer engagement, CM.com is being acknowledged for the value we add to their business proposition.

Our growth strategy is focused on delivering operational excellence to our clients in a profitable way. All acquisitions made in recent years enable CM.com to provide the best results and develop the best tools for our clients. In challenging macroeconomic circumstances, CM.com is determined to stay on course to reach the 2023 goals and beyond.

In the past 12 months, CM.com has focused on aligning the different segments and creating the best solutions for our clients. In that effort, we generated more high-margin business in SaaS, Payments, and Ticketing, with which we replaced the Covid-related tailwinds in the CPaaS domain in 2022, especially Voice. As of next quarter, the Covid impact is expected to be fully absorbed, which will then also offer a better year-over-year comparison base in CPaaS.

Q1 2023 shows that CM.com is on the right track to grow in a profitable way. Margins recovered in CPaaS from the previous quarter and underlying performance in the other segments remained strong. The business we generate with our existing customer base and the costs we incur to attract new customers become more balanced. As the negative EBITDA gap is narrowing on a monthly basis, we feel comfortable specifying our 2023 EBITDA targets further. CM.com now sees its EBITDA in H1 2023 between €3-5 million negative and we reiterate our goal to be structurally EBITDA positive by year-end 2023.

Looking further ahead, CM.com remains committed to becoming Free Cash Flow positive by year-end 2024 and generating a meaningful EBITDA in 2025 to refinance our outstanding Convertible Bond in 2026. As management, we are convinced that CM.com is currently well-positioned to reach its profitability goals in the near future without need for additional capital."

Jeroen van Glabbeek
CEO CM.com