Exasol (EXL) investor relations material

Financial performance and guidance update

• Revenue for the first nine months reached €31.7 million, an increase of 8.9%, with EBITDA rising to €3.0 million from €1.0 million last year.

• ARR declined by 4.1% to €39 million, mainly due to higher churn in non-focus verticals, while focus vertical ARR grew 24% to €26.9 million, now representing 69–70% of total ARR.

• EBITDA guidance is set at €3.5–4 million, with confidence in reaching the upper end, and revenue guidance is confirmed at mid-single-digit growth.

• Liquidity at the end of Q3 was €18 million, with expectations to close the year at €18–19 million, ensuring a comfortable cushion.

• ARR guidance for 2025 was revised to a single-digit percentage decline, down from previous mid-single-digit growth expectation.

Churn dynamics and portfolio transition

• Elevated churn, totaling over €10 million (25% churn rate), was concentrated in non-focus verticals, especially from two major retail customers.

• Focus verticals maintained a low churn rate of 6%, with gross revenue retention around 94–95%.

• The shift to focus verticals is progressing, with expectations for an 80/20 split mid-term and a reduction in non-core business.

• Elevated churn is seen as a pull-forward effect, with ARR churn expected to halve in 2026, paving the way for a return to growth.

Strategic initiatives and partnerships

• Entered a strategic partnership with MariaDB, integrating analytics engine into MariaDB’s platform, expanding reach and brand awareness, especially in the US.

• The MariaDB collaboration is now in active distribution and marketing, with initial effects anticipated in the first half of next year.

• New CCO joined mid-year to accelerate marketing and sales initiatives, with rapid progress reported.

• New sales initiatives and strategic collaborations are expected to contribute positively to customer acquisition and growth from 2026.