New Work (NWO) investor relations material

Executive summary

• The company is preparing for delisting after Burda increased its stake to over 74%, with an acceptance rate above 77% as of late August 2024.

• Restructuring and cost-saving measures, including a 400-person workforce reduction, have stabilized operations and improved the cost base despite macroeconomic headwinds and a weak German labor market.

• Management remains committed to long-term strategy, focusing on repositioning XING as a job network and expanding kununu's employer branding business, both of which showed strong user and engagement growth.

• EBITDA dropped sharply in H1 2024 due to €24.7 million in restructuring costs and higher marketing spend, but pro forma EBITDA margin improved in Q2 due to restructuring.

• CFO Ingo Chu announced he will not extend his contract beyond summer 2025.

Financial highlights

• Q2 2024 revenues were €65.5 million, down 14% year-over-year; H1 2024 revenues were €133.7 million, down 12% year-over-year.

• Pro forma EBITDA for Q2 was €17.5 million (margin 27%), and for H1 was €26.5 million (margin 20%), both down year-over-year.

• Net loss for H1 2024 was €-7.8 million; pro forma net profit was €10.5 million.

• Operating cash flow was negative at €(1.1 million) in Q2, mainly due to severance payments; H1 operating cash flow was €6.4 million.

• Free cash flow before dividends was €(5.5 million); after dividends, €(11.1 million).

Outlook and guidance

• Full-year 2024 pro forma EBITDA guidance of €55–65 million is confirmed.

• Revenue target for 2024 is €270–280 million, with B2B Marketing Solutions lagging slightly.

• Management is cautious in budgeting for 2025, expecting only modest macro growth and continued mixed performance across segments.