About You (YOU) Investor Update summary

Financial performance and outlook

• Revenue is projected to grow from EUR 47 million in FY 23/24 to EUR 175 million by FY 2028/2029, representing a 30% CAGR, with adjusted EBITDA rising from EUR 25 million to EUR 75 million at a 25% CAGR.

• Product revenue, driven by recurring contracts averaging 4.8 years, is the main growth driver, expected to increase from EUR 37 million to EUR 165 million, while service revenue declines as implementation shifts to partners.

• Gross margin on product revenue stands at 85% and is targeted to reach 90% through multi-tenancy optimization, application improvements, and economies of scale.

• Adjusted EBITDA margin is expected to decrease from 54% to 43% due to investments in geographic expansion and product capability enhancements, with long-term margin potential around 50%.

• Free cash flow is already positive, projected to grow from EUR 10 million to EUR 60 million over five years, with CapEx stable and working capital broadly neutral.

Revenue composition and growth drivers

• Product revenue is highly predictable, linked to client GMV, with a positive net revenue retention rate of 130% and 0% customer churn.

• Service revenue, mainly from implementation, is intentionally declining as the company adopts a partner-first strategy, improving overall gross margin.

• Geographic expansion is a key growth lever, with the U.S. expected to contribute 20%-25% of revenue by FY 2028-2029, while Continental Europe and the U.K. remain the largest markets.

• The company maintains high sales and marketing efficiency, with a magic number of 1.4x, and focuses on large enterprise clients for strong ARR per customer.

• ABOUT YOU contributes roughly EUR 10 million to SCAYLE's revenue, and the business has no significant debt.

Market opportunity and positioning

• SCAYLE targets a $12bn digital commerce market in 2023, projected to grow at a 15% CAGR through 2028, focusing on large B2C enterprise retailers and brands.

• SCAYLE secured a 40% share of the accessible B2C digital commerce market in Germany in 2023 and is expanding globally.

• The company is positioned as a modern, flexible alternative to incumbents, offering a unified and composable product with extensive capabilities.

• ABOUT YOU Group operates two units: B2C (online fashion store) and B2B (SCAYLE), serving over 12 million active customers in Europe.