About You (YOU) Investor Update summary

Financial performance and outlook

• Revenue is projected to grow from €47 million in FY 2023/2024 to €175 million by FY 2028/2029, representing a 30% CAGR, with adjusted EBITDA rising from €25 million to €75 million (25% CAGR) and margins exceeding 40%.

• Product revenue, driven by recurring contracts with an average duration of 4.8 years and linked to customer GMV, is expected to increase from €37 million to €165 million, while service revenue will decline 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 (notably the U.S. and U.K.) and product development.

• Free cash flow is already positive (€10 million in the last fiscal year) and is projected to grow to €60 million over five years, with CapEx remaining stable and working capital neutral.

Revenue composition and growth drivers

• Product revenue is the main growth driver, with service revenue declining as a result of a partner-first implementation strategy.

• Growth is fueled by new customer wins, especially in international markets, expansion within existing customers, and take rate increases.

• U.S. market is expected to contribute 20%-25% of revenue by FY 2028-2029, with the majority still from Europe and the U.K.

• Existing customers account for the majority of current revenue, with new clients adding incremental growth as they go live.

• ABOUT YOU contributes approximately €10 million to SCAYLE’s revenue.

Operational efficiency and investment

• Sales and marketing efficiency is high, with a magic number of 1.4x, driven by focus on large enterprise clients and targeted marketing.

• The sales team is lean, especially in the U.S., reflecting a focus on high-value enterprise deals rather than volume.

• OpEx is set to rise mainly due to U.S. expansion and capability investments, but is expected to be offset by accelerating top-line growth.

• Churn is actively managed, with 0% churn reported in the last fiscal year and long-term contracts providing revenue stability.

• No significant debt at the SCAYLE entity level; business is self-funded and cash flow positive.