CDON (CDON) Q2 2024 earnings summary

Executive summary

• Q2 2024 GMV declined 14% year-over-year to SEK 426.1 million, with sequential monthly improvement and organic GMV down 21% for the CDON segment.

• Net sales fell 7% to SEK 97.2 million, while gross margin improved by 2.8 percentage points to 77.0%.

• Negative EBITDA of SEK -9.4 million, adjusted to -3.5 million excluding Malmö closure and FX costs.

• Fyndiq segment stable with positive momentum, GMV up 12% and net sales up 26% year-over-year, outperforming CDON.

• Strategic initiatives include platform migration, supply acquisition, SEO improvements, and operational consolidation to Stockholm.

Financial highlights

• GMV down 14% year-over-year to SEK 426.1 million; net sales down 7% to SEK 97.2 million; gross profit down 3% to SEK 74.8 million due to higher take rate.

• Gross profit after marketing (GPAM) margin increased to 10.5% over GMV.

• EBITDA at -9.4 MSEK, adjusted EBITDA at -3.5 MSEK after Malmö closure and FX costs.

• Cash position improved by SEK 3.5 million quarter-over-quarter due to working capital changes.

• OPEX increased 19% year-over-year, mainly due to migration and restructuring costs.

Outlook and guidance

• Confident in achieving SEK 40 million in cost savings for 2025 after platform migration.

• Expecting a more positive second half of the year, with potential for positive GMV growth in CDON segment.

• Some risk to Q3 sales due to platform migration, but long-term benefits anticipated.

• Non-recurring costs for the year expected to be SEK 7–9 million, mostly front-loaded.

• Focus remains on increasing supply, improving SEO, and completing office consolidation.