CDON (CDON) Q3 2024 earnings summary

Executive summary

• Completed migration of all four markets to a shared, modern, AI-powered platform with no major disruptions or downtime, enabling operational efficiencies, scalability, and future cost savings.

• Returned to positive EBITDA of SEK 5.5 million, up from SEK 3.2 million last year, with sequential improvement throughout the quarter.

• GMV declined 8% year-over-year to SEK 445.1 million, with CDON segment down 12% and Fyndiq up 1%, but sequential monthly improvement observed.

• Focus shifted from migration to innovation, feature development, and improving supply and customer experience.

• Fyndiq returned to growth, driven by strong performance in non-Swedish Nordic countries.

Financial highlights

• Group GMV for Q3 2024 was SEK 445.1 million, down 8% year-over-year; net sales also declined 8% to SEK 103.0 million.

• Gross profit decreased by 1% to SEK 81.3 million, supported by a higher take rate of 18.3% (up 1.3 p.p.).

• Gross profit after marketing (GPAM) fell 10% to SEK 46.6 million; group GPAM margin was 10.5% (down from 10.7%).

• Adjusted EBITDA reached SEK 7.3 million, excluding SEK 1.8 million in Malmö office closure costs.

• Cash position at quarter-end was SEK 67 million, with expectations for a seasonal increase in Q4.

Outlook and guidance

• Optimism for future growth, especially with improved supply and a strong Q4 expected due to holiday sales.

• OpEx run rate targeted to be SEK 40 million lower than at the time of Fyndiq acquisition, with further cost reductions expected in 2025.

• Take rates expected to remain steady, with future increases possible as markets mature.

• Focus remains on massively improving supply to drive GMV growth and customer satisfaction.

• Confident in the foundation for profitable growth heading into 2025.