CDON (CDON) Q4 2023 earnings summary

Executive summary

• Strategic priorities advanced in Q4: 164 new CDON merchants onboarded, customer review score rose from 3.8 to 4.1, and platform migration remained on plan for September.

• Full-year EBITDA improved by 138 mSEK YoY to 22.7 mSEK, while GMV declined 3% on a reported basis.

• Gross Profit After Marketing grew YoY in both segments: 14% for CDON and 12% for Fyndiq.

Financial highlights

• Q4 reported GMV was 625.6 mSEK, down 4% YoY; net sales were 160.9 mSEK, up 6%, and gross profit was 111.7 mSEK, up 55%.

• Q4 reported EBITDA was 17.0 mSEK vs -48.2 mSEK in Q4 2022; Q4 2022 adjusted EBITDA was -40 mSEK.

• FY net sales were 468.7 mSEK, up 2% YoY; gross profit was 323.4 mSEK, up 42%, and EBITDA was 22.7 mSEK vs -115.1 mSEK.

• FY Gross Profit After Marketing was 201.4 mSEK vs 117.5 mSEK, up 71%; comparisons include Fyndiq only from April 12, 2023.

Outlook and guidance

• Platform migration remains on plan, with completion targeted for September.

• Underlying cost base is expected to decline in 2024; confidence increased in achieving a 40 mSEK lower OPEX run rate by year-end 2024.

• 2024 centralization costs of 7–9 mSEK are expected to be offset by lower costs by 2026.

• Process improvements are expected to double merchant onboarding capacity in 2024; new merchant sales typically follow after a three-month lag.