CM.com (CMCOM) H1 2024 earnings summary

Executive summary

• Achieved record normalized EBITDA of EUR 8.2 million in H1 2024, up from -EUR 3.7 million in H1 2023, driven by strong gross profit and significant OPEX reduction.

• Revenue for H1 2024 was EUR 134.4 million, down 2% year-over-year, but Q2 2024 revenue increased 7% to EUR 70.8 million.

• Launched four business units (Connect, Engage, Pay, Live) to enhance agility, talent deployment, and client service, supporting new client wins and product innovation.

• Restructuring program concluded, with right-sized teams and renewed hiring to strengthen capabilities; no further restructuring costs expected.

• Strategic focus on high-margin products and operational efficiency led to improved profitability and cash flow.

Financial highlights

• Gross profit for H1 2024 grew 6% to EUR 40.3 million; gross margin improved to 30%.

• Q2 2024 revenue grew 7% year-over-year to EUR 70.8 million; gross profit up 8% to EUR 20.7 million; gross margin at 29.3%.

• Normalized OPEX for H1 2024 fell 23% year-over-year to EUR 32.1 million; FTE base reduced by 23%.

• Free cash flow improved to -EUR 1.3 million in H1 2024 from -EUR 7.9 million in H1 2023; cash position at EUR 20.6 million.

• CAPEX decreased 27% year-over-year to EUR 8.9 million; CAPEX/revenue ratio improved to 6.6%.

Outlook and guidance

• Guidance reiterated to become free cash flow positive by H2 2024; no further restructuring costs anticipated.

• Normalized EBITDA for 2024 expected in the range of EUR 14–18 million, up from EUR 0.9 million in 2023.

• Normalized OPEX expected to be at least 15% lower year-over-year in 2024.

• Continued focus on efficiency, cost control, and leveraging cross- and upselling opportunities.