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, significant OPEX reduction, and operational efficiency.

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

• Gross profit for H1 2024 grew by 6% to EUR 40.3 million, with gross margin improving to 30%.

• Business unit reorganization into Connect, Engage, Pay, and Live enhanced agility, leadership, and internal alignment, supporting new client wins and product innovation.

• Restructuring program completed, resulting in a right-sized team and renewed hiring for key roles; no further restructuring costs expected.

Financial highlights

• 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 fell 23.3% year-over-year to EUR 32.1 million; FTE base reduced by 23% to 681.

• Free cash flow improved to -EUR 1.3 million in H1 2024 from -EUR 7.9 million in H1 2023; cash balance at EUR 21 million.

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

• Net result for H1 2024 was -EUR 7.3 million, a significant improvement from -EUR 18.1 million in H1 2023.

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 million–EUR 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 value over volume, operational efficiency, and cross/upselling to drive growth.