Growens (GROW) Investor Presentation summary

Strategic developments and business transformation

• Shifted focus to cloud software and SaaS, with 7 acquisitions and 2 major divestments since 2015, including the sale of ESP and Datatrics businesses in 2023 for over €78m.

• Proceeds from divestments used for a voluntary partial tender offer and the first dividend distribution, returning significant value to shareholders.

• Acquired RGE assets in 2024 for up to $6.6m to expand Beefree's customer base and product capabilities.

• Current operations focus on Agile Telecom (CPaaS) and Beefree (SaaS), with 160+ employees across two continents.

Business unit performance and growth drivers

• Beefree achieved $15.2m ARR (+23% YoY), with 1.1m free users and 9,400+ clients, aiming for $30–35m ARR by 2026.

• Beefree SDK is embedded in over 1,000 SaaS applications, including 60% of Forrester Wave Cross-Channel Marketing Hubs.

• Agile Telecom remains Italy's #1 A2P messaging provider, sending ~2b SMS annually, with €44.4m revenues and 3% EBITDA margin as of Q3 2024.

• Strategic focus on R&D and M&A for Beefree, with €15m investment planned for 2024–2026 and a target to exceed the Rule of 40 for growth and profitability.

Financial results and capital allocation

• FY 2023 revenues were €75.1m (down 2.2% YoY post-divestments), with Beefree up 18% and Agile Telecom down 6%.

• Gross profit increased 19% in 2023, while EBITDA turned negative due to higher R&D and S&M expenses.

• Shareholders' equity rose to €56.9m in 2023, with a strong net cash position following divestments and capital returns.

• Dividend payout of €1.58 per share in two tranches, representing a 37.5% payout ratio and 28.2% yield at proposal date.

• Market cap reached €88.7m as of November 2024, with a 66% 5-year performance and 10% 1-year gain.