DGAP-News: home24 SE
/ Key word(s): Quarterly / Interim Statement/Change in Forecast
home24 reports Q3 2020 with 54% revenue growth and 13%-points profitability improvement, and upgrades its guidance for FY 2020
Berlin, 11 November 2020 - In Q3 2020, home24 SE ("home24", the "Company") continued the successful development of the first half of the year 2020. Driven by a currency-adjusted order intake growth of 45% year-over-year and a partial spill-over of revenues from orders out of Q2 2020, the Company generated currency-adjusted revenues of EUR 118 million (previous year: EUR 85 million). This represents a currency-adjusted increase of 54% in comparison with the same quarter of the previous year. Due to the depreciation of the Brazilian Real against the Euro, the currency effects become increasingly significant in the financial figures. Including these currency effects, the Group's revenues of Q3 2020 were 39% higher than in the previous year's quarter. In Q3 2020, Brazil grew its revenues by 88% at constant currency to EUR 29 million compared to the same period of 2019, Europe by 42% to EUR 89 million.
Overall, the Company increased its revenue in the first nine months of 2020 at constant currency to EUR 339 million (previous year: EUR 262 million), which corresponds to a growth of 38% compared with the same period last year. Including currency effects, revenues were 29% higher than in the previous year. Europe has shown a revenue growth of 34% to EUR 265 million, while Brazil's revenue increased by 49% at constant currency to EUR 74 million.
In Q3 2020, home24 achieved a significant improvement of the adjusted EBITDA margin by 13%-points year-over-year, corresponding to an adjusted EBITDA margin of 4% at the end of Q3 2020. This adds another profitable quarter to the adjusted EBITDA profitability milestone over a twelve-month period achieved already in Q2 2020, even though Q3 2020 typically is a less profitable investment quarter. Key drivers for this development are the platform investments made in the previous quarters as well as the beneficial demand effects from both new and existing customers. Within the last two quarters, home24 added more than 400,000 active customers, leapfrogging the development of the past two years. The Company has now reached almost two million active customers, laying a solid foundation for future repeat revenues.
The improvement in profitability has had a positive impact on the Company's cash position as home24 generated EUR 1 million of cash in Q3 2020, despite repaying a EUR 6 million facility. At the end of September 2020, the cash balance of home24 amounted to EUR 48 million, representing an increase of c. EUR 5 million compared to the end of Q3 2019.
"In these times of uncertainty about the pandemic and the economy, home24 continues to deliver strong operating and financial results. The third quarter growth combined with the strong profitability improvements are testimony to the investments taken in recent years and the great work of the entire home24 team translating into sustainable results. Our key priority remains the health and safety of our customers, employees, and partners.", says Marc Appelhoff, CEO of home24. "The home and living momentum remains favourable, demand is moving online at an accelerated pace, and we expect the home to remain more important to consumers in the future. We believe that the online penetration growth will continue to fuel our long-term growth strategy as consumers increasingly rely on the positive experiences made with home24."
Revised financial outlook
While the Company continues to acknowledge that significant uncertainty linked to the COVID-19 pandemic remains in place, home24 is upgrading its guidance for FY 2020. On the basis of the strong first nine months of 2020 and visibility of trading in Q4 2020 to date, the outlook has been upgraded to currency-adjusted revenue growth in the range of 38% to 42% (previously 25% to 35%). In addition, the Company expects an adjusted EBITDA margin in the range of 2% to 4% (previously 1% to 3%).
This publication contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the Company's management. Forward-looking statements contain no guarantee for the occurrence of future results and developments and are associated with known and unknown risks and uncertainties. Due to various factors, actual future results, developments and events may differ materially from those described in these statements; neither the Company nor any other person accepts any responsibility whatsoever for the accuracy of the opinions or underlying assumptions contained in this publication. The Company assumes no obligation to update the forward-looking statements contained in this publication.
11.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|EQS News ID:||1147118|
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