EQS-News: Intershop Communications AG
/ Key word(s): 9 Month figures
Jena, 26 October 2022 – Intershop Communications AG (ISIN: DE000A254211), a global provider of B2B commerce solutions for the upper mid-market in the manufacturing and wholesale sectors, recorded a 4% increase in revenues to EUR 27.6 million in the first nine months of the financial year 2022 (previous year: EUR 26.6 million). Revenues from the strategically focused cloud business rose by 27% to EUR 10.4 million (previous year: EUR 8.1 million). Cloud revenues accounted for 38% of total revenues, up seven percentage points on the previous year’s 31%. Incoming cloud orders climbed 65% to EUR 18.7 million, thus exceeding the level of the full previous year after only nine months. Cloud ARR (annual recurring revenues) rose to EUR 15.1 million as of 30 September 2022 – an increase of 32% (previous year: EUR 11.4 million). Net new ARR picked up by 40% to EUR 2.9 million (previous year: EUR 2.1 million).
Earnings before interest and taxes (EBIT) stood at EUR -1.1 million at the nine-month stage of 2022 (previous year: EUR 1.2 million). The decline in earnings was primarily due to the lack of service revenues, which declined by 18% to EUR 9.6 million. The reason for this decline were inefficiencies in project costing and execution. The measures already initiated failed to have a substantial effect on business performance in the third quarter. License and maintenance revenues increased by 12% to EUR 7.6 million in the reporting period (previous year: EUR 6.8 million).
Gross profit on revenues decreased slightly by 2% to EUR 12.2 million in the reporting period, while the gross margin fell by three percentage points to 44%. Operating expenses and income increased by 17% to EUR 13.3 million. In addition to acquisition-related one-time expenses, this was due to higher personnel costs resulting from new hires and salary increases. These investments are important for Intershop to succeed in the competition for qualified specialists. R&D expenses rose by 33% to EUR 5.3 million. At EUR 5.9 million, sales and marketing expenses were slightly higher than in the same period of the previous year (previous year: EUR 5.6 million). General administrative expenses stayed at the prior year level of EUR 2.5 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at EUR 1.3 million in the reporting period (previous year: EUR 3.5 million). The result after taxes amounted to EUR -1.5 million (previous year: EUR 0.8 million).
“The strong growth in the cloud business underlines that we are very well positioned in the market with our powerful B2B commerce platform,” says Markus Klahn, CEO of Intershop Communications AG. “The service business performed below expectations, but with the measures initiated to increase efficiency in project execution, we are on the right track to achieving adequate utilization of our service team again in the first half of 2023 and generate corresponding revenue increases.”
At the interim balance sheet date, equity capital amounted to EUR 15.8 million (31 December 2021: EUR 17.4 million). The equity ratio declined to 37%, mainly as a result of the increase in total assets. Cash flow from operations stood at EUR 0.2 million in the first nine months, compared to EUR 3.2 million in the same period of the previous year. Cash and cash equivalents amounted to EUR 10.5 million at the reporting date.
For the full year 2022, the Management Board continues to expect incoming cloud orders to rise by about 20% and net new ARR to pick up by 10%. In addition, the company projects revenues at the previous year’s level and negative earnings before interest and taxes (EBIT) in the low single-digit million euro range.
The quarterly statement for the first nine months of 2022 is available at https://www.intershop.com/financial-reports.
26.10.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|Company:||Intershop Communications AG|
|Indices:||CDAX, PRIMEALL, TECHALLSHARE|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1472003|
|End of News||EQS News Service|
1472003 26.10.2022 CET/CEST