Intershop publishes figures for Q1 2024

• Positive start to 2024: EBIT breaks even after three months
• Total revenues grow by 7% to EUR 9.5 million
• Cloud revenues up 32% to EUR 4.9 million

Jena, 24 April 2024 – Intershop Communications AG (ISIN: DE000A254211), a global provider of B2B commerce solutions for the manufacturing and wholesaler sectors, increased its revenues by 7% to EUR 9.5 million in the first three months of the financial year 2024 (previous year: EUR 8.9 million). Revenues from the strategically important cloud business rose by 32% to EUR 4.9 million (previous year: EUR 3.7 million). Cloud revenues accounted for 52% of total revenues, up ten percentage points on the previous year’s 42%. Incoming cloud orders increased by 79% to EUR 4.8 million (previous year: EUR 2.6 million). Cloud ARR (annual recurring revenues) rose to EUR 18.0 million as of 31 March 2024 – an increase of 15% (previous year: EUR 15.7 million). Net New ARR doubled to EUR 0.6 million (previous year: EUR 0.3 million).

However, service revenues fell short of expectations with a decline of 16% to EUR 2.7 million (previous year: EUR 3.2 million). The service business in the first quarter of 2024 was particularly burdened by individual complex and long-term major projects, while at the same time there were fewer new projects. As expected, license and maintenance revenues decreased by 3% to EUR 1.9 million (previous year: EUR 2.0 million) due to the focus on the cloud business.

Gross profit on revenues amounted to EUR 4.2 million in the reporting period (previous year: EUR 3.6 million). The gross profit margin increased by four percentage points to 45%. Operating expenses and income decreased by 6% to EUR 4.2 million (previous year: EUR 4.5 million). R&D expenses fell by 8% to EUR 1.7 million (previous year: EUR 1.8 million). Sales and marketing expenses remained at the prior year level at EUR 1.9 million; this also applied to general administrative expenses, at EUR 0.8 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) significantly improved in the reporting period to EUR 0.8 million (previous year: EUR -5 thousand). Earnings before interest and taxes (EBIT) were slightly positive in the first quarter of 2024 at EUR 6 thousand (previous year: EUR -0.9 million). Intershop's strict cost management, efficiency enhancement, and process optimization measures thus began to take effect in the first quarter of 2024. Earnings after taxes improved to EUR -0.1 million (previous year: EUR -1.0 million).

Markus Klahn, CEO of Intershop Communications AG: “Despite continued reluctance to invest as a result of the ongoing uncertain economic situation, the start of the 2024 financial year was promising for Intershop. Thanks to significant growth in the cloud business and the cost-cutting measures initiated, we were able to break even on an EBIT basis. We will continue to rigorously pursue cost and efficiency measures. Although the new customer business remains challenging, we are confident that our cloud strategy, coupled with the integration of AI, will enable us to make significant operational and strategic progress in 2024 and confirm our forecast for the full year."

At the interim balance sheet date, equity capital amounted to EUR 11.2 million (31 December 2023: EUR 11.4 million). The equity ratio remained largely stable at 29% (31 December 2023: 30%). Cash flow from operating activities declined to EUR -0.2 million in the first three months from EUR 1.5 million in the same period of the previous year due to an increase in trade receivables. Cash and cash equivalents as of 31 March 2024 amounted to EUR 8.9 million (31 December 2023: EUR 10.0 million).

For the full year 2024, the Management Board continues to expect a slight increase in both incoming cloud orders and net new ARR. The company also projects a moderate increase in revenues and a break-even operating result (EBIT).

The quarterly statement for the first quarter of 2024 is available at https://www.intershop.com/financial-reports.