CM.com press release
CM.com continued to grow its gross profit in 2023, following our strategic focus on creating value over revenue. We have realized positive EBITDA in H2 2023 by increasing our sales in higher margins products, while controlling our costs. Going forward, CM.com will continue to develop new customer solutions, improve margins, and keep a tight grip on costs. The newly introduced business unit structure will support our strategy. CM.com reiterates its goal to become free cash flow positive by H2 2024.
BREDA, 29 FEBRUARY 2024
Q4 2023 financial highlights
Gross profit1 increased by 17% YoY to a record level of €20.4 million. Gross profit improved in all segments, with CPaaS being the largest contributor, with an increase of 22% YoY.
Gross margin increased to 31.1% (Q4 2022: 22.3%), supported by product mix improvements in CPaaS, SaaS, and Ticketing.
Implementation of a new business unit structure: as of 1 January 2024, CM.com is organized into four business units: Connect (former CPaaS), Engage (former SaaS), Pay (former Payments), and Live (former Ticketing).
Record payments volumes processed in Payments.
Strong order intake at year-end in SaaS.
CM.com signed a standby Revolving Credit Facility (RCF) of €15 million with an accordion option of €10 million with HSBC to increase financial flexibility.
FY 2023 financial highlights
Gross profit increased by 9% YoY to €78.5 million, supported by growth in all segments, especially Ticketing with a growth of 29%.
Gross margin improved to 29.5% in 2023 (2022: 25.4%), with CPaaS showing the strongest margin improvement YoY.
Normalized EBITDA for the full year was -€0.9 million, before €1.8 million restructuring costs, compared to -€ 22.3 million in FY 2022, before €4.2 million one-off bad debt hit.
Normalized EBITDA H2 2023 was €2.8 million positive, before €1.0 million restructuring cost, meeting guidance.
Revenue developed to €266.2 million (-6% YoY), as revenue from higher margins products remained strong, and CPaaS focused on improving profitability.
Normalized OPEX decreased 16% YoY to €79.5 million, in accordance with our guidance.
The FTE count declined by 23% to 720 FTE per year-end 2023.
Outlook
CM.com will continue to grow its gross profit, while controlling costs, leading to increasing EBITDA.
OPEX is expected to decline further in 2024, mostly as the cost base is now structurally lower than in 2023.
CM.com reiterates its target to be free cash flow positive by H2 2024.