Intershop Communications AG / DE000A254211

Intershop publishes preliminary figures for the financial year 2023

Intershop Communications AG / Key word(s): Annual Results


14.02.2024 / 07:20 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Cloud revenues up 14% to EUR 16.2 million; at EUR 19.7 million, incoming cloud orders below previous year’s high level (EUR 25.9 million) Annual recurring revenues (ARR) grow by 13% to EUR 17.3 million Total revenues up 3% to EUR 38.0 million Slightly improved operating result (EBIT) of EUR -2.5 million Clearly positive operating cash flow of EUR 3.0 million (+155%) Jena, 14 February 2024 – Intershop Communications AG (ISIN: DE000A254211), a global provider of B2B commerce solutions for the manufacturing and wholesale sectors, generated total consolidated revenues of EUR 38.0 million in the financial year 2023 (2022: EUR 36.8 million). Despite macroeconomic uncertainties and the resulting reluctance to invest in the IT sector, Intershop continued to grow its revenues in the strategically important cloud segment. Earnings before interest and taxes (EBIT) amounted to EUR -2.5 million (2022: EUR -2.9 million). Revenues in the cloud and subscription segment increased by 14% to EUR 16.2 million in the past financial year (2022: EUR 14.2 million). Annual recurring revenues (ARR) increased by 13% to EUR 17.3 million. In contrast, incoming cloud orders fell by 24% to EUR 19.7 million, while net new ARR decreased by 40% to EUR 1.9 million in the reporting period. As a result of the reluctance of potential new customers to invest, the expected increase in orders, particularly for the fourth quarter, did not materialize to the extent planned. In line with plans, license and maintenance revenues decreased slightly to EUR 8.2 million (2022: EUR 9.5 million) in the course of the transformation from license to cloud business. Service revenues increased by 4% to EUR 13.6 million (2022: EUR 13.1 million). The measures introduced to ensure more efficient project completion and new major projects led to a more stable utilization of the service team. Earnings before interest and taxes (EBIT) improved slightly compared to the previous year to EUR -2.5 million (2022: EUR -2.9 million). The main reason for the renewed negative result are insufficient revenues in the financial year 2023 due to the noticeable reluctance of potential customers to invest in view of the macroeconomic uncertainties. The EBIT margin was -7% compared to -8% in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to EUR 0.9 million (2022: EUR 0.4 million). Earnings after taxes amounted to EUR -3.1 million (2022: EUR -3.6 million). Gross profit on revenues rose slightly to EUR 15.8 million in the reporting period (2022: EUR 15.7 million). At 42%, the gross margin was thus one percentage point lower than in the previous year. Operating expenses decreased slightly to EUR 18.3 million (2022: EUR 18.6 million). At EUR 6.9 million, R&D expenses remained at the previous year's level. Marketing and selling expenses increased by 3% to EUR 8.4 million. General administrative expenses decreased slightly to EUR 3.2 million (2022: EUR 3.3 million). Total assets of the Intershop Group amounted to EUR 38.0 million as of 31 December 2023, compared to EUR 41.3 million at the end of 2022. The decrease was mainly due to the negative result for the year. The equity ratio stood at a solid 30% as of 31 December 2023 (31 December 2022: 34%). Cash and cash equivalents amounted to EUR 10.0 million at the balance sheet date (31 December 2022: EUR 10.5 million). Cash flow from operations improved to EUR 3.0 million in the reporting period, compared to EUR 1.2 million in the previous year. As of 31 December 2023, Intershop employed a total of 299 people worldwide. Markus Klahn, CEO of Intershop Communications AG: “We are successfully continuing to grow our cloud business and are resolutely driving forward our cloud transformation. Even though the reluctance to invest in the B2B sector posed challenges for Intershop’s performance in 2023 and will continue to do so, especially in terms of incoming orders, the digital transformation is progressing steadily. Our software platform in the B2B commerce segment is one of the leading solutions on the market, as demonstrated by the recently published IDC MarketScape. To better leverage this strength in the new financial year, we have expanded our Value Creation Program to improve the profitability of our business model. We therefore look forward to the new year with confidence.” For the financial year 2024, Intershop expects both incoming cloud orders and net new ARR to increase slightly compared to the financial year 2023. The company also projects a moderate increase in revenues and a break-even operating result (EBIT). The full consolidated financial statements will be published at the end of March 2023. All financials in this press release are provisional, pending completion of the statutory audit.   Contact:
Investor Relations
Mercedes Celine Zaremba
T: [phone]
[e-mail]

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14.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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Language:	English
Company:	Intershop Communications AG
	Steinweg 10
	07743 Jena
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.intershop.de
ISIN:	DE000A254211
WKN:	A25421
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:	1836683

End of News	EQS News Service

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1836683  14.02.2024 CET/CEST