DGAP-News

home24 SE: home24 reports Q3 2020 with 54% revenue growth and 13%-points profitability improvement, and upgrades its guidance for FY 2020 - Seite 2

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."