Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call October 24, 2024
Slide 2: Welcome to CDON's Q3 earnings call
Welcome to CDON’s Q3 earnings call “Relieved that the migration went according to plan, and to deliver a positive EBITDA again” Fredrik Norberg Carl Andersson Atra Azami CEO CFO CTO
Slide 3: Executive summary
Executive summary Successfully navigating a major milestone and delivering positive results 1. All four CDON markets migrated to the shared platform - No large disruptions nor downtime 2. Still negative GMV versus last year - But sequential improvement month by month 3. EBITDA positive of +5.5 mSEK
Slide 4: Chief Technology Officer: Atra Azami
Chief Technology Officer: Atra Azami ❏ CTO at Fyndiq 4 years before the CDON acquisition ❏ Architect behind Fyndiq’s 2nd generation platform ❏ Led the migration in 2020 to this platform at Fyndiq
Slide 5: Migration completed on time, and without disruption to customers
Migration completed Successfully migrated CDON to the shared platform built by Fyndiq on time, and without disruption to our Platform consolidation was a key objective of the CDON and Fyndiq merger to unlock customers synergies, cost savings and drive efficiency One platform, double the ROI on tech
Slide 6: New platform is a state of the art marketplace platform, unlocking AI powered growth
New platform is a state of the art marketplace platform, unlocking AI powered growth A modern cloud-native, AI at the heart of the platform, microservices-based marketplace enabling innovative solutions and platform designed for scalability increased efficiency ➔ Faster time to market for all ➔ Prod
Slide 7: Back to positive EBITDA, entering the important Q4
Back to positive EBITDA, entering the important Q4 Quarterly EBITDA 2021-2024 CDON AB +5.5 mSEK * * Adjusted for restructuring costs of closing the Malmö office of 4 mSEK and foreign exchange costs of 1.9 mSEK
Slide 8: Negative GMV growth versus last year of -8% for the Group
Negative GMV growth versus last year of -8% for the Group, but continued sequential improvement month by month CDON Group Demand* GMV * to avoid timing effects, we compare demand numbers, i.e. GMV is allocated to the date of the purchase
Slide 9: Positive momentum for Fyndiq in the Nordics, fueled by new Supply
We see a positive momentum for Fyndiq in the Nordics, fueled by new Supply
Slide 10: New Chief Supply Officer: Vesa Järveläinen
New Chief Supply Officer: Vesa Järveläinen Extensive Supply experience from Finland’s leading consumer electronics retailer, Verkkokauppa.com ❏ 17 years at Verkkokauppa ❏ Part of the journey from 90 mEUR to 580 mEUR GMV ❏ Last 7 years in the management team
Slide 11: Committed to long term goal of becoming the leading Nordic marketplace
We remain committed to the long term goal of becoming the leading marketplace in the Nordics, and continue to believe in the core elements of the marketplace model Massively improve supply Greatly improve customer satisfaction Where Massively improve supply is the main focus to create GMV growth, an
Slide 12: Financial performance
Financial performance GROUP
Slide 13: Signs of progress as we return to positive EBITDA
Profit and Loss Highlights - As reported1 Signs of progress as (2023-2024), MSEK we return to positive EBITDA 2024 2023 2023 CDON Group - Post Acq Jul-Sep Jul-Sep ∆ Jan-Dec Comments Total gross merchandise value (GMV) 445.1 486.0 -8% 2,017.7 Net sales 103.0 112.2 -8% 468.7 ● 8% lower GMV in the quar
Slide 14: Closing the gap in CDON segment, while Fyndiq returns to growth
Gross Merchandise Value, by segment Closing the gap in CDON (2022-2024), MSEK segment, while Fyndiq returns to growth Comments ● CDON continues to close the gap vs. LY, and improve quarter over quarter as Q3 came in -12% vs LY ● Fyndiq returns to growth with 1% growth vs. LY ● Steady performance in
Slide 15: Continued steadiness in our take rate
Take rate, by segment Continued steadiness (2022-2024), MSEK, % of GMV in out take rate Comments ● Continued steadiness in the take rate across both segments ● No changes in commission model during the quarter, rather some mix-effects e.g. 1P in CDON accounting for a lower share of net sales, and a
Slide 16: Lower GPAM across both segments as marketing costs increased
Gross Profit After Marketing, by segment Lower GPAM across (2022-2024), MSEK both segments as marketing costs increased Comments ● 12% lower GPAM in CDON segment, in line with GMV development ● CDON segment GPAM margin in line with LY at 7.8% ● Fyndiq saw a 9% lower GPAM, as higher GP-margin did not
Slide 17: Primarily higher marketing cost in Fyndiq following higher growth
Marketing cost as % of GMV, by segment Primarily higher (2022-2024), MSEK marketing cost in Fyndiq following higher growth outside of SE Comments ● Marketing costs for CDON increased slightly as we constantly experiment to maximize GPAM ● Fyndiq’s growth outside of SE has been fueled by higher marke
Slide 18: Back to positive EBITDA thanks to improving momentum and tight cost control
EBITDA, Segment Back to positive EBITDA (2022-2024), MSEK thanks to improving momentum and tight cost control Comments ● Significantly improved EBITDA vs LY and previous quarter, confirming that underlying business is on track ● Adjusting for Malmö closure costs we see an adjusted EBITDA of 7.3 mSEK
Slide 19: Lower OPEX in the quarter, confirming we are on the right path
Adjusted Operational expenses, Group Lower OPEX in the (2022-2024)1, MSEK quarter, confirming we are on the right path Comments ● Migration completed ahead of time, but majority of consultants and dual systems still in cost base in Q3 - Cost reduction now initiated ● Costs associated with the Malmö
Slide 20: Positive operating cash flow before changes in working capital
Operating Cash Flow before changes in working capital, Positive operating cash flow Group before changes in working (2022-2024), MSEK capital, yet our cash balance is lower than end of Q2 Comments ● Cash flow from operating activities before change in WC turned positive in the quarter but working ca
Slide 21: Summary
Summary Successfully navigating a major milestone and delivering positive results 1. All CDON markets migrated to the shared platform 2. EBITDA positive of +5.5 mSEK 3. Massively improve supply remain as our main focus
Slide 22: Disclaimer
Disclaimer This CDON Q2 2024 presentation, dated July 12 2024, hereafter “the presentation”, has been prepared by CDON AB (the “Company” and, together with its subsidiaries, the “Group”). Statements contained in this presentation are only as of the date hereof. This presentation is for information p
Slide 23: GROUP
GROUP