Cdon Ab · OMXSTO:CDON
Cdon Ab — Q2 2024 Earnings Presentation
22 slides from Cdon Ab's earnings presentation, Jul 12, 2024
Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call July 12, 2024
Slide 2: Welcome to CDON's Q2 earnings call
Welcome to CDON’s Q2 earnings call “Near-term “Clearly higher challenges, but ambitions than this, making the right but the long-term investments for potential remains long-term success” clear” Fredrik Norberg Carl Andersson CEO CFO
Slide 3: Executive summary
Executive summary Near-term challenges, but making the right investments for long-term success - No top line growth, but sequential improvement month by month - EBITDA loss of -3.5 MSEK, adjusted for Malmö closing and foreign exchange costs - Operational improvements implemented to work towards our
Slide 4: Negative growth versus last year of -16%, but sequential improvement month by month
Negative growth versus last year of -16%, but sequential improvement month by month April May June 0% GMV y/y -11% -14% -22% * to avoid timing effects, we compare demand numbers, i.e. GMV is allocated to the date of the purchase. Both segments’ full quarters included.
Slide 5: The second, and hopefully last, negative EBITDA quarter
The second, and hopefully last, negative EBITDA quarter Quarterly EBITDA 2021-2024 -3.5 mSEK* * Adjusted for restructuring costs of closing the Malmö office of 4 mSEK and foreign exchange costs of 1.9 mSEK
Slide 6: Platform migration
Platform migration All work streams are making sound progress, and we remain confident in realizing the migration before Q4 ● September deadline still intact ● Enable further cost savings ● Still confident in 40 mSEK cost savings for 2025 ● Increased risk for Q3 sales due to bugs or other hiccups
Slide 7: Supply acquisition
Supply acquisition We are fully focused on improving our supply, which will be the main driver to fuel growth We have implemented several initiatives to improve our supply ● Reworked process to identify supply gaps ● New process to find the merchants with the wanted supply ● Main focus on non-Nordic
Slide 8: Customer satisfaction
Customer satisfaction Successful execution of our strategic focus on improving customer Customer review score for the CDON-segment happiness for CDON Continued momentum from improvements in customer experience shows an increase from avg 3.8 to 4.2 in customer review score for Q2´24 compared to the s
Slide 9: Long-term strategy
Long-term strategy 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 t
Slide 10: Financial performance
Financial performance GROUP
Slide 11: Profit and Loss Highlights - Negative EBITDA in a tough quarter
Profit and Loss Highlights - As reported1 Negative EBITDA, in a tough (2023-2024), MSEK quarter with headwind from multiple directions 2024 2023 2023 CDON Group - Post Acq Apr-Jun Apr-Jun ∆ Jan-Dec Total gross merchandise value (GMV) 426.1 497.3 -14% 2,017.7 Comments Net sales 97.2 104.2 -7% 468.7 C
Slide 12: Gross Merchandise Value, by segment
Gross Merchandise Value, by segment (2022-2024), MSEK Continued negative GMV development, but some signs of improvement Comments ● Another tough quarter for CDON, -21% vs. ‘23, but we have seen sequential improvement month over month ● Higher than usual non-fulfilled volume at month-end in June sugg
Slide 13: Take rate, by segment
Take rate, by segment Our take rate (2022-2024), MSEK, % of GMV remains strong Comments ● Continued steadiness in the take rate in across both segments ● No changes in commission model during the quarter and little mix-effect 2022 2023 2024 Take rate (%) = Merchant Commission & Fees + Value-Added Se
Slide 14: Gross Profit After Marketing, by segment
Gross Profit After Marketing, by segment Lower GPAM in CDON (2022-2024), MSEK but positive trend continues for Fyndiq Comments ● 23% lower GPAM in CDON segment, in line with the GMV development ● Slight decline in GPAM as a % of GMV from 8.1 to 7.8% in the quarter explained by higher marketing cost
Slide 15: Marketing cost as % of GMV, by segment
Marketing cost as % of GMV, by segment Slightly higher (2022-2024), MSEK marketing cost as we continue to optimize for higher absolute GPAM Comments ● Marketing costs for CDON increased, primarily explained our effort to expand GMV but also some timing effect from non-fulfilled demand ● Steadiness i
Slide 16: EBITDA, Segment
EBITDA, Segment Negative EBITDA reflecting (2022-2024), MSEK challenging demand, Malmö office closure and the ongoing platform migration Comments ● Despite negative EBITDA in the quarter, we remain positive about the long-term potential in our business ● Poor GPAM development, effectively weak GMV a
Slide 17: Adjusted Operational expenses, Group
Adjusted Operational expenses, Group Our OPEX remains (2022-2024)1, MSEK higher than end-target but still of temporary character Comments ● Work with the migration reaching its peak with planned launch towards end of Q3. Majority of consultants and dual systems still in cost base ● Costs associated
Slide 18: Operating Cash Flow before changes in working capital, Group
Operating Cash Flow before changes in working capital, Negative operating cash Group flow before changes in (2022-2024), MSEK working capital but an improving cash balance at quarter end Comments ● Negative operating cash flow before changes in working capital following operational headwinds ● Solid
Slide 19: Summary
Summary ● Working on solutions to our near-term challenges ● Long term operational improvements on the right path: ○ Full focus on Supply acquisition ○ Migration of CDON’s platform to create one shared IT-platform ○ Centralisation of the organisation ● Maintaining our long-term objective: to become
Slide 20: Q&A
Q&A
Slide 21: 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 22: GROUP
GROUP