HomeToGo reports 9M/24 results with 30% YoY growth in Booking Revenues and Adj. EBITDA more than tripling. Significant improvement in Free Cash Flow and Backlog. Update of FY/24 Guidance

HomeToGo reports 9M/24 results with 30% YoY growth in Booking Revenues and Adj. EBITDA more than tripling to €16.8M (259% YoY). Significant improvement in Free Cash Flow and Backlog for future IFRS Revenues. Update of FY/24 Guidance 

Luxembourg, 12 November 2024 - HomeToGo SE (Frankfurt Stock Exchange: HTG), the SaaS-enabled marketplace with the world’s largest selection of vacation rentals, today published its financial results for the third quarter of 2024 and updated its financial guidance for 2024.

Group Highlights  

• Strong growth in Booking Revenues to €209.8M in the first nine months of 2024 (30.5% YoY and 219% Yo5Y). The Onsite Take Rate for 9M/24 rose to 12.8% (+1.6pp YoY). In Q3/24, Booking Revenues set a new record for the third quarter, totaling €62.7M (38.2% YoY and 233% Yo5Y). Booking Revenues Backlog[1] grew by 28.4% YoY to €37.4M at the end of Q3/24, ensuring strong IFRS Revenues visibility for the remainder of the year and beyond.
• IFRS Revenues grew substantially to €176.7M in 9M/24 (27.6% YoY and 195% Yo5Y) alongside setting a new quarterly all-time high of €87.4M in Q3/24 (18.3% YoY and 180% Yo5Y).
• Adjusted EBITDA more than tripled to €16.8M for 9M/24, reflecting a 258.7% YoY increase and an Adjusted EBITDA margin of 9.5% (+6.1pp YoY). This substantial improvement was driven by ongoing margin expansion in both the Marketplace and HomeToGo_PRO segments, strong cost discipline, greater economies of scale, and continued growth in Repeat Booking Revenues, up 31.6% YoY. In Q3/24, Adjusted EBITDA reached a record quarterly high of €35.9M (27.7% YoY), with a strong Adjusted EBITDA Margin of 41.0% (+3.0pp YoY).

Business Segment Highlights

• The Marketplace segment, HomeToGo's AI-powered B2C platform offering the world's largest selection of vacation rentals, grew its Booking Revenues by 29.4% YoY to €157.1M in 9M/24. IFRS Revenues increased by 29.6% YoY to €128.1M for the same period, driven by exceptional growth in its Booking (Onsite) business of 55.6% YoY. The Advertising business recorded a 5.1% YoY increase in IFRS Revenues for 9M/24, reflecting the strategic focus on higher-margin revenue streams. Adjusted EBITDA for the HomeToGo Marketplace improved significantly, growing nearly tenfold in 9M/2024 (>800% YoY) to €6.2M.
• The HomeToGo_PRO segment, encompassing B2B Software & Service Solutions for the entire travel market with a special focus on SaaS for the supply side of vacation rentals, reported a 33.6% increase in Booking Revenues to €60.3M for 9M/24. Corresponding IFRS Revenues grew by 19.1% YoY to €54.5M for 9M/24, contributing more than 30% of the total Group's IFRS Revenues. The Subscription business increased IFRS Revenues by 12.5% YoY in 9M/24, while the Volume-based business saw a notable 22.3% YoY growth in IFRS Revenues during the first nine months of 2024. Adjusted EBITDA for the HomeToGo_PRO segment more than doubled in 9M/24, increasing by 164.3% YoY to €10.6M.

Cash Development  

• Solid cash position of €89.8M at the end of Q3/24, reflecting a slight decrease of €5.9M vs. end of Q2/24. This change was primarily due to traveler advance payments forwarded to partners during the peak travel season, and an acquisition-related earn-out payment.
• Free Cash Flow substantially improved by 50.2% YoY, totaling €(11.2)M during the first nine months of 2024, primarily driven by improved cash flows from operating activities. In Q3/24, Free Cash Flow increased by more than €10M YoY, nearly reaching break-even at €(0.9)M.

Updated Full Year Guidance 

Based on the performance in the first nine months of 2024, the Company upwardly adjusts its FY/24 guidance for Booking Revenues, now targeting more than €255M (>34% YoY; previous guidance of more than €250M or >30% YoY). However, due to lower-than-expected last-minute booking business in the North American Advertising market and an increase in cancellation rates in the third quarter, the Company slightly adjusts its IFRS Revenues guidance downwards to a range of €215M - 220M (32% - 35% YoY; previous guidance of more than €220M or >35% YoY). Finally, while HomeToGo’s profitability is currently well advanced, there are also attractive opportunities to further build up the backlog for FY/25. Therefore, HomeToGo comfortably confirms its guidance for Adjusted EBITDA of more than €10M (>400% YoY).

Dr. Patrick Andrae, Co-Founder & CEO of HomeToGo: “In the first nine months of the year, HomeToGo has remained focused on sustained growth while further improving profitability. This is exemplified in our third quarter results, which showcase record-breaking figures alongside strong advancements in Adjusted EBITDA for both our business segments: the HomeToGo Marketplace and HomeToGo_PRO. As we enter the final quarter of the year, our third quarter performance and solid cash position has set a healthy financial foundation for the remainder of 2024 and beyond.”

Review of Q3/24 

Building on the momentum from the first half of 2024, HomeToGo saw impressive growth in Booking Revenues in Q3/24, reaching €62.7M (38.2% YoY vs. €45.3M in Q3/23 and 233% Yo5Y vs. €18.8M in Q3/19). Both the Marketplace and HomeToGo_PRO segment contributed positively, with respective growth rates of 33.8% and 45.1% YoY, reaching a new third quarter high in terms of Booking Revenues.

HomeToGo’s IFRS Revenues set a new record for any quarter, rising by 18.3% YoY to €87.4M (vs. €73.9M in Q3/23 and 180% Yo5Y vs. €31.2M in Q3/19). Both segments contributed to that growth, with Marketplace IFRS Revenues growing 15.6% YoY and HomeToGo_PRO advancing by 19.7% YoY, now accounting for more than 30% of the total Group’s IFRS Revenues.

HomeToGo’s underlying profitability improved further as the Group’s Adjusted EBITDA grew notably by 27.7% YoY, reaching a quarterly all-time high of €35.9M in Q3/24 with a strong Adjusted EBITDA margin of 41.0% (+3.0pp YoY). The margin expansion reflects continued growth in both segments, strong cost discipline as well as further improved marketing efficiency, with the marketing and sales cost ratio[2] improving by 3.9pp YoY (38.2% vs. 42.1% in Q3/23).

The Marketplace segment saw strong growth in Q3/24, with Booking Revenues surging by 33.8% YoY to €44.5M and IFRS Revenues rising 15.6% YoY to €62.8M. This growth was supported by strength in the Booking (Onsite) business with a 71.5% YoY increase to €27.4M Booking Revenues, a strong organic base and contributions from GetAway Group, acquired earlier this year, a leading specialist for short trip businesses that includes the brands Kurzurlaub and Kurz Mal Weg. The Onsite Take Rate increased by +1.7pp YoY to 13.0%, further boosting top-line growth. HomeToGo’s Repeat Booking Revenues also grew by 24.5% YoY in the third quarter of 2024 and more than tenfold over the last five years. The Advertising business, which includes the former CPA Offsite and CPC business, posted a modest IFRS Revenues increase of 3.8% YoY to €24.1M. Overall, these developments led to a record Booking Revenues Backlog at the end of Q3/24 of €37.4M (28.4% YoY), with the majority expected to convert into IFRS Revenues upon check-in in Q4/24, providing strong revenue visibility for the remainder of the year and beyond. The Adjusted EBITDA for the Marketplace segment rose by 19.4% YoY, reaching €29.7M at the end of Q3/24.

HomeToGo_PRO maintained its profitable growth momentum from the year’s first half, with Booking Revenues increasing by 45.1% YoY in Q3/24 to €19.9M. The segment’s IFRS Revenues grew by 19.7% YoY to €27.8M in Q3/24, with the Subscription business IFRS Revenues up by 3.2% YoY to €5.4M and the Volume-based business up by 24.5% YoY to €22.4M. Adjusted EBITDA for HomeToGo_PRO nearly doubled YoY, growing by 90.6% YoY to €6.2M in Q3/24, with the Adjusted EBITDA margin for this segment expanding by +8.3pp YoY to 22.3%.
 

Q3/24 Results: Q3 Quarterly Statement, Earnings Call, and Presentation
Steffen Schneider, CFO, will present the financial results for Q3/24 in a webcast and conference call today at 10:00 am CET, followed by a Q&A session for research analysts and investors.

The presentation will be held via a live audio webcast, and will be in English, hosted at https://www.webcast-eqs.com/hometogo-2024-q3

Interested participants can register in advance for the conference call - with the opportunity to take part in the Q&A session - at the following address: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=1316008&linkSecurityString=2de475328

HomeToGo's Q3/24 Quarterly Statement is available on the HomeToGo Investor Relations website at ir.hometogo.de. 

The earnings presentation for analysts and investors will be made available shortly before the call starts at 10:00 am CET and is also available at ir.hometogo.de.

About HomeToGo 

HomeToGo was founded in 2014 with a vision to make incredible homes easily accessible to everyone. HomeToGo has since grown to become the SaaS-enabled marketplace with the world’s largest selection of vacation rentals.

With 15M+ offers across thousands of trusted partners globally, HomeToGo’s AI-powered B2C Marketplace expertly matches supply and demand to connect travelers with the perfect vacation rental for any trip around the world. As the go_to destination for vacation rentals, the HomeToGo Marketplace offers the world’s largest vacation rental selection combined with an end-to-end convenient, trusted, and intuitive product experience.

HomeToGo_PRO, the Company’s B2B segment, offers innovative Software & Service Solutions including Subscriptions for the whole travel market with a special focus on SaaS for the supply-side of vacation rentals.

While HomeToGo SE's registered office is located in Luxembourg, HomeToGo GmbH is headquartered in Berlin, Germany. HomeToGo operates localized apps and websites in 25 countries.

HomeToGo SE is listed on the Frankfurt Stock Exchange under the stock ticker “HTG” (ISIN LU2290523658).

For more information visit: www.hometogo.com/about

Media Contact
Caroline Burns
press@hometogo.com

Investor Relations Contact
Sebastian Grabert, CFA
+49 157 501 63731
IR@hometogo.com

Forward-Looking Statements

Certain statements contained in this release may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions, or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by HomeToGo SE that any forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations, and prospects may differ materially from those projected or forecast in the forward-looking statements. Neither HomeToGo SE nor any of their respective affiliates assume any obligation to update, and do not expect to publicly update, or publicly revise, any forward-looking statements or other information contained in this release, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Use of Non-IFRS Performance Measures

This release includes certain financial measures not presented in accordance with IFRS, which may exclude items that are significant in understanding and assessing the Company's financial results. These measures should not be considered in isolation or as an alternative to measures of profitability, liquidity or performance under IFRS. Regarding the alternative performance measures Adjusted EBITDA, Booking Revenues, Repeat Booking Revenues, Free Cash Flow, and Onsite Take Rate, the Company refers to the corresponding definitions published on its IR website under IR resources (http://ir.hometogo.de/).

^[1] Booking Revenues Backlog comprises Booking Revenues before cancellation generated in the reporting period or prior with IFRS Revenues recognition based on check-in date after the reporting period.

^{[2]Adjusted for expenses for share-based compensation, depreciation, amortization and one-off items in relation to IFRS Revenues.}