IFRS Revenues growth >60% YoY and fully on track to achieve 2024 goals. Introduction of new B2C and B2B business segment reporting

HomeToGo reports strong Q1/24 performance: IFRS Revenues growth >60% YoY and fully on track to achieve 2024 goals. Introduction of new B2C and B2B business segment reporting

Luxembourg, 14 May 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 first quarter of 2024.

Financial Highlights

• Booking Revenues reached an all-time high value of €83.4M (27.7% YoY and 214% Yo5Y), primarily driven by Booking (Onsite) business (39.3% YoY) and record high Onsite Take Rate of 12.8% (+1.7pp YoY). Booking Revenues Backlog[1] at the end of Q1 grew 10.3% YoY to a new record figure of €76.6M.
• IFRS Revenues reached a record high for the first quarter of €36.4M (66.4% YoY and 201% Yo5Y) driven by both segments, HomeToGo B2C Marketplace and HomeToGo_PRO B2B business. The high growth during Q1/24 partially relates to the first-time consolidation of HomeToGo’s latest acquisitions in January 2024 as well as an early Easter break.
  • The Marketplace segment, HomeToGo's B2C platform offering the world's largest selection of vacation rentals to travelers, strongly grew IFRS Revenues by 83.7% YoY due to stellar growth in its Booking (Onsite) business that more than tripled its IFRS Revenue YoY. The Advertising business line contributed a substantial 27.6% YoY increase in IFRS Revenues. 
  • The HomeToGo_PRO segment, encompassing B2B Software & Service Solutions for the whole travel market with a special focus on SaaS for the supply side of vacation rentals, reached €11.6M in IFRS Revenues (35.3% YoY), now accounting for 32% of HomeToGo Group’s total IFRS Revenues in Q1/24.
• Adjusted EBITDA amounted to €(21.2)M in Q1/24 (15% or a €3.6M YoY improvement), reflecting an Adjusted EBITDA margin of (58.3)% which is fully in line with the underlying seasonality of the business. Adjusted EBITDA margin strongly improved by +55.1pp YoY largely due to a substantially higher marketing efficiency.
• Comfortable cash position of €90.6M after incorporating the successful closing of the majority acquisitions in Q1/24 and the significant seasonal marketing investments to build up the record Booking Revenues Backlog.
• Free Cash Flow[2] of €(22.4)M in line with expectations at (11.3)% YoY due to higher capital expenditures, VAT tax payments as a result of the recent acquisitions, and seasonal higher working capital needs.

Confirmation of full year guidance

Based on the strong Q1/24, the Company confirms its FY/24 guidance of growing Booking Revenues to more than €250M (>30% YoY), IFRS Revenues to more than €220M (>35% YoY), and delivering more than €10M of Adjusted EBITDA in FY/24 (>400% YoY).

Dr. Patrick Andrae, Co-Founder & CEO of HomeToGo: “The first quarter of 2024 marks the introduction of HomeToGo’s new reporting segmentation that aims to provide the market with higher transparency into our business operations and financial updates. At the end of the first quarter, we are fully on track with our ambitious growth journey through the robust growth achieved both by our B2C Marketplace and HomeToGo_PRO at the beginning of the year. We are well positioned to achieve our 2024 financial targets and remain focused on accelerating our growth at improved profitability.”

Review of Q1/24

In Q1/24 HomeToGo delivered a strong performance in Booking Revenues to a new quarterly all-time high of €83.4M (27.7% YoY vs. €65.3M in Q1/23 and 214% Yo5Y vs.  €26.6M in Q1/19). The dominant driver was the newly established Marketplace segment with its Booking (Onsite) business growing 39.3% YoY in Booking Revenues and even 53.0% YoY in its number of bookings. Besides a strong organic foundation, these positive developments were partly driven by the first-time consolidation of the majority acquisition of the combined leading short trip business of Kurz Mal Weg and Kurzurlaub in early 2024. This contributed to business volume with shorter length of stays in DACH due to the acquisition’s leading speciality in short trips.

Another key driver behind the top-line growth was the substantial growth of the Marketplace segment’s Onsite Take Rate to 12.8% (+1.7pp YoY) as part of the Booking (Onsite) business. The Booking Revenues Backlog grew to a new all-time record high of €76.6M (10.3% YoY vs. €69.5M in Q1/23). HomeToGo’s Repeat Booking Revenues grew by 31% in the first quarter of 2024 compared to the previous year period and more than ten-folded over the last five years.

HomeToGo’s IFRS Revenues increased materially by 66.4% to €36.4M (vs. €21.9M in Q1/23 and 201% vs. €12.1M in Q1/19) in the first three months of the year compared to the previous year period. The Marketplace segment contributed a particularly strong 83.7% YoY growth in IFRS Revenues. The top-line development was due to both decent organic growth driven by an early Easter as well as the first-time consolidation of the recent acquisitions closed in January 2024.

Within the Marketplace segment, the Booking (Onsite) business especially experienced stellar growth in Q1/24, more than tripling its IFRS Revenues compared to the previous year period from €3.7M to €12.5M (241.2% YoY). The Advertising business - comprising the former CPA Offsite and CPC business - grew its IFRS Revenues by 27.6% YoY, benefiting from the continued strength and commercials in the North American market.

HomeToGo_PRO showed a continued strong growth momentum, increasing its IFRS Revenues to €11.6M (35.3% YoY) and now accounting for 32% of the Group’s total IFRS Revenues. Both the Subscription as well as Volume-based business activities contributed strongly to this growth with 24.1% and 47.9% YoY, respectively.

HomeToGo’s underlying profitability improved with Q1/24 Adjusted EBITDA coming in at €(21.2)M (15% YoY, a €3.6M improvement), fully in line with HomeToGo's typical seasonal pattern. This is equivalent to an Adjusted EBITDA margin of (58.3)%, a substantial improvement of +55.1pp YoY (vs. €(24.8)M in Q1/23). This largely stems from a significantly higher marketing efficiency with a notable +40.9pp YoY improvement in the marketing and sales cost ratio[3] (114.0% vs. 154.9% in Q1/23) as well as overall strong cost discipline.

On a segment level, the Adjusted EBITDA for the Marketplace segment improved by 5.0% YoY to €(22.5)M whereas HomeToGo_PRO achieved a swing into profitability on a yearly comparison and delivered €1.1M in Adjusted EBITDA in Q1/24. While the Marketplace is heavily driven by a seasonal pattern - whereas the IFRS Revenues recognition peaks in the summer months and the marketing expenses in the winter/spring months - the Adjusted EBITDA of the HomeToGo_PRO segment remains relatively steady throughout the year.

Q1 2024 Results: Q1 Quarterly Statement, Earnings Call, and Presentation
Dr. Patrick Andreae, Co-Founder & CEO, and Steffen Schneider, CFO, will present the financial results for Q1/24 in a webcast and conference call today at 10:00 am CEST, 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/login/hometogo-2024-q1

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=7413692&linkSecurityString=10036affcc 

HomeToGo's Q1 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 CEST 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 business 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”.

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, 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 before cancellation generated until 31 March 2024 with IFRS Revenues recognition based on check-in date in FY 2024.

^{[2]Free Cash Flow is defined as net cash used in operating activities added by net interest result and deducted by capital expenditures defined as net investment into PPE as well as into intangibles and internally-generated intangible assets.}

^{[3]Adjusted for expenses for share-based compensation, depreciation, amortization and one-off items in relation to IFRS Revenues.}