Strong Growth in IFRS Revenues of >35% YoY to €>220M Alongside Significant Adjusted EBITDA Growth. Share Tender Offering Announced

HomeToGo Releases 2024 Outlook: Strong Growth in IFRS Revenues of >35% YoY to €>220M Alongside Significant Adjusted EBITDA Growth. Share Tender Offering Announced 

Luxembourg, 26 March 2024 - HomeToGo SE (Frankfurt Stock Exchange: HTG), the SaaS-enabled marketplace with the world’s largest selection of vacation rentals, today published its Annual Report and FY/23 audited financial results, as well as its FY/24 outlook. Additionally, the Management Board announced its intention, subject to final board approval, to launch a public share tender offer to complement HomeToGo’s existing stock exchange share buyback program and increase its effectiveness without expanding the overall size of repurchases.

Financial Highlights

• Introducing FY/24 Outlook: Aiming for accelerated growth at improved profitability
  • Booking Revenues to grow to €>250M (>30% YoY) vs. €190.1M in FY/23
  • IFRS Revenues to grow to €>220M (>35% YoY) vs. €162.0M in FY/23
  • Adj. EBITDA to grow to €>10M (>400% YoY) vs. €1.8M in FY/23
• FY/23 financial results:
  • Booking Revenues of €190.1M for FY/23 (16% YoY), surpassing FY/23 financial guidance. Record Booking Revenues Backlog[1] of €37.5M in the beginning of 2024 (16% YoY) despite HomeToGo’s clear focus on the margin goal in FY/23, laying a strong foundation for accelerated growth in FY/24
  • IFRS Revenues increased by 10% YoY to €162.0M, reaching the upper end of the FY/23 financial guidance. Subscriptions & Services experienced continued strong growth momentum of 48% YoY to €35.1M, accounting for around 22% of HomeToGo Group’s total IFRS Revenues
  • Adjusted EBITDA increased significantly to €1.8M in FY/23 and also surpassing the FY/23 financial guidance range, on the back of further improved marketing efficiency, an absolute swing in profitability of €22.5M compared to €(20.7)M in the previous year
  • Strong improvement in Free Cash Flow generation[2] of €21.9M in 2023 resulting in €(17.9)M for FY/23 compared to €(39.8)M in the prior year
• Public Share Tender Offering
  • On the back of a continued strong cash position and the strongly improving cash generation, the offering is intended to complement and increase the effectiveness of HomeToGo’s ongoing stock exchange-based €10M share buyback program announced on 13 September 2023
  • The volume of the Public Share Tender Offering would be counted towards the volume of the ongoing share buyback program. More details to be announced in due course following final board approval

Operational Highlights in FY/23

• Introduced HomeToGo_PRO, the new B2B brand and business segment with a special focus on SaaS for the supply side of vacation rentals. HomeToGo starts its segment reporting for the Marketplace and HomeToGo_PRO segments from Q1/24 onwards
• Signed binding documents for its largest ever acquisition and entered the thematic travel industry by acquiring DACH market leaders for thematic travel bundles, Kurz Mal Weg and Kurzurlaub
• Launched HomeToGo Modes, a new line of curated search experiences that make it faster, easier and more convenient for travelers to find their perfect vacation rental. HomeToGo was the first vacation rental-focused marketplace  to launch an AI product with its inaugural Mode, AI Mode
• Achieved an industry-leading ESG Risk Rating from Morningstar Sustainalytics (“Low Risk” / 16 points), outranking industry peers and affirming HomeToGo’s commitment to sustainable business practices

FY/24 Outlook

Following a transformative year marked by a substantial improvement in Adjusted EBITDA, HomeToGo expects to deliver industry-leading growth rates. The Company targets Booking Revenues to grow to at least €250M (>30% YoY) and IFRS Revenues to advance to at least €220M (>35% YoY). In addition to its historical organic and inorganic track record, HomeToGo’s growth journey is expected to be accompanied by a further substantial increase in profitability: HomeToGo targets to reach at least €10M of Adjusted EBITDA in FY/24, which translates into a growth rate of more than 400% YoY. HomeToGo will also focus on further profitable M&A opportunities to augment its organic growth.

Dr. Patrick Andrae, Co-Founder & CEO of HomeToGo: “During our IPO in September 2021, HomeToGo made a promise to the market that we would reach Adjusted EBITDA break-even in the full year 2023. Today we confirm that we not only achieved this milestone but surpassed it by rapidly growing our repeat demand, improving our marketing efficiency, and advancing the strategic priorities of our business. HomeToGo is stronger today than ever before: We began 2024 with new records such as our highest ever Booking Revenues Backlog and yearly CPA Take Rate in 2023. Now our focus is on accelerated growth at improved profitability. We will continue to provide an unparalleled experience to our travelers through our Marketplace and to our partners via our HomeToGo_PRO B2B solutions. As we foster our position as the AI leader in the vacation rental space, we will also increase our brand awareness via cost-effective campaigns like our recent viral partnership with Eggo in the U.S., and more. 2024 will be another breakthrough year for HomeToGo, and we are excited and fully prepared for the next chapter of our journey.” 

Review of FY/23 and Q4/23

In FY/23, IFRS Revenues rose to €162.0M (10% YoY vs. €146.8M in FY/22), reaching the upper end of the FY/23 financial guidance. HomeToGo’s profitable Subscriptions & Service business saw continued strong growth during FY/23 with IFRS Revenues of €35.1M (48% YoY vs. €23.7M in FY/22), which corresponds to around 22% of HomeToGo Group’s total IFRS Revenues. Looking ahead to 2024, HomeToGo’s Software & Service Solutions will be reported under HomeToGo_PRO, the newly established B2B brand and business segment with a special focus on SaaS for the supply-side of vacation rentals.

In addition, HomeToGo reached new all-time high Booking Revenues of €190.1M (16% YoY vs. €163.7M in FY/22) and kicked off 2024 with a new record Booking Revenues Backlog of €37.5M (vs. €32.5M at the beginning of FY/23). The CPA Take Rate climbed to a new yearly record value of 10.9% in FY/23 (+1.3pp YoY vs. 9.6% in FY/22) based on improved conditions with existing and new partners.

With an Adjusted EBITDA of €1.8M (vs. €(20.7)M in FY/22) and an absolute improvement of more than €22M on the back of increased marketing efficiency during the course of 2023 compared to 2022, HomeToGo has surpassed its FY/23 financial guidance.

In Q4/23, IFRS Revenues increased by 14% YoY to €23.5M (vs. €20.7M in Q4/22). Booking Revenues came in 7% lower than in Q4/22 based on opportunistically steering the business towards reaching the number one priority of 2023, reaching Adjusted EBITDA break-even. Adjusted EBITDA improved materially by €13.2M or 82% YoY in the fourth quarter of FY/23 compared to the previous year period due to very efficient marketing and overall cost consciousness in our operations.

Full Year 2023 Results: Annual Report, Earnings Call, and Presentation
Dr. Patrick Andrae, Co-founder & CEO, and Steffen Schneider, CFO, will present the financial results for 2023 and Q4/23 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-2023-fy 

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=1888257&linkSecurityString=3f443c322

HomeToGo's Annual Report 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 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, HomeToGo 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

Disclaimer

This release does not constitute an offer for the purchase, or a solicitation to make an offer for the sale, of shares in HomeToGo SE in the United States of America, Germany or any other jurisdiction.

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, Onsite Booking Revenues, Onsite Share and CPA 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 in FY/23 or prior with IFRS Revenues recognition based on check-in date in 2024. The term “Booking Revenues Backlog” used in this press release is the backlog figure as of January 1, 2024 and includes acquisitions closed in January 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] Booking Revenues before cancellation generated in FY/23 or prior with IFRS Revenues recognition based on check-in date in 2024. The backlog figure is as of January 1, 2024 and includes acquisitions closed in January 2024.