DGAP-News: Intershop further expands its cloud business and returns to profitability in first quarter on noticeable revenue growth

Jena, 29 April 2020 - Intershop Communications AG (ISIN: DE000A254211), a leading independent provider of innovative solutions for omnichannel commerce, increased its consolidated revenues by 15% on the prior year period to EUR 8.4 million in the first three months of 2020 (previous year: EUR 7.3 million). Earnings before interest and taxes (EBIT) were slightly positive at EUR 0.3 million. This performance is primarily attributable to the cost-cutting measures implemented in the fourth quarter of 2019 and the operational excellence measures initiated by the company. With a corporate structure now primarily focusing on the cloud business, Intershop has created good conditions for further profitable growth.

Cloud and subscription revenues rose by a total of 19% to EUR 1.7 million by the end of March (Q1 2019: EUR 1.5 million). Incoming orders for cloud solutions (new and existing customers) amounted to EUR 4.0 million in the first three months, which represents an increase by 212% (Q1 2019: EUR 1.3 million). License revenues increased noticeably compared to the prior-year quarter to EUR 1.1 million (Q1 2019: EUR 0.6 million). At EUR 2.0 million, maintenance revenues stayed at the prior year level. Service revenues increased by a strong 12% to EUR 3.6 million.

Based on higher revenues and an adjusted cost structure, the gross margin improved by 12 percentage points to 45% in the reporting period. Operating income and expenses declined by 24% to EUR 3.5 million. Marketing and sales expenses decreased by 28% to EUR 1.7 million. R&D expenses were reduced by 20% to EUR 1.0 million. Administrative expenses dropped by 13% to EUR 0.8 million. At the bottom line, earnings before interest and taxes (EBIT) came in at EUR 0.3 million (Q1 2019: EUR -2.1 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at EUR 1.2 million (Q1 2019: EUR -1.5 million). Earnings after taxes amounted to EUR 0.2 million (Q1 2019: EUR -2.2 million).

At the interim balance sheet date of 31 March 2020, the Group had total assets of EUR 26.9 million (31 December 2019: EUR 27.6 million). The equity ratio remained at a high level of 59% at the end of March 2020 (31 December 2019: 57%). Cash and cash equivalents were up by 9% on year end 2019 to EUR 8.4 million. Cash flow from operations improved to EUR 2.0 million in the reporting period, compared to EUR -1.0 million in the prior-year period. As of the end of March 2020, Intershop employed a total of 308 full-time equivalents worldwide.

"The excellent start to the new year vindicates our strategy and shows that our cloud activities are now also on a profitable growth path," said Dr. Jochen Wiechen, CEO of Intershop Communications AG. "While the short-term consequences of the coronavirus crisis are currently difficult to assess also for our company and it is possible that projects will be delayed or contracts postponed to subsequent quarters, the 24/7 digital availability of sales, services and products is more important than ever in times of limited mobility and resources. What is more, cloud applications offer great benefits in terms of infrastructure, costs and flexibility - not only but especially in difficult market phases We are therefore confident that the global trend towards digitalization in the retail sector will help us through the imminent economic crisis and that we will emerge from it stronger than before."

In view of the positive first quarter results and a well-filled new business pipeline, Intershop's management maintains its forecast for the fiscal year 2020 and continues to expect a slight increase in consolidated revenues. With gross profit and the gross margin to improve slightly, EBIT are expected to be slightly positive.

The quarterly statement for the first three months of 2020 is available at https://www.intershop.com/financial-reports.

Contact:

Investor Relations
Heide Rausch
T: +49-3641-50-1000
F: +49-3641-50-1309
[email protected]