Earnings Release • Nov 2, 2023
Earnings Release
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Analyst Call – Results for Q3/9M 2023
2 November 2023
This document has been issued by Scout24 SE (the "Company" and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any present or future member of the Group.
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Continued strong profitable growth in Q3 2023 leads to another upgrade of ooEBITDA guidance
Double-digit revenue momentum continued in Q3 2023, with 16% reported and 10% organic growth, translating into 13% reported and 11% organic growth YTD
Core business continues to perform exceptionally well – continuing to gain professional customers in Q3 2023 and private subscriptions accelerated vs. Q2 2023
Transactional recovery remains modest, impacting demand for leads and transactional revenues
Healthy operating leverage continues: ooEBITDA increase of 22% for both Q3 2023 and 9M 2023
Continued strong EPS growth: adjusted EPS grew 36% YTD, reaching €1.90
For the remainder of the year, we focus on profitability vs. revenue growth
Based on above, we are adjusting full year 2023 guidance as follows:
Q3 2023 performance driven by continued strong revenue growth despite tough comparable y-o-y
In 9M 2023, double-digit revenue growth coupled with significant operating leverage led to strong margin expansion
Remainder of revenues generated in: Professional: PPA, Private: PPA + Other
Membership business continues to drive growth in the Professional segment; increased profitability despite Sprengnetter consolidation
| (€m) | Q3 2023 |
Q3 2022 |
+/- | 9M 2023 |
9M 2022 |
+/- |
|---|---|---|---|---|---|---|
| Professional revenue | 86.2 | 74.5 | +15.6% | 241.6 | 217.4 | +11.1% |
| of which subscriptions | 75.6 | 66.3 | +14.1% | 216.6 | 193.8 | +11.8% |
| thereof membership | 63.8 | 56.6 | +12.9% | 188.0 | 163.5 | +15.0% |
| thereof seller leads | 11.8 | 9.7 | +21.7% | 28.7 | 30.3 | -5.5% |
| Customers (period # average) |
21 937 , |
21 234 , |
+3 3% |
21 825 , |
21 012 , |
+3 9% |
| Resulting (in ARPU €) |
1 149 , |
1 040 , |
+10 5% |
1 103 , |
1 025 , |
6% +7 |
| of which PPA | 3.6 | 4.2 | -15.6% | 11.0 | 10.8 | +2.1% |
| of which Other | 7.0 | 4.1 | +72.2% | 13.9 | 12.8 | +8.8% |
| Professional ooEBITDA | 54.9 | 44.8 | +22.4% | 157.9 | 131.3 | +20.3% |
| Professional ooEBITDA margin | 63.7% | 60.2% | +3.5pp | 65.3% | 60.4% | +5.0pp |
Growth driven by a combination of customer acquisitions, listing price adjustments, and upgrades to higher-value memberships
Other revenues (mortgage, valuation) impacted by continued soft demand offset by positive contribution from Sprengnetter
PPA growth slowdown due to customer membership migration
ooEBITDA margin increase despite consolidation of Sprengnetter
| (€m) | Q3 2023 |
Q3 2022 |
+/- | 9M 2023 |
9M 2022 |
+/- |
|---|---|---|---|---|---|---|
| Private revenue | 37.1 | 31.6 | +17.4% | 107.5 | 89.3 | +20.3% |
| of which subscriptions | 18.5 | 15.4 | +19.7% | 52.7 | 44.0 | +20.0% |
| Customers (period # average) |
369 017 , |
315 652 , |
+16 9% |
351 238 , |
298 776 , |
+17 6% |
| Resulting (in €) ARPU |
16 7 |
16 3 |
+2 4% |
16 7 |
16 3 |
+2 0% |
| of which PPA | 13.1 | 11.6 | +12.5% | 37.8 | 30.7 | +23.0% |
| of which Other | 5.6 | 4.5 | +22.3% | 17.0 | 14.7 | +15.8% |
| Private ooEBITDA | 19.3 | 16.2 | +19.3% | 55.1 | 45.0 | +22.4% |
| Private ooEBITDA margin | 52.1% | 51.3% | +0.8pp | 51.2% | 50.4% | +0.9pp |
Subscriptions growth accelerated vs. Q2 2023 continues to be driven by new customers
PPA with continued double-digit growth, but slowdown vs. H1 2023 linked to listing increase in 2022
Strong ooEBITDA margin expansion continued in Q3 2023, despite consolidation of Sprengnetter
| (€m) | Q3 2023 |
Q3 2022 |
+/- | 9M 2023 |
9M 2022 |
+/- |
|---|---|---|---|---|---|---|
| Revenues | 132.8 | 114.7 | +15.7% | 376.6 | 332.3 | +13.3% |
| Own work capitalized | 5.3 | 7.3 | -27.1% | 17.5 | 21.8 | -19.7% |
| Personnel costs |
-25.9 | -25.1 | -3.2% | -72.4 | -70.7 | -2.4% |
| Marketing costs | -12.6 | -12.3 | -2.4% | -34.7 | -38.7 | +10.3% |
| IT costs | -5.1 | -5.3 | +2.9% | -15.5 | -15.9 | +2.6% |
| Selling costs | -9.5 | -7.7 | -23.4% | -26.3 | -20.8 | -26.0% |
| Other operating costs | -6.9 | -7.7 | +10.8% | -20.6 | -23.3 | +11.4% |
| Total operating effects | -60.0 | -58.1 | -3.3% | -169.5 | -169.5 | -0.0% |
| ooEBITDA | 78.1 | 63.9 | +22.1% | 224.5 | 184.6 | +21.6% |
| ooEBITDA margin |
58.8% | 55.7% | +3.1pp | 59.6% | 55.6% | +4.1pp |
Own work capitalized continues to decrease due to completion of development & integration projects
Operating effects increased slightly mainly due to increased personnel and selling costs from Sprengnetter consolidation as well a new brand campaigns
Other operating costs decreased due to less reliance on external spend and vendors
| (€m) | Q3 2023 |
Q3 2022 |
+/- | 9M 2023 |
9M 2022 |
+/- |
|---|---|---|---|---|---|---|
| Ordinary operating EBITDA | 78.1 | 63.9 | +22.1% | 224.5 | 184.6 | +21.6% |
| Non-operating effects | -5.1 | -10.2 | +50.0% | -23.3 | -17.8 | -31.1% |
| Reported EBITDA | 73.0 | 53.8 | +35.7% | 201.2 | 166.8 | +20.6% |
| D&A | -9.2 | -8.3 | -10.8% | -25.4 | -31.1 | +18.3% |
| EBIT | 63.7 | 45.4 | +40.3% | 175.8 | 135.7 | +29.5% |
| Financial result | 3.1 | 0.3 | >100% | -3.1 | -20.5 | +84.7% |
| Earnings before tax | 66.9 | 45.7 | +46.3% | 172.7 | 115.2 | +49.8% |
| Taxes on income | -20.7 | -13.0 | -59.2% | -46.0 | -35.6 | -29.3% |
| Net income | 46.2 | 32.7 | +41.1% | 126.6 | 79.6 | +59.0% |
| Basic EPS in € |
0 62 |
0 42 |
+47 2% |
1 72 |
1 01 |
+70 3% |
| Adjusted EPS in € |
0 67 |
0 51 |
+31 8% |
1 90 |
1 40 |
+35 5% |
| Weighted shares # av |
1 74 |
77 2 |
-4 0% |
73 7 |
78 9 |
-6 6% |
Non-operating effects decreased in Q3 due to lower share-based comp and lower M&A expenses
D&A increased due to purchase price allocation as a part of the acquisition of Sprengnetter
Adjusted EPS amounted to €1.90 for the 9M 2023, growing 35.5%
Updated FY2023 financial guidance reflect deliberate management decision to prioritize increased operating leverage
Filip Lindvall – Vice President Group Strategy & Investor Relations
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