CM.com N.V. — Earnings Release 2021

Jul 29, 2021

Press Release

This document has not been audited 1

H1 2021 Results.

CM.com more than doubles core revenue in exceptionally strong Q2 2021.

PRESS RELEASE H1 2021 Results

CM.com more than doubles core revenue in exceptionally strong Q2 2021.

Full Year 2021 revenue guidance raised

BREDA, 29 JULY 2021

H1 2021 Highlights

• Core revenue grew by 97% to € 107.6 million, of which 85% organically
• Core gross profit more than doubled and grew by 129% to € 27.3 million, of which 82% organically
• Positive margin development from 22% towards 25%
• CPaaS Enterprise Net Dollar Retention rate stable at 130% and churn limited to 4%
• Multi-year contract win as dedicated International Payment Service Provider of the Dutch Government

This document has not been audited 2

• Launch of innovative Conversational Voice bot and first customer win
• New commercial partnership with Facebook for Instagram Messaging for Businesses
• 2021 revenue guidance raised to € 220 million € 240 million

FINANCIAL HIGLIGHTS

	Q21 2021	Q2 2020	Δ Q-Q	H1 2021	H1 2020	Δ H1-H1
(x € million)
Revenue	62.2	28.5	+119%	112.0	57.8	+94%
Core Revenue	60.0	26.9	+123%	107.6	54.5	+97%
Gross Profit	-	-	-	27.9	12.5	+124%
Core Gross Profit	15.3	5.8	+160%	27.3	11.9	+129%
Gross Margin	-	-		25	22
Core Gross Margin	26	22		25	22
Operating expenses	-	-		(27.9)	(12.9)
EBITDA	-	-		0.0	(1.8)
Adjusted EBITDA	-	-		0.0	2 (0.4)
Net profit	-	-		(4.9)	(5.7)
CAPEX	-	-		(10.7)	(5.5)

KPI^s

Q21 2021	Q2 2020	Δ Q-Q	H1 2021	H1 2020	Δ H1-H1
-	-		130	130
-	-		4	4
1.4	0.7	+86%	2.6	1.6	+57%
190	52	+261%	353	89	+295%
227	183	+24%	434	349	+25%
1.8	0.6	+197%	2.0	1.1	+78%
-	-		18.2	3.8	+381%

⁵ ARR a new KPI that represents the annual recurring revenue streams at the end of the period

¹ Organic Q2 2021 core revenue and gross profit amounted to € 55.8 million and € 11.9 million respectively, resulting in organic core revenue and organic core gross profit growth of 107% and 102% respectively in Q2 2021

² Adjusted EBITDA is EBITDA adjusted for IPO/Listing expenses

³ Represents the ratio of the revenue of CPaaS customers in comparable twelve months between the actual and preceding year for customers that generated more than € 10,000 in revenue in the actual year

⁴ Represents the ratio of revenue from CPaaS customers that generated more than € 10,000 in revenue in the preceding year but that generated less than € 10,000 in the actual year or were no longer customers in the actual year, to total revenue in the previous year

Message from the CEO

We continued our strong growth path. In the first half of 2021, we almost doubled our revenue and more than doubled gross profit. The bulk of our growth was organic and driven by our CPaaS business with an exceptionally high growth rate in the second quarter. All our recent acquisitions contributed to growth as well. In addition, we see demand for our innovative cloud solutions gaining strong traction with various customer wins across the world.

The adverse effects of Covid-19 on the business of our customers in the leisure sector have still hampered growth in Payments and Ticketing. We continued to invest in both businesses as they offer significant upward potential once the effects of the government measures ease. Additionally, we continued to deliver on our roadmap for global expansion. We further strengthened our global salesforce and opened new hubs in Mexico, Brazil, and Kazakhstan.

Our growth outlook for the full year remains strong. Given the exceptionally strong results we achieved in the second quarter, we revise our revenue guidance for full year 2021 upwards from € 205 million - € 225 million to € 220 million - € 240 million.

Jeroen van Glabbeek CEO CM.com

REVIEW H1 2021 FINANCIAL RESULTS

	H1 2021	H1 2020	Δ H1-H1
x € million
Revenue	112.0	57.8	+94%
Core revenue	107.6	54.5	+97%
CPaaS	94.1	48.2	+95%
Payments	4.8	3.3	+45%
Platform	8.8	3.0	+195%
Other	4.4	3.3	+34%
Gross Profit	27.9	12.5	+124%
Core Gross Profit	27.3	11.9	+129%
CPaaS	16.9	7.5	+126%
Payments	2.7	1.8	+54%
Platform	7.7	2.7	+186%
Other	0.6	0.5	+17%
Gross Margin	25%	22%
Core Gross Margin	25%	22%
CPaaS	18%	16%
Payments	56%	54%
Platform	87%	90%
Other	15%	17%
Operating expenses	(27.9)	(12.9)	+117%
Employee benefit expenses	(17.9)	(8.6)	+109%
Other operating expenses	(10.0)	(4.3)	+133%
Adjusted EBITDA	0.0	(0.4)
IPO/Listing expenses	-	(1.4)
EBITDA	0.0	(1.8)
Depreciation and Amortization	(6.0)	(3.1)
Financing costs	(0.0)	(3.3)
Tax	1.1	2.5
Net profit	(4.9)	(5.7)

Revenue and Gross Profit

Core revenue grew by 97% to € 107.6 million (H1 2020: € 54.5 million), with exceptionally strong results in Q2 2021. The strong growth rate was supported by a favorable H1 2020 comparison base during which the pandemic had more profound mixed effects on our customers. In Q2 2021, the positive effects substantially outweighed the negative effects.

Acquisitions contributed € 6.8 million to revenue. Organic core revenue surged by 85% to € 100.9 million.

CPaaS revenue increased by 95% to € 94.1 million compared to € 48.2 million in H1 2020. The strongest revenue growth rates were generated in the Netherlands and the APAC region by new as well as existing customers. The CPaaS enterprise NDR remained strong at 130%, which implies existing customers generated 30% more revenue with us than previous year. At the same time, customer churn was limited to just 4%. Within CPaaS both messaging and voice services contributed substantially to the strong growth rate.

CPaaS gross profit grew by 126% to € 16.9 million compared to € 7.5 million H1 2020, as a result of higher revenue and favorable mix effects.

Messaging volumes increased significantly to 1.4 billion in Q2 2021 (Q2 2020: 0.7 billion) and to 2.6 billion in H1 2021. Both existing and new customers contributed to the surge in number of messages. A big uptick was seen in the messaging volumes among some Asian big tech customers. Last year, the number of messages in Q2 was hit due to the start of the pandemic.

The number of voice minutes surged by 261% to 190 million minutes in Q2 2021 and by 295% to 353 million minutes for

H1 2021.

During the course of the pandemic, CM.com launched multiple innovative services accommodating the fight against Covid-19 in several countries, which acted as an additional catalyst for CPaaS growth throughout H1 2021 and particularly in Q2 2021.

Payments

Payments revenue rose by 45% to € 4.8 million compared to € 3.3 million in H1 2020, while gross profit grew by 54% to € 2.7 million (H1 2020: € 1.7 million).

As of 18 March 2021, PayPlaza has been included in the results. Revenue from PayPlaza primarily consists of high margin recurring revenue streams related to service level agreements of terminals, together with the sales of terminals, and software development. The acquisition of PayPlaza contributed to growth in our payments segment, while the organic payments business still experienced mixed effects of the pandemic.

Total payments processed increased by 24% to € 227 million in Q2 2021 and to € 434 million in H1 2021 fueled by new customer wins and increased ticket sales following the reopening of museums, theaters and other venues.

Additionally, the change in the mix of payment methods led to a lower take rate of 0.35 (H1 2020: 0.50).

CM.com won a multi-year contract as international Payment Service Provider of the Dutch government. As of 1 November 2021, we will provide payment services for Ministries and their departments that offer online payment methods for making payments to the government. Also, we will enable payments to the Dutch government through Point of Sale (POS) terminals both in the Netherlands and abroad. The acquisition of PayPlaza will further strengthen our position in the POS market.

Platform consists of our SaaS solutions and Ticketing business. H1 2021 Platform revenue grew by 195% to € 8.8 million (H1 2020: € 3.0 million). Platform gross profit amounted to € 7.7 million (H1 2020: € 2.7 million).

SaaS solutions

SaaS-revenue increased to € 8.1 million (H1 2020: € 2.3 million), driven by the acquisitions of CX Company and RobinHQ in combination with the increase in platform subscriptions, the Mobile Cloud Solutions, WhatsApp Business Chat and other Over The Top (OTT) bundles.

New customer wins include a renowned global beverage brand in the Eurasia region as well as Dutch and European market leaders in various consumer markets. VIVID Housing UK selected our newly launched 'Conversational Voice bot', which handles phone calls and has actual AI-based voice conversations with consumers based on AI technology. By using the voice bot, contact center agents gain more time to deal with more complex enquiries which, ultimately, increases their customers' happiness.

The strong interest and new customer wins around the globe for our SaaS solutions demonstrate that increasingly more companies recognize the advantages of our composable 'out of the box' solutions. Winning the trust of these respected brands and companies is promising for further growth of our recurring revenue business on a global scale.

Ticketing

Ticketing revenue remained at the same level at € 0.7 million (H1 2020: € 0.7 million).

Following the initial easing of lockdowns as of June 2021, venues in the Netherlands reopened. Compared to the first lockdown in Q2 2020, the number of tickets sold increased by 197% to 1.8 million in Q2 2021 (Q2 2020: 0.6 million). For H1 2021 the number of tickets showed an increase of 78% to 2.0 million (H1 2020: 1.1 million). The number of tickets sold is, however, still far below pre-Covid-19 levels, especially for festivals and events.

Despite the negative impact the pandemic had and has on our customers in the Ticketing business, CM.com continued to invest in the sector. We built a large pipeline of venues, festival and event organizers that seek easy-to-implement solutions for the complete end-to-end customer journey, of which ticketing is just one, albeit important, element.

ARR as new growth metric

To demonstrate our commitment to advancing our recurring revenue base over time, we introduced the ARR. The ARR represents our annual subscription-based recurring revenue streams at the end of the period. At the end of June 2021, it stood at € 18.2 million compared to € 3.8 million at the end of June 2020.

Other revenue is generated by our legacy business that includes revenue from Premium SMS and Direct Carrier Billing services. In H1 2021, revenue increased by 34% to € 4.4 million from € 3.3 million in H1 2020, while gross profit rose by 17% to € 0.6 million (H1 2020: € 0.5 million).

OPEX

In line with the roll out of our global expansion roadmap, which included additional staff hirings and the opening of new hubs, opex increased by 117% to € 27.9 million (H1 2020: € 12.9 million).

EBITDA

EBITDA was breakeven at € 0.0 million for H1 2021 (H1 2020: € 1.8 million negative).

CAPEX

Capex including lease contracts for hard- and software amounted to € 10.7 million, of which € 3.6 million was related to capitalized hours. In the same period last year, capex was € 5.5 million, of which € 2.4 million was capitalized. Capex as a percentage of total revenue stood at 9.6% in H1 2021 (H1 2020: 9.5%).

As part of our accelerated growth strategy we expanded our team of developers, invested in product innovations and updates and strengthened our global infrastructure network, thereby increasing the proximity to our customers technology-wise.

Acquisitions

CM.com acquired Payplaza and Yourticketprovider in H1 2021. PayPlaza is an innovative Point of Sale (POS) Payment Acceptance Platform. The acquisition is a next step to offer omnichannel communications and payments solutions from one single platform and it expands our POS offering in the Payments segment.

Yourticketprovider sells tickets for festival organizers and many theaters and stadiums. The acquisition strengthens our position in the Dutch event and venue ticketing business.

In July 2021, TraceDock, a promising first-party data collection service, was added to our portfolio. In combination with our Customer Data Platform and the Mobile Marketing Cloud, we believe TraceDock will increase the conversion rates of the marketing efforts of our customers.

2021 Outlook

Our growth outlook for 2021 and beyond remains strong. On the back of an exceptionally strong Q2 2021, we revise our full year 2021 revenue guidance from a range of € 205 million - € 225 million upward to € 220 million - € 240 million, reflecting a year-on-year growth rate of 55% - 69%. This guidance implies a core revenue growth of 30% - 55% for the second half of this year.

We note that the 2020 comparison base is substantially higher in H2 than in H1. In addition, we anticipate some post-Covid-19 normalization effects in H2 2021 with a decline of voice minutes, partly offset by an increase of messaging by Retail, Travel and Leisure customers and stronger contributions from our Payments and Ticketing business due to the easing of governmental lockdown restrictions.

Responsibility Statement

In accordance with Article 5.25d of the Financial Supervision Act, the Management Board of CM.com states that to the best of its knowledge:

• the unaudited interim consolidated financial statements give a true and fair view of the assets and liabilities, the financial position and the result of CM.com and its consolidated subsidiaries; and

• The H1 2021 results provide a fair view of the information required pursuant to Article 5:25d paragraph 8 and 9 of the Financial Supervision Act.

Breda, 29 July 2021

Management Board:

Jeroen van Glabbeek, CEO Gilbert Gooijers, COO Jörg de Graaf, CFO

Analyst Call: H1 2021 Results

On 29 July at 11.00 am CEST, CM.com will host an analyst and investors call that will be live broadcasted on our website: https://www.cm.com/investor-relations/

CM.com is required to publish the information in this report pursuant to the EU market abuse regulation. The information was released for publication on 29 July 2021 at 7:00 AM CEST.

2021 and 2022 Financial Calendar

Contact Investor Relations

Anneke Hoijtink anneke.hoijtink@cm.com +31 643280788

About CM.com

CM.com is a listed company (Euronext Amsterdam: CMCOM) and provides Conversational Commerce services from its cloud platform that connects enterprises and brands to the mobile phones of billions of consumers worldwide. Conversational Commerce is the convergence of messaging and payments.

CM.com provides messaging and voice channels, such as SMS, Over The Top (OTT) (e.g. WhatsApp Business, Apple Business Chat, Google RCS, Facebook Messenger, and Viber), Voice API and SIP. These messaging channels can be combined with cloud platform features, like Ticketing, eSignature, Customer Contact, identity services and a Customer Data Platform.

CM.com is a licensed Payment Service Provider (PSP) offering card payments, domestic payment methods and integrated payment methods like WeChat Pay. CM.com has over 700 employees and 20 offices globally.

The platform of CM.com delivers fully integrated solutions, based on a privately owned cloud and 100% in-house developed software. By doing so, CM.com can guarantee scalability, time-to market and, global redundancy and delivery.

Forward Looking Statements

Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "may," "will", "should", "expect", "could", "intend", "plan", "anticipate", "estimate", "believe", "continue", "predict", "potential" or the negative of such terms and other comparable terminology. The forward-looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.

OVERVIEW KPIs	2021		2020				2019
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Total revenue (€ million)	62.2	49.8	45.3	38.5	28.5	29.3	29.0	23.0	23.3	21.0
Core revenue (€ million)	60.0	47.7	43.2	36.7	26.9	27.6	26.9	20.9	20.6	18.1
Core gross profit (€ million)	15.3	12.0	11.0	9.1	5.8	6.1	5.8	5.0	5.7	5.4
Core gross margin (%)	26	25	25	25	22	21	22	24	26	32
Number of messages (billion)	1.4	1.2	1.2	0.9	0.7	0.9	0.8	0.6	0.6	0.5
Numer of voice minutes (million)	190	163	109	97	52	37	38	34	34	35
Total payments processed (€ million)	227	207	217	164	183	166	162	169	146	148
Total tickets (million)	1.8	0.2	1.4	2.8	0.6	0.5	0.3	0.8	0.5	0.3
Annual recurring revenue (€ million)	18.2	15.0	14.0	10.8	3.8	3.4	-	-	-	-

2021 Interim Condensed Consolidated Financial Statements

Contents

Interim condensed consolidated statement of financial position	2
Interim condensed consolidated statement of profit or loss and other comprehensive income	3
Interim condensed consolidated statement of changes in equity	4
Interim condensed consolidated statement of cash flows	5
Notes to the interim condensed consolidated financial statements	6

1

Interim condensed consolidated statement of financial position as at 30 June 2021

x € 1,000		30 June 2021	31 December 2020
	Note	Unaudited	Audited
Assets
Goodwill	7	21,673	13,026
Intangible assets	7	57,990	48,197
Property, plant and equipment	8	5,647	4,425
Right-of-use assets	9	14,525	9,964
Long-term receivables		1,319	896
Deferred tax assets	10	35	812
Non-current assets		101,189	77,320
Inventories		269	-
Trade and other receivables	11	43,587	32,758
Current tax receivable		1,446	1,020
Cash and cash equivalents	13	50,462	52,504
Current assets		95,764	86,282
Total assets		196,953	163,602
Equity
Share capital		1,726	1,724
Share premium		123,157	122,691
Retained earnings		(26,771)	(22,925)
Other reserves		(260)	(180)
Total equity		97,852	101,310
Liabilities
Borrowings	12	9,146	5,764
Deferred tax liability	10	3,354	4,093
Other liabilities		319	267
Non-current liabilities		12,819	10,124
Trade and other payables	15	74,491	41,346
Contract liabilities	16	7,316	8,883
Current tax liabilities		835	102
Current portion of borrowings	12	3,640	1,837
Current liabilities		86,282	52,168
Total liabilities		99,101	62,292
Total equity and liabilities		196,953	163,602

The accompanying notes to the interim condensed consolidated financial statements are an integral part of these statements.

Interim condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2021

x € 1,000		Six months to 30 June 2021	Six months to 30 June 2020
	Note	Unaudited	Unaudited
Revenue	6	112,008	57,766
Total income		112,008	57,766
Cost of services	6	(84,072)	(45,311)
Employee benefits expense		(17,951)	(8,762)
Amortisation and depreciation		(6,076)	(3,065)
Other operating expenses		(9,978)	(5,465)
Operating Loss		(6,069)	(4,837)
Finance income		12	31
Finance expenses		(44)	(3,301)
Loss before tax		(6,101)	(8,107)
Income tax expense		1,104	2,468
Loss after tax		(4,997)	(5,639)
Items that may be reclassified to profit or loss
Currency translation differences		(80)	(43)
Total comprehensive loss for the period		(5,077)	(5,682)
Basic and diluted loss per share (in euro)		(0.17)	(0.22)

The accompanying notes to the interim condensed consolidated financial statements are an integral part of these statements.

Interim condensed consolidated statement of changes in equity for the six months ended 30 June 2021

x € 1,000	Share capital	Share premium	Retained earnings	Other reserve	Total equity
Balance at 1 January 2021	1,724	122,691	(22,925)	(180)	101,310
Loss after tax	-	-	(4,997)	-	(4,997)
Issuance of shares related to business combinations	1	349	907	-	1,257
Vesting shares	1	117	(118)	-	-
Issuance of shares to employees	-	-	362	-	362
Other comprehensive income	-	-	-	(80)	(80)
Balance at 30 June 2021 (unaudited)	1,726	123,157	(26,771)	(260)	97,852

x € 1,000	Share capital	Share premium	Retained earnings	Other reserve	Total equity
Balance at 1 January 2020	414	-	5,424	(115)	5,723
Loss after tax	-	-	(5,639)		(5,639)
Other comprehensive income	-	-	-	(43)	(43)
Proceeds on issuing shares and conversion warrants	1,162	85,340	(13,430)	-	73,072
IPO costs	-	-	(3,315)	-	(3,315)
Balance at 30 June 2020
(unaudited)	1,576	85,340	(16,960)	(158)	69,798

The accompanying notes to the interim condensed consolidated financial statements are an integral part of these statements.

Interim condensed consolidated statement of cash flows for the six months ended 30 June 2021

x € 1,000		Six months to 30 June 2021	Six months to 30 June 2020
	Note	Unaudited	Unaudited
Operating activities
Operating loss		(6,069)	(4,837)
Adjustments for: - Amortisation and depreciation		6,076	3,065
Changes in:
- Inventories	5	70	-
- Trade and other receivables	5/11	(9,172)	(519)
- Trade and other receivables foundations	5/11	(306)	628
- Trade and other payables and liabilities	5/15	14,119	(12,265)
- Trade and other payables and liabilities foundations	5/15	11,784	2,473
- Contract liabilities	5/16	(2,309)	5,712
Interest received		12	31
Income tax paid		58	(116)
Net cash from operating activities		14,263	(5,828)
Investing activities
Purchase of intangible assets		(4,051)	(3,262)
Divestments in intangible assets		142	-
Purchase of property, plant and equipment		(1,031)	(901)
Divestments in property, plant and equipment		-	6
Acquisition of subsidiaries (net of cash)	5	(10,114)	(2,793)
Cash included in foundation of acquired company		650	583
Net cash used in investing activities		(14,404)	(6,367)
Financing activities
Repayment of borrowings	10	-	(14,000)
Loans granted to third parties		-	(580)
Repayment of loans advanced to third parties		8
Deposits paid		(366)	(18)
Repayment of lease liabilities		(1,901)	(1,395)
Currency results on cash and cash equivalents		40	-
Share benefit program personnel		362	-
IPO costs through equity		-	(3,315)
Proceeds from IPO		-	73,072
Interest paid		(44)	(3,301)
Net cash used in financing activities		(1,901)	50,463
Net increase /(decrease) in cash and cash
equivalents		(2,042)	38,268
Cash and cash equivalents at 1 January		52,504	12,748
Cash and cash equivalents at 30 June		50,462	51,016

The accompanying notes to the interim condensed consolidated financial statements are an integral part of these statements. The cash and cash equivalents in the cash flow statement consists of the cash as well as the overdraft.

5

Notes to the interim condensed consolidated financial statements

1. Corporate information

CM.com N.V. (CM.com) is a listed public company which has its registered office at Konijnenberg 30, 4825 BD Breda, the Netherlands. The Company is registered in the Trade Register at the Chamber of Commerce under number 70523770.

These consolidated financial statements comprise the Company and its subsidiaries (collectively CM.com). The activities primarily consists of advising, guiding, implementing, and assisting companies approaching its target audience through modern (media) techniques. The activities of CM.com are carried out both inland and abroad.

2. Basis of preparation

These unaudited interim condensed consolidated financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. They do not include all of the information required for a complete set of annual financial statements and shall be read in conjunction with the consolidated financial statements of CM.com N.V. as at and for the year ended 31 December 2020.

These condensed consolidated interim financial statements were approved by the Management Board of the company on 28 July 2021.

As from the financial statements of 2020 the group has added the foundations CM.com Stichting, Stichting Derdengelden CM Payments, EventsIT Ticketing Service and Stichting Global Ticket to its consolidated statement. As a result, the comparative figures of the cashflow statement have been restated. It does not affect the comparative balance or profit or loss statement. For more detail, see the annual report 2020. Next to that, CM.com has reclassed its contract liabilities to a separate line in the cashflow statement.

The effects on the cash flow statement for the six months to 30 June 2020 are as follows:

x € 1,000	Reported six months to 30 June 2020	Effect of consolidation foundations and reclass contract liabilities	Restated Six months to 30 June 2020
	Unaudited		Unaudited
Operating activities
Operating loss	(4,837)	-	(4,837)
Adjustments for:
- Amortisation and depreciation	3,065	-	3,065
Changes in:
- Trade and other receivables	(519)	-	(519)
- Trade and other receivables foundations	-	628	628
- Trade and other payables and liabilities	(6,553)	(5,712)	(12,265)
- Trade and other payables and liabilities foundations	-	2,473	2,473
- Contract liabilities	-	5,712	5,712
Interest received	31	-	31
Income tax paid	(116)	-	(116)
Net cash from operating activities	(8,929)	3,101	(5,828)
Investing activities
Purchase of intangible assets	(3,262)	-	(3,262)
Divestments in intangible assets	-	-	-
Purchase of property, plant and equipment	(901)	-	(901)
Divestments in property, plant and equipment	6	-	6
Acquisition of subsidiaries (net of cash)	(2,793)	-	(2,793)
Cash included in foundation of acquired
company	-	583	583
Net cash used in investing activities	(6,950)	583	(6,367)
Financing activities
Repayment of borrowings	(14,000)	-	(14,000)
Loans granted to third parties	(580)	-	(580)
Deposits paid	(18)	-	(18)
Repayment of lease liabilities	(1,395)	-	(1,395)
IPO costs through equity	(3,315)	-	(3,315)
Proceeds from IPO	73,072	-	73,072
Interest paid	(3,301)	-	(3,301)
Net cash used in financing activities	50,463	-	50,463
Net increase /(decrease) in cash and
cash equivalents	34,584	3,684	38,268
Cash and cash equivalents at 1 January	1,407	11,341	12,748
Cash and cash equivalents at 30 June	35,991	15,025	51,016

This document has not been audited

7

3. Changes in significant accounting policies

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of CM.com's annual consolidated financial statements for the year ended 31 December 2020. A number of new standards are effective from 1 January 2021, but they do not have a material effect on the Company's financial statements.

4. Significant judgments and estimates

In preparing these interim condensed consolidated financial statements, management has made a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from these judgments. The judgments, estimates and assumptions in applying CM.com's accounting policies and the key sources of estimation uncertainty were the same as those described in CM.com's last annual financial statements for the year ended 31 December 2020.

5. Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at the acquisition date at fair value. Acquisition-related costs are expensed as incurred and included in other operating expenses. Acquisitionrelated costs amount to € 541 thousand.

Acquisitions in 2021

On 17 March 2021 CM.com acquired 100% of the shares and voting rights of SEPASoft B.V. (known as PayPlaza). SEPASoft B.V. is an unlisted company based in the Netherlands, specialised in Point of Sale (POS) Payment acceptance. The purpose of the acquisition is to complement the payment activities. The purchase price allocation is based on provisional fair values of identifiable assets and liabilities of SEPASoft B.V.

On 1 April 2021 CM.com acquired 100% of the shares and voting rights of Your Ticket Provider B.V. Your Ticket Provider B.V. is an unlisted company based in the Netherlands, specialised in ticketing services. The purpose of the acquisition is to strengthen the ticketing activities. The purchase price allocation is based on provisional fair values of identifiable assets and liabilities of Your Ticket Provider B.V.

The initial accounting for the acquisitions has only been provisionally determined at the end of the reporting period. For tax purposes, the tax values of the acquired assets are required to be reset based on market values of the assets. At the date of finalisation of these consolidated financial statements, the necessary market valuations and other calculations had not been finalised for the acquisitions and they have therefore only been provisionally determined based on the directors' best estimate of the likely tax values.

The provisional fair values of identifiable assets and liabilities of acquisitions as at the date of acquisition were:

	SEPASoft	Other	Total
Consideration paid in cash	9,825	1,509	11,334
Earn-out (part of other accruals)	5,068	540	5,608
Total consideration	14,893	2,049	16,942
Intangible assets	5,088	16	5,104
Property, plant and equipment	566	168	734
Right of use assets	-	87	87
Financial assets	-	11	11
Inventories	339	-	339
Trade and other receivables	1,020	224	1,244
Trade and other receivables foundation	-	155	155
Cash and cash equivalents	965	255	1,220
Cash and cash equivalents foundation	-	650	650
Trade and other payables	(1,626)	(410)	(2,036)
Trade and other payables foundation	-	(805)	(805)
Contract liabilities	(702)	(40)	(742)
Deferred tax liability	(158)	-	(158)
Borrowings	(1,011)	(225)	(1,236)
Total fair value of net identifiable assets and
liabilities	4,481	86	4,567
Goodwill recognised	8,084	562	8,646
Platform recognised	1,103	269	1,372
Customer relations recognised	2,001	1,599	3,600
Deferred tax liability recognised	(776)	(467)	(1,243)

The present value of the earn-out is based on the 2021-2023 financial performance of the companies acquired mainly based on revenue and represents our best estimate as at 30 June 2021. The earn-out will be payable if certain revenue and non-financial targets are met. The total range of outcomes (undiscounted) is between € 0 and € 6.9 million.

6. Revenue recognition and segment reporting

During the six-month period to 30 June 2021, there have been no changes from prior periods in the measurement methods used to determine operating segments. The revenue and profit generated by each of CM.com's operating segments are summarised as follows:

Segment reporting six months to 30 June 2021

x €1,000	CPaaS	Payments	Platform	Other	Total
(unaudited)
Revenue	94,088	4,760	8,773	4,387	112,008
Total income					112,008
Cost of Services	(77,151)	(2,080)	(1,097)	(3,744)	(84,072)
Operational expenses					(34,005)
Operating profit					(5,979)
Financial income and expenses					(32)
Loss before tax					(6,101)

Segment reporting six months to 30 June 2020

x €1,000	CPaaS	Payments	Platform	Other	Total
(unaudited)
Revenue	48,244	3,276	2,978	3,268	57,766
Total income					57,766
Cost of Services	(40,760)	(1,539)	(292)	(2,720)	(45,311)
Operational expenses					(17,292)
Operating profit					(4,837)
Financial income and expenses					(3,270)
Loss before tax					(8,107)

CM.com's revenue disaggregated by service lines (which correspond to the reportable segments) and geographical markets is as follows:

Six months to 30 June 2021

x €1,000	CPaaS	Payments	Platform	Other	Total
(unaudited)
The Netherlands	40,755	3,852	6,280	2,081	52,968
Belgium	5,731	286	194	1,505	7,716
France	9,465	19	567	54	10,105
Rest of Europe	10,188	554	1,138	662	12,542
APAC	14,891	-	45	13	14,949
Rest of world	13,058	49	549	72	13,728
Total	94,088	4,760	8,773	4,387	112,008

Six months to 30 June 2020

x €1,000	CPaaS	Payments	Platform	Other	Total
(unaudited)
The Netherlands	19,640	2,263	2,136	1,313	25,352
Belgium	4,591	248	235	1,354	6,428
France	7,052	13	22	134	7,221
Rest of Europe	6,521	693	344	384	7,942
APAC	5,927	-	33	19	5,979
Rest of world	4,513	59	208	64	4,844
Total	48,244	3,276	2,978	3,268	57,766

Assets and liabilities are not monitored by segment and therefore not presented per segment.

7. Intangible assets

The carrying value of intangible assets is summarised below:

x € 1,000	30 June 2021	31 December 2020	Estimated usefull lives (years)
	Unaudited	Audited
Goodwill	21,673	13,026	Indefinite
Platform (software)	37,859	29,235	5-10
Customer relation	18,572	16,277	5-10
Other	1,559	2,685	5-10/indefinite
Total	79,663	61,223

Platform contains capitalised development hours.

Other intangible assets consist of patents, trade names, brand names and domain names. Domain names with an indefinite useful life have a carrying amount of EUR 1,551 million.

CM.com concluded that there has been no material deterioration in any of the key assumptions made during the last annual impairment review based on current strategy and financial projection, and that there are no indicators of any impairment of intangible assets during the six months ended 30 June 2021. As in previous years, a full annual impairment review will be undertaken at year-end.

8. Property, plant and equipment

The carrying value of property, plant and equipment is summarised below:

x € 1,000	30 June 2021	31 December 2020	Estimated usefull lives (years)
	Unaudited	Audited
Platform (hardware)	1,772	1,789	10
Furniture and fixtures	1,416	1,067	10
Vehicles	85	51	5
Hardware & software workplace	1,424	733	5
Leasehold improvements	950	785	10
Total	5,647	4,425

Platform contains servers and hardware.

9. Right-of-use assets

The carrying value of the right-of-use assets are summarised below:

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Land and buildings	5,711	6,227
Furniture & fixtures	112	140
Platform (Hardware)	7,536	2,378
Platform (Software)	733	788
Vehicles	433	431
Total	14,525	9,964

10. Taxation

Deferred tax assets are recognised for any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilised. Other deferred tax assets relate to the difference between the carrying amount of right-of-use assets, and their fiscal values.

x € 1,000

	Unaudited
Carrying amount as at 31 December 2020	812
Additional tax losses recognised	525
Tax losses utilized	(1,177)
Exchange rate differences	13
Tax on non-deductible interest	(118)
Reclassification deferred tax asset	(20)
Carrying amount as at 30 June 2021	35

Deferred tax liabilities relate to the difference between the carrying amount of the intangible assets and their fiscal values.

x € 1,000

	Unaudited
Carrying amount as at 31 December 2020	4,093
Acquisition of subsidiary	1,401
Exchange rate differences	14
Reversal of taxable temporary differences	(2,134)
Reclassification deferred tax asset	(20)
Carrying amount as at 30 June 2021	3,354

11. Trade and other receivables

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Trade receivables	18,603	14,724
Trade receivables Stichting Derdengelden	527	66
Other receivables, prepayments and accrued income	24,457	17,968
Total	43,587	32,758

A more detailed split of "Other receivables, prepayments and accrued income" is provided below:

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Accrued revenue	18,637	13,364
Prepayments	3,846	3,181
Other receivables	1,207	1,062
VAT and payroll taxes	306	-
Current portion of long-term receivables	461	361
Total	24,457	17,968

12. Borrowings

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Loan	910	-
Lease liability	11,876	7,601
	12,786	7,601
Current portion of long term borrowings	(3,640)	(1,837)
Total	9,146	5,764

13. Cash and short-term deposits

Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Bank balances	25,634	40,689
Bank balances held by Stichting Derdengelden	24,828	11,815
Total	50,462	52,504

14. Financial risk management

The aspects of CM.com's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2020.

The contractual maturities of CM.com's non-derivative financial liabilities are as follows:

30 June 2021

x € 1,000

		0-3	4-12	1-5	Over 5		Carrying
(Unaudited)	Note	months	months	years	years	Total	amount
Borrowings excluding lease liabilities	12	-	-	910	-	910	910
Lease liabilities	12	927	2,723	7,640	1,199	12,489	11,876
Trade payables	15	18,564	-	-	-	18,564	18,564
Other financial Liabilities	15/16	58,583	-	-	-	58,583	58,583
Total		78,074	2,723	8,550	1,199	90,546	89,933

31 December 2020

x € 1,000

		0-3	4-12	1-5	Over 5		Carrying
(Audited)	Note	months	months	years	years	Total	amount
Lease liabilities	12	672	1,327	4,280	1,485	7,764	7,601
Trade payables	15	5,943	-	-	-	5,943	5,943
Other financial liabilities	15/16	34,914	-	-	-	34,914	34,914
Total		41,527	1,327	4,280	1,485	48,621	48,458

15. Trade and other payables

These amounts represent liabilities for goods and services provided to the group prior to the end of the reporting period which are unpaid.

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Trade payables	18,564	5,943
VAT and payroll services	1,225	1,371
Invoices to be received for services	15,699	11,128
Third party collection payable to content providers	828	1,867
Deposits	196	196
Pension contributions	135	111
Payables from Stichting Derdengelden	24,151	11,614
Other accruals	13,693	9,116
Total	74,491	41,346

16. Contract liabilities

x € 1,000	30 June 2021	31 December 2020
	Unaudited	Audited
Revenue received in advance	3,501	8,001
Invoiced in advance	3,815	882
Total	7,316	8,883

17. Fair value measurement of financial instruments

The carrying amount of the following financial assets and liabilities is considered a reasonable approximation of fair value:

• trade and other receivables;
• cash and cash equivalents;
• bank loans;
• trade and other payables.

18. Related party balances and transactions

CM.com has multiple current accounts with related parties. All transactions relate to service fees and are charged at arm's length.

19. Events after the reporting date

On 1 July 2021 CM.com completed the acquisition of TraceDock, a promising first-party data collection service, was added to our portfolio. In combination with our Customer Data Platform and the Mobile Marketing Cloud, TraceDock can substantially increase the conversion rates of the marketing efforts of our customers.