Growens — Earnings Release 2021

Nov 9, 2021

Informazione Regolamentata n. 20054-102-2021		Data/Ora Ricezione 09 Novembre 2021 17:21:07	Euronext Growth Milan
Societa'	:	GROWENS
Identificativo Informazione Regolamentata	:	153878
Nome utilizzatore	:	MAILUPN03 - Capelli
Tipologia	:	REGEM; 3.1; 2.2
Data/Ora Ricezione	:	09 Novembre 2021 17:21:07
Data/Ora Inizio Diffusione presunta	:	09 Novembre 2021 17:35:07
Oggetto	:	of 2021 and 9-month period ended September 30, 2021	The Board of Directors examined certain financial data concerning the third quarter
Testo del comunicato

Milan, 9 November, 2021 – Growens S.p.A. – former MailUp S.p.A., ticker GROW (the "Company" or the "Issuer" or "Growens"), a company admitted to trading on the multilateral trading facility Euronext Growth Milan and operating in the cloud marketing technology field, announces that today the Board of Directors examined certain consolidated financial data concerning the third quarter of 2021 and 9-month period ended September 30, 2021.

Consolidated figures show a +6.8% growth for 9m 2021 sales at 51.1M EUR vs. 47.9M EUR in the same period of 2020; and +1% for 9m 2021 EBITDA at 3.6M EUR vs. 3.5M EUR in the first nine months of 2020.

PRICE SENSITIVE

PRESS RELEASE

The Board of Directors examined certain financial data concerning the third quarter of 2021 and 9-month period ended September 30, 2021

Sales +6.8% at 51.1 mln EUR Gross Profit +14.1% at 17.6 mln EUR EBITDA + 1.0% at 3.6 mln EUR

Milan, 9 November, 2021 – Growens S.p.A. – former MailUp S.p.A., ticker GROW (the "Company" or the "Issuer" or "Growens"), a company admitted to trading on the multilateral trading facility Euronext Growth Milan and operating in the cloud marketing technology field, announces that today the Board of Directors examined certain consolidated financial data concerning the third quarter of 2021 and 9-month period ended September 30, 2021.

Consolidated figures show a +6.8% growth for 9m 2021 sales at 51.1M EUR vs. 47.9M EUR in the same period of 2020; and +1% for 9m 2021 EBITDA at 3.6M EUR vs. 3.5M EUR in the first nine months of 2020.

"The results of Q3 2021 confirm the resilience of our business notwithstanding the historical seasonality due to summer months, especially thanks to the contribution of the SaaS component."

Matteo Monfredini, Chairman and founder of Growens

"The first nine months of 2021 confirm our strategy, dedicated to efficiently executing organic and external growth. From the organic growth standpoint, the reinforcement of topline management at MailUp, BEE and Datatrics is bringing forward the expected results. The US-based Business Unit BEE stands out as the highest-potential, suited-to-success venture: an expert and motivated team, a huge potential market related to the democratization of design and a global leadership competitive position. Investments on internationalization, through indirect channels, for Datatrics and MailUp are expected to bring returns in the coming year. From the M&A standpoint, we are currently assessing several opportunities, aiming at integrating a significant-sized SaaS company."

Nazzareno Gorni, CEO and founder of Growens

Summary of Q3 and 9m 2021 results

Item (EUR)	Q3 2021	%	Q3 2020	%	Change	Ch.%
SaaS Revenues	6,305,694	36.2%	5,848,637	36.2%	457,057	7.8%
CPaaS Revenues	10,940,029	62.9%	10,077,861	62.4%	862,168	8.6%
Other Revenues	154,509	0.9%	233,130	1.4%	(78,621)	(33.7 %)
TOTAL REVENUES	17,400,232	100.0%	16,159,628	100.0%	1,240,604	7.7%
Gross Profit	5,968,596	34.3%	5,063,667	31.3%	904,929	17.9%
EBITDA	1,149,057	6.6%	1,344,038	8.3%	(194,981)	(14.5%)
EBT	163,370	0.9%	418,302	2.6%	(254,932)	(60.9%)

The main results for the quarter ended on 30 September 2021 are as follows:

The main results for the 9-month period ended September 30, 2021 are as follows:

Item (EUR)	30/09/2021	%	30/09/2020	%	Variazione	Var.%
SaaS Revenues	18,807,709	36.8%	17,415,882	36.4%	1,391,826	8.0%
CPaaS Revenues	31,676,898	62.0%	29,414,820	61.5%	2,262,078	7.7%
Other Revenues	607,013	1.2%	1,019,396	2.1%	(412,383)	(40.5 %)
TOTAL REVENUES	51,091,619	100.0%	47,850,098	100.0%	3,241,521	6.8%
Gross Profit	17,564,165	34.4%	15,396,809	32.2%	2,167,357	14.1%
EBITDA	3,557,651	7.0%	3,521,449	7.4%	36,202	1.0%
EBT	608,508	1.1%	906,823	1.9 %	(298,315)	(32.9%)

The SaaS business line (Software-as-a-Service) includes services supplied to clients via cloud platforms, sold through mostly recurring multi-period contracts / c.d. subscriptions. In terms of Business Units, it combines revenues from MailUp, BEE, Acumbamail and Datatrics. The CPaaS business line (Communication-Platform-as-a-Service) covers the messaging services provided on a wholesale basis using APIs, especially supplied by the Agile Telecom Business Unit.

The main results by Business Unit for the 9-month period ended September 30, 2021are as follows:

in Euro		SALES		EBITDA
	30/09/2021	30/09/2020	%	30/09/2021	30/09/2020	%
MailUp	12,380,834	11,877,544	4.2%	2,181,518	2,815,843	(22.5%)
Agile Telecom	33,650,246	31,431,408	7.1%	1,696,444	923,134	83.8%
BEE	3,870,743	2,816,916	37.4%	138,215	297,307	(53.5%)
Datatrics	1,949,012	2,117,262	(7.9%)	(716,148)	(1,132,878)	36.8%
Acumbamail	1,457,392	1,148,697	26.9%	325,551	262,567	24.0%

Holding	4,724,661	3,613,000	30.8%	(326,933)	(234,082)	(39.7%)
TOTAL	58,032,888	53,004,827	10.2%	3,298,646	2,931,891	12.5%
Consol. Adj.	(6,941,269)	(5,154,729)		259,005	589,558
TOTAL	51,091,619	47,850,098	6.8%	3,557,651	3,521,449	1.0%

The consolidated net financial position as of 30 September 2021 is the following:

Consolidated Net Financial Position	30/09/2021	31/12/2020	Change	Ch.%
A. Cash	10,182,789	9,866,364	316,425	3.2%
B. Cash equivalents	0		0	0.0%
C. Assets held for sale	195	195	0	0.0%
D. Cash and cash equivalents (A) + (B) + (C)	10,182,984	9,866,559	316,425	3.2%
E. Current debt	1,309,467	1,098,499	210,967	16.1%
F. Current part of non current debt	816,085	916,100	(100,015)	(12.3%)
G. Current financial position (E) + (F))	2,125,551	2,014,599	110,952	5.5%
H. Net current financial position (G) - (D)	(8,057,433)	(7,851,959)	(205,473)	2.6%
I. Non current debt	5,877,079	5,338,052	539,026	10.1%
J. Debt financial instruments	0		0	0.0%
K. Trade and other non current debt	0		0	0.0%
L. Non current financial position (I) + (J) + (K)	5,877,079	5,338,052	539,026	10.1%
M. Net financial position (H) + (L)	(2,180,354)	(2,513,907)	333,553	(13.3%)
o/w E. Current fin. Liab. Rights of Use IFRS 16	1,029,560	1,029,099	461	0.0%
o/w I. Non curr. fin. Liab. Rights of Use IFRS 16	2,321,019	2,696,519	(375,500)	(13.9%)
N. Net financial position ex IFRS 16 effect	(5,530,933)	(6,239,525)	708,592	(11.4%)

ESMA guidelines 32-382-1138 of 04/03/2021 par. 175 guideline 39

The above-mentioned results are unaudited.

Comments to the results

Consolidated 9m 2021 P&L posts total Revenues around 51.1M EUR, showing a +6.8% organic increase versus 47.9M EUR in the same period of 2020: such growth is mainly driven by the 8% growth of the SaaS component, for a 37+% incidence on total sales. CPaaS grows by 7.7% for a 62% incidence on total sales. Other revenues decrease because of the reduction in non-refundable government grants and windfall profits vs. the same period in 2020.

The Agile Telecom Business Unit posted the biggest sales of ca. 33.7M EUR, growing +7.1% over the same period of the previous year. Data from the second quarter onwards show excellent signs of recovery of the SMS data traffic, as a consequence of the reopening economic activities after lockdowns, especially in Italy.

The fastest growing Business Unit is BEE (beefree.io), with a 46.2% increase in sales at constant EUR/USD exchange rate, at 3.9M EUR or 4.6M USD turnover, driven by increasing volumes. ARR (Annual Recurring Revenues, a very popular key performance indicator for a subscription business, showing the average annual recurring value of existing contracts) exceeds 7.4M USD as of September 2021.

Acumbamail's performance is also excellent (growing ca 27%), whereas MailUp posts slightly growing sales (+4.2%), due to the impact of the crisis in Italy (where the business unit's sales are most exposed), especially given the termination of certain recurring contracts during the previous fiscal year, which the Group plans to recover via product-led strategy and development of the indirect channel abroad.

The Datatrics Business Unit sales, operating in the Predictive Marketing space with a proprietary Customer Data Platform, decreased by -7.9%; however, in 2021 certain intercompany sales came less between Datatrics Srl and Datatrics BV, hence the 9m 2020 sales data were amended consistently in order to better represent the business trend. The reorganization initiatives launched in 2020 caused an increase in lead generation and client pipeline.

Foreign sales amount to 25.2M EUR, representing 49+% of total sales and growing by 4.5%.

New clients include Boston Dynamics, Nestle, V Foundation, USC, Beachbody.

Consolidated EBITDA amounts to 3.6M EUR in the 9-month period ended on 30 September 2021, growing by +1% versus 9m 2020, with a 7% margin on sales. Q3 normally includes seasonality from summer months, with EBITDA of 1.1M EUR, decreasing by 14.5% on Q3 2020, mainly due to the incidence of investments for development of BEE, MailUp's indirect channel and Datatrics' reorganization.

Gross Profit grows by over 200 bps on sales (from 32.2% to 34.4%), with a more-than-double growth rate than sales (+14.1%), proof of the ongoing effect of optimizations and cost savings. Gross Profit margins are positively affected by a variety of factors, among which the high double-digit EBITDA margin increase of Agile Telecom (+84%), in line with the corporate strategy, and the reduction of Datatrics' operating loss by ca. 40%, as a positive effect of the above-mentioned measures. Cost-wise, as already disclosed, the Group chose not to suspend or defer the planned strategic projects, especially fundamental R&D (+31.4%) where the biggest investments are currently concentrated. As a consequence of the above, EBT is stable to a positive 0.6M EUR, or 1.1% on sales.

The consolidated Net Financial Position as of 30 September 2021 is negative (for net cash) and amounts to 2.2M EUR, decreasing versus the previously recorded (net cash) amount of 2.5M EUR as of 31 December 2020. Figurative debt from IFRS 16's adoption amounts to ca. 3.3M EUR. Cash amounts to 10.2M EUR.

Investor Relations

Growens Chairman and CEO will comment Q3 2021 results in a conference call to be held on 11 November 2021 at 4 pm CET. Registration at this link.

Growens CEO and Executive Director&IR will participate to the following investor conferences

• Virgilio Next Gems Conference, 29 November 2021;
• ISMO Italian Stock Market Opportunities Virtual Conference organized by Intesa Sanpaolo IMI CIB, 27 January 2022.

Growens (GROW) is a vertically integrated player in the field of Cloud Marketing Technologies, with a combined SaaS and CPaaS offer. Its growing suite of data-driven solutions allows SMEs and large corporations globally to master the evolving ways of communicating with customers. Starting from the parent company, which includes the MailUp business unit (Email marketing technology), the group boasts a steady growth path both organically and through acquisitions: Acumbamail (Spanish and LatAm markets), Agile Telecom (wholesale SMS market) and Datatrics (artificial intelligence). The brand portfolio is completed by BEE, an email editor launched in 2017 as a complementary business line, already covering thousands of customers worldwide. Today, Growens is a leading European player in the field of Cloud Marketing Technologies, serving ca. 26,000+ customers in 100+ countries.

The company is admitted to trading on the Euronext Growth Milan (EGM) market managed by the Italian Stock Exchange, with a free float of ca. 37%.

ISIN IT0005040354 - Reuters: GROW.MI - Bloomberg: GROW IM

Media & Guidelines: https://growens.io/en/media-guidelines

For further information please contact: Growens Investor Relations Micaela Cristina Capelli +39 02 71040485 investor.relations@growens.io

Growens Press Office Maria Giulia Ganassini +39 392 9743859 press@growens.io growens.io

Euronext Growth Advisor BPER Banca +39 051 2756537 growens@bper.it

iCorporate - Growens Press Office Danja Giacomin +39 334 2256777 Alberto Colombini +39 346 6016675 growens@icorporate.it

Arrowhead Business and Investment Decisions, LLC Thomas Renaud +1 212 619 6889 enquire@arrowheadbid.com arrowheadbid.com