Growens — Earnings Release 2022

May 10, 2022

	10 Maggio 2022 18:08:02	Euronext Growth Milan
:	GROWENS
:	161947
:	MAILUPN03 - Capelli
:	REGEM; 3.1; 2.2
:	10 Maggio 2022 18:08:02
:	10 Maggio 2022 18:15:04
:	The Board of Directors reviewed certain financial data concerning the first quarter of 2022
		Data/Ora Ricezione

Testo del comunicato

Milan, 10 May, 2022 – Growens S.p.A. –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 first quarter of 2022.

Consolidated figures show significant growth, +28% for Q1 2022 sales at 21.2M EUR vs. 16.6M EUR in Q1 2021; and -21% for Q1 2022 EBITDA at 1.1M EUR vs. 1.4M EUR in Q1 2021.

PRICE SENSITIVE

PRESS RELEASE

The Board of Directors reviewed certain financial data concerning the first quarter of 2022

Sales +28% at 21.2M EUR Gross Profit +12% at 6.3M EUR EBITDA -21% at 1.1M EUR

Milan, 10 May, 2022 – Growens S.p.A. –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 first quarter of 2022.

Consolidated figures show significant growth, +28% for Q1 2022 sales at 21.2M EUR vs. 16.6M EUR in Q1 2021; and -21% for Q1 2022 EBITDA at 1.1M EUR vs. 1.4M EUR in Q1 2021.

"Q1 2022 results show the return of solid double-digit top line growth, supported by the effectiveness of our investments. Margins slow down because of the difficult return to growth of Datatrics due to the 2021 reorganisation. Changes in other business units' margins are mainly due to a greater re-allocation of intercompany costs, which also positively affects holding margins."

Matteo Monfredini, Chairman and founder of Growens

"The first quarter shows the first effects of the investments to strengthen the five business units, on which our growth path is based. Current results do not yet include Contactlab's contribution, the recent acquisition which will be integrated into the MailUp business unit, from which we expect relevant synergies starting from 2023 in terms of a material consolidation of our leadership with diversified client bases. We confirm our strategy, centered on both innovation and growth, both organic and via M&A."

Nazzareno Gorni, CEO and founder of Growens

Summary of Q1 2022 results

Item (EUR)	Q1 2022	%	Q1 2021	%	Change	Ch.%
SaaS Revenues	7,368,726	34.8%	6,011,793	36.2%	1,356,934	22.6%
CPaaS Revenues	13,719,300	64.7%	10,327,163	62.2%	3,392,137	32.8%
Other Revenues	111,853	0.5%	260,924	1.6%	(149,072)	(57.1%)
TOTAL REVENUES	21,199,879	100.0%	16,599,881	100.0 %	4,599,999	27.7%
Gross Profit	6,267,239	29.6%	5,586,371	33.7%	680,868	12.2%
EBITDA	1,098,419	5.2%	1,385,808	8.3%	(287,389)	(20.7%)
EBT	34,449	0.2 %	501,829	3.0 %	(467,380)	(93.1 %)

The main results for the quarter ended 31 March 2022 are as follows:

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.

Here follow quarterly results by Business Unit:

in Euro	SALES			EBITDA
	31/03/2022	31/03/2021	%	31/03/2022	31/03/2021	%
MailUp	4,309,457	3,898,743	10.5%	642,975	977,014	(34.2%)
Agile Telecom	14,671,428	10,990,415	33.5%	445,069	513,061	(13.3%)
BEE	1,881,800	1,134,010	65.9%	310,092	202,648	53.0%
Datatrics	622,264	674,416	(7.7%)	(434,560)	(80,437)	(440.2%)
Acumbamail	549,974	469,695	17.1%	100,861	118,560	(14.9%)
Holding	2,026,102	1,327,442	52.6%	(24,543)	(415,768)	94.1%
TOTAL	24,061,025	18,494,721	30.1%	1,039,894	1,315,077	(20.9%)
Consol. Adj.	(2,861,146)	(1,894,840)		58,526	70,731
TOTAL	21,199,879	16,599,881	27.7%	1,098,419	1,385,808	(20.7%)

The consolidated net financial position as of 31 March 2022 is the following:

Consolidated Net Financial Position	31/03/2022	31/12/2021	Change	Ch. %
A. Cash	10,629,872	13,324,983	(2,695,111)	(20.2%)
B. Cash equivalents
C. Other current financial assets
D. Cash and cash equivalents (A) + (B) + (C)	10,629,872	13,324,983	(2,695,111)	(20.2%)
E Financial debt	1,071,777	1,164,171	(92,394)	(7.9%)
F. Current financial debt	1,197,246	1,068,841	128,404	12.0%
G. Current financial position (E) + (F)	2,269,022	2,233,012	36,010	1.6%
H. Net short term financial position (G) - (D)	(8,360,850)	(11,091,971)	2,731,121	(24.6%)
I .Due to banks medium/long term	5,244,300	4,571,252	673,048	14.7%
J. Bonds issued
K.Other financial liabilities medium/long term
L. Non current financial position (I) + (J) + (K)	5,244,300	4,571,252	673,048	14.7%
M. Net financial position (H) + (L)	(3,116,549)	(6,520,719)	3,404,169	(52.2%)
o/w H. Current financial liabilities Rights of Use IFRS 16	743,049	998,388	(255,339)	(25.6%)
o/w M. Non current financial liabilities Rights of Use IFRS
16	2,350,753	2,300,390	50,363	2.2%
O. Net financial position without IFRS 16 effect	(6,210,352)	(9,819,497)	3,609,145	(36.8%)

The above-mentioned results are unaudited.

Comments to the results

Consolidated Q1 2022 P&L posts total Revenues around 21.2M EUR, showing a +28% organic increase versus 16.6M EUR in the same period of 2021: such growth is mainly driven by the 23% growth of the SaaS component, for a 35% incidence on total sales. CPaaS grows by 33% for a 65% incidence on total sales. Other revenues decrease because of the reduction in non-refundable government grants and windfall profits vs. the same period in 2021.

The Agile Telecom Business Unit posted the biggest sales of ca. 14.7M EUR, growing +33% over the same period of the previous year. Data confirm the recovery of the SMS data traffic, with a material increase in foreign sales.

The fastest growing Business Unit is BEE (beefree.io), with a 66% increase in, at 1.9M EUR 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 8.7M USD as of March 2022.

Acumbamail's performance is also excellent (growing ca 17%), whereas MailUp (not yet including Contactlab, acquired on May 4, 2022) posts growing sales (+11%), thanks to 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 -7.7%

Consolidated recurring sales (SaaS subscriptions), representing ca. 28% of total sales at 5.9M EUR, grew by 20% vs. the same period of the previous year.

Foreign sales amount to 13.1M EUR, representing 63% of total sales and growing by 49%.

New clients include IGPDecaux, Banca Valsabbina, Deutsche Bank, Tucano, Fondazione Policlinico Universitario Campus Bio-Medico, Latteria Soresina, Giuliani, Legami, Amazon, LVMH (Louis Vuitton Moët Hennessy), Equifax, U.S. Cellular.

Consolidated EBITDA amounts to 1.1M EUR in Q1 2022, decreasing by 21% versus Q1 2021, with a 5% margin on sales. The absolute and relative decrease of this figure is due to the sales mix in favor of CPaaS line, which generates lower margins. This figure is also negatively affected by certain one-off costs, amounting to ca. 100k EUR, due to personnel exit packages; restated EBITDA would amount to 1.2M EUR, decreasing by 14 on Q1 2021.

Gross Profit grows by over 12% to 6.3M EUR, with a 30% margin on sales, whereas EBT amounts to 34k EUR or 0.2% on sales.

The consolidated Net Financial Position as of 31 March 2022 is negative (for net cash) and amounts to 3.1M EUR, decreasing versus the previously recorded (net cash) amount of 6.5M EUR as of 31 December 2021, mainly due to temporary extra payment deferrals granted to certain strategic clients of Agile Telecom's, which affected March-end (historically characterized by high volumes of payments to suppliers) but were readily normalized in the first half od April. Figurative debt from IFRS 16's adoption amounts to ca. 3.1M EUR. Cash amounts to 10.7M EUR.

Summary of KPI's

KPI	MailUp	Datatrics	Acumbamail	BEE	Date
ARR	11,640,012€	2,324,100€	1,914,732€	8,730,000\$	March 2022
ARR growth	+5%	-11%	+12%	+53%	March 2022
Gross margin	67%	55%	86%	73%	FY 2021
EBITDA margin	15%	-70%	18%	17%	Q1 2022
Net Revenue Retention	94%	74%	90%	113%	March 2022

SAAS

Data from management accounts, not subject to a BoD resolution, unaudited

Investor Relations

Growens Chairman and CEO will comment Q1 2022 results in a conference call to be held on 13 May 2022 at 4 pm CET. Registration at this link: https://my.demio.com/ref/VrqfJ82AaA6bm1Wg

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

• Sidoti May Virtual Micro Cap Conference, 11 and 12 May 2022;
• Euronext Growth Conference, 26 May 2022;
• Virgilio Mid & Small Virtual, 28-30 June 2022.

Growens (GROW) is a vertically integrated player in the field of Cloud Marketing Technologies. 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), Contactlab (Email marketing enterprise). 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 26,000+ customers in 100+ countries.

The company is admitted to trading on the AIM Italia market managed by the Italian Stock Exchange, with a free float of 36+%.

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

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

For further information

Growens Investor Relations Micaela Cristina Capelli +39 02 71040485 investor.relations@growens.io

Growens Press Office Maria Giulia Ganassini +39 02 89603080 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