Growens — Earnings Release 2023

May 9, 2023

Informazione Regolamentata n. 20054-25-2023		Data/Ora Ricezione 09 Maggio 2023 17:45:49	Euronext Growth Milan
Societa'	:	GROWENS
Identificativo Informazione Regolamentata	:	176600
Nome utilizzatore	:	MAILUPN03 - Capelli
Tipologia	:	REGEM; 3.1; 2.2
Data/Ora Ricezione	:	09 Maggio 2023 17:45:49
Data/Ora Inizio Diffusione presunta	:	09 Maggio 2023 18:00:06
Oggetto	:	The Board of Directors reviewed certain financial data concerning the first quarter of 2023
Testo del comunicato

• Revenues +14% at 24.2M EUR
• Gross Profit +24% at 7.8M EUR

• EBITDA -27% at 0.8M EUR for R&D boost

• BEE, the Business Unit on which future investment will focus, posts highest top line growth (+25%)

• Update of Internal Dealing Procedure

Milan, 9 May, 2023 – 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 2023.

Consolidated figures show significant growth, +14% for Q1 2023 revenues at 24.2M EUR vs. 21.2M EUR in Q1 2022; and -27% for Q1 2023 EBITDA at 0.8M EUR vs. 1.1M EUR in Q1 2022, mainly due to R&D investments and extra costs for the sale of the Email Service Provider business.

PRICE SENSITIVE

PRESS RELEASE

The Board of Directors reviewed certain financial data concerning the first quarter of 2023

Revenues +14% at 24.2M EUR

Gross Profit +24% at 7.8M EUR

EBITDA -27% at 0.8M EUR for R&D boost

BEE, the Business Unit on which future investment will focus, posts highest top line growth (+25%)

Update of Internal Dealing Procedure

Milan, 9 May, 2023 – 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 2023.

Consolidated figures show significant growth, +14% for Q1 2023 revenues at 24.2M EUR vs. 21.2M EUR in Q1 2022; and -27% for Q1 2023 EBITDA at 0.8M EUR vs. 1.1M EUR in Q1 2022, mainly due to R&D investments and extra costs for the sale of the Email Service Provider business.

"Q1 2023 results confirm a growing and profitable business, with double-digit revenue growth and a healthy Gross Profit. Focus on the future is confirmed by material R&D investments, which affect EBITDA margin."

Matteo Monfredini, Chairman and founder of Growens

"The first quarter does not yet include positive effects from the sale of the Email Service Provider business, although accounting for certain costs incurred for advisory and execution of the extraordinary deal. Future strategy will be centered on both innovation and growth, both organic and via M&A, with a view at accelerating the development of BEE, the fastest growing business unit."

Nazzareno Gorni, CEO and founder of Growens

Summary of Q1 2023 results

Item (EUR)	Q1 2023	%	Q1 2022	%	Change	Ch.%
SaaS Revenues	10,229,537	42.3%	7,368,726	34.8%	2,860,811	38.8%
CPaaS Revenues	13,753,979	56.9%	13,719,300	64.7%	34,679	0.3%
Other Revenues	193,008	0.8%	111,853	0.5%	81,155	72.6%
TOTAL REVENUES	24,176,524	100.0%	21,199,879	100.0%	2,976,645	14.0%
Gross Profit	7,787,614	32.2%	6,267,239	29.6%	1,520,374	24.3%
EBITDA	796,411	3.3%	1,098,419	5.2%	(302,009)	(27.5%)
EBT	(834,261)	(3.5%)	34,449	0.2 %	(868,710)	n.m.

The main results for the quarter ended 31 March 2023 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.

Consolidation of Contactlab's data started from 1 May 2022, according to IFRS accounting principles. As a consequence, compare consolidated Q1 2022 data do not include Contactlab's figures.

in Euro		REVENUES		EBITDA
	31/03/2023	31/03/2022	%	31/03/2023	31/03/2022	%
MailUp+Contactlab	6,744,131	4,309,457	56.5%	248,737	642,975	(61.3%)
Agile Telecom	14,869,410	14,671,428	1.3%	514,316	445,069	15.6%
BEE	2,356,669	1,881,800	25.2%	203,182	310,092	(34.5%)
Datatrics	554,693	622,264	(10.9%)	(332,034)	(434,560)	23.6%
Acumbamail	624,548	549,974	13.6%	124,216	100,861	23.2%
Holding	2,641,536	2,026,102	30.4%	(26,680)	(24,543)	(8.7%)
TOTAL	27,790,987	24,061,025	15.5%	731,737	1,039,894	(29.6%)
Consol. Adj.	(3,614,463)	(2,861,146)		64,674	58,526
TOTAL	24,176,524	21,199,879	14.0%	796,411	1,098,419	(27.5%)

Here follow quarterly results by Business Unit:

The consolidated net financial position as of 31 March 2023 is the following:

Consolidated Net Financial Position	31/03/2023	31/12/2022	Change	Ch. %
A. Cash	7,578,237	7,153,665	424,572	5.9%
B. Cash equivalents
C. Other current financial assets
D. Cash and cash equivalents (A) + (B) + (C)	7,578,237	7,153,665	424,572	5.9%
E Financial debt	827,221	1,076,709	(249,488)	(23.2%)
F. Current financial debt	3,488,573	1,621,736	1,866,837	115.1%
G. Current financial position (E) + (F)	4,315,794	2,698,445	1,617,348	59.9%
H. Net short term financial position (G) - (D)	(3,262,444)	(4,455,220)	1,192,776	(26.8%)
I. Due to banks medium/long term	4,326,922	4,389,700	(62,778)	(1.4%)
J. Bonds issued
K.Other financial liabilities medium/long term
L. Non current financial position (I) + (J) + (K)	4,326,922	4,389,700	(62,778)	(1.4%)
M. Net financial position (H) + (L)	1,064,478	(65,519)	1,129,998	n.m.
o/w Current financial liabilities Rights of Use IFRS 16	639,679	817,672	(177,993)	(21.8%)
o/w Non current financial liabilities Rights of Use IFRS 16	1,629,250	1,520,629	108,621	7.1%
Net financial position without IFRS 16 effect	(1,204,451)	(2,403,820)	1,199,370	(49.9%)

The above-mentioned results are unaudited.

Comments to the results

Consolidated Q1 2023 P&L posts total Revenues around 24.2M EUR, showing a +14% increase (+3% organic) versus 21.2M EUR in the same period of 2022: such growth is mainly driven by the 39% growth of the SaaS component, for a 42% incidence on total revenues. CPaaS is stable (+0.3%) for a 57% incidence on total revenues.

The Agile Telecom Business Unit posted the biggest sales of ca. 14.9M EUR, growing +1% over the same period of the previous year. Focus on profitability implied good recovery in margins, with EBITDA growing over 10x versus sales growth.

The fastest organically growing Business Unit is BEE (beefree.io), with a 25+% increase, at 2.4M 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) equals 11M USD as of March 2023.

Acumbamail's performance is also excellent (growing ca 14%), whereas MailUp+Contactlab posts growing sales (+57%, of which 1% organic). The Datatrics business unit sales, operating in the Predictive Marketing space with a proprietary Customer Data Platform, generated a 0.6M EUR revenues, decreasing by 11% YoY.

Consolidated recurring sales (SaaS subscriptions), representing 30+% of total sales at 7.2M EUR, grew by 23% vs. the same period of the previous year.

Foreign sales amount to 15.2M EUR, representing 63% of total sales and growing by 14%.

New clients include Compagnia Italiana di Navigazione/Moby, Veronafiere, RSE, Kahoot, University of Houston.

Consolidated EBITDA amounts to 0.8M EUR in Q1 2023, decreasing by 27% versus Q1 2022, with a 3+% margin on sales. The absolute and relative decrease of this figure is due to accelerated investments in R&D

(+65%, of which opex +37%) in view of BEE's development, as well as the incidence of G&A (+49%), largely due to advisory and execution costs for the sale of the Email Service Provider Business, consolidation of Contactlab's costs not included in Q1 2022, plus the additional effect of the change in bonus systems on staff expenses.

Gross Profit grows by over 24% to 7.8M EUR, with a 32+% margin on sales, whereas EBT is negative for 0.8M EUR.

The consolidated Net Financial Position as of 31 March 2023 amounts to ca. 1.1M EUR debt, decreasing versus the previously recorded (net cash) amount of 65k EUR as of 31 December 2022, mainly due to cash-outs for (i) the anticipated settlement of Contactlab's earn-out's first instalment, functional to the sale of the Email Service Provider business, financed via a short term loan facility, as well as (ii) indirect cash pooling policies relying on Agile Telecom liquidity facilities. Figurative debt from IFRS 16's adoption amounts to ca. 2.3M EUR. Cash amounts to 7.6M EUR, growing 6%.

Summary of KPI's

SAAS

KPI	MailUp	Datatrics	Acumbamail	BEE	Date
ARR	15,010,752€	2,128,400€	2,198,928€	10,767,936\$	March 2023
ARR growth	+29%	-8%	+15%	+23%	March 2023
Gross margin	58%	46%	87%	72%	FY 2022
EBITDA margin	4%	-60%	20%	9%	Q1 2023
Net Revenue Retention	94%	78%	91%	97%	March 2023

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

Update of Internal Dealing Procedure

The Board of Directors resolved to approve the updated Internal Dealing Procedure.

According to applicable rules, the procedure and this press release are online on and on the Issuer website www.growens.io, Section "Corporate Governance/Corporate Documents".

Investor Relations

Growens Chairman and CEO will comment Q1 2023 results in a conference call to be held on 12 May 2023 at 12,30 pm CET. Registration at this link: https://my.demio.com/ref/VrqfJ82AaA6bm1Wg.

Growens (GROW) is a leading European player in the field of Cloud Marketing Technologies, serving thousands of clients worldwide. Its suite of SaaS and CPaaS solutions allows SMEs and large corporations globally to master the evolving ways of communicating with customers. Starting from the original business MailUp the Group grew steadily since 2002, both organically and via M&A, peaking with the launch of innovative products such as BEEfree.io.

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. 36%.

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 02 89603080 press@growens.io growens.io

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

iCorporate - Growens Press Office Luca Manzato +39 335 7122973 Alberto Colombini +39 335 1222631 growens@icorporate.it