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INTERSHOP COMMUNICATIONS AKTIENGESELLSCHAFT

(ISHA)
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INTERSHOP Communications : Quarterly Statement Q1-Q3 2021

10/21/2021 | 02:24am EST

Quarterly Statement

Q1 - Q3 2021

January - September 2021

Letter to Our Stockholders

Dear stockholders and business partners,

We continued on our profitable growth path in the third quarter, even though the period from July to September was challenging, as was the case in the past. The summer break was longer this year for many companies, especially after months of corona restrictions, resulting in a slight delay in customer decisions for some projects. But at the same time, we have also noticed that the positive trends for our industry seem to consolidate further. These primarily relate to the increasing digitization efforts in the industry, spurring the demand for sustainable solutions for digital trade in the medium term.

All in all, we are very satisfied with the first nine months and have almost doubled the EBIT to about EUR 1.2 million. We are particularly pleased with the fact that for the seventh consecutive quarter we have posted a positive operating result. Overall, our cloud key figures clearly show a positive trend: Incoming orders amounts to EUR 11.3 million at the prior-year level, the share of cloud revenue in the overall revenue has increased by 9 percentage points to 31%, and the Net New ARR amounts to EUR 2.1 million compared to EUR 1.6 million in the same period last year. Our profitability in the cloud has also continued to increase. With a cloud margin of 51% in the first nine months we were well over the previous year's figure of 38%.

I am especially proud of Intershop being named a leading global technology company again in the renowned Gartner® Magic Quadrant™ for Digital Commerce 2021. Our positioning as a niche player confirms our decision to focus on the B2B commerce segment and the cloud transformation of our platform and sends a strong signal to the competition. The award encourages us to further optimize our platform and to strengthen our position as a top provider in the B2B field.

Thanks to the satisfactory first nine months of the current financial year and with a continued attractive new customer pipeline we are convinced that we will be able to reach our goals for 2021.

We thank you for your trust.

Best regards,

Markus Klahn

INTERSHOP Communications AG / Quarterly Statement Q1 - Q3 2021

2

Key Figures for the Group

in EUR thousand

9-Months 2021

9-Months 2020

Change

KPIs

Cloud order entry

11,349

11,290

1%

Net New ARR

2,068

1,599

29%

Revenue

26,581

24,258

10%

EBIT

1,150

595

93%

REVENUES

Revenues

26,581

24,258

10%

Licenses and Maintenance

6,790

8,714

-22%

Cloud and Subscription

8,125

5,260

54%

Service Revenues

11,666

10,284

13%

Revenues Europe

18,503

17,251

7%

Revenues USA

4,949

3,690

34%

Revenues Asia/Pacific

3,129

3,317

-6%

EARNINGS

Cost of revenues

14,075

13,313

6%

Gross profit

12,506

10,945

14%

Gross margin

47%

45%

Operating expenses, operating income

11,356

10,350

10%

Research and development

3,947

2,657

49%

Sales and marketing

5,594

5,485

2%

General and administrative

2,464

2,233

10%

Other operating income/expenses

(649)

(25)

++

EBIT

1,150

595

93%

EBIT-Margin

4%

2%

EBITDA

3,521

3,189

10%

EBITDA margin

13%

13%

Net result

764

402

90%

Earnings per share (EUR)

0.05

0.03

++

NET ASSETS

Shareholders´equity

17,322

16,156

7%

Equity ratio

45%

56%

Balance sheet total

38,598

28,881

34%

Noncurrent assets

21,300

12,200

75%

Current assets

17,298

16,681

4%

Noncurrent liabilities

11,966

3,117

++

Current liabilities

9,310

9,608

-3%

FINANCIAL POSITION

Cash and cash equivalents

11,709

11,290

4%

Net cash operating activities

3,210

3,404

-6%

Depreciation and amortization

2,371

2,594

-9%

Net cash used in investing activities

(931)

(1,706)

-45%

Net cash provided by financing activities

(2,180)

1,917

++

EMPLOYEES

290

298

-3%

INTERSHOP Communications AG / Quarterly Statement Q1 - Q3 2021

3

Business development

Business performance during the first nine months of 2021

In the reporting period, the Intershop Group generated sales revenues of EUR 26.6 million, an increase of 10% compared to the same period last year. The operating result before interest and taxes (EBIT) is again positive in the third quarter and amounts to around EUR 1.2 million for the first nine months of 2021 (prior year: EUR 0.6 million).

The Group´s most important financial key figures (KPIs) are shown in the overview below.

in EUR thousand

9M 2021

9M 2020

Change

Cloud Order Entry

11,349

11,290

1%

Net New ARR

2,068

1,599

29%

Revenue

26,581

24,258

10%

EBIT

1,150

595

93%

The cloud business continues on its growth path

Intershop posted good development in the cloud business in the reporting period for the first nine months. Incoming cloud orders amounts to EUR 11.3 million at the prior-year level. EUR 6.5 million of this are attributable to new customers and EUR 4.8 million to existing customers. Overall, cloud and subscription revenues rose by EUR 8.1 million, representing an increase of 54%. Thanks to the strong growth, the share of cloud revenue in the overall revenue increased by 9 percentage points to 31% (prior year: 22%). The Net New ARR (new annual recurring revenue less ARR for cancellations and currency translation differences) increased by 29% to EUR 2.1 million compared to EUR 1.6 million in the previous year. Intershop was able to win over seven new customers in the first nine months. The latter contributed EUR 0.9 million to the New ARR, while a New ARR of EUR

1.2 million was achieved with existing customers. As of September 30, 2021 the ARR (annual recurring revenue) increased by 36% to EUR 11.4 million (prior year: EUR 8.4 million). With 51%, the cloud margin for the entire reporting period was well above that of the first three quarters of 2020 (prior year: 38%).

INTERSHOP Communications AG / Quarterly Statement Q1 - Q3 2021

4

Earnings Position

The development of the key earnings figures of the Group is shown in the overview below:

in EUR thousand

9M 2021

9M 2020

Change

Revenues

26,581

24,258

10%

Cost of revenues

14,075

13,313

6%

Gross margin

47%

45%

Operating expenses, operating income

11,356

10,350

10%

EBIT

1,150

595

93%

EBIT margin

4%

2%

EBITDA

3,521

3,189

10%

EBITDA margin

13%

13%

Earnings after tax

764

402

90%

In the first nine months of 2021, the Intershop Group generated revenues in the amount of EUR

26.6 million, which corresponds to an increase of 10% over the same period in the prior year. For the third quarter, revenues amounted to EUR 8.3 million (prior year: EUR 7.8 million).

Revenues for the core group software and cloud rose by 7% to EUR 14.9 million, representing 56% of the total revenue. The core group includes the license and maintenance area as well as the cloud and subscription area, which developed in opposite directions in the reporting period. licenses and maintenance revenues amounted to EUR 6.8 million in the first nine months compared to EUR 8.7 million in the same period last year. In contrast, the cloud and subscription area showed a robust growth of 54% to EUR 8.1 million. Service revenues rose by 13% to EUR 11.7 million. Last year, this area experienced project delays and postponements in the course of the corona pandemic. These processes normalized in 2021, whereby recovery trends are now reflected in increasing revenues.

The following overview shows the development of revenues:

In EUR thousand

9M 2021

9M 2020

Change

Software and Cloud Revenues

14,915

13,974

7%

Licenses and Maintenance

6,790

8,714

-22%

Licenses

1,166

2,678

-56%

Maintenance

5,624

6,036

-7%

Cloud and Subscription

8,125

5,260

54%

Service Revenue

11,666

10,284

13%

Revenues total

26,581

24,258

10%

Europe is the core target region for Intershop. Here the Group grew by 7% to EUR 18.5 million in the first nine months of 2021. Thus, the share of European customers in total revenues is 70%. The U.S. region recorded a particularly strong growth. Revenues increased by 34% to EUR 4.9 million, representing a share of 18% of total revenues. In the Asia-Pacific region, revenues amounted to EUR 3.1 million (prior year: EUR 3.3 million). Thus, the region contributes 12% to the total revenues.

INTERSHOP Communications AG / Quarterly Statement Q1 - Q3 2021

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Intershop Communications AG published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 06:23:02 UTC.


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Financials
Sales 2021 35,2 M 39,8 M 39,8 M
Net income 2021 1,20 M 1,36 M 1,36 M
Net cash 2021 10,7 M 12,1 M 12,1 M
P/E ratio 2021 60,0x
Yield 2021 -
Capitalization 68,1 M 76,8 M 77,1 M
EV / Sales 2021 1,63x
EV / Sales 2022 1,44x
Nbr of Employees 290
Free-Float 100%
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INTERSHOP Communications Aktiengesellschaft Technical Analysis Chart | ISHA | DE000A254211 | MarketScreener
Technical analysis trends INTERSHOP COMMUNICATIONS AKTIENGESELLSCHAFT
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 2
Last Close Price 4,80 €
Average target price 5,95 €
Spread / Average Target 24,0%
EPS Revisions
Managers and Directors
Jochen Wiechen Chief Executive Officer
Christian Oecking Chairman-Supervisory Board
Markus Klahn Chief Operating Officer
Louis Velthuis Member-Supervisory Board
Ulrich Praedel Vice Chairman-Supervisory Board
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