INTERSHOP Communications AG

Latest Results (14.08.2024):

Revenue Performance

INTERSHOP Communications AG reported revenues of EUR 19.0 million for the first half of 2024, a slight decrease from EUR 19.4 million in the same period of the previous year. The decline was primarily due to underperformance in the service segment, despite significant growth in the cloud business.

Cloud Business Growth

The cloud business of INTERSHOP Communications AG saw a substantial increase in the first half of 2024, with revenues rising by 32% to EUR 10.3 million compared to EUR 7.8 million in the previous year. Cloud revenues now account for 54% of the total revenues, up from 40% in the previous year.

Service Segment Decline

Service revenues for INTERSHOP Communications AG fell by 28% to EUR 5.1 million in the first half of 2024, down from EUR 7.1 million in the previous year. This decline was attributed to the complexity of large projects initiated last year and increased reliance on the partner network for new project implementations.

Profit Margins and Operating Expenses

INTERSHOP Communications AG maintained a gross profit of approximately EUR 8.4 million in the first half of 2024, with the gross profit margin increasing by one percentage point to 44%. Operating expenses and income decreased by 4% to EUR 8.9 million, with notable reductions in R&D and sales and marketing expenses.

Earnings and Outlook

INTERSHOP Communications AG's EBITDA improved to EUR 1.1 million in the first half of 2024, up from EUR 0.9 million in the previous year. However, EBIT remained slightly negative at EUR -0.4 million. The company expects a moderate increase in revenues and a break-even operating result for the full year 2024.