Bike24 Holding AG announces preliminary results for the third quarter of 2023, full-year revenue guidance adjusted

• Continued subdued consumer sentiment; expectation of further overcapacities due to consolidations
• Q3 2023 EBITDA margin (adjusted) of 3.9 percent, a further improvement versus the first and second quarters as well as the prior-year quarter; -16 percent year-on-year decline in revenues
• Revenue growth guidance for fiscal year 2023 adjusted from previously -10 to -5 percent to -16 to -11 percent, guidance for EBITDA margin (adjusted) remains unchanged
• Inventories reduced to EUR 84.8 million and cash and cash equivalents increased to EUR 16.9 million

Dresden, October 25, 2023 - Bike24 Holding AG (BIKE24), one of the leading European e-commerce platforms for everything around cycling, continues to navigate in a challenging market environment. However, macroeconomic challenges and consolidations across the industry are expected to lead to stronger overcapacities than originally planned. With a focus on profitability and fewer promotional activities, the company nevertheless achieved an increase in operating profitability compared to the previous quarters as well as the prior-year quarter.

"We continue to find ourselves in an environment that the cycling world has not experienced for decades. Initial consolidations show that the market will change fundamentally," says Andrés Martin-Birner, co-founder and CEO of BIKE24. "Nevertheless, despite having reduced promotional activities significantly, we were able to further lower our inventories and stick to our strategy 'profitability before growth'."

Operational profitability and financial stability

According to preliminary calculations, BIKE24 generated revenues of EUR 61.1 million in the third quarter of 2023, which corresponds to a decrease of -16 percent compared to the prior-year quarter (EUR 72.6 million). Operating profitability increased with a positive adjusted EBITDA margin of 3.9 percent compared to the prior-year quarter (3.3 percent), mainly due to an increased gross margin because of fewer promotional activities.

The reason for the negative revenue development in the third quarter was the continuing low level of consumer sentiment and overcapacities in individual segments. In particular, the PAC business (parts, accessories and clothing) is very consumption-driven and disproportionately affected by the current market situation. Despite a significant increase in the share of full-bike sales, the PAC segment remains BIKE24's most important revenue driver with around 79 percent of total revenues (86 percent in Q3 2022).

"Despite all the difficulties, we are still on track to reach our inventory target of EUR 75 million by the end of the year. The increase in cash and cash equivalents to around EUR 17 million allows us some flexibility in terms of liquidity," reports CFO Timm Armbrust.

Revenue guidance adjusted to reflect current market environment

As the expected easing of the market is expected to be further delayed, the management of BIKE24 has adjusted the revenue guidance for fiscal year 2023. Instead of a decline in revenues of -10 to -5 percent, it now expects a development of -16 to -11 percent. Despite the adjusted revenue expectations, initiatives to increase profitability will continue to be executed, with the result that the adjusted EBITDA margin is expected to remain between -1 and 1 percent.

The final financials for the third quarter, the quarterly report and the presentation will be published on November 2, 2023. The earnings call will take place at 12 p.m. and can be followed through the following link:

https://montegaconnect.de/event/jxqeuyoz0rn5js9pah68sdtx4pdbjfoi

Press Relations:
Olga de Gast
E-mail: [email protected]
+49 151 2705 3924

Investor Relations:
Moritz Verleger
E-mail: [email protected]
+49 151 2414 0166

Notes

Certain statements contained in this release may constitute forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," or "aim," or the negative of these words or other variations of these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that, by their nature, are subject to significant risks and uncertainties and contingencies that are subject to change. The Company does not and will not give any assurance that any forward-looking statement will be achieved or will prove to be accurate. Actual future business, financial condition, results of operations and prospects may differ materially from those projected or anticipated in the forward-looking statements. Subject to applicable legal requirements, neither the Company nor any other person intends to update, review, or revise any forward-looking statements in this release to reflect actual events or developments, whether as a result of new information becoming available, new developments occurring in the future or otherwise, nor does it undertake any such obligation.