Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- New Work SE (XTER:NWO, Financial) achieved a pro forma EBITDA of EUR 17 million in Q2 with a 27% margin, despite a challenging macroeconomic environment.
- The company successfully completed a group-wide restructuring in April 2024, which has significantly improved its cost base.
- Kununu, a part of New Work SE, continues to grow, contributing over one-third of segment revenues with an above-average EBITDA margin.
- The company is investing in AI features to enhance its HR solutions, such as AI-based job summarizers and conversational job search.
- XING's transformation into a job-focused network is showing positive engagement metrics, with job visits up 60% and applications up 40% year over year.
Negative Points
- New Work SE (XTER:NWO) reported a 14% decline in revenues in Q2 2024, attributed to a weak employment market and ongoing transition of its B2C business.
- The company is facing significant macroeconomic headwinds, with a downturn in the German labor market affecting its core recruiting business.
- The number of HR solution subscription customers has decreased, with a decline of around 300 customers compared to the previous year.
- The B2C segment revenues are down 18% year over year, driven by planned declines in direct B2C monetization at XING.
- Operating cash flow was slightly negative at minus EUR 1.1 million, primarily due to severance payments related to restructuring.
Q & A Highlights
Q: Can you provide an update on the delisting process?
A: The delisting offer is currently out, with an acceptance rate of over 77% as of Monday. The offer will run until August 26.
Q: How do you view the macroeconomic environment in Germany, and are there growth opportunities despite the volatility?
A: We are cautious about next year’s outlook due to potential downward revisions in macro growth predictions. However, we are confident in finding growth opportunities, particularly with kununu, despite the challenging times.
Q: Will management remain available for investor discussions post-delisting?
A: While we will stop quarterly calls and reporting, we will continue to engage with shareholders and hold annual meetings as required by our status as an SE.
Q: Is the initial sales target of EUR270 million to EUR280 million still valid?
A: Yes, the sales target remains valid at this point in time.
Q: What are the key financial achievements for Q2 2024?
A: Revenues declined by 14% due to a weak employment market and transition in our B2C business. However, we achieved EUR17 million pro forma EBITDA with a 27% margin, and we are confident in meeting our full-year guidance of EUR55 million to EUR65 million pro forma EBITDA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
