Half Year 2024 New Work SE Earnings Call Transcript
Key Points
- New Work SE (XTER:NWO) 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.
- 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.
Good afternoon, and welcome to today's earnings call of New Work SE following the publication of the half-year figures of 2024. New Work is represented by the CEO, Petra Von Strombeck; CFO, Ingo Chu; and Patrick Moller from Investor Relations.
(Operator Instructions) Having said this, I hand over to you, Mrs. Petra Strombeck.
Hello, everyone, and welcome to today's capital markets update call. Today, we are presenting our results and insights for the second quarter 2024.
Let me start with the obvious. This will be our last analyst call because our company is going to be delisted soon. You know the reasons, and you are aware why we choose to pursue this path after Board approached us in April and asked us to examine the potential delisting.
I can assure you that we have put the same effort into this call as always. And let me add from my side that I've always appreciated talking to you, get challenged from you, and get inspired by your
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