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Zalando published its FY21 results which were in line with its previous guidance and market expectations. The group is well on track to achieve its GMV goal of more than €30bn by 2025, but it confirmed that the significant acceleration in growth and temporary return rate benefit driven by the pandemic will continue to normalise. The updated guidance for FY22 was slightly below our expectations, and the group said the Russia-Ukraine conflict may delay its East European expansion.
Companies: Zalando SE
AlphaValue
Despite the continued strong top-line momentum, the delayed start of the winter season, gradually normalising consumer behaviour after the pandemic and the highly competitive post-lockdown promotional environment have all dragged down the group’s profitability. Operating margin was 0.4% (vs. 6.4% in Q3 20 /0.4% in Q3 19). The group has maintained its FY 21 guidance. Zalando said that it is well-prepared for the year-end holiday shopping season despite the industry-wide supply-chain challenges,
Zalando has experienced a softer Q2 21 after the incredibly strong Q1 21. On the back of the continued good momentum in the top line, adjusted EBIT slid 13% from last year. In addition to the resumed marketing spending, we believe that the pandemic-led lower return rate has started to normalise, and we believe this normalisation will continue to affect the profitability for the rest of the year. Also, the maintained guidance for FY21 has cooled down the the market’s current enthusiasm.
Zalando experienced the strongest growth ever since its IPO in 2014 during the first quarter. It continued to benefit from the pandemic-led surge in consumer demand and the accelerated growth in the partner business. The group has raised its expectations for FY 21 on the back of the strong start to the year. The group now expects the top line to increase 26-31% to €10.1-10.5bn and adjusted EBIT to reach €400-475m, both ahead of the current consensus and our expectations.
The unprecedented pandemic has unquestionably accelerated the industry transformation from offline to online. Benefiting from the surge in sofa shopping, Zalando has experienced an exceptional FY20 and a strong start to FY21. The solid momentum has not only led the group to upgrade its forecasts for FY21 but also enhanced its confidence for the long-term outlook. Zalando targets to triple GMV to €30bn by 2025 and expects to reach 10% of the total European fashion market in the long term.
The group has sent a strong encouraging sign by updating its FY20 outlook. The group is expecting its revenue to grow by 10-20%, and adjusted EBIT to reach €100-€200m for FY20, both are largely above the market’s current expectations. The worldwide spread of COVID-19 has not only massively hit the fashion retail industry, but also accelerated the industry transformation from offline to online, and Zalando has been well prepared.
Zalando has beaten estimates in H1 and raised its full-year guidance. Sales were up 20.1% at CER in Q2 and GMV up 23.7%. Guidance for the adjusted EBIT is now at the upper half of the range of €175-225m. Capex was maintained at €300m.
Group revenue was up 15.2% and GMV edged up 23.1%. The number of active customers increased by 14.1% and the average orders per active customer was up 11.5%. The adjusted EBIT jumped to €6.4m while the operating profit was down 21% to €-18.4m. Guidance was maintained.
Zalando accelerated in Q4 (+24.6%) and closed the year with a 20% sales growth. The adjusted EBIT margin dropped 160bp to 3.2% and adjusted EBIT was down 19.4% to €173.4m. Operating profit dropped 36.5% to reach €119.2m vs. €125m estimated.
Business Zalando came into existence in 2008 and over its decade of life, it became the leading European online platform for fashion-related goods and one of the top 10 fastest-growing retailers worldwide. The platform offers an extensive selection of fashion and beauty products to 17 markets in Europe. The company has gained a market share of around 1.1% of the overall European fashion retail market and 8% of the online fashion sector. Its customer base has expanded rapidly to reach 25.1m acti
Research Tree provides access to ongoing research coverage, media content and regulatory news on Zalando SE. We currently have 0 research reports from 6 professional analysts.
Audioboom’s FY23 results and Q1 trading update show Q1 24 revenue growth of +11% yoy, $6.7m of March 2024 revenue marking the platform’s highest revenue month since May 2022, and a confident outlook that leads us to reiterate our FY24E forecasts. Following the focus on new initiatives through FY23, the platform is now in its strongest ever operational position, with a record 1.1bn monthly ad impressions created in March 2024, record global audience reach of 38.6m unique global listeners in Janua
Companies: Audioboom Group PLC
Cavendish
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
Crimson Tide has reported FY23 results to December in line with expectations, with additional operating leverage benefitting updated FY24 and maiden FY25 and FY26 forecasts. FY23 delivered +15% revenue growth to £6.2m at 86% GM, of which over 90% is recurring, and maintained £5.8m ARR even after unexpected customer churn in the year as we previously noted. Crucially, the Group achieved milestone adj EBITDA profitability of £0.4m at 7% EBITDA margin, and edges closer to adj PBT profitability expe
Companies: Crimson Tide Plc
Companies: BILN ELCO NXQ CUSN ATG
Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce
Companies: Devolver Digital, Inc.
Zeus Capital
Companies: 88E RNO TRIN KRM EXR BOOM
Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.
Companies: Checkit plc
Edison
Companies: Kainos Group PLC
Canaccord Genuity
ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).
Companies: Auction Technology Group PLC
Companies: Crimson Tide Plc (TIDE:LON)Plant Health Care PLC (PHC:LON)
Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen
Companies: Touchstar plc
WHIreland
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
Companies: Idox plc
Progressive Equity Research
ENGAGE XR’s FY23 results show revenue and net cash in line with the February trading update, EBITDA ahead at -€4.0m vs -€4.5m due to the split of cash outflow between opex and working capital, and a confident outlook that leads us to reiterate our FY24E forecasts. FY23 revenue for the core ENGAGE platform was unchanged vs FY22 at €3.3m, as H2 23 revenue was impacted by the record seven-figure contract announced in February shifting to 2024, and several enterprise customers scaling back renewals
Companies: Engage XR Holdings PLC
Companies: Cirata Plc
Liberum
Companies: UTL ASC DNLM BWNG MONY DFS BOO
Shore Capital
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