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IONOS intends to continue strong growth and to expand leading market position in Web Presence & Productivity and grow in the Cloud business

• Leading European SMB digitalization partner IONOS is strongly positioned in a large and growing market benefiting from secular trends
• IONOS is the #1 for web hosting across Europe
• For the financial year 2022, IONOS expects total revenue growth of 15 - 18% and healthy profitability
• IONOS is targeting to grow total revenue at around 10% CAGR mid-term, with Cloud Solutions expected to grow at around 20% CAGR

 Montabaur & London, November 15, 2022. United Internet AG is hosting a capital markets day for its shareholders today to introduce IONOS Group (“IONOS”), Europe’s leading SMB digitalization partner. As a trusted cloud enabler, IONOS is well placed to sustainably continue its successful growth path. The company benefits from its leading position in markets driven by the megatrend towards SMB digitalization. Both for 2022 and the medium-term, IONOS is projecting revenue growth and high profitability.

“The strong performance over the past years is reflected in IONOS’ best-in-class financial profile. As the European market leader in web hosting, we provide our customers in Europe and around the world with mission-critical products and services that are crucial to run and grow their businesses. This large and resilient market opens a wide range of opportunities for future growth”, says Achim Weiss, CEO of IONOS, on the eve of IONOS capital markets day of United Internet in London.

Strong revenue growth and high profitability

With its scalable platform, IONOS provides mission-critical products for SMBs to support their digitalization journey. Thus, IONOS became the leading digital enabler for SMBs in Europe with a comprehensive product portfolio from Web Presence & Productivity to Cloud Solutions, supported by first class customer care and infrastructure.

IONOS’ strong and resilient business model translates into a highly attractive and robust financial profile, combining growth, profitability and cash flow generation. In 2021, IONOS grew its total revenue by 12% to EUR 1.1 billion. The company expects to outperform this growth in 2022, projecting a 15 - 18% increase in total revenue. At the capital markets day, IONOS will provide further financial guidance: with a medium-term revenue of around 10% CAGR, the company plans to continue its strong growth trajectory.

The successful growth strategy and strong outlook across markets and regions is propelled by best-in-class profit margins. The adjusted EBITDA margin was 32% in 2021 and IONOS expects to progressively exceed 30% adjusted EBITDA margin also in the mid-term. The company has secured its financing through long-term intercompany loans provided by United Internet.

25-year success story with very good future prospects

“The success story of IONOS within United Internet began about 25 years ago. Ever since, the company has shown an excellent development. Together with the management and the employees, we have further developed IONOS into the leading digitalization partner of SMBs. Today, IONOS is a strong brand widely associated with the digitalization of SMBs in Europe. We are the clear market leader for web hosting in Europe and a fast-growing provider in the attractive market for Cloud Solutions. IONOS is well positioned to continue to grow sustainably and profitably in the context of the mega trends of digitization and cloud,” says Ralph Dommermuth, Chairman of the Supervisory Board at IONOS and CEO of United Internet AG.

Leading partner for SMB digitalization in Europe

IONOS operates across 18 markets in Europe and North America, with its platform being accessible worldwide. As the clear European #1 in the web hosting market, the company has a strategic footprint and leading #1 and #2 market positions for web hosting in the European core markets Germany, Spain, UK, France and Poland. With its unique services and products, IONOS serves a large, diversified and loyal customer base with around six million customers worldwide, including in North America, where annual revenues of over EUR 100 million are achieved with likewise high profitability and solid growth.

The unique IONOS brand, in which the company has invested significantly in recent years, also contributes to the strong positioning. These investments are to be continued and further strengthen IONOS’ footprint within its target group. This way, IONOS intends to remain one of the winners in the consolidating market for web hosting and cloud solutions in the long term.

 About IONOS

IONOS is the leading European SMB digitalization partner and a trusted cloud enabler. The company provides web presence and productivity solutions as well as cloud infrastructure and cloud solutions to more than six million customers worldwide and operates across 18 markets in Europe and North America, with its platform being accessible worldwide. IONOS’ comprehensive product portfolio acts as a one-stop for all digitalization needs: from domains and web hosting to classic website builders and do-it-yourself solutions, from e-commerce and online marketing tools to full-fledged servers and IaaS solutions. The company’s scalable platform provides end-to-end solutions for freelancers, small businesses and consumers as well as enterprise customers with complex IT requirements.

IONOS is part of the listed United Internet AG (ISIN DE0005089031).

About United Internet

With around 27 million fee-based customer contracts and 40 million ad-financed free accounts, United Internet AG is a leading European internet specialist. At the heart of United Internet is a high-performance “Internet Factory” with over 10,000 employees, of which approx. 3,600 are engaged in product management, development and data centers. In addition to the high sales strength of its established brands (such as 1&1, GMX, WEB.DE, IONOS, STRATO, and 1&1 Versatel), United Internet stands for outstanding operational excellence with around 67 million customer accounts worldwide.

United Internet press contact

Lisa Pleiß
Phone +49 2602 96-1616
presse@united-internet.de

IONOS press contact

Andreas Maurer
Phone: +49 2602 96-1275
andreas.maurer@ionos.com

Disclaimer

This press release and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy any securities.

This press release and the information contained herein are for informational purposes only. It does not, and should not be construed as, a prospectus, is not intended for potential investors and does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of IONOS or United Internet in any jurisdiction including the United States of America, its territories and possessions, any State of the United States, and the District of Columbia (the "United States"), and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, in particular, it must not be used in making any investment decision The securities of IONOS or United Internet have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or under the laws applicable in any state of the United States, and no such registration is contemplated. Absent such registration, these securities may not be offered, sold or otherwise transferred in the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act.

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of United Internet AG. Forward-looking statements do not guarantee the occurrence of future results and developments and are subject to known and unknown risks and uncertainties. United Internet AG does not assume any obligation to update the statements contained in this release.