HomeToGo’s Q2/23 Results Deliver First Time Positive Adjusted EBITDA In A Second Quarter Alongside Strong Business Momentum, Further Confirming FY/23 Guidance

Q2/23 Key Financial Highlights

• Strong advancement in profitability by reaching first time positive Adjusted EBITDA already in a second quarter of €1.4M (vs. €(6.4)M in Q2/22), powered by strong improvement in marketing efficiency driven by repeat business and higher economies of scale
• Subscriptions & Services business reached the highest quarter IFRS Revenues ever of €9.1M (85% YoY), including standout contribution from all-in-one SaaS solution Smoobu as the fastest organically growing entity
• Robust YoY growth in IFRS Revenues leading to highest Q2 figures ever of €42.8M (14% YoY, which is more than 2.5 times pre-COVID levels), including a favorable development of our North American business (65% YoY in IFRS Revenues). Additionally, CPA Take Rate grew to an all-time high of 11% (+1pp YoY)
• Strong increase in cash position to €145.3M at end of Q2/23 (an increase of €5.3M vs. Q1/23) on the back of a positive operating cash flow of about €8.8M, with additional inflows expected in H2/23 following check-ins during high season

Underlying Drivers of H1/23 Financial Performance

• Impressive increase of Booking Revenues to €115.5M in H1/23 (29% YoY) fueled by a growing North American business leading to new Q2 record high of a €67.4M (14% YoY) Booking Revenues Backlog[1] - to be recognized after check-in as IFRS Revenues providing high visibility over the course of H2/23
• IFRS Revenues growth of 14% YoY to €64.7M, additionally driven by record growth in Subscriptions & Services IFRS Revenues to €14.9M (85% YoY)
• FY/23 guidance confirmed, with HomeToGo fully on track to deliver on its promise of Adjusted EBITDA break-even as guidance midpoint alongside double digit IFRS Revenues growth in FY/23

Luxembourg, 15 August 2023 - HomeToGo SE (Frankfurt Stock Exchange: HTG), the marketplace with the world's largest selection of vacation rentals, today announced a strong improvement in profitability for the second quarter of 2023 and an intact growth trajectory, reiterating full confidence to achieve its FY/23 targets. HomeToGo notably achieved a first time positive Adjusted EBITDA in a second quarter of €1.4M (vs. €(6.4)M in Q2/22). The Adjusted EBITDA margin improved substantially by +20pp YoY and stood at 3.3% at the end of Q2/23.

Additionally, HomeToGo built an all-time high Booking Revenues Backlog of €67.4M as per end of Q2/23 (14% YoY), which will translate to check-ins for the remainder of the year and gives high visibility on its growth targets. This follows an overall recovery of travel demand and the observed resilience of vacation rentals despite significant macroeconomic uncertainties continuing in 2023.

HomeToGo also continued operational strength across its key strategic pillars - further increasing its CPA Take Rate to an all-time high of 11% in Q2/23 (+1pp YoY) and delivering exceptional growth in its profitable Subscriptions & Services business to a record high quarter of €9.1M IFRS Revenues in Q2/23 (85% YoY). As the Company’s fastest organically growing unit, this includes a particularly strong contribution from its all-in-one SaaS solution for self-servicing hosts Smoobu. HomeToGo’s impressive performance was also driven by a solid North American business that reached 65% YoY growth in IFRS Revenues in Q2/23. As a result, HomeToGo’s overall IFRS Revenues and Booking Revenues led to the highest Q2 figures ever of €42.8M (14% YoY, which is more than 2.5 times pre-COVID levels) and €50.2M (8% YoY), respectively.

Driven by a substantial focus on the Company’s marketing efficiency and its repeat business, this resulted in a significant +15pp YoY improvement in the marketing and sales cost ratio[2] as HomeToGo reached a first time positive Adjusted EBITDA in a second quarter.

H1/23 overall saw continued Booking Revenues growth of 29% to €115.5M, additionally supported by a growing North American business. IFRS Revenues growth of 14% YoY to €64.7M was driven by a record half year Subscriptions & Services IFRS Revenues of €14.9M (85% YoY). 

HomeToGo made strong advancements on its cash position on the back of a positive operating cash flow in Q2/23 of about €8.8M. The Company’s cash position was €145.3M at the end of Q2/23 with additional inflows expected in the remainder of 2023 following high season check-ins.

HomeToGo reiterates its FY/23 guidance, which includes expecting an IFRS Revenues growth of 13-19% YoY to €165-175M and to achieving Adjusted EBITDA break-even as guidance midpoint.

Dr. Patrick Andrae, Co-founder & CEO of HomeToGo: “The first half of 2023 has made us incredibly proud, with HomeToGo delivering a positive Adjusted EBITDA for the first time in a second quarter following steep Booking Revenues growth in the first quarter. We’ve proven incredible resilience despite a year with significant macroeconomic challenges. This was achieved by remaining laser focused on marketing efficiency and building steady repeat demand, plus significantly growing our strategic levers such as our Subscriptions & Services business that drives solutions for our partners. We also notably defined HomeToGo again as a pioneer in the travel industry by being the first vacation rental-focused marketplace to test and launch an AI product: Our AI Mode as the first HomeToGo Mode. Combining our deep expertise with machine learning and passion for creating an unparalleled experience for our travelers, we’ve further revolutionized the approach to finding the perfect vacation rental. With full confidence in achieving our targets in 2023, we’re now enabled to make substantial strides as we already look ahead to lifting the company to the next level in 2024.”

Q2 2023 Quarterly Statement and Presentation

Dr. Patrick Andrae, CEO, and Steffen Schneider, CFO, will present the quarterly results in a conference call at 10:00 am CEST today, followed by a Q&A session for research analysts and investors.

The presentation will be held via a live audio webcast, and will be in English, hosted at: https://www.webcast-eqs.com/hometogo2023-q2

Interested participants can register in advance for the conference call – with the opportunity to take part in the Q&A session - at the following address: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=8126782&linkSecurityString=a9fdf3ee2

The H1 2023 financial report, as well as the earnings presentation for analysts and investors, is available on the HomeToGo Investor Relations website at: ir.hometogo.de.

About HomeToGo

HomeToGo was founded in 2014 with a vision to make incredible homes easily accessible to everyone. To pursue this vision, HomeToGo was able to build and constantly grow a trusted and easy-to-use technology platform that brings together property suppliers with travelers from all across the world.

HomeToGo operates a marketplace for vacation rentals that connects millions of travelers searching for a perfect place to stay with thousands of inventory suppliers across the globe, resulting in the world's most comprehensive inventory coverage in the alternative accommodation space. HomeToGo's marketplace is beneficial to both of its customer groups: Consumers who visit HomeToGo's websites gain access to the largest inventory in one place, and supply partners who use the platform's reach and technology solutions are better able to serve a wide range of customers and generate more high-quality demand. While HomeToGo SE's registered office is located in Luxembourg, HomeToGo GmbH is headquartered in Berlin, Germany. HomeToGo operates localized apps and websites in 25 countries.

HomeToGo SE is listed on the Frankfurt Stock Exchange under the stock ticker “HTG”.

For more information visit: www.hometogo.com/about 

Media Contact
Caroline Burns
press@hometogo.com

Investor Relations Contact
Sebastian Grabert
+49 157 501 63731
IR@hometogo.com

Forward-Looking Statements

Certain statements contained in this release may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by HomeToGo SE that any forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations and prospects may differ materially from those projected or forecast in the forward-looking statements. Neither HomeToGo SE nor any of their respective affiliates assume any obligation to update, and do not expect to publicly update, or publicly revise, any forward-looking statements or other information contained in this release, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Use of Non-IFRS Performance Measures

This release includes certain financial measures not presented in accordance with IFRS, which may exclude items that are significant in understanding and assessing the Company's financial results. These measures should not be considered in isolation or as an alternative to measures of profitability, liquidity or performance under IFRS. Regarding the alternative performance measures Adjusted EBITDA, Booking Revenues, Onsite Booking Revenues, Onsite Share and CPA Take Rate, the Company refers to the corresponding definitions published on its IR website under IR resources (http://ir.hometogo.de/).

^[1] Booking Revenues generated until June 30, 2023 with IFRS Revenues recognition based on check-in date after the reporting date in FY 2023.

^[2] Marketing and sales adjusted for expenses for share-based compensation, depreciation and amortization, and non-operating one-off items in relation to Booking Revenues.