OrderYOYO (YOYO) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 results showed strong growth in revenue, profitability, and recurring revenue, driven by an organic business strategy focused on digital solutions for restaurant partners and effective execution in key European markets.

• Achieved market leadership in Europe, including the UK and Germany, with a focus on local, independent takeaway restaurants and expansion into the QSR chain segment through the acquisition of App4.

• The acquisition of App4 in the UK strengthens presence in the QSR Chains segment, expands product capabilities, and positions the organization to serve both small QSRs and QSR Chains (3-25 outlets).

• The company upgraded its 2024 guidance and provided a preliminary outlook for 2025, reflecting both organic growth and the impact of the App4 acquisition.

Financial highlights

• Annualized recurring revenue (ARR) reached DKK 304 million in September 2024, up 19% year-over-year.

• Net revenue for the first nine months of 2024 was DKK 226 million, a 25% increase from the same period last year.

• Annualized September GMV rose 14% to DKK 2.8 billion in Q3 2024.

• EBITDA for the first nine months surged 126% to DKK 37.3 million.

• Cash EBITDA for the first nine months improved to DKK 17.6 million from a loss of DKK 3.4 million in 2023.

Outlook and guidance

• 2024 guidance raised: ARR to DKK 340-350 million, net revenue above DKK 300 million, GMV to DKK 3.55-3.65 billion, EBITDA to DKK 47-52 million, and cash EBITDA to DKK 20-25 million.

• EBITDA margin guidance for 2024 increased to 15%-17%, with a long-term goal of 25%.

• 2025 preliminary outlook: ARR DKK 380-400 million (+13% YoY), net revenue DKK 360-370 million (+21% YoY), GMV DKK 3.9-4.0 billion (+10% YoY), EBITDA DKK 68-73 million (+42% YoY), cash EBITDA DKK 40-45 million (+89% YoY), EBITDA margin just under 20%.