Intershop reports significant cloud growth and improved profitability in financial year 2024

• Cloud revenues grow by 27% to EUR 20.5 million
• Total revenues up 2% to EUR 38.8 million
• Operating result (EBIT) positive at EUR 0.1 million (previous year: EUR -2.5 million)

Jena, 19 February 2025 – Intershop Communications AG (ISIN: DE000A254211), a global provider of B2B commerce solutions for the upper mid-market in the manufacturing and wholesale sectors, generated total revenues of EUR 38.8 million in the financial year 2024 (2023: EUR 38.0 million). Despite macroeconomic uncertainties and the associated reluctance to invest in the IT sector, Intershop continued to grow significantly in the strategically important cloud business. Earnings before interest and taxes (EBIT) improved strongly compared to the previous year from EUR -2.5 million to EUR 0.1 million.

Revenues in the cloud and subscription segment grew by 27% to EUR 20.5 million in 2024 (2023: EUR 16.2 million). The share of cloud revenues in total revenues increased to 53% (2023: 43%). Cloud ARR (annual recurring revenues) were up 16% to EUR 20.1 million as of 31 December 2024 (31 December 2023: EUR 17.3 million). Incoming cloud orders also increased slightly compared to the previous year, rising by 1% to EUR 20.0 million (2023: EUR 19.7 million). Net new ARR climbed 40% to EUR 2.7 million (2023: EUR 1.9 million). The cloud margin improved from 58% to 65%.

License and maintenance revenues increased by 14% to EUR 9.4 million in the reporting year (2023: EUR 8.2 million). The increase in license business was mainly attributable to relicensing of existing customers. Service revenues declined by 35% to EUR 8.9 million in the financial year 2024 (2023: EUR 13.6 million). This is due in particular to the large-scale projects initiated last year, which turned out to be more complex and resource-intensive than originally planned. In addition, Intershop has opted for a partner-first strategy, meaning that new projects are primarily implemented via the extensive partner network, which results in a further decline in service revenues.

Gross profit on revenues rose to EUR 17.7 million in the reporting period (2023: EUR 15.8 million). At 46%, the gross margin was four percentage points higher than in the previous year. Operating expenses and income decreased by 4% to EUR 17.6 million (2023: EUR 18.3 million). R&D expenses declined by 3% to EUR 6.7 million (2023: EUR 6.9 million). At EUR 7.4 million, marketing and selling expenses were down 12% on the previous year (2023: EUR 8.4 million). General administrative expenses increased slightly by 2% to EUR 3.3 million (2023: EUR 3.2 million). Other operating expenses include one-time expenses of EUR 0.5 million for implemented personnel reduction measures. Earnings before interest and taxes (EBIT) improved significantly compared to the previous year and were slightly positive again at EUR 0.1 million after a negative operating result in the previous year (2023: EUR -2.5 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to EUR 3.3 million (2023: EUR 0.9 million). The EBITDA margin stood at 8% (2023: 2%). Earnings after taxes amounted to EUR -0.4 million (2023: EUR -3.1 million), which corresponded to earnings per share of EUR -0.02 (2023: EUR -0.21).

Total assets of the Intershop Group amounted to EUR 37.4 million as of 31 December 2024, compared to EUR 38.0 million at the end of 2023. The equity ratio remained solid at 29% (31 December 2023: 30%). Cash and cash equivalents amounted to EUR 8.7 million at the balance sheet date (31 December 2023: EUR 10.0 million). Cash flow from operating activities stood at EUR 2.1 million, compared to EUR 3.0 million in the previous year. As of 31 December 2024, Intershop employed a total of 261 people worldwide (31 December 2023: 299 people).

Markus Klahn, CEO of Intershop Communications AG: "Despite a challenging market environment, we managed to further improve our key figures in the financial year 2024 and met our forecast for the year. Especially the continued strong growth in the cloud segment contributed significantly to the improved performance. For the first time, the cloud business made up more than half of our total revenues, and our profitability has also increased further. At the same time, we have sharpened our strategic positioning: we are focusing more on product revenues and consistently pursuing a partner-first strategy, which will lead to a further decline in service revenues but will significantly boost profitability. On the product side, our main focus this year will be on the introduction of our Intershop agents paired with supplementary AI extensions and partner-based AI solutions. These will provide our customers with noticeable economic benefits and at the same time mark an important step toward our vision of ‘autonomous commerce'."

Overall, Intershop expects both incoming cloud orders and net new ARR to increase slightly for the financial year 2025 compared to the previous year. At the same time, a revenue decline of 5% to 10% is forecasted due to the partner-first strategy and the resulting decrease in service revenues, along with a slightly positive operating result (EBIT).

The full consolidated financial statements will be published in mid-March 2025. All financials in this press release are provisional, pending completion of the statutory audit.

Financial tables 2024