Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cliq Digital AG (XTER:CLIQ, Financial) launched a transformation program called 'Fit for the Future' to focus on profitability and adapt to changing market conditions.
- The company remains debt-free despite financial challenges, maintaining a net cash position of €12 million at the end of 2024.
- Cliq Digital AG has diversified its marketing strategy with an omnichannel approach, including new digital products and monetization models.
- The company has successfully reduced operating expenses by 25% through its transformation program.
- Cliq Digital AG's management and supervisory board are committed to returning capital to shareholders through dividends and share buybacks.
Negative Points
- Cliq Digital AG experienced a significant sales decline in 2024, with a 26% drop in sales and a 40% reduction in its customer base.
- The company reported a net loss of €28 million for 2024, with a negative EPS of €4.75.
- Cliq Digital AG's EBITDA margin before special items fell to 9%, significantly lower than previous years.
- The company faced a goodwill impairment of €27 million due to challenging market conditions and a decline in market value.
- Cliq Digital AG had to reduce its workforce by 22% as part of its cost-saving measures.
Q & A Highlights
Q: What is the status of the Fit for Future Transformation program, and what measures have been initiated to return to a growth path?
A: Luc Voncken, CEO, explained that the Fit for Future program has made the company more cost-efficient and diversified its marketing channels and product offerings. The company is committed to increasing profitability and returning to its previous growth trajectory.
Q: Is it possible to adjust the business model towards longer-term customer retention?
A: Luc Voncken, CEO, stated that CLIQ Digital's business model focuses on short-term consumer needs through performance marketing, not on long-term customer retention, which would require higher content costs.
Q: What investments are planned for 2025, and is a positive free cash flow expected despite the sales slump?
A: Ben Bos, Member of the Management Board, mentioned that while specific cash flow guidance is not provided, the company aims to be cash flow positive in 2025. Investments will focus on increasing customer acquisition costs, which may impact operating free cash flow.
Q: How does CLIQ Digital plan to regain the trust of the capital market after revenue reductions?
A: Ben Bos, Member of the Management Board, noted that the management and supervisory board are principal shareholders and practice portfolio diversification. The company remains committed to returning capital to shareholders through dividends or share buybacks.
Q: What are the expectations for the Fit for Future program's special items in Q1 2025?
A: Ben Bos, Member of the Management Board, indicated that special items related to the Fit for Future program are expected to be lower in 2025 compared to 2024, as significant progress has been made.
Q: When can a turnaround in customer growth and EBITDA be expected?
A: Ben Bos, Member of the Management Board, expressed caution regarding timing but expects improvements in EBITDA margin and customer acquisitions in 2025, driven by strategic measures and a focus on profitability.
Q: What are the difficult market conditions affecting CLIQ Digital?
A: Luc Voncken, CEO, highlighted the drop in customer numbers and increased churn rates due to card scheme companies, leading to lower average lifetime values and reduced marketing spend.
Q: What assumptions are made for customer numbers and LTV in the 2025 revenue forecast?
A: Ben Bos, Member of the Management Board, emphasized the balance between lifetime value and cost per acquisition, ensuring each new customer contributes positively to EBITDA. The focus is on maintaining healthy margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
