Q3 2024 Cdon AB Earnings Call Transcript
Key Points
- Cdon AB (OSTO:CDON) successfully completed the platform migration on time and within budget, integrating all city markets into a shared platform.
- The company reported a positive EBITA of 5.5 million SEK, an improvement from last year's 3.2 million SEK.
- The new platform is cloud-native and microservices-based, allowing for faster time-to-market and better scalability.
- AI is integrated at the core of the new platform, enhancing product data and conversion rates while reducing costs.
- Cdon AB (OSTO:CDON) strengthened its management team with the addition of Visa Jarvela as CSO, bringing significant experience from the Finnish market.
- The company experienced a negative GMV growth of 8% for the quarter, with continued negative growth in the C segment.
- Higher marketing costs reduced gross profit from marketing by 10% in the quarter.
- The gross profit margin declined to 17.1% from 18.9% last year, driven by increased marketing expenses.
- Despite positive EBITA, the company faced a negative cash flow due to changes in working capital and platform migration costs.
- Traffic to the platform decreased significantly, impacting overall GMV despite improvements in conversion rates.
Hello and welcome to the earnest call for the third quarter for CDON Group with me today, we have as usual our CFO Carl Andersson, but also a special guest. We have our CTO Atra Azami who will guide us through the platform migration that we finished this quarter.
But to summarize the quarter, I'm very relieved to announce that all four city markets are now integrated to the shared platform on time and on budget, we still have a negative GMV development versus last year. However, we have a sequential improvement month by month within the quarter and I'm really happy that we now again, have a, have a positive EBITA of 5.5 million versus last year of 3.2 million.
But now we will dig into the platform migration and I will come up at
Thank you, Fredrik. Yes. Hello everyone. I'd like to briefly introduce myself. My name is Atra Azami. I'm the CTO here at CDON Group. Prior to this, I was the CTO at FDIC for about four years prior to the acquisition of
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