DGAP-News: Intershop publishes figures for Q1 2019

- Total revenues of EUR 7.3 million (previous year: EUR 8.1 million)
- Cloud revenues up 19%, service revenues significantly lower
- EBIT of EUR -2.1 million (previous year: EUR -0.7 million)
- Growth forecast for 2019 confirmed

Jena, 30 April 2019 - Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, generated revenues of EUR 7.3 million in the first quarter of 2019 (previous year: EUR 8.1 million). Earnings before interest and taxes (EBIT) amounted to EUR -2.1 million (previous year: EUR -0.7 million). The decline in business is generally attributable to the company's transformation from a license provider to a provider of cloud-based solutions.

Cloud and subscription revenues increased by a total of 19% to EUR 1.5 million in the reporting period (previous year: EUR 1.2 million). Incoming orders for cloud solutions were worth EUR 0.9 million. Overall, Intershop has considerably expanded its cloud ARR (annual recurring revenue) compared to the prior year. At the end of March 2019, this figure amounted to EUR 5.5 million, an increase of 31% compared to the end of March 2018. Licensing and maintenance revenues remained stable at the prior year level of EUR 2.7 million. Service revenues fell by 24% to EUR 3.2 million, as the expiry of a large-scale project was not yet offset by smaller project business from the new cloud customer base.

Dr. Jochen Wiechen, CEO of Intershop Communications AG: "After the extremely positive final quarter of the past year, which was also due to seasonal effects and which saw incoming orders for cloud-based solutions rise sharply, we started the new year somewhat more moderately. Overall, however, the development of the new customer pipeline is making good progress, so that we are pressing ahead with the transformation at full speed."

The gross margin decreased by 10 percentage points to 33% as a result of the changed revenue structure. The cloud margin climbed from 31% to 34%. Operating expenses increased by 8% to EUR 4.6 million and marketing and sales expenses rose by 15% to EUR 2.4 million. R&D expenses increased by 9% to EUR 1.3 million. Administrative expenses dropped by 4% to EUR 0.9 million. Earnings before interest and taxes (EBIT) amounted to EUR -2.1 million (previous year: EUR -0.7 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at EUR -1.5 million (previous year: EUR -0.2 million). The net loss for the period after taxes amounted to EUR -2.2 million (previous year: EUR -0.8 million).

As a result of the capital increase carried out in February, cash and cash equivalents rose to EUR 9.8 million at the end of March 2019, up 35% on the end of 2018 (EUR 7.2 million). Operating cash flow stood at EUR -1.0 million, compared to EUR -0.1 million in the previous year. The equity ratio climbed from 60% to 62%.

The Intershop Management Board continues to project an increase by over 10% in total consolidated revenues for the financial year 2019. With gross profit and the gross margin expected to improve slightly, EBIT are assumed to still remain slightly negative.

The interim report for the first quarter of 2019 is available at https://www.intershop.com/financial-reports.

Contact:
Investor Relations
Heide Rausch
T: +49-3641-50-1000
F: +49-3641-50-1309
ir@intershop.com