Intershop publishes figures for Q1 2025

• Solid start to 2025: balanced EBIT achieved despite planned decline in revenues of 4% to EUR 9.1 million
• Gross margin on the increase, service business stabilizing, incoming cloud orders still below expectations due to continued spending restraint
• Guidance for full year 2025 confirmed

Jena, 30 April 2025 – Intershop Communications AG (ISIN: DE000A254211), a global provider of B2B commerce solutions for the upper mid-market in the manufacturing and wholesaler sectors, recorded a 4% decline in revenues to EUR 9.1 million in the first three months of the financial year 2025 (previous year: EUR 9.5 million). Revenues from the strategically important cloud business rose by 5% to EUR 5.2 million (previous year: EUR 4.9 million). Cloud revenues made up 56% of total revenues, an increase of four percentage points from the previous year’s 52%. Incoming cloud orders in the first quarter of 2025 amounted to EUR 3.9 million, down 17% on the prior year period (EUR 4.8 million). Cloud ARR (annual recurring revenues) rose to EUR 20.4 million as of 31 March 2025 – an increase of 14% (previous year: EUR 18.0 million). Net new ARR declined by 43% to EUR 0.3 million in the first three months of the year (previous year: EUR 0.6 million), not least due to a high negative currency effect; adjusted for the latter, the decline was just 10%.

Service revenues were in line with expectations and dropped by 18% to EUR 2.2 million (previous year: EUR 2.7 million). The decline is primarily attributable to the strategic shift of new projects to the partner network – a key element of the “Partner First” strategy initiated by Intershop. As expected, revenues from licenses and maintenance decreased by 5% to EUR 1.8 million (previous year: EUR 1.9 million), whereas Intershop continued to grow in the Cloud and Subscription segment, where revenues increased by 5% to EUR 5.2 million (previous year: EUR 4.9 million).

Gross profit on revenues rose by 5% to EUR 4.4 million in the reporting period (previous year: EUR 4.2 million). As the service business stabilized, the gross margin increased by three percentage points to 48%. Operating expenses and income picked up by 3% to EUR 4.3 million (previous year: EUR 4.2 million). R&D expenses climbed 12% to EUR 1.9 million (previous year: EUR 1.7 million). At EUR 1.6 million, selling and marketing expenses were down 16% on the previous year. General administrative expenses stayed steady at EUR 0.8 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) also remained at the prior year level of EUR 0.8 million. Earnings before interest and taxes (EBIT) in the first three months of 2025 were once again positive at EUR 0.1 million, showing continued improvement over the previous year (kEUR 6). Intershop’s strict cost management, efficiency enhancement and process optimization measures thus took effect in the first quarter of 2025. Earnings after taxes were EUR -0.1 million, remaining at the same level as the previous year.

Markus Klahn, CEO of Intershop Communications AG: "Although the economic environment remains challenging, we had a solid start to the financial year 2025. “Our operating result is positive and has improved compared to the previous year, the gross margin increased to 48% as the service business stabilized and cloud revenues have also grown moderately. This shows that our efficiency enhancing measures are taking effect. At the same time, we see that business with new customers and incoming cloud orders remain particularly difficult in the current market environment. Given this situation, it is important to continuously develop our solutions portfolio and to stimulate real innovation with our AI enhancements to meet the growing B2B commerce requirements."

At the interim balance sheet date, equity capital amounted to EUR 10.9 million (31 December 2024: EUR 11.0 million). At 30%, the equity ratio was slightly above the comparative figure at the end of 2024 (31 December 2024: 29%). Cash flow from operating activities stood at EUR -0.1 million in the first three months (previous year: EUR -0.2 million). Cash and cash equivalents amounted to EUR 7.8 million as of 31 March 2025 (31 December 2024: EUR 8.9 million).

For the full year 2025, the Management Board continues to expect a slight increase in both incoming cloud orders and net new ARR. Revenues are projected to decline by 5% - 10%, with earnings before interest and taxes (EBIT) assumed to be slightly positive.

The quarterly statement for the first quarter of 2025 is available at https://www.intershop.com/en/financial-reports.