Claranova: Q1 2023-2024 Revenue

• Q1 2023-2024 revenue: €91m
• Strong organic growth¹ by Avanquest (+14%) and myDevices (+61%)
• PlanetArt, a focus on profitability

PARIS--(BUSINESS WIRE)--Regulatory News:

Claranova (Paris:CLA):

This press release presents unaudited Group consolidated revenue, prepared in accordance with IFRS.

"Our businesses performed well in Q1 2023-2024, despite the effects of less favorable foreign exchange rate trends. Both Avanquest and myDevices registered significant gains over the period and surpassed their previous highs. And while PlanetArt's sales experienced a downturn in the quarter largely reflecting the adverse currency effects, by focusing on profitability we were successful in improving the division's EBITDA from one year earlier," commented Claranova's CEO, Pierre Cesarini.

Claranova reported Q1 2023-2024 (July-September 2023) revenue of €91m, remaining steady year-on-year on a like-for-like basis (-5% at actual exchange rates). Despite particularly adverse exchange rate trends in Q1, revenue benefited from continuing gains by Avanquest and myDevices, with like-for-like growth of 14% and 61% respectively.

Revenue trends by division for Q1 2023-2024:

In €m	Jul. to Sep. 2023 (3 months)	Jul. to Sep. 2022 (3 months)	Change	Change at constant exchange rates	Change at constant consolidation scope	Change at constant consolidation scope and exchange rates
PlanetArt	60	68	-11%	-7%	-11%	-7%
Avanquest	29	27	+6%	+15%	+5%	+14%
myDevices	2	1.5	+50%	+61%	+50%	+61%
Revenue	91	96	-5%	0%	-6%	0%

PlanetArt: gains in higher-margin business

Building on the success of Q4 2022-2023, PlanetArt teams continued to focus on improving profitability by stabilizing customer acquisition costs and promoting higher-margin products. On that basis, PlanetArt, also impacted by unfavorable exchange rates (-11% at actual exchange rates), reported revenue of €60m. However, benefiting from the measures taken to improve profitability and reduce structure costs at the end of FY 2022-2023, the division's Q1 EBITDA was up year-on-year.

Avanquest: revenue growth remains on track

Avanquest, the Group's software publishing division, reported revenue of €29m, up from €27m a year earlier, with like-for-like growth of 14% (+6% at actual exchange rates). This growth continues to be driven by sales of its proprietary SaaS software (Soda PDF, Adaware and InPixio), which now accounts for 87% of the division’s revenue.

Bolstered by this positive trend, sales of proprietary SaaS software grew 16% over the period to €25m. Non-core activities accounted for €4m in revenue, down 31% over the period.

myDevices: the Group's IoT offering is gaining momentum

For Q1 2023-2024, the Group's IoT division had revenue of €2m, representing growth of 61% at constant exchange rates (+50% at actual exchange rates). This good performance was accompanied by growth in the number of partners (213 by the end of September 2023), as the division continues to ramp up the rollout of its IoT solutions. As a result, Annual Recurring Revenue (ARR) rose by 21% from Q1 2022-2023, with this positive momentum expected to continue over the coming months.

Financial calendar:
November 29, 2023: General Meeting

About Claranova:

As a diversified global technology company, Claranova manages and coordinates a portfolio of majority interests in digital companies with strong growth potential. Supported by a team combining several decades of experience in the world of technology, Claranova has acquired a unique know-how in successfully turning around, creating and developing innovative companies.

Claranova has proven its capacity to turn a simple idea into a worldwide success in just a few short years. Present in 15 countries and leveraging the technology expertise of its 800+ employees across North America and Europe, Claranova is a truly international group, with 95% of its revenue derived from international markets.

Claranova’s portfolio of companies is organized into three unique technology platforms operating in all major digital sectors. As an e-commerce leader in personalized objects, Claranova also stands out for its technological expertise in software publishing and the Internet of Things, through its businesses PlanetArt, Avanquest and myDevices. These three technology platforms share a common vision: empowering people through innovation by providing simple and intuitive digital solutions that facilitate everyday access to the very best of technology.

For more information on Claranova group:
https://www.claranova.com

Disclaimer:

All statements other than statements of historical fact included in this press release about future events are subject to (i) change without notice and (ii) factors beyond the Company’s control. Forward-looking statements are subject to inherent risks and uncertainties beyond the Company’s control that could cause the Company’s actual results or performance to be materially different from the expected results or performance expressed or implied by such forward-looking statements.

¹ Like-for-like (organic) growth defined as the increase in revenue at constant consolidation scope and exchange rates.