Claranova: Half-Year 2021-2022 Revenue: A Gradual Return to Growth

Regulatory News:

Claranova (Paris:CLA) reported revenue for H1 2021-2022 (July-December 2021) of €281 million, up 1% at actual exchange rates and down 2% at constant exchange rates. The Group is gradually rebounding, with €193 million in Q2 revenue, up 3% at current exchange rates, compared to a decline of 2% in the preceding quarter. At constant exchange rates and excluding the impact of the acquisitions of CafePress and I See Me!¹, Group revenue declined 6% over the period like-for-like², including a 3% decrease in Q2 2021-2022.

This gradual return to growth reflects a more limited decline in PlanetArt business in Q2 (-1%, compared to -8% in Q1 at current exchange rates) and an acceleration in software publishing activities, with 26% growth in the same quarter.

The Group continues to foresee a gradual improvement in growth by its PlanetArt division in the coming quarters, in conjunction with continued momentum in Avanquest activities.

Revenue trends by division for Q2 2021-2022:

Revenue trends by division for H1 2021-2022:

PlanetArt: gradual improvement in growth over the first half

PlanetArt revenue remained stable at actual exchange rates (-1%) or €163 million for Q2 2021-2022. At constant exchange rates and excluding the impact of the acquisitions of CafePress and I See Me! revenue declined 6% like-for-like over the period. For the first six months of FY 2021-2022, revenue for the personalized e-commerce division came to €227 million, down 3% at actual exchange rates and down 10% like-for-like.

The change in revenues over the first half reflects a singular overall situation linked to the post-lockdown decline in online purchasing, continuing strong impacts from supply chain constraints on our service providers at the end of the calendar year due to pandemic restrictions, and significant pressure on raw material prices and transportation costs.

Furthermore, the constraints imposed by the new App Tracking Transparency feature incorporated into new versions of Apple iOS, which restricts targeted advertising within the Apple mobile ecosystem, has led to a striking transformation of the digital marketing sector. This feature disrupts the effectiveness of marketing campaigns, particularly on Facebook, the advertising platform most affected by these new constraints.

The work undertaken over the first half to redirect and diversify the division’s marketing investments nevertheless helped maintain PlanetArt’s Q2 revenue at a stable level. With one of the largest installed customer bases in the market, the division also benefits from significant monetization leverage to limit these exceptional industry level impacts.

The Group continues to work on new marketing initiatives to fuel the gradual return to growth of its personalized e-commerce activities, while preserving their profitability over the coming quarters.

Avanquest: surge in Q2 growth reaching 26%

The software publishing and distribution division confirms the positive momentum observed at the beginning of the year, with 26% growth in Q2 (20% like-for-like). Thanks to this acceleration, Avanquest surpassed €50 million in revenue for H1 2021-2022, an increase of 22% at actual exchange rates (17% like-for-like) over the period.

Each of the three business lines (PDF, Security, Photo) contributed to this significant increase in revenues, with growth rates exceeding 20% for all three verticals. This positive momentum across the entire software portfolio confirms the success of the business model transition implemented over the last few years. Growth was also accompanied by an improvement of the quality of the revenue generated by the division: the recurring share of revenue now exceeds 60% and offers strong visibility on the future growth and margins of these activities.

Based on this performance, the Group is anticipating an improvement in the profitability of its software publishing activities for the first half.

myDevices: strong increase in ARR confirmed in Q2, at 82%.

myDevices, the Group’s IoT³ division, reported €1.3 million in revenue for Q2 2021-2022, bringing its H1 revenue to €2.3 million with increases of 17% and 5% respectively (13% and 3% like-for-like). Excluding non-recurring items recognized in the previous year, H1 growth reached 49% (46% like-for-like), including 54% for the second quarter (47% like-for-like).

As in the first quarter, this growth was driven by the increase in subscription revenues. At December 31, 2021, ARR (Annual Recurring Revenue) stood at €1.8 million, up 82% from one year earlier at constant exchange rates.

Financial calendar:
March 30, 2022: H1 2021-2022 results

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.
With average annual growth of more than 40% over the last three years and revenue of €472 million in FY 2020-2021, 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 nearly 800 employees across North America and Europe, Claranova is a truly international company, 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 a leader in personalized e-commerce, 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 or https://twitter.com/claranova_group

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 This excludes July and August 2021 for CafePress and July through December 2021 for I See Me!
² Like-for-like (organic) growth equals the increase in revenue at constant consolidation scope and exchange rates.
³ Internet of Things

CODES
Ticker :  CLA
ISIN : FR0013426004
www.claranova.com

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