Acquisition of UK-based App4 - OrderYOYO enters the small chain market and acquires self-serving kiosk technology. Q3-2024 performance, 2024 guidance raised and 2025 guidance released

Company Announcement No. 78 - 2024

OrderYOYO A/S
Inside Information

Copenhagen, October 18, 2024

Highlights

Organic business continues to perform strongly. Highly focused strategy solving digital challenges for our Restaurant Partners is reaping rewards

Strong performance in Q3 2024 with September ARR of DKK 304m, growing 19% compared to September 2023 ARR. EBITDA for 9M 2024 of DKK 37m compared to 9M 2023 EBITDA of DKK 17m and a Cash EBITDA for 9M 2024 of DKK 18m compared to 9M 2023 Cash EBITDA loss of DKK (3)m.

2024 guidance raised. December ARR guidance raised to DKK 340-350m (original guidance of DKK 300-310m). Full year Net Revenue 2024 guidance raised to DKK 300-305m (original guidance of DKK 260-270m), and EBITDA guidance raised to DKK 47-52m (original guidance of DKK 23-28m). Cash EBITDA raised to DKK 20-25m

Acquisition of UK and Ireland based online and kiosk ordering company App4 announced. With this acquisition, OrderYOYO enters the smaller chain segment of the QSR industry and adds self-service kiosk technology to the OrderYOYO suite.

2025 guidance released. December 2025 ARR guidance of DKK 380-400m. Full year 2025 Net Revenue guidance of DKK 370-380m and full year 2025 EBITDA guidance of DKK 68-73m and full year 2025 Cash EBITDA guidance of DKK 40-45m

Financial Highlights

Cash EBITDA defined as EBITDA before other extraordinary items minus capitalized R&D expenditures

•          Annualized September ARR of DKK 304m vs. DKK 256m September 2023 corresponding to a growth of 19%

•          9M 2024 Net revenue of DKK 226m vs. DKK 181m in 9M 2023 corresponding to a growth of 25%

•          EBITDA before other external costs for 9M 2024 of DKK 37.3m vs. an EBITDA of DKK 16.5m in 9M 2023 corresponding to a growth of 125%

•          Cash EBITDA before other external costs for 9M 2024 of DKK 17.6m vs. a Cash EBITDA loss of DKK (3.4)m in 9M 2023 corresponding to an improvement of DKK 21m

Consolidated 2024 guidance raised

•          December 2024 annualized ARR guidance is raised from DKK 325-335m to DKK 340-350m

•          Net revenue 2024 guidance is raised from DKK 290-300m to DKK 300-305m

•          EBITDA before other external costs 2024 guidance is raised from DKK 45-50m to DKK 47-52m

•          Cash EBITDA before other external costs 2024 guidance is raised from DKK 17-22m to DKK 20-25m

•          December 2024 annualized GMV guidance is raised from DKK 3,300-3,400m to DKK 3,550-3,650m

Consolidated 2025 guidance released

•          December 2025 annualized ARR guidance of DKK380-400m corresponding to a growth of 13% compared to current raised 2024 guidance

•          EBITDA before other external costs full-year 2025 guidance of DKK 68-72m corresponding to a growth of 42% compared to current raised 2024 guidance

•          2025 EBITDA margin guidance of 18-20% vs. current raised 2024 EBITDA margin guidance of 15-17%

•          Cash EBITDA before other external costs full-year 2025 guidance of DKK 40-45m corresponding to a growth of 89% compared to current raised 2024 guidance

•          Net revenue full-year 2025 guidance of DKK 360-370m corresponding to a growth of 21% compared to current 2024 raised guidance

OrderYOYO acquires App4

Today October 18, OrderYOYO has signed and closed the agreement to acquire UK-based online and kiosk ordering company App4.

Founded in 2014 in Derby (UK), App4 is a strong market participant in the UK and Irish online and kiosk ordering space with a leading position within the smaller restaurant chain segment (chains with 3-25 outlets) generating more than DKK 250m in annualized GMV (September 2024). OrderYOYO will acquire App4 in an all cash transaction for DKK 54m in consideration.

With this acquisition, OrderYOYO will enter the smaller chain segment of the QSR industry. OrderYOYO has investigated the entry and tested the chain part of the industry for some time, and with the acquisition of App4, entry into this segment can be accelerated and executed with a clear and strong market position from the outset.

App4 shares the same vision of liberating restaurants as OrderYOYO. It is a strong strategic match that will reinforce OrderYOYO’s market leading position in UK and Ireland and will establish OrderYOYO as a leader in the small chain QSR segment.

In addition, App4’s product portfolio includes a self-serving Kiosk product offering – a product offering OrderYOYO will include in its overall product suite to its Restaurant Partners, adding to already offered products like POS, RDS and Growth Marketing – further broadening the software suite to digitalize the Front of House for our Restaurant Partners.

OrderYOYO’s suite strategy has been successful in driving increased ARR from our Restaurant Partners and increasing stickiness of our customer base. Data shows that customer retention rates are significantly enhanced once a Restaurant Partner deploys more than one of OrderYOYO’s products, underpinning the importance of the Front of House Software Suite strategy. More than 50% of the total customer base currently deploys more than one product and the upselling of other products in the suite is a strategic initiative for OrderYOYO in the coming years.

App4 will join the OrderYOYO organization and App4 founder, Ian Chandler, will take on the role of VP Product focusing on expanding OrderYOYO’s presence with small chains and driving the upsell of kiosk products.

The acquisition is another good example of OrderYOYO’s acquisition strategy contributing to continued growth and shareholder value creation. App4 will drive further economies of scale in our business, leading to increased profitability for the Group in the future.

As European market leader, OrderYOYO keep seeing increased consolidation opportunities in its markets. The consolidation strategy focuses on two types of acquisition targets:

1. Local market leaders in European countries where OrderYOYO is currently not present to expand the European market leading position, and
2. Local participants in the markets where OrderYOYO is already market leader to drive economies of scale and increased profitability for the Group

Video presentation

The Q3 2024 Report will be presented at an online conference call on 22 October 2024 at 13.00 CET.

Register for the conference call at:

https://www.inderes.dk/videos/orderyoyo-presentation-q3-2024-trading-update

For additional information, please contact

OrderYOYO A/S

Jesper Johansen, CEO

Mobile (+45) 21 67 84 92

Email jesper.johansen@orderyoyo.com

OrderYOYO A/S Vesterbrogade 149, 1620 Copenhagen V

Certified Advisor

Grant Thornton

Jesper Skaarup Vestergaard

Mobile (+45) 31 79 90 00

Grant Thornton Stockholmsgade 45, 2100 Copenhagen Ø

About OrderYOYO

OrderYOYO is the market leading European online ordering, payment, and marketing software solution provider. OrderYOYO’s solution is offered as Software-as-a-Service (SaaS) and enables small independent takeaway restaurants to have their own-branded online presence direct to consumers. OrderYOYO helps takeaway restaurants drive online takeaway orders through their own tailored software solution in the individual takeaway restaurant’s own brand. We liberate restaurants.

Forward-looking statements

Matters included in this company announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and that can be identified by words such as "believe", "expect", "anticipate", "intend", "estimate", "will", "may", "continue", "should", and similar expressions, as well as other statements regarding future events or prospects. Specifically, this company announcement includes information with respect to projections, estimates, and targets that also constitute forward-looking statements. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although OrderYOYO believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations, projections, estimates, and targets expressed or implied in this company announcement by such forward-looking statements. The information, opinions, and forward-looking statements contained in this company announcement speak only as at its date and are subject to change without notice. OrderYOYO expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.