Analyst Comment

OrderYOYO: Strong performance in Q3 2022 in line with recent guidance upgrades

By HC Andersen Capital

This morning, OrderYOYO announced its Q3 2022 trading update, implying that the company has reported its key financials and not a comprehensive financial report. Total ARR increased to DKK 185m (25% growth compared to consolidated Q3 2021 proforma numbers with app smart), meaning that OrderYOYO in Q3 has achieved the low end of the newly upgraded December 2022 ARR guidance of DKK 185-200m.

As stated in last week’s guidance upgrade, which was the second upgrade after the merger with app smart in June 2022, OrderYOYO takes market shares in all major markets, despite difficult market conditions. Importantly, growth is also driven by benefits from the merger as cross-selling of Growth Marketing to the German market and cross-selling of Point of Sales to the UK market is ahead of the plan.

OrderYOYO also highlights that the company has a strong focus on profitability, which is supported by its positive EBITDA before other external costs of DKK 1.9m. In accordance with the EBITDA (before other external costs) guidance for 2022, which was upgraded last week from the range DKK -10m – 0 to DKK -5m – 0, OrderYOYO also expects a positive EBITDA (before other external costs) for Q4.

Importantly, OrderYOYO also provided guidance for 2023 as the merger between OrderYOYO and app smart has created a new and different company. In 2023, OrderYOYO now expects a total ARR of DKK 215-230m corresponding to a growth rate of approx. 15-16% based on the midpoint in the 2022 and 2023 guidance ranges. Net revenue is expected to be DKK 190-205 million, which corresponds to a growth rate of approx. 7-8% after adjusting for the full-year effect of the app smart merger. OrderYOYO also guides on December 2023 annualized gross merchandise value (GMV), which is expected to increase by approx. 8% (based on guidance midranges) to DKK 2,200-2,400m.

OrderYOYO’s focus on profitability is also reflected in the 2023 guidance as the company now expects a positive EBITDA before other external costs in the range of DKK 5-15m in 2023.

Read the full announcement here: https://view.news.eu.nasdaq.com/view?id=b9e57dbe937fced9c53c586f9eb7fd1b1&lang=en

HC Andersen Capital receives payment from OrderYOYO for a Corporate Visibility/Digital IR subscription agreement. /Kasper Lihn 11:20 AM 19 Oct 2022.

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OrderYOYO is a Danish Software-as-a-Service (SaaS) company that provides takeaway restaurants with all the necessary software to serve their customers, including online ordering, payment, marketing and business management solutions. The software enables restaurants, primarily within takeaway, to have their own-branded online presence direct to consumers instead of via food portals. In 2022, OrderYOYO merged with German app smart. Going forward, Germany is an important growth market for OrderYOYO. OrderYOYO has a usage-based business model implying that the company grows with its restaurant partners. The company has been listed at Nasdaq First North in Denmark since July 2021.