CLIQ Digital AG Under Review Following Massive Guidance Cut

NuWays AG has placed its recommendation for CLIQ Digital AG under review following a significant cut in the company's FY 2024 guidance. CLIQ reported disappointing Q1'24 results, with sales falling 12% year-on-year to €73m, driven by a decrease in paying members and lower lifetime value per member.

EBITDA plummeted by 86%, leading to a €1.86m result, attributed to increased costs in sales, personnel, and other operating expenses. The company’s cash burn of €4m in the first quarter raises concerns, despite maintaining a net cash position of €10.5m.

CLIQ’s management has revised their sales estimate for FY'24 down to €300-330m from €360-380m and reduced EBITDA guidance by 50% to €26-30m. This adjustment underscores the impact of customer churn and recent changes in credit card policies.

NuWays AG states that operational uncertainties remain high, casting doubt on CLIQ’s ability to meet its revised targets. The need for transparency and stability in operations is emphasized as essential for a future rating.