New Work SE Maintains Forecast Despite Economic Challenges

New Work SE, which operates under the brands XING and kununu, disclosed its Q1 2024 financial results, revealing efforts to push through its strategic overhaul in a tough economic climate. While the company observed a decline in revenues across various segments, it sustained substantial investments aimed at repositioning and growth.

During the first quarter, revenues in the HR Solutions & Talent Access sector dropped by 6% to €50.4 million. The B2C segment revenue decreased by 18% to €15.9 million, linked to strategic shifts towards HR solutions. Marketing solutions in the B2B sector also saw a 36% decrease, resulting in overall revenue falling by 10% compared to the previous year.

New Work SE has finalized most of its planned restructuring measures, focusing more on the HR solutions side of the business. These changes included launching XING’s largest advertising campaign and increasing recruiter profile visibility significantly. Moreover, kununu is cementing its position as a leader in employer reviews in German-speaking regions, notably enhancing its workplace insights and salary data offerings.

Despite a challenging market, New Work SE remains steadfast in its financial forecast for the year, anticipating an EBITDA ranging between €55 to €65 million. While the company’s pro forma profit witnessed a considerable reduction, substantial enhancements to its business model and operational efficiencies are expected to yield long-term benefits.