150% increase in net profit for the cyber_Folks Group in the second quarter!

September 6, 2023

Another record-breaking quarter is behind us in terms of revenue, net profit, and EBITDA. We're growing rapidly, with our growth dynamics consistently exceeding 30% year-on-year. Our main business mission remains facilitating the internet and automating our clients' businesses. We're already serving over 350,000 clients, but our ambitions reach much further - says Jakub Dwernicki, CEO of cyber_Folks. - With the introduction of new services and solutions such as _Stores and Billz, we aim to assist our clients in every aspect of their online presence. Many of them choose us as their first option due to our comprehensive expertise and understanding of the modern e-commerce sector - adds Jakub Dwernicki.

In the first half of the year, the cyber_Folks Group achieved revenues of PLN 227.3 million (a 33% year-on-year increase) and adjusted EBITDA of PLN 66.6 million (a 52% year-on-year increase). During this period, net profit amounted to PLN 33.7 million (a 90% year-on-year increase), with net profit attributable to the controlling entity's shareholders reaching PLN 19.4 million (a 59% year-on-year increase).

The Group operates in two key segments – cyber_Folks and Vercom. The former is responsible for hosting and domains, e-commerce tools, and support for online business operations. In the first half of the year, the segment's adjusted EBITDA increased by 22% year-on-year to PLN 29.1 million.

The other growing segment, Vercom, offers CPaaS services, including tools for email and SMS communication. In the first half of the year, the segment's adjusted EBITDA amounted to PLN 38.4 million, representing a 75% year-on-year increase.

In recent months, we have been working on merging our two strong brands – R22 and cyber_Folks – into one. We successfully completed the entire process at the end of July this year. This is a very important change for us, as it allows us to leverage synergies for our clients and investors, reaching an increasingly wider audience for our services. Shareholders will undoubtedly be pleased to know that we are working on a loyalty program. Therefore, we will soon join the select group of pioneers who combine investor relations with customer relationships. We will unveil the program details in the autumn - adds Jakub Dwernicki.

From January to June, the cyber_Folks group generated over 40% of its revenues from abroad. The Group has a high capacity for long-term generation of significant cash surplus. The conversion of EBITDA into cash flows from operating activities regularly stands at around 90%.

We are expanding our business globally, with over 40% of the Group's revenues coming from international markets. The high cash generation capacity and the recent strengthening of the Polish zloty, which reversed the adverse changes in debt valuation from last year, have allowed us to significantly reduce our debt. Our financial situation is very secure, with a net debt / EBITDA ratio of 2.05 – meaning that by mid-year, we have almost achieved our annual goal of reducing the net debt / EBITDA ratio below 2.0 -  says Robert Stasik, Vice President of cyber_Folks.

For the past 20 years, the Group's revenues have been growing at a rate of 40% annually (CAGR), increasing fourfold since the IPO in 2017, with market capitalization increasing fivefold, surpassing 1 billion PLN. cyber_Folks operates globally, offering solutions to over 350,000 small, medium, and large business clients located in over 100 countries. The Group generates over PLN 120 million in operating cash flows, which it invests in further growth. Regular dividends are also paid out.

We consistently aim to allocate the generated cash towards investments and regular dividends. On September 4th, shareholders received over PLN 13 million in dividends, amounting to PLN 0.93 per share. We increase this amount every year - adds Robert Stasik.