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Bike24 Holding AG reported robust financial results for the first quarter of 2025, showcasing an 18% increase in revenue compared to the same period last year. According to InvestingPro analysis, the company is currently trading slightly below its Fair Value, suggesting potential upside opportunity. The company achieved significant growth across various segments, contributing to a positive market reaction with the stock price rising by 4.39% to €2.14 in early trading.
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Key Takeaways
- Revenue for Q1 2025 reached €58 million, marking an 18% increase from Q1 2024.
- The Parts, Accessories & Clothing segment grew by 21%, while the Full Bike segment saw a 6% rise.
- The company’s stock price increased by 4.39% following the earnings announcement.
- Strong performance in the DACH region with a 22% revenue growth.
- Promising sales trends in early April indicate potential for further growth.
Company Performance
Bike24’s first-quarter performance reflects a strong rebound, driven by strategic initiatives and market dynamics. The company reported a revenue of €58 million, up from €49.3 million in Q1 2024, highlighting its successful turnaround. The growth was particularly strong in the Parts, Accessories & Clothing segment, which saw a 21% increase, and the Full Bike segment, which recorded its highest Q1 sales ever with a 6% rise. The company’s performance in the core DACH region was notable, with a 22% growth in revenue, underscoring its competitive edge in a challenging environment.
Financial Highlights
- Revenue: €58 million (18% YoY growth)
- Adjusted EBITDA Margin: 1%
- Gross Margin: Improved by 0.2 percentage points
- Operating Profit: €2.1 million (4% of revenue)
- Inventory Reduction: 7% decrease to €66.2 million
Market Reaction
Following the earnings announcement, Bike24’s stock price rose by 4.39%, reaching €2.14. This movement is a positive indicator of investor confidence in the company’s strategic direction and financial health. InvestingPro data shows the stock has delivered an impressive 71.55% return over the past six months and is currently trading near its 52-week high of €2.32, while maintaining significant gains from its 52-week low of €1.08. The stock’s increase aligns with the company’s strong performance and promising outlook, positioning it favorably within its 52-week range.
Outlook & Guidance
Looking ahead, Bike24 projects its 2025 revenue to be between €233 million and €242 million, with expectations to reach the upper end of the forecast. According to InvestingPro, analyst consensus maintains a Strong Buy recommendation, with price targets ranging from €2.60 to €2.71. The company anticipates an adjusted EBITDA of €7 million to €12.1 million. Early April sales have shown double-digit growth, reinforcing the company’s optimistic outlook.
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Executive Commentary
CEO Andreas Martin Berner stated, "The turnaround that started in Q2 last year has gained even more momentum," highlighting the company’s ongoing recovery and growth. CFO Tim Ambrose added, "With just 1.2% spent on performance marketing, we reached 18% revenue growth," emphasizing the efficiency of their marketing strategy. Berner also noted, "We are currently assuming that we will end up at the upper end of the forecast," indicating confidence in achieving their financial targets.
Risks and Challenges
- Market Saturation: Potential saturation in the European bicycle market could impact future growth.
- Supply Chain Issues: Disruptions could affect product availability and sales.
- Macroeconomic Pressures: Economic downturns in key markets may dampen consumer spending.
- Competitive Landscape: Increased competition could pressure margins and market share.
Q&A
During the earnings call, analysts inquired about the company’s expansion into new markets, particularly Poland and Finland, where March saw a 48% growth. Questions also focused on customer quality, with Bike24 emphasizing its focus on bike enthusiasts, and the competitive pricing strategy aimed at sustaining growth.
Full transcript - Bike24 Holding AG (BIKE) Q1 2025:
Moderator/Operator: I’m delighted to welcome the CEO, Andreas Martin Berner, as well as the CFO, Tim Ambrose, who will speak in a moment and guide us through the presentation. After the presentation, we will move on to a q and a session in which you will be allowed to place your question preferably via audio line directly to the management. So I would say, let’s jump straight into the numbers. Andres, the stage is yours.
Andreas Martin Berner, Founder and CEO, BIKE24: Thank you very much. Welcome to today’s earnings call presentation for the first quarter twenty twenty five. My name is Andres Martin Berner. I am the founder and CEO of BIKE twenty four. At my side, as always, is Tim Ambrose, the CFO of BIKE twenty four.
Let me now to start with the general update on the first quarter of this year before I hand over to Tim for the business update, finishing with a general summary, the confirmation of our 2025 guidance, and our q and a session. The first quarter was again very successful overall and once more clearly shows the positive trend. Despite a difficult market environment, we achieved a revenue growth of almost 18% and an adjusted EBITDA margin of plus 1%. This was the strongest sales growth since q two twenty twenty one, the year of our IPO, and this also means an improvement in adjusted EBITDA of plus €2,100,000. Although the quarter was characterized by the winter sale and seasonally weak demand, we were able to slightly increase the gross margin and once again achieve a positive adjusted EBITDA.
We achieved this result thanks to higher product availability, attractive offers, and an early start to spring. In particular, the continuous improvement of our offering for our customers led to strong growth in all core markets. DACH plus 22%, the localized market Spain, Italy, France, and Benelux, plus our new markets Finland and Poland, with sales growth of 17%, and rest of Europe plus 10%. It is particularly pleasing that the newly, at the February, localized markets of Finland and Poland got off to a very successful start and recorded growth of plus 48% in March alone. Moving on to our assortment segments.
Our core pack segment recorded sales growth of 21%, which once again demonstrates the importance of the expert enthusiast bike market. On the other hand, despite a difficult market environment, we achieved unexpectedly high sales growth of plus 6% for full bikes. This was the highest sales of full bikes in the first quarter ever. In terms of inventory, we have made further progress in reducing. Especially, packs inventory was reduced significantly versus March 2024 by almost 9%.
The ratio of sales to inventory has returned to pre pandemic levels. Our target level of 25% of sales is now within reach. Looking ahead, we confirm our guidance for 2025 to take account on the of the ongoing macroeconomic uncertainties even if revenues are likely to be at the utter upper end of the range. We therefore expect the positive trend of the last few quarters to continue, and we consider the results of the last few weeks with double digit sales growth to be promising. So this was the intro from my side.
Tim, over to you now for the financials.
Tim Ambrose, CFO, BIKE24: Yeah. Thank you, Andres. Let me start by walking you through the figures for the first quarter of twenty twenty five. Over the past four quarters in a row, we have continuously improved our growth rates. In q two twenty twenty four, we saw a 1% increase, followed by 3% in q and 7% in q four of twenty twenty four.
In q one twenty twenty five, we achieved revenue growth of 18% compared to the same quarter last year, a significant acceleration. Let’s look at the numbers in detail. We generated €58,000,000 in revenue in 2025 compared to the €49,300,000 in q one last year. The main driver behind this growth was our parts, accessories and clothing segment, which grew by 21%. Even our full bike segment, contrary to expectations, increased by 6%.
Despite the ongoing overstock in the full bike market and heavy discounts, we could attract more and more people to buy such an expensive and technical sophisticated product at our platform bike twenty four. Besides the general attractive product assortment, we are benefiting from our scale and long standing relationship with manufacturers. We are able to secure highly attractive special batches, which we offer at a great price performance ratio. Let me emphasize this again. 6% growth in this product segment is clearly above our expectation in the current market situation, and 21% in the pack segment is excellent.
Looking at regional performance, we see a broad based growth pattern. In all strategically important European markets, we achieved double digit growth rates. Especially strong was our core market DACH, which grew by 22%. Our localized markets increased by 17%. Notably, Finland and Poland, both launched at the February, reached 48% growth in March, very promising going forward.
In the rest of Europe, we haven’t yet localized. We still managed to grow revenue by 10%. So rest of world post world segment remains in decline. But with just around 2% of total revenue, it has a minor impact on overall performance. Let’s now take a closer look at our key regions.
First, let’s look at the drivers in our DACH region. The 22% revenue growth was supported by a higher average order value and an increase in both new and existing customers. The average revenue per customer rose by 4%, and the number of active customers increased by 18% year over year. Now our localized markets, fourth, Italy, Spain, Benelux countries, and Poland and Finland, the picture is intentionally different, so equally positive as we are still in the early stage of market development with a clear focus on winning new customers. Our efforts working well.
The number of active customers increased by 19%, while average revenue per customer remained more or less stable. As a result, we achieved 17% revenue growth in this region. As Andres and I already mentioned, the start of Poland and Finland is very promising. In rest of Europe, meaning countries without a localized web shop that mainly order via our .com domain, we also saw strong growth, plus 10% revenue in q one. This was mainly driven by improved product availability and ongoing inventory reduction across the market.
As a result, customers are increasingly returning to platforms like bike twenty four that offers a full product portfolio of the bike industry. Now let’s have a look to the balance sheet and cash flow development. Our efforts to reduce working capital are delivering strong results. Compared to the same quarter last year, we’ve reduced working capital by 18%. Our inventory was reduced by 7% and currently stands at €66,200,000, a level that aligns with pre pandemic ratios.
This progress is driven by two factors. First, the consistent reduction of old stock. Second, the adjustment of our purchasing strategy. Thanks to the successful implementation of SAP, we are now able to reorder more frequently even across our outstanding board assortment. This is this allows us to maintain high product availability for our customers despite lower inventory levels.
As a reminder, at the peak of the crisis in the bicycle market, we had over 90,000,000 in inventory. This had a direct impact on our free cash flow. In combination with the improved operating results, inventory reductions and lower investments significantly boosted free cash flow. We used most of this free cash flow to deleverage the company, repaying a total of €8,000,000 in bank loans. Since December 2023, we reduced the bank loans by 11,000,000, more than 27% of the initial loan.
Let’s take a look at our operating results. We slightly improved our gross margin by 0.2 percentage points, a notable achievement given the still challenging market environment and the traditionally low margin in q one. Not to forget here, we grew revenue by 18%, underlying the competitiveness of our pricing strategy and its success in attracting new customers. We have kept our marketing strategy conservative. With just 1.2% spent on performance marketing, we reached 18% revenue growth.
We are returning to the highly efficient marketing level. We also saw a 0.3 percentage point improvement in sending cost driven by disproportionate growth in the DACH region, the region with the lowest shipping costs, and significantly better utilization of our two warehouses. One of the biggest lever levers was a reduction in personnel expenses. The measures we introduced in November are paying off. Here alone, we improved our EBITDA margin by 3.2 percentage points.
In total, we achieved an adjusted EBITDA margin of 1% in a still challenging market and outside of the main cycling season. This correspondence to an improvement in operating profit of €2,100,000 or 4% of revenue compared to the same quarter last year. With that, I will conclude the business update and hand it back to Andres.
Andreas Martin Berner, Founder and CEO, BIKE24: Thank you, Tim. Following an already successful fourth quarter twenty twenty four, we were able to increase revenues and profit in the first quarter. The turnaround that started in q two last year has gained even more momentum, outperforming expectations with 18% revenue growth. And it shows again that also our focus on profitability is paying off. The fact that we were able to increase sales in all focus markets is a good sign of a turnaround.
The regained strength in our home market, in particular, gives us confidence for the coming quarters. As you know, localization is an important part of our three pillar strategy. We were able to launch Poland and Finland earlier than planned at the February and achieved above average sales course of 48% in March. We are also pleased to report the highest sales of bikes we have ever had in the fourth quarter. Inventories were reduced to around 60 some €6,000,000, a solid decrease compared to the same quarter of the previous year, accompanied by significantly higher sales and improved product availability.
This is a really big success for bike twenty four. Before we come to the confirmation of our guidance, the first results in April, which showed double digit sales growth, are very promising. To finish, let’s look ahead. With a significant growth in q one and the promising results of the last few weeks, we anticipate a sales growth between 233,000,000 and €242,000,000 for 2025. We are currently assuming that we will end up at the upper end of the forecast.
We also confirm our guidance for adjusted EBITDA of between €7,000,000 and €12,100,000. As you can imagine, our guidance is based on the assumption that both the macroeconomic environment and consumer sentiment did not deteriorate significantly. I would now like to thank you for your attention, and we are now open for your questions.
Moderator/Operator: Thank you very much for the the presentation, and we will now move on to the q and a session. For a dynamic conversation, we kindly ask you to speak and ask your questions via the audio line. To do so, click the raise your hand button, and you will be able to speak. If you have dialed in by phone, please use the key combination star nine followed by star six. And if you’re not able to place your question, you can use our chat box.
So we have the first participant. Mister Schmidt, you should be able to speak now.
Schmidt, Analyst/Investor: Yes. Hello. Thank you. Congratulations first on the strong q o one results, in the still challenging market environment. You report I have two questions.
First, you reported impressive growth in Poland and Finland. Could you elaborate on your long term plans and margin expectations for these new markets? And second question, looking ahead to Q2, with favorable weather conditions in April and Easter falling into the current quarter unlike last year, how have these seasonal factors impacted the early weeks of Q2?
Andreas Martin Berner, Founder and CEO, BIKE24: Maybe I can I can catch the the the questions from you? Thank you. Yeah. We we when we look to Poland and Finland, it is, yeah, I would say, slightly comparable to others to other localized countries when you when you see the the development of these countries. But to be honest, we had when we localized Benelux and also Spain some some quarters ago, we had triple more than 100 growth.
But today, as you as you know, we have a little bit conservative marketing approach. We we look more for sustainable and profitable growth, and that’s why we are very happy that we have above average growth in in Poland and Finland. And to be honest, we are, yeah, we are look we are very promising for the first results. But to be honest, we started at the February, and that’s why it’s a little bit too early. But I think that there’s enough headroom to to grow for Finland and Poland, and that’s why we are also expect, yeah, above our average growth for the coming quarters.
The second question’s regarding to to our double digit growth in in April. To be honest, so the season has just started. We are very still early in the year, and, yeah, a lot can still happen on the market side. When I look back, it is it makes sense, or in the in the in the past, we did it, that you have to to summarize March and April together because maybe we have a early start, then it is it is good to see what what April brings. And that is the reason why we are very promising also for the for the second quarter this year.
But, yeah, to be honest, it’s it’s really, really early in this year, and and the bike market is not yet providing really a major tailwind. So we are, therefore, gaining market share, and we remain cautiously optimistic for the for the coming weeks.
Schmidt, Analyst/Investor: Yeah. Thank you, and thank you very much, and continued success in 2025.
Andreas Martin Berner, Founder and CEO, BIKE24: Thank you.
Moderator/Operator: Thank you. And we have one participant dialed in via phone, so I can’t see his or her name. It would be very polite to just introduce yourself. You can speak now and place your question. So that’s not working for the moment.
We move on to the next participant. Mister Schwan, you should be able to speak now.
Schmidt, Analyst/Investor: Yeah.
Lucas Schwan, Analyst/Investor: So now you should hear me.
Moderator/Operator: Yes. Yep. Perfect.
Lucas Schwan, Analyst/Investor: Two questions from my side, following on on the April, development you mentioned. So just to get a feeling, was it more in the range of the q one growth, or was it an acceleration versus q one in April or slowdown in, April versus q one? And then also on the price side, how was the price development in q one and also in q two when you say you could gain market share? So it also possible to increase prices, or what was the development on this side? Thanks.
Tim Ambrose, CFO, BIKE24: Yeah. Hi, Lucas. Thanks for the question. So overall, it was a little bit better than q one from the from the growth perspective. Yeah?
But it was comparable to last year from the gross margin perspective. So overall, we could not increase prices significant. Yeah. It’s slightly better than the first quarter in April, but we are still focusing for sure on growth. Yeah?
Even as Andres already mentioned that it’s very early in the season. Yeah? And we would like to really gain market shares again. So our pricing is very competitive at the moment, and we are very successful with that. So for April, we did the same as in the first quarter.
Lucas Schwan, Analyst/Investor: Okay. Thanks.
Moderator/Operator: Okay. Thank you very much. And we, again, try to connect with the participant dialed in via phone. You should be able to speak now. Well, unfortunately, this is not working.
We are still trying on that one. There are no further questions in the line. Hello? Yes. Now we can hear you.
Spesch, Analyst/Investor, Berenberg: Hello. Thanks, Scott. Oh my god, what a conference system. Welcome to Spesch from Berenberg. Three additional questions from my end, please.
First, on new customers. Can you give us some indication how you judge the quality of this incoming customers? Are this really N2VF? Or is this a brick and mortar cyclist that orders a bottle and a helmet here and there? Second question, on the risk of oversupply, most of the equipment is coming from Far East, and we all know that sending towards U.
S. Could be problematic this year. So do you fear that European market is potentially flooded with stuff from Asia? And the third question on is again on competition. You mentioned some indications you’re taking market share.
What are you hearing from competitors? Or what makes you confident that you can take market share from other vendors? Thanks a lot.
Tim Ambrose, CFO, BIKE24: Hello, mister Shay. Thank you for your question. I would propose to Annes that I will answer the first question and then hand over to Annes for the second and the third question. So first question. So overall, new customers, we grew by 21%.
Yeah. So we we gaining more than 120%. And what is it kind of people we expecting and we see that also from the from the type of product they call that they buy that that are enthusiasts. And I think also what is underlining that assumption is that the marketing costs are very, very low. Yeah?
So with the 1.2%, we are really back on levels before the pandemic. And with that, you really only reach the bike enthusiast and bring that to our platform. So that’s very promising.
Andreas Martin Berner, Founder and CEO, BIKE24: Okay. Then I catch the other two questions. So today, to be honest, we don’t see an impact of maybe floating the the European market from from Asia, maybe from that they that there are maybe goods from dedicated for the American market. Now in the European market today, we don’t see this. It could happen.
But to be honest, when when we look back and and see when we when we offer clearance deals, then it’s really yeah. Our growth is jumping up. So we see today more the chances and and look, I would say, opportunistic on on this case. And to be honest, when when we look to our to our core market, the enthusiasts and the experts, so there is yeah. Today, there is no no impact in the market, and we are we don’t see this today.
Yeah. Then the third questions were regarding to the competitors. To be honest, it’s there are some rumors of the market that some of of of competitors had also a good start into the year, but it’s it’s it’s not very transparent. It’s not really visible for us. And it’s it’s hard to say how it’s really how how the figures are from competitors.
But we see that we don’t have really a tailwind, as I mentioned, from the from the whole market, and we expect that the whole market is not increasing by by more than 10%. That’s not what we what we hear, and that’s also not not what we hear from from also from competitors.
Spesch, Analyst/Investor, Berenberg: Okay. Thanks a lot. Very helpful.
Moderator/Operator: Yes. Thank you. And in the meantime, we did not receive further questions via the chat or on the audio line. So I’ll wait a few more moments. It’s not the case that there are other questions online.
So we therefore come to the end of today’s earnings call. Thank you for joining in this short but lively conversation should further questions arise at a later time. Please feel free to contact investor relations. A big thank you to the two gentlemen for the presentation and the time you took to answer the questions. I wish you all a lovely remaining week.
And with this, I hand over again to Anders and Tim for some final remarks.
Andreas Martin Berner, Founder and CEO, BIKE24: Yeah. Thank you again for your attention, and I wish you and my team, yeah, a nice weekend for all of you. Thank you very much, and we see you again. Bye bye. Bye.
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