Software company - Intershop-Board: We want to write black numbers
The board of the Jena-based Software provider Intershop is cutting costs to help the company get out of the red. "We want to write black numbers," said CEO Markus Klahn at the presentation of the financial figures for the first half of the year to the dpa. The savings resulted in the elimination of a total of 29 positions, among them in the USA, France, and Germany.
The business development of the specialist for programs that allow companies to sell their products and services online has been fluctuating strongly for years.
Reduced loss
The loss before interest and taxes (Ebit) in the first six months of 2024 was €400,000. This is half the deficit in the same period last year. The publicly traded Intershop AG reported a loss of €700,000 in the first half of the year, compared to a loss of €1.1 million in the previous year. The company is expected to achieve a balanced result this year with moderate sales growth, confirmed Klahn.
"We are on the way to profitability," said the CEO. Customers have been hesitant in the face of the weak economy. The first-half revenue amounted to €19.0 million, slightly below the previous year's level of €19.4 million.
Business with software rentals growing
"The economy is not particularly investment-friendly. That makes it all the more difficult." However, a slight improvement is noticeable, according to the CEO. Intershop specializes in software that customers can rent or buy licenses for to operate their online business via trading platforms.
The revenue from the new business with software rented over the cloud grew by 32% in the first half of the year to €10.3 million. The share of cloud revenues in total revenue increased by 14 percentage points to 54%. However, the service business with the installation of trading platforms for customers again caused problems. The large projects are expected to be completed by the end of the year.
According to company information, 270 employees were employed by Intershop at the end of the first half of the year, mainly software specialists. Klahn sees no danger from the advance of artificial intelligence in many business sectors for the Jena-based company. Its use leads to positive effects for Intershop products and their users.
The cost reductions implemented by Intershop's board, including position eliminations in the USA, France, and Germany, aim to help the company turn a profit.Engagement with software rentals has been a growth area for Intershop, leading to a 32% increase in cloud revenues during the first half of the year.CEO Markus Klahn anticipates a balanced financial year for Intershop with moderate sales growth, while expressing concerns about the weak economy's impact on customer investment.Thuringia-based Intershop reported a loss of €700,000 in the first half of 2024, which is a significant reduction from the €1.1 million loss reported in the same period the previous year.Despite the challenges posed by the economy, Intershop remains optimistic about the long-term potential of artificial intelligence, viewing it as an opportunity to enhance its products and their user experiences.
