Fast-growing company with sound margins and operating cash flow

Business has been steadily growing at double digit rate since foundation from €4mn turnover as of FY16 to roughly €17m in FY19PF, mainly thanks to its vigorous M&A driven growth strategies, but also through an overall improvement of industry KPIs, which led to a customer base up to 106.000 as of FY19 YE

EBITDA Margin at 33,5%, among best-in class in the domestic field, e with no cost capitalization at all. Margins stand at double digit also at EBIT and NP levels, at 15,1% and 10,6% respectively, a proof of DHH business viability and efficiency

Strong set of financial results in 1H20

1H20 PF results provide evidence i) the company keeps growing in a challenging environment (total revenues at €9,1mn, +8,3% YoY), ii) significant margin upside is emerging (EBITDA Margin at 38,9%, +384bps YoY), iii) subscription based business model generates sound cash flows and iv) Net Debt is not a problem at all (almost zero) as of June’20

Ramp up continues in 2020E-22E

(Source for estimates: Value Track equity research report, 30 September 2020)

2020E-22E Revenue expected to increase at double-digit organic rate (11% CAGR19PF-22E), as result of an overall increase in ARPU, a further expansion in customer base, the strengthening of strategic partnerships as well as commercial efforts

Operating profitability to progressively increase, with EBITDA margins and ROIC consistently above 30%

Cash conversion rate expected to remain sound, with €11mn cumulated free cash flow generation to foster (together with 360K treasury shares) M&A driven additional growth

NFP expected to become cash positive as of 2020YE, and to improve up to approximately €8,7mn as of 2022E