OrderYOYO Q4-21

The Growth Journey Continues

During 2021 OrderYOYO has experienced solid growth in ARR from both existing and new Restaurant Partners, simultaneously as the Company has executed on its strategy through increased investments to drive growth forward. Owing to a substantial increase of restaurant partners (RP), a more significant focus on growing existing restaurant partners and the high scalability in the business model, OrderYOYO is estimated to reach a revenue of DKK 167m in 2023. Based on an applied 5.8x EV/S target multiple yields a potential fair value of DKK 17.9 per share in our Base scenario.

• Net Sales Above Our Estimates

For the full year 2021, OrderYOYO delivered net sales of DKK 108.5m (76.3), which corresponds to a growth of 42% compared to 2020. Despite less tailwind from Covid lockdowns in 2021, compared to 2020, OrderYOYO showed a growth in number of restaurants partners of 41%, which Analyst Group assumes is one factor of great importance behind the strong growth during the period. Annual Recurring Revenue (ARR), grew from DKK 104m by December 2020 to DKK 120m by December 2021 – equivalent to a growth of 15%.

• Developed With Good Cost Consciousness

Regarding the operating expenses, these amounted to approximately DKK -116m (-63) during 2021, corresponding to an increase of 84%. The increase is particularly due to IPO related staff costs including cash settlements of warrants and other non-recurring costs such as severance, which is why we do not make any major changes to our prognosis. The earnings of primary activities before financials, tax and depreciations & amortizations amounted to DKK 0.7m (9.7) in accordance to guidance. Considering that parts of the increase in the total operating costs are of a non-recurring nature, we view positively that OrderYOYO has developed with good cost consciousness.

• Acquisitions In the Pipeline

OrderYOYO has decided to strengthen its capital reserve through a private placement and a long term loan facility, which is estimated to bring the liquidity position above DKK 100m. With a strong capital reserve, Analyst Group expects that the Company will make more strategic acquisitions in the future to continue to strengthen its European market leading position and create shareholder value.

• We Remain Our Prognosis

Since OrderYOYO has developed in-line with our expectations, we have left our revenue forecast unchanged. As the number of shares has increased in connection with the Company’s private placement, the price per share has fallen slightly. However, the market cap, in terms of absolute numbers, remains the same as in the previous analysis.