HomeToGo SE
XETRA:HTG
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HomeToGo SE
Earnings Call Analysis
Summary
Q2-2024
In the first half of 2024, HomeToGo saw significant growth, with IFRS revenue up by 38.1% to EUR 52.9 million and a notable year-over-year increase in adjusted EBITDA by 54.3%. The Marketplace segment's bookings grew 47%, driven by acquisitions and repeat booking revenues. HomeToGo_PRO, home to over 65,000 accounts, posted a sixfold increase in adjusted EBITDA, reaching EUR 4.5 million. Free cash flow improved dramatically to minus EUR 10.3 million in H1, and EUR 12.1 million in Q2, reflecting a 72% growth. The company reaffirms its 2024 guidance with booking revenues anticipated to grow over 30% and IFRS revenues over 35%.
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Ladies and gentlemen, welcome to the HomeToGo Second Quarter 2024 Earnings Conference Call. I am Judith, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. [Operator Instructions]
At this time, it's my pleasure to hand over to Mr. Sebastian Grabert, Director of Investor Relations. Please go ahead, sir.
Thank you, Judith, and good morning, dear analysts and investors, and welcome to HomeToGo's Q2 2022 Earnings Call. My name is Sebastian Grabert and with me today is our Co-Founder and CEO, Dr. Patrick Andrae, and our CFO, Steffen Schneider, who will present our financial highlights of the first half of 2024. As always, this call is being recorded and will be made available later today on our Investor Relations website.
With this, I would like to hand over to you, Patrick, for an update on the business. Please go ahead. The floor is yours.
Thank you, Sebastian. Dear analysts and investors, thank you so much for joining us today. Today, in addition to our fantastic figures for the first half of 2024, I also want to shed more light on our newly established segments, particularly our B2B segment, HomeToGo_PRO, and explain to you the variety of its business models. As you know, HomeToGo consists of 2 distinct business segments that are delivering clear value to our overall growth.
The Marketplace segment. When we take a look at the Marketplace segment, it's HomeToGo's AI-powered B2C platform offering the world's largest selection of vacation rental, including brands like HomeToGo, Casamundo, e-domizil and loved by travelers globally with local websites across more than 25 countries.
With strength in both our booking on-site and advertising business, the Marketplace drove more than EUR 1 billion in GBV in the first half of 2024, also driven by a strong growth in a number of on-site bookings of more than 50%. This results already in half year 1 of this year and a growth of more than 100% of traveled IFRS revenues for booking on the site.
On the other side, HomeToGo_PRO segment. HomeToGo_PRO segment consists of our B2B software and service solutions for the whole travel market with a special focus on SaaS for the supply side of vacation rentals. With HomeToGo_PRO, we are aiming to solve the pain point for vacation rental suppliers and provide the best solutions to substantially improve their business.
In a nutshell, our vision for HomeToGo_PRO is that anyone who wants to run a successful business in vacation rentals, thinks of HomeToGo_PRO as a solution. And we already see strong results on our path there. Across both the subscription and the volume-based businesses, HomeToGo_PRO drove more than EUR 1.3 billion in Enabled GBV in the first half of the year, a remarkable 26% year-over-year increase.
As a reminder, Enabled GBV refers to travels that were enabled through a HomeToGo_PRO solution, mainly based on data provided by our customers and partners that work with our solutions. Overall, during the first half of 2024, the HomeToGo business has driven significant growth that continues to outpace our peers. Compared to the same period in 2019, our half year 1 '24 IFRS revenues have grown 211% and notably 38% growth year-over-year.
So in just our 10th year since our founding, we are proud to be the fastest-growing public vacation rental player. This is also evident in our new record figures for any second quarter in terms of booking revenues and IFRS revenues as well as the new all-time high in booking revenues backlog.
We would like to thank our team, partners, travelers and shareholders for their continued trust. We continue to deliver technology solutions that accelerate the global vacation rental industry and are building a leading European travel technology company. Across innovators and AI product advancements, creating an experience that drives repeat demand, growth in our booking on-site business and accelerating our B2B solutions, our business keeps climbing to new heights.
HomeToGo_PRO as a key piece of our business is growing and evolving fast. And it's increasingly profitable. As our CFO, Steffen will highlight later, HomeToGo_PRO had more than sixfold adjusted EBITDA increase in half year 1 '24, with 504.4% year-over-year growth, reaching EUR 4.5 million. At the end of the second quarter, HomeToGo_PRO now accounts for 30% of HomeToGo Group's IFRS revenue. This is staggering more than 14x growth in IFRS revenues since 2019, the pre-pandemic era.
Before I dive deeper into HomeToGo_PRO segment, a brief word on current trading. HomeToGo second quarter was outstanding, achieving new record values in our top line with significantly improved profitability and free cash flow. Steffen will provide you with more details on this later. However, you may have already heard from the earnings calls of our several peers that there are signs of slowing travel demand, particularly in the U.S. and Europe.
While travel has continued to prove resilient for a long time coming out of the pandemic, we are now seeing more consumers being cautious about travel spending amid growing economic uncertainty. On the other hand, we also see the supply side becoming more flexible to attract guests, reversing a trend of continuous price increases in many regions. So the willingness to travel this year persists as observed by our record booking revenues backlog. We continue to track and monitor any travel-related slowdown and moderating growth outlook. However, today, we reiterate our financial guidance for the full year 2024.
And now let's dive into HomeToGo_PRO, a fast growing and increasingly profitable segment. But first, we take a look at our path towards the Marketplace and HomeToGo_PRO segment we are operating today. Since our starting following our long-term strategy, we've always evolved our platform to adapt to new and changing travel behavior as well as the needs in the industry. From our starting roots as a meta search in 2014, in line with our long-term strategy, we evolved into a hybrid marketplace in 2017 by introducing our booking on-site business. This particular enables smaller partners to generate more bookings with high conversion rates using our sophisticated technology and data solutions as well as getting access to our wide customer base.
With our Marketplace, we continue to build an experience where customers would love returning to book directly on HomeToGo. Today, in our core market, thus, our on-site share has grown to an impressive 85%, 10 percentage points growth in the past year alone. And in addition, we launched our software and service solutions that we call HomeToGo_PRO today and propel this side of the business with strategic technology investments as well as acquisitions in the past 4 years.
The decision to introduce our new business segmentation in the beginning of 2024 across both our AI-powered Marketplace and B2B business HomeToGo_PRO was a clear move to provide more transparency to the capital markets. A reminder that HomeToGo_PRO combines the formally reported subscription and services and the volume by service offerings of the group.
As we grow our reputation as an industry innovator and particularly our technology solutions with HomeToGo_PRO, we are tackling clear challenges that are faced in the supply side application metals. First, the market is highly fragmented. Let's look at Germany as an example. Thanks to our friends at the German Vacation Rental Association, we dug into some fresh data to give you a picture of how our core market Germany currently stands. Germany alone has more than 500,000 vacation rental units in top. However, 4 out of 5 of these accommodations are owned by individual hosts. This high fragmentation is a challenge in itself.
Second, high complexity and effort to manage the vacation rental business, especially property managers that oversee multiple units deal with high administrative load, complex distribution systems and a frequent turnover of guest and a shortage of cleaning service. And thirdly, inexperience. The vacation rental industry is moving fast alongside steadily increasing customer expectation, but that means a significant lack of professionalism in the space. Most vacation rental owners don't have sophisticated marketing or tech expertise.
Taking a comprehensive view of these challenges, we have developed a solution HomeToGo_PRO, our B2B software and service solutions for the whole market. Our key brands under HomeToGo_PRO's rent from listing and white label solutions as well as software as a service for the supply side for vacation rentals.
These are unique core offerings to tackle the complexity of managing vacation rentals in order to support partners in professionalizing in growing their vacation rental business. Some examples of the core offerings under HomeToGo_PRO include products that centralized multichannel distribution across more than 100 booking platforms. This approach offers real-time price and availability synchronization across many platforms, partners can still take a multiplatform listing approach with the simplicity of our solutions.
And for those lacking technology expertise, we also offer intuitive software to build their own website, communicate seamlessly with guests, manage reviews and have a full view on occupancy and revenue statistics. And with our HomeToGo Doppelgänger product, we are easily connecting trusted travel and tourism brands to HomeToGo's unparallel selection of vacation rentals, allowing them to monetize their traffic better. In the suite, we offer fast, scalable and innovative software and re-distribution solutions such as White Label and API products. Doppelgänger is already used by industry-leading players such as TUI, HolidayCheck, HolidayPirates and many more.
But now let's take a closer look at some of our brands under the HomeToGo_PRO umbrella. First, we will take a look at SMOOBU. In 2021, we acquired SMOOBU a high-performing self-service data solutions to easily connect self-service hosts to our key partners. With SMOOBU we cater to a specific submarket and customer persona both that want to be hands on and stay in control of their own business.
SMOOBU solved the pain points of multi-platform listing approach for these hosts such as double bookings and multiple communication channels through smart technology solutions such as synchronized price and availability management or a central cockpit to control all guest communication. At the same time, host stay in control and can personalize their listing on each OTA according to their preference.
SMOOBU basically just makes the annoying parts much easier, and that for a great price. Given our vision to make SMOOBU an essential operational tool for these hosts, we have developed it into a [indiscernible]-like marketplace that allows users to connect on top of the service that SMOOBU would provide themselves to more than 50 additional services, such as smart pricing tools or check-in services.
The product itself can be tailored to their very specific needs, thus also increasing the stickiness of SMOOBU as the software. And SMOOBU is very well guarded in the industry loved by customers and achieved and maintained preferred and premier partner status from both Airbnb and Booking.com. The numbers speak for themselves. As of today, SMOOBU is the software of choice for over 80,000 vacation rental properties. And if we look at the rule of 40, the combined profit margin and top line growth rate, SMOOBU with 50% clearly ranks the company amongst the top European software companies.
Let's switch to SECRA. Whilst SMOOBU targets hosts that want to self-service and manage their business themselves, there's a second equally prominent homeowner personnel in the market, hosts that completely outsource the work to property management agencies. SECRA, our second key software as a service brand under HomeToGo_PRO addresses in the first-place professional property managers with full-service solution suit that offers deep integrations and delivers high retention.
SECRA's property management system helps professional property managers control large property portfolios from a central system. Through its channel manager and online booking system, it allows them to receive an easily managed bookings from a variety of distribution partners such as Airbnb, Booking.com or the HomeToGo Marketplace. Like SMOOBU, SECRA is also notable player for major OTAs, including being primary connectivity partner for Booking.com.
SECRA's central cockpit allows property managers to steer their business end-to-end, to not only manage calendars and bookings, but also back-office tasks such as invoicing. Additionally, SECRA supports the development of original tourism by technologically enabling regional destination marketing organizations. As of today, more than 50,000 vacation rentals are managed by our SECRA.
If we compare SMOOBU and SECRA side by side, these 2 conceptual similar solutions deliver high value and monetization for distinct target customer segments. To recap, SMOOBU largely making up our subscription business is an all-in-one sales service for private hosts that want to be in control of their own business but a powerful solution to grow a vacation rental business, automatic single booking channels for effective price and availability management, plus it connects third-party tools to an app store like Marketplace for host to tailor their support.
SECRA, driving our volume-based business in addition to some subscription is a full-service professional suit, especially targeted towards property managers to manage and channel thousands of vacation rental simultaneously. In addition, SECRA has deep relationship and solutions for destination marketing organizations, offer them a website builder, booking engine and market services, plus a channel manager for private hosts to connect them to any relevant OTA in the industry as a light version of the property manager product.
Let's look on our third HomeToGo_PRO solution we want to dive into today HomeToGo Doppelgänger. With Doppelgänger, we are easily connecting trusted brands to our unparalleled selection of vacation rentals. Doppelgänger was developed in-house by our team and is a suit of SaaS and scalable innovative software and re-distribution solutions such as White Label and API products. It's already used by many industry-leading players such as TUI, HolidayCheck, HolidayPirates and many more.
Today, already more than 30 key brands use HomeToGo Doppelgänger. So what's the value for our partners. First, Doppelgänger allows our partners to better monetize their traffic by seamlessly connecting and selling HomeToGo vacation rental inventory. Second, by offering our experienced in-house customer experience and back-end services, partners can participate in the upside without having the operational hassle. And third, our modular and scalable technology enables a fast integration of Doppelgänger into external technology landscape as well as the set up a White Label within a few days.
So Doppelgänger is already boosting the vacation rental business of our partners. So our top 3 partners, it grew their vacation rental booking revenues by more than 90% on average in just 1 year after migrating to the HomeToGo Doppelgänger product.
And how does this translate into value creation for HomeToGo sales? Firstly, Doppelgänger is driving additional monetization of the existing tech and supply we have on the Marketplace by connecting well-known brands, basically using what we made in the Marketplace available to our partners also external.
So secondly, this allows us to participate in bookings for other brands thus capturing market share and improving our brand visibility. And thirdly, overall, it's a highly scalable business model that has attractive commercial and a high value add for our partners. As a result, in the past year alone, our booking revenues from the Doppelgänger business have grown more than 3x as we increasingly add new partners to the product.
But let me sum up HomeToGo_PRO. Overall, HomeToGo_PRO today has more than 65,000 accounts with more than 230,000 listings. Since its inception, HomeToGo_PRO has been growing fast and in the first half of 2024, it contributed 30% of our IFRS revenue. Additionally, HomeToGo_PRO enabled over EUR 1.3 billion in gross booking value across the industry in the first half year of 2024 alone, achieving a strong year-over-year growth of more than 25%.
The first half of 2024 favorably positioned us for sustained growth and improved profitability and the positive margin contribution from HomeToGo_PRO are a substantial contributor to this promising growth. So looking ahead, and as presented at our Capital Markets Day in 2023, we are also looking to value-accretive M&A opportunities for HomeToGo_PRO to provide solutions that can further propel the entire travel industry.
And with that, I would like to hand over to Steffen for a closer look at our financials for the first half of the year. Thank you.
Thank you, Patrick, and good morning, and thank you all for joining today. Let's look at our key financial highlights for the first half as well as the second quarter of 2024. First, we have seen solid performance in the first 6 months of 2024 with strong growth in both booking revenues and in particular, IFRS revenues. Both metrics reached new absolute record values for the second quarter.
As a reminder, besides the solid organic foundation, this positive top line development was also driven by the consolidation of the majority acquisition of Kurz Mal Weg and Kurzurlaub at the beginning of 2024. This development is also reflected in our increased booking revenues backlog. As usual, the backlog reaches its peak prior to any quarter 3 and therefore, a new all-time high, close to EUR 80 million is providing high visibility for the remainder of the year.
Second, we continue to improve profitability. After achieving adjusted EBITDA breakeven for the first time in the second quarter in 2023, we have further expanded our margins surpassing last year's threshold. This continued improvement was mainly due to a significant profitability increase in the HomeToGo_PRO segment, which saw its adjusted EBITDA contribution growing sixfold in the first half compared to the previous year, reaching a 16.8% adjusted EBITDA margin.
On the HomeToGo Marketplace, we saw once again an improvement in our marketing efficiency. This improvement was driven by strong repeat booking revenues growing by more than 35% year-over-year as well as a further increased on-site take rate, which was primarily driven by the inclusion of the acquired short trip business. Third, we ended Q2 with a significant cash balance of EUR 96 million in gross cash, reflecting a sequential growth compared to the end of Q1 of more than EUR 5 million. This increase was mainly driven by the increased business volume, leading to additional traveler advanced payments and a slight change in cash flow pattern due to the acquisitions in the field of short trips. The free cash flow during Q2 2024 rose by 72% year-over-year to EUR 12.1 million.
Let's look at the key financials in more detail. Booking revenues reached EUR 147.2 million in the first half of 2024, climbing to a new record second quarter value of EUR 63.8 million, both reflecting 27% year-over-year growth. This growth was primarily driven by our strong booking on-site business in our Marketplace, which grew by 47% year-over-year in the first 6 months of 2024. IFRS revenue grew by 38.1% in H1 '24 and reached a record high of EUR 52.9 million for any second quarter, reflecting a 23.7% year-over-year growth. This notable growth was driven by both the HomeToGo Marketplace and HomeToGo_PRO segments.
We continuously improve our underlying profitability, with adjusted EBITDA increasing by 19% year-over-year, amounting to minus EUR 19 million in the first half of 2024. The significant improvement in our adjusted EBITDA margin was mainly driven by strong margin expansion within our HomeToGo_PRO business and supported by continued growth in repeat booking revenues.
Looking just at the second quarter, we increased adjusted EBITDA by 54.3% year-over-year, further surpassing the adjusted EBITDA breakeven from Q2 2023. Free cash flow significantly improved both on a quarterly and year-to-date basis. For the first half of 2024, free cash flow totaled minus EUR 10.3 million, reflecting a 21% year-over-year improvement. As already mentioned, this was mainly driven by increased business volume. In Q2, free cash flow amounted to EUR 12.1 million, reflecting a remarkable year-over-year growth of 72%.
On the next slide, we break down the key P&L items per segment in the first half of 2024. The Marketplace segment performed strongly with booking revenues growing by 26% and IFRS revenues by 47%. Both metrics were supported by decent organic growth and the consolidation of the acquisitions of our short trip business. As a result, the booking onsite business within the Marketplace segment more than doubled its H1 IFRS revenues, recording a 114% year-over-year growth and a substantial 55% increase in the number of bookings year-over-year.
In terms of profitability, the Marketplace segment saw a slight increase in both absolute and relative terms, driven by ongoing growth in booking revenues from repeat customers and improved marketing efficiency. Our HomeToGo_PRO segment continued its growth momentum, increasing IFRS revenues by 19% year-over-year to EUR 26.7 million, while booking revenues increased by 29% to EUR 40.3 million.
Both our subscription and volume-based business activities contributed to this growth, with IFRS revenues growing by 18% and 19% year-over-year, respectively. This segment accounts for 30% of HomeToGo's Group total IFRS revenues in the first 6 months of 2024. In terms of profitability, HomeToGo_PRO segment made a stellar contribution to the overall improvement of adjusted EBITDA, increasing its adjusted EBITDA more than sixfold year-over-year to EUR 4.5 million.
Looking at the same data for just quarter 2. Looking again at the Marketplace, the booking on site performed exceptionally well due to the substantially increased number of bookings. We experienced remarkable growth in Q2 with IFRS revenues increasing by 78% year-over-year to EUR 23.3 million. The main driver for the strong increase in IFRS revenues, the short trip business with its peak season before and after the summer.
Advertising business, which includes the former CPA offsite and CPC business was almost flat in terms of booking revenues due to efficiency steering towards higher-margin business. In terms of IFRS revenues, we saw a 6.4% year-over-year decrease, mainly due to this year's early Easter, which shifted some IFRS revenues into Q1. This as well as building up the backlog is also a driver for the slightly lower adjusted EBITDA for the Marketplace in Q2, decreasing from a positive breakeven in Q2 '23 to minus EUR 1 million in Q2 '24.
Looking at HomeToGo_PRO, we saw growth in both businesses with a particular higher growth in booking revenues for the volume-based business and higher IFRS growth in the subscription business. In terms of profitability, HomeToGo_PRO more than doubled its second quarter adjusted EBITDA, achieving 144% year-over-year growth to EUR 3.2 million and significantly expanding its adjusted EBITDA margin by 11.7 percentage points to 21%.
To conclude, we improved underlying profitability by more than 54% on a quarterly basis, reaching adjusted EBITDA breakeven already in the second quarter as we did in 2023.
Turning our attention again back to the Group level and examining the trends in booking revenues over the years. As mentioned during our Q1 call in May 2024 continues to be characterized by a very competitive commercials, in particular, on the marketing side. Nevertheless, we significantly surpassed the figures of previous years as shown on the left-hand side. Despite continued market headwinds, we performed well in the first half of the year. As already highlighted, our booking revenues backlog reached an all-time high of almost EUR 80 million, providing visibility for the remainder of the year.
Some additional context on our average basket size development. The overall decrease in basket size by 13% year-over-year was, as mentioned before, driven by the success of the short trip business in DACH. The inclusion of the short trip business reduces the overall basket size due to shorter length of stay, especially in the DACH region, while the average daily rate remains constant.
Excluding the impact of the short-trip business, the basket size slightly increased year-over-year, similar to the rest of Europe. For the North American market, the basket size decreased slightly due to a lower average daily rate compared to last year's period, particularly in Florida as the destination with the highest share in U.S. revenues.
Commenting on the evolution of our on-site take rate. Here, we see the flip side of the short trip business contributing positively to the favorable development of the on-site take rate. The on-site take rate increased year-over-year from 11.6% in the first half of 2023 to 12.7% in H1 2024. This 1.1 percentage point expansion is a new record for H1 and comes very close to our all-time high from Q1 2024 of 12.8%. For Q2, the on-site take rate increased year-over-year by 0.3 percentage points to 12.5%.
Moving on to the development of our cost ratios that grow Group level profitability in relation to IFRS revenues. We observed improvements in profitability across all major cost components in the first half of 2024. Looking at the first half. The gross profit margin improved by 1.1 percentage points year-over-year in the first half, reaching 98%. This improvement is primarily due to enhancement cost efficiencies driven by a disproportionately high sales growth.
We made significant progress in one of the key contributors to our profitability expansion, our marketing efficiency. The marketing and sales cost ratio of 85% improved by a notable 12.2 percentage points in the first 6 months of 2024 compared to the prior year period, driven by enhanced marketing efficiency, supported by a strong 35.5% year-over-year growth in repeat booking revenues and positive contributions from recently acquired subsidiaries.
In terms of the product development cost margin, despite a meaningful acquisition-related increase of 24% in absolute terms, in the first half '24, we improved the margin slightly by 0.2 percentage points, driven by higher economies of scale. We also managed to improve our efficiency in terms of G&A expenses, reducing the ratio by 0.5 percentage points in the first half of 2024 compared to the same period in '23.
This improvement is again mainly due to a higher economies of scale despite an absolute cost increase as a result of the acquisitions. Overall profitability in terms of adjusted EBITDA margin improved in the first half substantially by 40.9 percentage points compared to the previous year.
Now looking at just the second quarter, we see a similar picture. However, both cost margin for product and development and G&A expenses worsened compared to the same period last year. Absolute product development expenses increased by 40%, rising from EUR 7.9 million in the prior year period to EUR 11 million in Q2 2024. This increase was primarily due to a higher personnel expense resulting from the expanded scope of consolidation from recent acquisitions and new services for the supply side.
General and administration expenses increased by EUR 1 million in the second quarter, driven by higher consulting expenses, increased third-party expenses, bank charges as well as maintenance expenses for hard and software. The sequential deterioration in both cost margins compared to the second quarter of 2023 is attributed to this year's early Easter when corresponding IFRS revenues were recognized already in the previous quarter, leading to a significant improvement as reflected in the half year results.
Overall, Q2 profitability in terms of adjusted EBITDA margin improved by 0.8 percentage points compared to the previous year. As always, we adjust the cost for expenses related to equity share-based compensation, depreciation, amortization and other one-off items to highlight the operational performance of our business and to arrive at the adjusted EBITDA.
Looking at our cash position on Slide 22. We continue to have a robust balance sheet with gross cash of EUR 95.7 million. This includes the EUR 17 million investment in the money market fund. This sequential increase in gross cash of EUR 5.1 million compared to the end of Q1 '24, partially results from the higher adoption of our HomeToGo payment solution and consequently higher traveler advance payments.
After deducting interest-bearing debt of EUR 3 million and restricted cash of EUR 15.9 million from collection services for respective host, our net cash position at the end of June '24 stands at EUR 76.6 million. The increase in cash inflow from operating activities amounting to EUR 15 million in the second quarter of '24 can mainly be attributed to the increased traveler advance payments and the positive impact of the seasonality pattern of cash flows from the short trip business.
Cash flow from investing activities amounted to minus EUR 7 million, largely due to a cash outflow for acquisitions and internally generated intangible assets. These outflows were partly offset by proceeds from the sale of a portion of our investment in the money market fund, amounting to EUR 10 million in Q2 2021. Cash flow from financing and other activities amounted to minus EUR 3.1 million includes outflows of EUR 3.4 million for payments made towards the share buyback program and public share tender offer as well as repayments of borrowings amounting to EUR 0.7 million in the second quarter of 2024.
Before I close, let's revisit our outlook for the financial year 2024. Based on the solid first half of 2024, we confirm that we continue to aim for growth rate of more than 30% year-over-year for booking revenues and more than 35% year-over-year for IFRS revenues in the full year 2024. We are also targeting a significant increase in adjusted EBITDA in 2024 compared to the financial year 2023 and aim to expand our leading profitability KPI to more than EUR 10 million during 2024.
With that, I thank you for your attention today, and we will now open the floor for your questions.
Thank you. We will now begin the question-and-answer session. [Operator Instructions] The first question is from Mr. Bharath at Cantor.
I have a couple of them. Please, could you provide us with the organic growth figures for booking and IFRS at least? That's the first one.
And secondly, with regards to the bookings backlog, the progression that you have shown compared to the previous years, is it possible to also understand how that would be if it weren't for the acquisitions just to see how we are trending because a number of-- as you said, a number of peers have guided to a softer market. I would just love to know how you are compared to the previous year without acquisitions?
Thank you for the question. Yes, I think like -- as you know, we are not breaking out organic growth rates on the site. So for us, especially, it is also important that part of HomeToGo strategy is also inorganic growth via M&A, as you know. So basically, you can see that also from the strategic pillars where we have been seeing the right growth at the right strategic angles. So especially if you look into like what we witnessed on the booking on-site side, right, where you see for the first half of the year, even more than 100% in IFRS booking on-site revenues growth. And you can also see the other side of HomeToGo_PRO segment where we especially focus on the profitability side of it with more than 500% growth in profitability there for the first half of the year.
So this is how we basically look and also how we steer. So taking into account inorganic parts, organic parts and then reach an overall top line and bottom line number that we are steering towards. And if we look at the backlog, obviously, it's a record backlog compared to last year. You also can see that our bookings increased more than 50% on the booking on-site part for the Marketplace. So we feel -- and also that, as you can see, like we reiterated our guidance. So we feel comfortable on the future outlook.
Just as a follow-up, in the U.S., like what's your -- how is your strategy evolving? Has it now moved from, let's say, more of like a non-on-site kind of approach to more on-site kind of focus as well? Or has it changed due to the competition and given how your peers are kind of working there in the country. Any color on that would be helpful.
So like I would say in the U.S., it's obviously like a market that is very big, yes. And you can also see it in our composition, it's a big part of HomeToGo. So if you look at North America as a market, it's mainly driven obviously by the U.S. So if we see there, we still -- and you can see that in our numbers when you look at overall on-site versus on-site in the DACH region that we are still lacking the on-site part there, but it simply takes also longer in such a big market that is even more fragmented than other markets. But also there, we see progress.
And secondly, what we also see if you go to our U.S. site, you might also see that we started there also with My HomeToGo so that you can list your property there. And you may find some interesting ways how we approach that market especially towards maybe some bigger players with more [indiscernible] kind of brand cover.
I think you mentioned as well in your original commentary with regards to the outlook and why you're confident whereas some peers have kind of got it guided to your software outlook. Just want to understand the reason behind your confidence for the full year expectations?
I think like on one hand, we know what we have as a backlog. And on the other hand, obviously, we have moved as you have also seen in basically, my part of the presentation, right, that we have been capable to actually show the strongest results in the industry. So overall, from what we know today, right, we feel good about, like pertaining our like expected guidance of more than 30% growth and also on the adjusted EBITDA line.
Obviously, we have to monitor this going forward as well, like we always do. But as you can see from the results and also like the backlog we have, we have some good kind of visibility into the future that makes us very confident and especially looking positively on the -- if you see like what we have witnessed on the booking revenues side as well.
The next question is from Christian Salis from Hauck Aufhäuser.
I've got the 3 questions, please. The first one would be on the development of the on-site take rate. So could you please talk a little bit more about why the improvement in the on-site take rate in Q2 was lower than in the first quarter. I think in the second quarter, we've seen a 30-basis point improvement year-over-year to 12.5%, while we have seen almost 2 percentage points improvement in the first quarter?
And the second question, just quickly on the regional performance, have you seen any differences in Q2 in terms of, yes, top line development, demand in Americas compared to Europe? Or is it that, yes, people are more saving a little bit more in both destinations basically? And a current trading would also be helpful, please. And then final question on the HomeToGo_PRO, of all your products, you offer in this segment, which is -- could you maybe provide a little bit more color, which has been the most successful product or service that is contributing most to the strong growth you've seen in the first half?
So on the on-site take rate, the quarter is always one thing. So we had -- when you look at the first half year numbers and the strong improvement there, you also have the very strong improvement we have seen in Q1. As you know, in Q1, that's the majority of the booking revenues are happening. And it always depends on where the respective travelers are coming from, where they are booking. And therefore, we had a very strong improvement in Q1, and that is the main driver for the high improvement in first half of the year.
In Q2, we already had, let's say, a pretty high benchmark from Q2 2023. And therefore, that additional improvement of 0.3% doesn't maybe look so strong compared to the 1.1 percentage points in H1, but still, it's a major step forward. So we shouldn't and all investors shouldn't expect that we just increase the take rate each year by more than 1 percentage point. This is a process which goes step by step as we and as our partners compete on the Marketplace, in particular, for traffic. And therefore, we are very happy with the development.
On the second question on the regional performance, that is basically going in line with what we have seen in the past. The only major deviation is that the DACH business as a share of the total revenues has become more important. And that's the main driver for that is the short trip business, as already mentioned before, because they are mainly active in Germany and Austria. There's a little bit of a DACH business, which would become rest of Europe, but we are not active at all with the short trip business in North American market yet.
And if I may answer the question on HomeToGo_PRO, obviously, we are generally -- and that's also why we wanted to also like give us a little bit more detail on the segment itself in this call. We are actually very proud that our strategic like kind of pillar with HomeToGo_PRO and the strategy that we set out saying basically, yes, we may keep more professional on our Marketplace, and now we want to help with what we experience on the Marketplace, making smaller suppliers, especially more professional that we can also bring that to the outside. So outside of the Marketplace with HomeToGo_PRO and professionalize basically and help professionalizing the market there.
So having said this, obviously, like -- and there's no surprise, right, that if you look at our businesses that we have below, if you look at SMOOBU, which is basically a pure software as a service business almost 100% running on subscriptions with a strong ARR increase over the time that we have been in charge after acquiring SMOOBU. So we have multiple times increase of ARR since we acquired the company and basically bringing in our expertise from 10 years of running the largest selection of vacation rentals in the Marketplace on a lot of topics to help them build like basically and so there's a great business into new height. We are obviously very proud of that product.
And it's probably also in the niche it operates, which is a big niche like self-service host so they basically want to take care of everything from themselves. Basically, a really unique product that caters exactly to this group of people, and that's for the best price, what we assume in the market. And therefore, it's simply a stellar product that if I need to pick one, which is hard, I would pick SMOOBU to answer your question.
The next question is from Wolfgang Specht of Berenberg.
Two additional ones from my side. The first one on the on-site business. Can you give us some more information how do you see the development of the moving parts to the basket size? So what do you believe length of stay should develop price per day? And finally, the take rate that would be interesting?
And then also on your on-site business, can you shed some light on the development of your collection? So onboarding of inventory, is it similar speeds than in prior quarters? Or is it slowing or even accelerating? And finally, remuneration for advertising, we learned over the past years that there are good times and that there are bad times regarding payments from your partners. How do you see the trend for the second half of this year?
So on the basket size, the basket size continues to be really, really stable. So there's always a little bit of fluctuation here and there. But all in all, ADR stays the same. Length of stay stays the same. If we leave out what I already mentioned before the impact of the short trip business.
And the way we look at that is that it shows how adaptable the consumers are because -- and it's not so much this year like we had it last year, but when you look at the object, so the individual property, there is inflation, but the ADR is basically the same as in the years before. So the consumers are adjusting to it by -- I always make the joke that last year, they were booking directly watching the sea. And this year, maybe they are 500 meters towards the city. So a little bit further in.
But it shows just the breadth of our inventory and that the consumers can really adjust to it. We have had a little bit of a smaller ADR in North America. And we were spending a lot of time really trying to dig in deep into it. And there was no clear picture. So we could finally decrease it down to Florida. But when we looked within Florida, we couldn't really see that there was like a significant -- it was really a mix of people booking maybe some smaller places for less children than the year before. So no real clear message. You can be assured. We wanted to provide you more detail here, but there's not a clear picture.
And with regards to the take rate, the take rate doesn't have much of an impact here. So the take rate is more relevant for what is our share of the bookings. So there, we would see an increase from a higher take rate. But the basket size is pretty much relevant for the take rate.
On the on-site business, right, like collecting more supply. Obviously, that's an ongoing topic. We always connect new partners, but especially what we see and maybe as an additional site, so you know that we launched also last year during our CMD, basically what we call My HomeToGo so where you can directly list on HomeToGo, which I just mentioned also, especially in the U.S., we recently launched a specific product there where you can like list your property.
And this is obviously where we also now get access to supply that we prior might -- wouldn't have gotten because like people are not utilizing property managers for this. So -- and there, we also see an increase in people that are onboarding with HomeToGo directly actually on the supply side.
And then on the advertising part, obviously, as you know, like advertising side and rightly spoke out, that depends on what partners want to spend also on the advertising side because they obviously like compete within the Marketplace with the advertisement placement with -- also like the on-site bookings business.
And so there, obviously, as you can see, like in the first half of the year, advertising was not as strong in terms of growth as the booking on-site business. And so we simply need to see how our advertising partners look at it in the second half of the year.
But obviously, this is nothing we can comment on in the first place. So far, we don't see anything that we should give you an additional trend figure on. But obviously, that's a general market sentiment and as growth in the whole market, if you reflect again to the beginning of our presentation, it's lower than Hometogo. There might be a good opportunity for people to spend more, but that's not on us to decide.
And finally on the payments. So the -- let's say, the bigger partners, they always pay on time. There is, and I'm sure it's just a coincidence at least for some of the stock-listed companies, you see some trends for window dressing. So sometimes it can happen when at the quarter end, that the payment is happening on the first day of the next month and not on the last day of the current month, but I'm sure it's just a coincidence.
All in all, the payment is working out well there. You always have some from time to time, but that's mainly smaller partners who are sometimes a little bit slower who need a little bit of a reminder. But we have a pretty good process by now where we also can call them, okay, you're not paying us, then you don't get much more traffic and that usually helps to get the payment in.
The next question is a follow-up from Mr. Bharath from Cantor.
Just a quick follow-up from me. You might have mentioned this before, but with regards to individual hosts, I think in your CMD, you said you were trying to target them as well. Is there a proportion of -- that you can provide us as to what proportion of your revenue comes from property managers versus hosts versus OTAs, etc.?
Yes, we don't provide that as a split, yes, as no one does, right? So neither Booking.com, nor Airbnb, nor Expedia break these things out. And obviously, as we just started with it last year, nonetheless, what I can give you as an information, it's obviously like not yet, yes, the major part of our revenues. It's a business or a part of supply that obviously steadily will grow, but will also take some time until it's a bigger part of the overall supply or revenues that are connected to supply on that side. But we don't break that out.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Grabert for any closing remarks.
Thank you so much, Judith. The analysts and investors, thank you all so very much for your attention and questions. Should there be any additional questions, please feel free to contact us. We wish you a great day, and hope to see you soon.
Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.