Topic: Rubean published preliminary FY24 figures, below guidance and expectations, but with a still strong sequential growth dynamic in Q4. Further, the successful capital increase should secure liquidity into FY25. In detail:

• Sales grew by 91% yoy to € 1.9m, below our estimates of € 2.5m and the guidance of € 2.2-2.5m, mainly caused by a slower than initially expected roll-out of SoftPOS. Consequently, certain revenues that were already anticipated in FY24 should materialize throughout FY25. Still, the growth trajectory remains fully intact with 44% qoq sales growth in Q4.
• EBITDA should have improved to € -2.9m (eNuW new) thanks to increased sales and strict cost discipline, i.e. visible in rather stable OPEX (eNuW: personnel expenses of € 3.1m, material expenses of € 0.4m as well as other operating expenses of € 1.3m). Still, as sales came in below our initial estimates, we trimmed EBITDA from € -2.0m (eNuW old).

SoftPOS-rollout in full swing: With >50k terminals live in Germany and Spain, Rubean is the market leader in both countries. In those countries, but also abroad, Rubean is now serving 1) logistic companies (CoD - Cash on Delivery) such as Correos, GLS, dpd and SEUR, 2) retailer such as REWE, Deichmann and snabble, 3) hospitality companies such as CTS eventim, Gewinnblick, Ordermann and Waldbühne Berlin as well as 4) banks and acquirers such as Sparkasse, BBVA, Global Payments and emerchantpay. As recent customer wins (i.e. Deichmann) just start to materialize, we expect a strong sales ramp-up going forward, even without new customer wins that we consider as very likely. More tailwinds should come from LATAM & US, where we see strong pick-up demand, expecting major customer wins carrying sales in FY25 (eNuW: € 3.5m) and beyond. With that, paired with ongoing cost discipline, profitability within FY25 is still in reach.

Apart from that, Rubean successfully placed 146k new shares at € 6.00, securing liquidity into FY25 and financing growth. Further, Rubean continues the promising discussions with a potential strategic partner initiated in FY24.

BUY with a new PT of € 7.00, based on our DCF.