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In its earnings call, CM.com directly addressed the Connect revenue decline, Halo’s early adoption metrics, and its maintained EBITDA guidance despite Pay and Engage headwinds.
For the first half of the year, CM.com’s overall revenue declined 7% YoY to €124.3M ($146.6M), primarily impacted by tough comparisons to a large WhatsApp campaign from H1 2024. EBITDA reached €7.8M ($8.5M USD), down 5% from normalized 2024 levels.
Early adoption of Halo, the new AI engagement platform, was solid, growing 30% MoM since launch, although overall ARR growth was limited due to legacy customer migrations. Management reiterated full-year EBITDA guidance toward the lower end of the €22–27M (~$24–29M USD) range.
The Good
Halo, CM.com’s flagship AI product, added €1.2M (~$1.3M USD) in ARR within four months of launch, reflecting rapid (~30% MoM) adoption and strong early feedback from existing clients.
Excluding volatile campaigns, the stable Connect business delivered consistent 10% gross profit growth, highlighting underlying operational strength.
Cross-selling remains healthy at over two products per customer, and client churn declined, underscoring CM.com’s effective integrated platform strategy.
Successful refinancing has improved CM.com’s balance sheet substantially, turning free cash flow positive due to lower CapEx and stable operating expenses.
The Interesting
Initial Halo traction largely involves existing customers upgrading, with increasing new-client adoption expected within the next six to twelve months.
The Pay unit internalized payment processing, positioning itself well for Europe’s 2026 “Vero” payment scheme.
The Live segment’s new ticket resale platform also creates recurring revenue potential and enhances customer retention.
The Unknown
CM.com’s EBITDA guidance relies significantly on the second-half recovery of its volatile Connect segment. The company acknowledged that reaching the high end of its guidance (€27M/~$29M USD) depends on materially higher volumes—a scenario that remains uncertain.
The Pay business unit, despite recent improvements and pricing adjustments, saw gross profit decline 20% YoY. The company pointed out general slowdown in the events industry; card scheme pricing changes; and unfavorable product mix as the three reasons. Tangible evidence of margin recovery is still pending.
Cross-selling averaging two products per customer seems promising, but the company acknowledged much of this involves legacy customers simply upgrading to Halo, raising questions about incremental revenue impact.
While Halo’s growth trajectory is promising, its total revenue contribution remains modest. The pace and scale of adoption going forward will critically test CM.com’s AI-first strategy.
Finally
Founded in 1999, CM.com went public in February 2020, riding three market waves: SPAC popularity, cheap capital, and pandemic-driven messaging demand. All three have since fizzled. The H1 results reflect aggressive moves to prune low-margin business, restructure debt, and reinvest in products for long-term competitiveness.