Table of Contents
Last quarter, CM.com leaned on efficiency, Halo’s early traction, and tight cost control to offset softness in Connect and Pay. This quarter, it posted record EBITDA, proving the operating model is running lean, but a sharp cut to full-year guidance confirms the profitability is paper-thin, choked by competitive RCS and WhatsApp pricing.
The company grew 1% organically and flat in absolute terms, posting revenue of €65.0M (~$76.3M). Normalized EBITDA was up 38% in constant currency and reached a record €6.0M (~$7.0M), while reported EBITDA came in at €5.4M (~$6.3M). Gross profit held steady at €21.2M (~$24.8M), and margin expanded to 32.6%.
Management, however, narrowed full-year normalized EBITDA guidance to €18–20M (~$21–23M) from the previous €22–27M (~$26–32M), citing FX volatility and competitive pricing in RCS and WhatsApp.
ARR climbed 5% to €35.2M (~$41.2M), led by continued Halo adoption.
The Good: Profitability and Product
CM.com’s profitability and efficiency measures are showing results. Normalized OPEX fell 7%, marking a second consecutive quarter of cost discipline.
Engage and Pay led performance. Halo’s ARR grew 34% quarter over quarter, driven by AI-powered automation and Voice AI capabilities that strengthen its customer-engagement position. The Pay unit saw payment volumes rise 10% quarter over quarter, boosted by cross-sell from major events like the Dutch Grand Prix.
Connect volumes grew 37% as RCS, WhatsApp, and email traffic expanded. While these carry lower margins, they reinforce platform adoption and future share. Gross margin rose to 32.6%, reflecting a better mix and operational leverage.
CEO Jeroen van Glabbeek called it “the first quarter since last year where we regained organic growth—a promising sign for future development.”
The Interesting: AI and Cross-Selling
CM.com’s shift toward an AI-first model is accelerating. AI is now embedded across Engage, Pay, and internal operations, improving efficiency and decision-making. Cross-sell rose to 2.15 products per customer, up from 2.02 a year ago.
Engage’s momentum shows that the company’s “Engage + Pay” strategy is working—uniting customer conversation and conversion. In Live, ticket volumes grew 9%, tempered by fewer UK events and cautious consumer spending, offset by growth in Germany.
The Unknown: Message Volume and Profit Margins
The reduced guidance highlights the delicate balance between volume and margin. Every CPaaS player is competing on RCS and WhatsApp pricing, and CM.com is investing for share while protecting profitability. Gross profit gains are still modest despite record EBITDA, showing how thin the margin line remains.
Message traffic climbed 9% sequentially and 33% from a year ago, signaling a real rebound in engagement activity.
Sequential growth may reflect pricing concessions or campaign-led bursts rather than sustained enterprise expansion. With Connect still the largest revenue driver, higher volumes at thinner margins could be masking the lack of product stickiness.
Halo’s growth is impressive, but its total revenue contribution remains limited relative to Connect. Maintaining margin discipline while growing the AI platform will define how fast CM.com can convert its technology lead into scale.
Finally
As a vertically focused (ticket payments), full-stack CPaaS, CM.com is running lean. EBITDA at record levels proves its operating model is maturing, even as top-line growth lags. The real test is whether Halo can use the air cover provided by Connect’s efficiency into “flagship product” growth.