DocMorris AG

Good morning, everyone, and welcome to our Q126 trading update. I'm Walter Hess, the CEO, and I'm joined today by our CFO, Danielle Wüst. In line with what we announced at the Fulia conference, we will provide transparent quarterly insights into our path to EBITDA breakeven, which is why we are hosting today's call. Just a few weeks ago, During our full year 25 results, we outlined our strategic evolution from an online pharmacy player to the leading digital and AI health platform, the engine for our profitable expansion at scale. Today, we will show you the facts that validate our successful development. Let's move straight to the Q1 highlights on the next slide. to demonstrate how well this engine is now accelerating. Overall, we achieved a strong revenue growth of 10.7% year over year. Our RX business showed outstanding momentum with a 30.4% growth year over year, alongside a strong 7.6% sequential growth compared to the previous quarter. The growth was fueled by accelerating month over month with a remarkable uptick in March, which also continues in April. Our high-margin digital services business continues to scale rapidly, achieving an impressive 63.1% growth rate while consistently increasing margins. In Q126, we successfully expanded our ecosystem platform, growing our active customer base by 1 million year-over-year, whereas 0.4 million in Q126 to a total of 12.6 million, which is a great achievement. And most importantly, and as you know, our main priority, we improved our adjusted EBITDA by 10 million Swiss francs year-over-year, to minus six million, proving we are on track to achieve our break-even target in the course of 2026. Let's move to slide number five now. The 30.4% year-over-year Rx growth clearly proves that our strategy to capture the potential of the Rx market is highly effective. It shows that the patients are more and more familiar with our digital services and increasingly value the comfort of home delivery. We saw a growth in Rx orders from month to month with a significant uptick in March, rounding off a very successful first quarter and also continuing into April. And this acceleration comes together with more and further optimized channel mix, which pleasingly increased ROAS return on advertising spend and decreased our customer acquisition costs even further. Ultimately, this is a strong start into the year and it demonstrates the growing stickiness of our health platform. Our non-Rx business remains a reliable driver of value, delivering continuous and profitable growth of 6.5% year-over-year to fuel our broader ecosystem. We managed our OTC and PPC business according to plan to a growth rate of 4.4%. Our digital services, including teleclinic, retail media and our marketplace, grew further by an outstanding 63.1%. These digital business lines are not just growing top line. They are delivering increasing margins and therefore a significant EVTA contribution. And on top of it, the strong platform performance and expansion also forms an excellent basis for our retail media business. And now I would like to hand over to Daniel.

Thank you, Volker, and also from my side, a very warm welcome to all the participants. Let's move to slide number seven, where you see the EVTA bridge, which we also provided to you during the full year figures in March. And I want to start with the following comments. We closed Q1 with an adjusted EBITDA, as Walter already said, with minus 6.3 million, representing a substantial improvement of almost 10 million, exactly 9.8 million compared to the quarter of last year. That's proving our continuous path to profitability. The charted EBTA margin improved by over 360 basis points from minus 5.7 to minus 2.1% in Q1 compared to the previous year's quarter. If you look at the chart and you see since Q1 25, we have seen an ongoing quarterly EBTA improvement driven by basically three factors, better operational performance, focus on marketing efficiency, Also very important to mention discipline cost management. Amongst other, you remember we have closed the holding logistics operations last year, and this year we have announced that the closing of Ritwigshofen, the Veras and the respective logistics operations which have already contributed substantially on the cost side, but will further contribute during 26. And I can also confirm that with the closure of Ludwigshafen, we are very well on track. We will see first positive operational effects in the second half of 26. On the You continue to be very transparent and you see this is minus 6.3 million into 126 in the chart on page seven that we expect we felt the quarter result almost on the same level for Q2. And then as already mentioned in March, we aim for getting close to EBTA rate even in Q3, and there'll be definitely EBITDA rate even in Q4. And I think that's what the management team is kind of aiming to achieve. All in all, our Q1 results demonstrate that our measures are working. and will further work because it's not yet done. And that DocMorris is very well on track to achieve EVTA rate even in the course of the year. We are relentlessly executing our plan with position knowing that our strategy, the evolution from a leading online pharmacy to a leading digital and AI health platform will pay off. With that, I would like to Let's go to slide number eight. There, nothing new. We backed by our strong Q1 performance and our current trading where we see an ongoing positive trend from March. We are fully confirming our short and midterm guidance as laid out from the full year presentation in March. That means we confirm our 26 adjusted EBITDA targets in a range of minus 10 to minus 25 million, strongly supported by the improvements, improvements we have already seen and delivered in Q1. We are confident to achieve EBITDA break even, even if it would be at the higher end of the guided external revenue growth guidance. And just for your memory, the guided mid-sender wages to low teens percentage range And as you have seen in Q1, we can deliver on the EBITDA target even if we are at the upper end of the overall revenue guidance. All in all, we firmly reiterate our commitment to reach an EBITDA rate even during 26 and achieving positive free cash flow in the course of 27. And with that, I hand over to Rod.

Yes, thank you, Daniel. So before we move to Q&A, I want to briefly address the upcoming annual general meeting and the future board composition proposals. Our board proposes three independent nominees, Thomas Bucher, Nicole Formen-Casillo and Dr. Thomas Reuter. Together with our existing board members, this composition brings targeted expertise across the areas most critical to further execute on our strategy. Management's clear preference is for continuity and stability. We are at the pivotal point in our development. Consistent, focused execution requires a board that is aligned, experienced and ready to act, not one in transition. proposed new nominees are fully independent and stand for the interests of all shareholders. We believe this is the right team to take DocMorris forward and we encourage shareholders to support these nominations at the AGM. Let me conclude the call with a clear message. Our vision of health in one click is not just a concept. It is fully operationalized through our integrated digital and AI health platform. However, a strategy is ultimately defined by its execution. Our Q1 results deliver strong proof that our market measures are working and DocMorris is firmly on track. We are not just making promises for the future, we are delivering today. This is clearly demonstrated by our strong Rx growth and the 63% expansion in digital services and our continuous EBITDA improvements. My clear statement to you is that the transition to a profitable digital health ecosystem is fully underway and is yielding tangible financial results. We have the right strategy, we are the right management team and the operational proof is in place. We are executing with absolute focus and we are pairing the necessary sense of urgency with a clear commitment to long-term value creation. And with that, we would like to move over to the Q&A part of this call.