Germany's NAGA Group Q3 revenue broadly stable

Overview

• Germany fintech platform's Q3 revenue broadly stable, net revenue up 2.2% quarter-over-quarter

• EBITDA declined in Q3 as company increased marketing investment ahead of Q4 launches

• Customer metrics improved, including higher first-time depositors and conversion rates

Outlook

• Company increased marketing spend to support customer acquisition ahead of Q4 product launches

• NAGA aims to expand cryptocurrency and social trading features in coming quarters

Result Drivers

• MARKETING SPEND - Co said EBITDA decline reflected deliberate 32% increase in marketing investment ahead of Q4 product launches

• CUSTOMER METRICS - Co said improved first-time depositors, conversion rates, and customer deposits supported results

• SEASONALITY - Co said lower EBITDA partly reflected seasonal effects on revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Naga Group AG is €7.60, about 206.5% above its October 21 closing price of €2.48

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 54 three months ago

Reuters Recommended Reads

• Oct 21 - German brokerage flatexDEGIRO's prelim Q3 net profit rises; plans EUR 100 mln buyback

• Oct 20 - Deutsche Boerse Q3 net profit rises 18%, raises outlook

• Oct 21 - Software provider SAP Q3 revenue rises on cloud business growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)