Ladies and gentlemen, thank you for standing by. I am Mikola, your Chorus Call operator. Welcome and thank you for joining the BIKE24 Q3 2021 Conference Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a Q&A session. If you would like to ask a question, you may click the Q&A button on the left side of your screen and then click the Raise Your Hand button. If you are connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press the star key followed by zero on your telephone keypad or press the operator assistance button on the bottom left side on your screen. I would now like to turn the conference over to Founder and CEO, Andrés Martin-Birner. Please go ahead.
Hello. Welcome to the BIKE24 Q3 Earnings Call presentation. Today's presenters are Timm, our CFO, and me, Andrés, as founder and CEO. Today it's my pleasure to introduce Moritz Verleger, our new head of investor relations. Welcome to the team.
Thanks, Andrés. I'm looking forward to driving the equity story of BIKE24 together, and I'm also looking forward to meeting you analysts and investors personally at some point.
Okay. Yeah, it's great to see again how much interest there is in BIKE24's development. Now, let us start with the general update. We have successfully mastered, I think, all the important topics. First, we achieved double-digit profitable growth despite a difficult industry-wide market environment. Second, with a great team effort, it was possible to launch the new web shop, all on schedule, and we already see after one week increasing conversion rates. A huge success. Third, our location strategy is ahead of the plan. In Spain, we have signed the lease contract, and the go live of bike24.fr and bike24.it is planned in early Q1 2022. The best thing is the growth in Spain has continued at a tremendously high level.
Fourth point, in terms of the overall result, we will almost certainly outperform the market, and we do not see any slowdown in demand for our BIKE24 business domain. If you now look at the challenging issues, you can see how impressive the Q3 growth and the results are. We had less inventory on average for bicycles in Q3 due to the industry-wide delivery situation, and that can remain challenging in the coming weeks. On the other hand, more sales would have been possible if we didn't have these issues in Q3 again. Additionally, we want to get fit for further growth. We are therefore investing in new employees. This, and also the product mix, had a slight impact on the EBITDA margin. Overall, Q3 was a strong quarter. When we take now a closer look at Q3.
Almost 800,000 active customers, the basis of our business, our loyal customers, and we are able to convince many new customers. This shows again the special and consistent value of our customers, our fan base. The strength is particularly evident in the repeat order rate, which has highs rising through a record time. Customers appreciate us as the one-stop-shop, and this is the path to further sustainable customer loyalty. At first glance, 10% growth is not much, but the comparative figure from 2020 of 55% was already enormous. To grow on top of that again is excellent. There was the VAT reduction directly in July 2020, and the inventory situation for bikes was better. In Q3 this year, it was profitable growth with an adjusted EBITDA margin of 11.1%.
What makes us particularly happy as a team and also gives us great expectation for France and Italy. Spain again grew significantly, again over 100%. Now I will hand over to Timm for a deeper look into what my remarks now mean as numbers.
Yeah. Thank you, Andrés. First of all, a welcome also from my side. I would now like to share with you some details on the results of our past quarter. We have again significantly increased our active customer base. Compared to end of September 2020, the customer base increased by 26%. Together with the development of the repeat order rate, this shows that customer loyalty at BIKE24 continues to develop positively. This also shows that the cycling trend is here to stay and was not a one-off. On top, the customers we acquired in the first nine months 2020, which was the first phase of the Coronavirus pandemic, are still showing strong results.
On a nine-month level, they are 5% more active than the average of the 2017 to 2019 cohorts, which again shows that once a customer orders with us, that customer is likely to return. However, it is not only the positive development in number of active customers, it is also the development of the customer KPIs that make us confident for our medium and long-term targets. All metrics again increased, some even stronger than last quarter. The average revenue per customer within 12 months has increased to a record high of EUR 305. Customers order more frequently than in the previous year, again a record high, and the average order value is also higher, and now at EUR 139.
Of course, that's driven by high-ticket items like bikes, but given the peak in the bike segment in last year's quarter and this quarter's shortages, it clearly shows that this is not purely driven by bikes, but also by high-quality pack items. Let's turn to a more detailed look at our top-line performance. The industry-wide supply challenges have had a clear impact on our growth rates, as already expected and communicated during our Q2 earnings call. Nevertheless, we were able to achieve a strong growth of 10% in the last quarter, which is on top of 45% in the previous year quarter. We assume that this is significantly faster than market average. The main reason for the flattening growth rates is the situation in the segment bikes.
While this category has been continuously growing faster than the pack segment for more than three years, industry-wide supply challenges resulted in a growth of only 6% this quarter. Additionally, the supply situation for parts from main manufacturer Shimano and SRAM continues to be stressed. Outside of these product segments, the growth was again strong and shows that the cycling trend is sustainable. Every bike sold in the market, whether online or offline, continues to increase market size, especially for the pack segment. The revenue split by region shows that BIKE24 is growing in all major markets. In our core market, DACH, we grew by 7% despite our already very high market share. Here, I would also like to remind you again of the exceptionally high comparison base. Last year growth in the DACH region was around 64%.
On a two-year basis, we were able to increase sales by an average of more than 30% per year. The growth in the European Economic Area is well into the 20s. The region outside EEA shows a decline in sales, but only driven by the U.K. customers. Due to the Brexit, it is still impossible to ship to U.K. with reasonable effort. Adjusted for the U.K., the growth in that region was 16%. I would only briefly touch our performance in our first localized market, Spain, as Andrés will give you a detailed update later during the call. In summary, very strong and very promising results.
We were able to increase sales by 116% year-over-year, and the comparison base is a period with an already 100% translated web shop for our Spanish customers and a local customer service in place. That shows how successful BIKE24's localization strategy is. Again, more during the update on the strategic initiatives. Let us now switch to the balance sheet items. Our net working capital has increased significantly due to our investments in the inventory. There are two drivers behind. First, we had a catch-up effect from last year caused by last year's surge in demand. The inventory level end of 2020 was around EUR 11 million lower than normal. Second, we invested in additional inventory. This reflects our decision at the end of last year to significantly increase our stock range in order to reduce the impact of supply chain challenges.
The inventory increases also impact the free cash flow performance. On a nine-month basis, the Free Cash Flow is slightly negative. Additionally to the working capital investment, we invested EUR 1.8 million in intangible assets. Last year same period, that was only around EUR 100,000 and reflects our target to invest in our IT platform as announced during the workshop. Let's now move to profitability. As expected, the gross margin has normalized, and we have had an apparel summer sales this year, which was absent in the previous year, as well as a slightly different product mix. Selling costs as a percentage of sales slightly increased as we shipped a higher share of total volume to international markets. Our investments into talent also had a drag on profitability, and some positions simply did not exist last year at this time.
It is important to note that these are strategic investments, particularly in our second management level. These talents form the basis for our future growth. Operational and administrative functions, such as logistics, customer service, accounting, and purchasing, are just as effective as in previous year with regular seasonal pattern. Overall, BIKE24 generates an adjusted EBITDA margin of 11.1% in Q3, reflecting the usual seasonal pattern, and is on the same level as 2019. Now I would like to hand back to Andrés, who will give an update on our strategic initiatives.
Thank you, Timm. Yeah, after the finance update, now comes an update on our business strategy. As you know, our strategy includes the three elements: so operational excellence, localization, and the growth driver, bikes. Yeah. Now to our web shop relaunch. It's a great success. We have put months of intensive work into the web shop. The team has delivered on schedule. It was worth the wait. The new web shop, clean, faster, better navigation, better scalable backend. It's very positive for all existing customers and above all, to attract new customers. If you do not know the new web shop, so it's easy to forget what it looked like before, that's why for historical reasons, we have included a picture of the old web shop compared to the new one. A milestone for BIKE24.
The new web shop will help to expand the customer base in this way on a lasting and sustainable basis for all the regions to which we deliver. Our next focus or focus topic is the bike. There's no change to our long-term strategy. The share of sales is expected to increase in the coming years. We have high confidence in getting the volumes we have ordered for the coming season. In some cases, the timing is not entirely clear or certain, but the most important thing is that we should get the essential quantities. I think that we are one of the most important partners of the industry. We benefit from that. Additionally, we also do many things for the customer experience.
We are testing now virtual bike sizing, and we are starting the relaunch of the BMX segment with more than 20 brands till the end of the year. Our next focus topic is localization. Here we can say our strategy works. As can be seen again in Spain, the local language is an important element for growth. It's relatively easy to roll out and shows significant growth. In Spain, more than 100% growth in four quarters in a row. Therefore, we want to offer all major European languages in the coming years. We see for customers, the speed of delivery is important. For an outstanding customer experience, we also want to enable delivery to all European markets in 24, 48 hours at lower costs, that too, in the next five years. I think we have a very clear picture what we have to do for localization.
In Spain, first example of our complete playbook, we want to bring the warehouse, including AutoStore, to go live by the end of 2022. As far as Italy and France are concerned, I already mentioned that things are looking very good there. BIKE24 FR and BIKE24 IT will go online early in Q1. Back to Spain. The good news, the contract is signed. The excavators are rolling now, and we want to invest EUR 8 million-EUR 10 million, including the AutoStore. As I mentioned, the go live is planned for autumn/winter 2022. Our path to Europe, other regions are then to follow with the rollout of our playbook, and the customers will benefit from all the core services we are successfully offering in the GSA region, assortment, availability, and at the end, the fast delivery.
On the coming slide, you can see once again impressively with numbers how great the results are in Spain. In July last year, we started with Spanish. That's why the comparison of Q3 is so significant. Again, more than 100% growth, and the number of new customers tripled. Now we are looking forward. We are very confident of achieving full year sales growth of 24%-26% and an adjusted EBITDA margin of 12%-13%. Unfortunately, the industry-wide supply chain issues will continue to accompany us, industry says until the end of 2022. However, we feel very well positioned for this. Finally, some good news. We do not see any slowdown in demand at BIKE24 business domain in the near future as others do. Thank you for your attention, and now we are open for Q&A.
Ladies and gentlemen, at this time we will begin the Q&A session. Anyone who wishes to ask a question may click the Q&A button on the left side of your screen and then click the Raise Your Hand button. If you are connected via phone, please press star followed by one on your telephone keypad. If you wish to remove yourself from the question queue, you may press star followed by two or press the Lower Your Hand button. If you are using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may click the Q&A and Raise Your Hand button or press star followed by one at this time. One moment for the first question, please. The first question is from the line of Grace Smalley from JP Morgan. Please go ahead.
Hi. Good afternoon. Can you hear me?
Yes. That's perfect.
Okay, great. Thank you. Hi, this is Grace Smalley from JP Morgan. Thank you for the update. Firstly, I just wanted to ask if you could comment on the cadence of trends in the quarter by month. Then also related to that, if any comments you could provide on current trading in October and November, that would be very helpful. I have another question, but I'll wait for you to answer that one first.
Yeah. First of all, back to the last quarter, as we also communicate during the Q2 earning call, July was a very weak month. The comparison base was very high. The German government reduced the VAT rate last year in this month. It was a weak start, and it was really a great start into August. Yeah, it's going a little bit down then in September. I think the main reason was there, again, the supply chain situation, because we saw again less bikes than expected coming into our warehouse, and that was the main driver here for the weak September.
Thank you.
The next question was about how starts October, November. Is it correct?
Yes, please. Thank you.
Yeah, as we mentioned a little bit, I think, in the presentation, that we see with the new web shop increasing conversion rates and that's why we are confident in achieving the guidance we gave at the end of our presentation. We started very well for the first six weeks in Q4.
Okay.
Maybe if I may add to that, Grace, to be clear, it's a clear supply issue, right? The demand didn't really shift throughout the months. It's literally driven by the supply of bikes.
Okay. Thank you. Yeah, that was going to be my last question. The trends have improved in October and November as the supply has improved.
Yeah. The supply has improved, but again, we are really fully on track that we can confidently say that the midpoint guidance, it's a midpoint guidance, and we are fully on track to reach the end of the year.
We feel very confident because, as you see in our numbers, I think we are well equipped with stock. Yeah. So especially in the PAC business, and yeah, we have decreasing stock again in bikes, but in the PAC segments, I think we are very well positioned.
Okay, perfect. Thank you very much.
Perfect. The next question is coming from Frederick Batua . Please go ahead. Okay, it seems like I made a mistake. The next question is coming from Catharina Claes from Berenberg. Please go ahead.
Hi. Can you hear me? Perfect.
Yes. Yeah.
I'm dialed in via phone, so I didn't know. Perfect. Thank you so much. I was wondering in terms of the targets for other countries whether like how we should think about it really whether it's purely about. I'm just trying now to find the slides. Whether this is purely about where you're gonna ship from the fulfillment centers. For example, on slide 22, there we have it, the path to Europe. You mentioned Benelux and Northern France in 2023 and then Italy, Austria and so on in 2024. My first question here is that only means the fulfillment from the fulfillment center, right? Italy, the launch is obviously still on track, everything for Q1 for the local language web shop.
My second question after that would be, when you say all major European languages and markets in the next five years, is that a new midterm target, so to speak? Like, is this what you wanna reach by, what, 2025?
First of all, I think we could say we are really fully on track to release Italy and France early Q1. Yeah. We're a little bit ahead of track. Maybe what I would like to say, we have two separate buckets, how we would like to localize Europe. The first one is localizing the web shops. That's most important. Spain, 15 months ago, start with Spain, now it comes Italy, now it comes France for the French customers. After that, we looking for more. It's localizing the web shop. It's translating the web shop, it's offering a local customer service, it's offering a local return hub, and maybe add, if necessary for the country, local payment methods.
On the other hand, we have that logistics roadmap, and our medium-term target is there, that we in the next five years could deliver to each European market on a, I would say, lower cost base between 24-48 hours. For example, the Spanish warehouse is delivering for our French customers, for our Spanish customers, and also for the Portuguese customers. The Benelux warehouse will be responsible to send packages to the north of French for sure, also for the Benelux countries, but also for the western part of Germany. It's a separate thing. We don't need for every country an extra fulfillment center. We will have regional hubs.
Okay. Slide 22 then refers to the logistics, as you said, only to the fulfillment centers. The first bit, so the local offering in terms of website and customer service, that is still the plan with, as you've commented obviously earlier before, France and Italy, Q1. I assume that, if you say that you want to also deliver to Benelux, that probably will be the next step from the local language web shop perspective, right?
That's not decided yet. I think what there is also important that the Benelux countries are, I think, very familiar to order in English, and maybe there are also other countries where it's the level, which a little bit higher from the language perspective.
Right. If I think about revenue contribution, well, from a country perspective and how I can basically think about growth coming from further markets. I mean, obviously when you roll out the French online web shop, Benelux will also be positively impacted somewhat by that. Apart from assuming more revenue or similar revenue growth as you'd have seen in Spain, apart from assuming this for France and Italy, this can also be extrapolated to Benelux to some degree for the next year.
No, I think it's difficult to really comment on that. What you have to bear in mind is that our market share in Benelux is already very high. It's a small country with small local players. I would be careful there. Yeah.
Okay.
As already mentioned, it's not decided yet what will comes after, France and Italy.
Okay. All right. Thank you very much.
We see this very opportunistic, to be honest. Yeah.
Okay, I see. My next question would be, in terms of bikes, what do you think like in terms of numbers, what would need to happen for the guidance for you to reach the upper or the lower end? What kind of percentage of bikes do would you need to have incoming versus basically also I think where you are at now?
For Q4, I have to say we feel very well positioned for this. When I look to incoming goods, I think that's fair to say that we will achieve the guidance when we look to the part of the full bike or to the bike, traditional e-bike, goods income. To say more to 2022, it's a little bit too early because the season starts in September and that's why it's not credible to say more about bikes or the development of our bike stock for 2022.
Yeah.
What we see now, in the last week, we have an increase in absolute numbers of incoming bikes. That make us confident for the guidance this year. We have to say that this is enough for Q4, but we need an acceleration of incoming bikes to have a very good start into the season 2022.
I mean, yes, I know it's harder to say, but maybe from your experience with suppliers, the pickup now in the volumes, as you commented on just now, can that, is it making you a little bit more positive or is it still very volatile, it's maybe like a one-off or is it kind of going into an improvement?
No. The trend is there for only three weeks and it's flattering that what we see over the season. It's now, it's not a trend what we see.
Yeah. To be honest, we want to be a little bit more careful and.
Sure.
Because we do not get very certain information from the industry because they have the issues because they also don't get the information maybe from SRAM, from Shimano when they got all the pre-products or precursor items. So that's why it's a little bit hard to say for us, because the information situation is not the best.
Yeah. I see. I think my final question, just to make sure that I understood it correctly in terms of current trading. Because you have seen a bit more bikes coming in, you've seen a bit of a stronger start to the quarter, versus September. Is that correct?
Yeah. That's correct.
Okay. Okay, great.
Please have in mind, very important, part of the season is now coming in two or three weeks. That's the Black Friday.
Yeah.
We feel very well equipped because success is not relying on bicycles, it's more the parts, accessories and clothing part. Again, that's very important for our revenues in November.
Okay. Perfect. Thank you so much.
The next question is coming from Frederick Batua from Talbot. Please go ahead.
Good afternoon. Can you hear me?
Yes. Yes.
Hi. Thanks for your time. Just two or three questions. The first one will be one of your strengths in your business model is your high SKUs, high inventory level that you basically carry. So how do we reconcile the high level of inventory with the supply chain issue and your basically your sourcing of bikes? That's where I'm a bit concerned by this point. The second question would be regarding your speed of business. Is the supply chain an issue for the bikes only, or is it an issue for the accessories and the rest so far?
Maybe the first question, I don't know if I correctly understand it, but is it that you are concerned that inventory level, if the supply chain bottlenecks are not there, would be even higher than the
No. It's more, if I may say, the fact that one of your differentiating factor with competition is that you have, A, a high SKU and B, you should have a pretty high level of inventory. That's what I understood at the IPO. I thought that you would be more immune to the supply chain problem, by carrying more inventory than competition.
Correct. Another USP basically is that we are not yet so dependent on bikes. That 90% of our sales don't come from bikes, and that's why we significantly outgrew the market average and also the competition. Bikes are one of our key strategic initiatives to gain market share and share of sales for bikes from 10% to 25% over the next couple of years. Right now, 90% of the revenue is coming from PAC, so from parts, accessories, and clothing. For PACs, our inventory is very, very strong, so we don't worry there at all. Yes, the SKU comes from bikes. The bikes we sell have a significantly higher average price than competition, but also our normal average basket sizes. People order more than just a shirt on average, right?
I'm sure you followed Giant and Dorel Sports reporting beginning of the week, two big bike manufacturers, and they were flat for Q3. They were flat, and we were up 10%. I think this is our USP right now, and this is why, compared to the market, we are well off right now. We still suffer from supply chain challenges that we can't influence, but again, far less than the average.
What would have been your top line if the supply chain issues had not basically arisen in Q3?
Yeah. That's a good question. It would have been definitely higher. That's why what we communicate, and that's why we are now able to specify, refine the guidance. I mean, to be honest, yes, 30% is out of reach. Yeah, that would have been maybe possible with more bikes. On the other hand, from beginning, we said we are confident to arrive at the midpoint of the guidance, and that's what we basically confirmed right now.
Is there any numbers you could give of Q3 without the supply chain tension that you've seen? What would have-
No, no, sorry.
Okay.
We don't comment on that.
Just another question regarding the marketing cost, 'cause one of the attractivity of your business is that your marketing spending don't need to be very high as a percentage of sales versus other e-tailing companies. The fact that you're entering new markets, and we've seen some kind of pressure. I mean, not pressure, but margins have basically not seen the same progression in Q3 than the rest of the year, nine months. Is that? Can you explain if part of this margin compression is coming from marketing? Also the second question is, going forward, what's your. Do you have any.
Is there any slippage that could come with all these new countries you're coming in in terms of marketing expense versus what you guided a few months ago?
Yes, sure. If you have a look to our P&L statement, I think the performance marketing cost in relation to revenues was 0.6%, and we communicate during the IPO that we are aiming to invest up to 1%. What we have to say is we stay below that, and that's also a sign that there is no issue on the demand side. We are still acquiring new customer in a very efficient way, and there is no need to increase the marketing expense. What I can say on the other hand is also if you look to Spain with the 160% year-over-year growth, again, that's a profitable growth.
After cost of goods sold, after fulfillment cost, after performance marketing cost, we have a positive contribution margin from Spain still.
Your marketing spend in Spain as a percentage of local sales, is there any idea what that?
Yeah. It was 8%.
Okay.
Of local revenues.
You think that number is a good guideline of what we can see in new markets, and you see that number going down as you basically get scale?
Yes. During the IPO, I think we guided to if we enter a market that we would like to spend up to 10%.
Yeah
of the local revenues into marketing. We are now at 8%, and so that's great results. I think we have a careful approach to invest in marketing. So far we have very efficient customer acquisition costs. We don't see there any reason to change that approach.
Thank you.
At the longer end, we want to convince the customers and attract new customers with our assortment, with the availability and the fast delivery. When the country is or a region is fully localized, at the end with the regional hub, then the idea is to decrease the performance marketing costs in the, I would say, in the level of the GSAs. That's our idea. We want to attract more with all our services, and we are convinced that we can do this like in the GSAs region.
Thank you.
Ladies and gentlemen, anyone who has a question may click Q&A and raise your hand button or press star followed by one at this time. One moment for the next question. The next question is coming from Michael Schulz from JMS Invest AG. Please go ahead.
Hello, can you hear me?
Yes.
Thank you for taking my question. I have one question regarding the gross margin. Sorry, maybe you explained that in the call. I was not in the call from the very beginning. The margin, the gross margin deteriorated from the 35% level, which was very high in the second quarter, to around 30.6% in the third quarter. Can you explain what the mix impact was and what was maybe higher prices from the supply side? With the mix, you know, what drives the mix? What is the driver? What categories have high margins for you and what have lower margins? Just and what would you expect going forward, kind of, you know, to be a normal-
So-
Gross margin?
First of all, that was last quarter, as in Q2, it was unnaturally high. That's, I think the first statement that we have to say, and we already communicated during the Q2 call that we expect that development. I think from the transportation side or the cost side, there is an increase. On the other side, we have also higher market prices for this kind of items. That has no impact on our gross margin. It's netted in the end. What drives the gross margin down was, first of all, the lower revenue share of full bikes because bicycles have a very high margin, 34%-35% at the moment. On the other hand, it's the apparel business.
That's also a very high- margin product segment. We have, again, a summer sale this year. That summer sale was absent last year, and that's the main driver. It's really the summer sale. Again, I would like to say that is normal part of the season. Last year was unnatural, but this year it's you have to have that stock to attract new customers who only buy during the sale season. That's really a normal part of our business, and that we did this year again. Yes.
Okay. Thank you. May I have a follow-up question? With regards to the demand, I mean, from customers, what do you feel is this now a normal market environment we are in? I mean, coming out of the, you know, the lockdowns where people were not able to travel for vacation or so, they maybe bought a bike or they maybe bought or used their bike more often, bought some apparel, some stuff. Now we have, you know, had some possibilities to make vacation in other countries or so. Still not so far away, maybe not to, you know, other continents.
I mean, is this now a normalized environment we are in or is it still a very heated up environment, because people still are somewhat in home office, use their bikes more often than before, cannot travel very far, you know, still make bike occasion or whatever. If you can give some-
Yeah, yeah
... some color there, what your feeling is.
What we think or what we see that the demand for bikes and parts is unbroken, especially in our core business. All the enthusiasts are still very interested in all the products and brands we are offering. It's maybe a little bit special for BIKE24, but at our customer groups where we are looking for the enthusiasts who use the bike, I would say.
Every day or very often in the week or very often in the month. We don't see there any slowdown in demand. That's why I mentioned in the presentation that it would be possible in Q3 when we had more stock in bikes that we had higher revenues.
Maybe I would like.
You also think that this is sustainable. That's not something that is going away because of-
Yeah.
you know, changes in this pandemic behavior. This is really-
That what I-
the core group, very enthusiastic about biking and so.
Yeah. That I would like to add maybe. I see it as a in the PAC business really as a normal market, but from I see that step up what we expected. The number of bikes sold is increased, the number of users increased, and that's a new base, and that drives the demand for parts, accessory and clothing, and that's we are benefiting from BIKE24. We don't see that there are new users in the market that driving less or need less accessories, less clothing. That's not what we see. We see a normal pattern in our customer base.
Okay. Thank you.
I would also like to add two points. The first is, of course, we see what other pure online players are reporting, that they see a slowdown because people go back to physical stores. That might be true for bikes, but we don't feel it. Yeah. The trend is unbroken. On top of that, after the bike hype and the home office hype or the not going on vacation hype and buy something that you just mentioned, those people who bought bikes last year, they still return, and they become more profitable because you might have seen the consumer KPIs at the beginning of the presentation. Each active customer orders on average more than twice in 12 months. Yeah. Every biker or cyclist makes the market bigger for us.
Okay. Thank you. Maybe I'll ask last question. These adjustments on the EBITDA line related to IPO and the remuneration, they will now stop, right? Or is that something that still goes on? Was the Q3 the last quarter which had these?
No, it was. The main driver is the IPO-related cost. Yeah. 100%. What we will see also in the future is equity-based compensation
Mm-hmm.
For the stock options. That we will see also in the future.
Can you give a guidance there? How much that is more or less?
This quarter was around EUR 400,000. To give a guidance, it's difficult at the moment.
Okay.
Because it's based on so much parameters.
Okay. No, that's good. Thank you very much.
The next question is coming from Frederick Batua from Talbot . Please go ahead.
Hi. Just one last question for me. Is the e-scooter trend, which is massive in Europe, how do you benefit from that? Is there anything that you benefit indirectly or directly?
To be honest, e-scooter is not a part of our business, and it's not in a part of our strategy, so. To be honest, when we see what we see in big cities in Europe, we see more regulation and a smaller number of e-scooters. So that's not a strategic point in our business.
We see it as a different kind of mobility. It's more to use the public transport and then for the last mile. I think maybe we could benefit from that because there is more pressure to the government to invest in infrastructure for scooter and for bikes, but it's really a different kind of mobility.
Yeah.
Good.
Okay. The next question is coming from Hugo Mas from Sycomore. Please go ahead.
Yes, hello. I was wondering if you could help us on assessing the top- line growth that we should expect for 2022. Given the fact that you will be maybe hurt by some supply issue on the bike business. On the other hand, you will have this launch of new website in new countries. Is it fair to assume that we could stay in the range that you indicate during the IPO process? I mean, something between 20% and 25% top line growth or should we think something different for 2022?
Thank you.
Sorry. I think we have our plan in line. However, really, given the current uncertainties around the industry-wide supply chain, we would not be credible to sort out numbers right now. Yeah. For that, we need more clarity, what happens with the supply chain in the coming months.
On the other hand, to point it out, we feel very positive for the next year, and we think that we are very well positioned in the market. We had very good results in Q3. We rose better than the market, as we know, and that's why we hope that we also get better market shares in the next 12 months.
Okay. Understood. I struggle a bit to see if there is any headwinds for the parts business, given you say that you are well-equipped in terms of inventories, that you don't see any big headwinds on that part. I guess this part of the business should be relatively strong also in 2022.
Yes. Maybe to compare to our guidance during the IPO, I think in the localization, fully on track. Nothing to change. Our core markets, DACH. Our core market, DACH. Nothing changed. We are very confident. The question mark is the bicycle segment in our business. That was beside the new website, beside our localization or internationalization to France and Italy, that is also part of our growth. It's very difficult to give numbers at the moment with the uncertainty in the supply chain.
We hope that we have a clearer view on that in the next six to eight weeks. Today it's a little bit early, to be honest.
Oh, okay. Just to clarify a bit on the bike growth contribution that you expected during the IPO, what kind of contribution did you have in mind at the time of the IPO coming from especially this part of the bike business?
We don't disclose that number. What we say, as Moritz already mentioned, is that we expect medium- term, that is 25% of our total revenues. What we see is that we now, due to the supply chain bottlenecks, we're also coming from a lower base than expected end of this year. We compensate that with the pack business. We are on from a lower base. Together with that uncertainty, it's really difficult to really give you a number what we expect for the coming year. Please
Okay. Understood.
Give us more time. Yeah.
Yeah. Okay. Thank you very much.
Thank you.
There are no further questions at this time. I hand back to Andrés Martin-Birner for closing comments.
Yes. Thank you for your attention again, and I think, and I hope we will see and hear you again, in the next call. Thank you very much.
Bye. Have a nice day.
Bye.
Bye.
Ladies and gentlemen, the conference is now concluded, and you may disconnect. Thank you for joining, and have a pleasant day. Goodbye.