Thank you very much. Good afternoon, dear analysts and investors, and welcome to HomeToGo's fourth quarter and financial year 2022 earnings call. My name is Sebastian Grabert, HomeToGo's new Director of Investor Relations and Corporate Finance. I'm very much looking forward to what's ahead for HomeToGo's trajectory and look forward to meeting you all. With me today is our Co-founder and CEO, Dr. Patrick Andrae, and our CFO, Steffen Schneider. Today, Patrick will present our highlights of 2022 and give you all a strategy update on where we stand in terms of HomeToGo Group's targets. Steffen will then walk you through the Q4 and full year 2022 financials and elaborate on our newly introduced guidance for the financial year 2023.
As always, this call is being recorded and webcast live, the recording will be available later today on our IR website. Patrick, I will now hand it over to you. Please go ahead, the floor is yours.
Thanks, Sebastian. Welcome everyone and thank you for joining our call today. Before we start, let me first take this opportunity to thank our entire HomeToGo team for the amazing passion and dedication they put into last year, making 2022 an outstanding year for HomeToGo. For the financial year 2022, we are pleased to report that we were able to combine strong top-line growth rates with a substantial improvement on our profitability levels. We have again witnessed the resilience of our business model in a year characterized by uncertainty with rising costs, fears of an upcoming recession, and the ongoing war in Ukraine. When we take a look back to 2022, we see that amongst our major highlights, we count the following. For the group overall, IFRS revenues exceeded again the twice-upgraded guidance and came in well ahead of our initial financial year 2022 outlook.
In terms of progress on our profitability targets, our financial year 2022 adjusted EBITDA of - EUR 20.7 million was near the top of the guidance range and also substantially ahead of the initial outlook for the financial year 2022. On top of that, last year, we also significantly strengthened our marketplace and expanded our on-site business, increasing the booking revenues on-site share to 54%, which represents a year-over-year increase of 11 percentage points, and is also one of our key drivers towards profitability. The take rate at the same time has climbed to another record figure and reached 9.6% in 2022. As you know, our Subscription Services business, including innovative technology, data, and supply solutions, underlines our commitment to building an operating system that will enable the entire alternative accommodation industry to be more successful.
On this, we are thrilled to report a stellar growth of +169% year-over-year for subscription and services IFRS revenues for last year compared to financial year 2021. In terms of M&A, we have delivered on our promises laid out at the capital markets at the time of our listing on the Frankfurt Stock Exchange. Last year, we acquired three healthy, profitable companies, a strategic move to expand our footprint to become the operating system of our industry. We take you through more details on the post-merger integrations in a moment. Let me now give you a final remark. Today, we look very confidently ahead to what we can achieve in 2023. We already had a strong start to the year, finishing 2022 with a record booking revenue backlog, followed by a strong trading in the first month of 2023.
This gives us yet again high confidence to achieve adjusted EBITDA breakeven in financial year 2023 at continuous double-digit growth rates. Now let's dive into a closer review of 2022 and our vision, what we expect this year and beyond. Let me first again remind you of our vision, making incredible homes easily accessible to everyone. This clear vision is enabling us to play a bigger and bigger role for both our travelers and our supply partners. As an outcome, the idea is simple, to be people's top choice for vacation rentals. May it be for travelers, where we want to create an incredible experience, be the go-to, the first destination they think of whenever they want to book a vacation rental.
On the other side for the supply partners, where we are focused on solving pain points for the entire supply side, providing technology solutions for our partners to help enhance offer quality, give access to highly valuable demand, and drive joint performance on and around our marketplace. So far, we've already established a solid foundation to continue this growth trajectory in the future. Let's take a look at how our business has evolved over the last few years. Our marketplace model was an evolution from our start as a meta search, focusing on making our vacation rental inventory really accessible to our customers by allowing them with our on-site functionality to not only search and find, but also book and pay their dream vacation rental directly on HomeToGo without leaving the platform. In 2022, we hit another huge milestone.
Our marketplace on-site business alone reached almost the size of the entire HomeToGo Group business in 2020, 2019. This proves how successful our evolution has been thus far, and we are only just getting started. What started in 2017 as a development on top of our offsite meta search platform has now emerged into not only a strong driver of top-line growth, but also a valuable contributor to our overarching profitability goal to reach adjusted EBITDA breakeven in financial year 2023. On the other side, the service activities highlight especially newer business streams of the HomeToGo Group. We are especially proud that in addition to our strongly growing on-site business in our marketplace, we've also seen the subscription and services business performing extremely well.
The subscription and services growth is largely driven by our SaaS software solution, Smoobu and SECRA, which besides offering attractive profitability profiles, add further resilience to our business model. These and future services business are one of the last growth opportunities within the HomeToGo family. Overall, we are very satisfied with our performance during the last year. Taking a look at our marketplace, on the on-site business side, more specifically, we have seen a tremendous increase in the percentage on-site share during the last two years. As a reminder, the on-site share is the part of the overall booking revenues on the marketplace, which stem from bookings directly taking place on our platform. Where travelers search, find, book, and pay for their vacation rental directly on HomeToGo.
For the first time, on-site booking revenues have reached more than 50% of our own entire marketplace booking revenues, coming in at 55% on-site share. In other words, more than half of the booking revenues in our marketplace were already generated with a booking type that offers substantially higher take rates to our group. Our recipe to success here is enhancing the value we offer to our supply partners. We strongly believe if you want to be successful in the vacation rental business, you actually need to work with HomeToGo. For supply partners, we also already today a unique and highly attractive customer base characterized by travelers with high average basket sizes, long booking windows, and finally, high purchasing power.
We also offer our partners a high degree of flexibility, such as being able to tailor their very specific cancellation policies, which builds long-lasting and especially equal relationships with our partners. The HomeToGo brand stands basically for hassle-free bookings for its more than 60,000 partners. Now let's take also a look at our successful post-merger integrations of our core acquisitions throughout 2022. Starting with e-domizil, an exciting update. We are live. As of the end of last year, we successfully migrated e-domizil marketplace business to our white label solution. The overall objective was to improve user experience as well as data quality. As you can see on the next slide, how much additional value this drove. Bringing e-domizil to our centralized marketplace. First, renegotiation.
We have identified differences in commercial terms from the e-domizil and the HomeToGo platform and aligned them to the benefit of the whole HomeToGo Group. Secondly, on the integration side, by replacing e-domizil front end and aggregated inventory with HomeToGo technology, we were able to improve user experience and data quality, which has led to increase in conversions. Thirdly, focus. After taking over the marketplace business with HomeToGo technology, our resources at e-domizil are now focused on providing services to small partners. Finally, relevancy. With more scale, we have gained further relevance as a demand channel amongst many of our partners. Speaking of our successes in post-merger integrations, we are also further delighted to report that we are also live with AMIVAC, a leading provider of vacation rentals in France. Like with the e-domizil integration, we were able to realize substantial synergies for our group.
We were able to further expand our inventory supply in France, which allowed us to scale our hosting platform tech op and operation setup, and also created a blueprint for future migrations. Last but not least, we continue to drive cross-churning between our solutions. In terms of further growth levers for AMIVAC, we are aiming to increase our ambition to target for more subscription sales to French small partners, further look to offer commission for French hosts on AMIVAC, and complement AMIVAC with HomeToGo inventory. Lastly, we want to position AMIVAC as the HomeToGo's lead brand in the French market leveraging on their already existing brand awareness. As you can see from the progress in the post-merger integrations for both e-domizil and AMIVAC, we were able to add substantial value to the HomeToGo Group.
As we discussed our performance of our marketplace and the partially connected M&A on the slides before, let me also highlight a few additional details on the subscription and services business. As a reminder, the subscription and services activities comprises services like Smoobu, our subscription-based all-in-one SaaS solution for hosts and smaller businesses, as well as our subscription-based listing businesses like AMIVAC or our SaaS agency and destination solution, SECRA. As a special service provider, SECRA continues to follow its own business model while providing services also for Group companies and utilizing synergies from the Group in terms of technology. We are glad to report that also driven by the acquisitions of SECRA and AMIVAC, we have witnessed an outstanding 2022 in terms of top line IFRS revenues growth of +169% year-over-year.
This equals already more than 16% of our overall IFRS revenues. We're turning now the focus to our main objective for this year, reaching adjusted EBITDA breakeven on Group level. One of the key levers to reach this target, as already highlighted also during the capital markets day in November, is to further grow customer retention. Since the cost for a repeat customer with more than one booking is 87% below a new customer. With growing customer retention, marketing investments will decrease significantly in relation to revenues over time, reducing the share of more costly new customer acquisition measures. In quarter four of last year, we have made further progress on that end, especially increasing user experience and brand recognition. We improved our machine learning-based recommendations, resulting in a significant increase in bookings.
While we also launched a TV campaign in the Dutch market with our dash_promise at its core, helping travelers plan for a new year of travel, making it easy to find a perfectly unique stay for their trip or use case. Going forward, we will continue to focus on driving repeat demand by smartly recommending tailored inspirational content to existing customers like via CRM activities, including in our app, and intensifying the post-booking communication experience of travelers. Overall, delivering an incredible experience to our travelers. These efforts translated into a stellar growth of +104% in repeat booking revenues in quarter four, as well as 68% for the whole year of 2022. This trend has continued to persist during the first quarter year to date of 2023.
To summarize the performance for last year, in terms of top line, we have surpassed again our twice upgraded IFRS revenue growth target, which is already in itself a great success. For profitability, we also ended last year with near the top of the guidance range. Also much better than the original guidance. Steffen will shortly elaborate on details on how we derive the guidance for the financial year 2023. Please be rest assured that our main priority is to reach adjusted EBITDA breakeven on group level in 2023. What we see in terms of current trading year-to-date gives us an ample room to look confidently ahead. We continue on our promises to deliver both double-digit growth paired with further improvement on our profitability levels.
Today, we confidently introduce our financial year 2023 guidance, which continues to include our target to become breakeven on adjusted EBITDA levels, as well as to grow our IFRS revenues by 13%-19%. To summarize my comments on the outlook, I would like to draw your attention to our long-term ambition on booking revenues on the next slide. Our 2020 - 2022 booking revenues CAGR clearly outperformed the required CAGR of 32.5% implied by our long-term ambition to reach EUR 1 billion in booking revenues by financial year 2028, 2029. The key message we would like to reiterate here is that we are fully on track to reach our long-term goal of EUR 1 billion in booking revenues by financial year 2028, 2029.
This future growth continues to be driven by a mix of take rate expansion, increase of geographical reach, adding new services to position ourselves as the operating system of the vacation rental industry, and further rolling out payments and other add-ons to drive additional revenues, as well as strategic and most importantly, value-enhancing and profitable M&A. There's one more thing. As we look ahead to our trajectory over the next several years as a vacation rental leader in Europe, of pressing importance is being at the forefront of sustainable travel for the industry. On a holistic level, travel companies have a responsibility to improve the sustainability of the tourism ecosystem, and the time to act is now.
We are proud to be founded in the European Union, whose EU Sustainable Finance Action Plan has positioned EU as a frontrunner in terms of action to combat climate change and enforce sustainability. As the facilitator of a two-sided marketplace, we have the valuable opportunity to impact both supply partners and travelers through our product and service offerings to build a platform that empowers travelers and partners to make more sustainable choices. That means for our supply partners, we are fueled by the mission to develop a product that incentivizes our partners to consider increasing the level of sustainable practices and amenities to their offers and turn these into actionable insights and decision-making criteria for our travelers. On the other side, for the travelers, we always deliver data-driven products that exactly meet our travelers' needs.
Research shows they want the option to choose sustainable travel. We at HomeToGo aim to enable travelers to easily choose and be better informed about sustainable options they have, and ultimately facilitating and encouraging them to make greener choices. Lastly, as a team, we foster a culture dedicated to climate action, an increasingly important factor also in retaining staff and attracting new talent. Of note is that in 2022, we reached complete carbon neutrality across the entire HomeToGo Group operations. Looking ahead, we are dedicated to implementing new practices to further reduce our footprint. If you are interested more, we encourage you to read more on our sustainability and ESG efforts in our 2022 annual report, published today on our IR website. We have taken many steps to follow the European Non-Financial Reporting Directive. We recognize that this is only the beginning.
Looking ahead, we will of course ensure that we will closely adhere to the new requirements coming out of the CSRD, while continuing to prioritize being a change maker in sustainable travel. With that, I would like to pass over to our CFO, Steffen, who will present you an update on the financials. Thank you.
Thank you, Patrick, also welcome from my side. You remember this slide. It was another quarter with a remarkable financial performance where we put our full focus on building up a strong basis for this year, so 2023. Booking revenues grew at a strong rate of 36% year-over-year to EUR 31.4 million, with many travelers already booking their 2023 vacations. As a reminder, most of the booking revenues will only be recognized as IFRS revenues in 2023. Q4 on-site booking revenues grew 65% year-over-year, reflecting our strategic progress on shifting our business to on-site, which resulted in a new record booking revenue on-site share of 62% in Q4 2022. A + 19 percentage points compared to the 43% in the prior period.
Due to the already mentioned high share of bookings with 2023 check-ins, IFRS revenues declined slightly by 3% compared to the prior year quarter. This led to a negative adjusted EBITDA of - EUR 16.1 million in the quarter. I would like again to emphasize that while full costs associated with the record booking revenues backlog have already been accounted for, the associated IFRS revenues will be recognized during 2023 with a 100% margin. All the costs are in 2022, all the benefits will be in 2023. Looking at the metrics on an annual basis, we also see a strong growth trajectory on all our core metrics in 2022, and even more when you compare to 2019, last year before the pandemic.
As we transition our marketplace business towards on-site, we reached a record on-site share of 54%. Yet again, a strong improvement from the prior year that was 44%. Simultaneously, as a result of the higher take rate associated in our on-site business, as well as the contribution from our Subscription Services business, we have progressed very well on our adjusted EBITDA margin with a year-on-year improvement of 8 percentage points to -14%, and therefore at the upper end of our twice-upgraded guidance. Focusing our marketing effort on check-ins in 2023 has worked well. On the right-hand side, we have highlighted our record booking revenues backlog of EUR 32.5 million as per end of December 2022. That was a significant increase by 72% compared to the end of 2021.
As these booking revenues will become IFRS revenues in 2023, they are an important profitability building block. Keep in mind the EUR 32.5 million, we will come back to that later on. Looking at the take rate, the CPA take rate increased from 8.3% in 2021 to 9.6% in 2022, an increase of 1.3 percentage points. In December 2022, the CPA take even increased to 10.3%. Given the challenges estimating GBV from CPC and therefore the implied take rate, we will going forward focus on reporting the CPA take rate. It's also worth noting that the volatility in our take rate is a reflection of the crossover from peak season to shoulder season, which can lead to exaggerations on both end of the spectrum.
Moving over to more details on the on-site business. In 2022, we have made continuous progress on the expansion of the global on-site share, reaching the already mentioned record high of 54%. As you can see on the top right-hand graph, this is also the case across Europe and North America. As a reminder, in Germany or the DACH region, it's actually already 75%. The number of bookings also increased significantly. To summarize my comments on booking revenues and IFRS revenues. We have seen our marketplace growing nicely during 2022, both in terms of booking revenues as well as IFRS revenues.
This development came as a result of the overall continued recovery in the travel industry in 2022, our successful integration of e-domizil, and thanks to a strong execution of both attracting more travelers to our platform and increasing their respective share to book directly on-site with us. For subscription and services, we have seen strong growth in Smoobu, as well as the successful post-merger integration of SECRA and AMIVAC, leading to a positive contribution. Let's now turn to profitability. As already indicated at our Q3 2022 earnings call and in our capital markets day in November, it was a conscious decision to focus on building up the booking revenues backlog in Q4 with check-in in 2023. We expected profitability in Q4 2022 to be below profitability in Q4 2021.
Despite the conscious decision in Q4, the overall positive trajectory on the full year comparison of our adjusted EBITDA, seen on the right-hand side, is very satisfying. Profitability in terms of adjusted EBITDA margin has improved by 8 percentage points year-over-year, clearly paving the way for our goal to reach break even on an adjusted EBITDA level in 2023. Let me give you more color on cost line developments that grow group level profitability. Gross margins remained flat for Q4 as well as on a relative full year basis. The overall absolute increase in cost of revenues in 2022 compared to the prior year is mainly due to the amortization of order backlog acquired with e-domizil and increased expenses for hosting and domains due to a higher amount of traffic on our platforms.
Second, our marketing cost ratio increased by 70.9 percentage points year-over-year in Q4 as we stepped up our customer acquisition and engagement investments. On a full year basis, however, we have made some significant progress on improving our ad spend investment allocation, reducing sales and marketing expenses by 10.6 percentage points year-over-year as a percent of IFRS revenues. The other cost lines, including product development, G&A, as well as other income and other expenses, also deteriorated temporarily during Q4 as the lower revenue levels, as explained in earlier slides, was not able to offset an increased cost basis. That being said, on a full year comparison, we have progressed our adjusted EBITDA quite significantly.
Looking at our cash position, we continue to have a very strong balance sheet with gross cash of EUR 163.8 million, of which EUR 2.3 million are restricted cash, bringing the liquidity to EUR 161 million, including the money market fund, as you can see on the slide. Deducting interest-bearing debt of EUR 8.5 million brings the net cash position as per end of December 2022 to EUR 153 million. Our rock-solid liquidity clearly is a differentiator in an environment characterized by increasing interest rates, overall more volatile financing markets, and with that, a more difficult environment for growth companies to access funding. We are very well positioned in that regard.
In terms of cash flow during the fourth quarter, the overall cash burn during Q4 was low, with operating cash outflow of EUR 3 million and another EUR 3 million for investing cash flow. The latter was mainly on the back of capitalized R&D as well as smaller CapEx. The financing cash flow had a minor outflow of less than EUR 1 million, mostly driven by repayments of borrowings. I would now like to highlight our newly introduced guidance for the financial year 2023 to you. As Patrick already mentioned, we guide IFRS revenues to grow in the range between 13% and 19% year-over-year to EUR 165 million-EUR 175 million. We also confirm our goal and are very comfortable about reaching adjusted EBITDA break even in 2023. As before, we use a range of EUR 5 million for adjusted EBITDA.
The goal is totally clear. It's about reaching adjusted EBITDA break even. We also expect booking revenues to increase by 13%-25% to a range of EUR 185 million-EUR 205 million, as well as an improvement of the on-site booking revenue share by 2 - 7 percentage points to 56%-61%. Looking into the current trading year to date. We have benefited from a very strong start to the year in terms of monthly booking revenues. You can see that on the orange line. This positive development has been driven by the traditional early bookers in DACH as well as in the Netherlands. We have also seen a good start into the year in North America. As you know, we usually see bookings from the U.S. customers in Q2. Let's see what's happening in Q2.
As in Q4 2022, we also have strong CPA business in Q1 2023. Our booking revenues backlog as of March 29 has reached a new record high of EUR 71 million, an increase of 86% compared to last year. The majority of these bookings will have check-ins in Q3, you will see the IFRS profitability impact later in the year. I'm closing my remarks and open up to the Q&A session.
Ladies and gentlemen, at this time, we will begin the question-and-answer session. Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. If you wish to remove yourself from the question queue, then you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. The first question comes from the line of Silvia Cuneo with Deutsche Bank. Please go ahead.
Thank you. Good afternoon, everyone. Thanks for taking my questions. Congratulations on the results. The first question is on the backlog
HomeToGo started 2023 with a strong trading and a booking revenues backlog that is 86% ahead of last year as of end of March. Can you please help us think about the drivers of this backlog? For example, what portion of the growth was driven by number of stays, length of the stay or average prices? Second question, partly related to the first. Wondering what can you tell us about booking trends so far this year? Are you seeing any changes in consumer behaviors in light of current macro environment? Can you remind us of how much visibility do you have typically at this time of the year for the big travel season in Q3? Maybe just a final question regarding customer acquisition. Can you please tell us a bit more about the new customer acquisition channels?
I see in the report you mentioned that the number of app installs, particularly in the DACH region, has grown significantly. Just wondering if you could share some more thoughts about the different customer acquisition channels. Thank you.
Hi, Silvia, it's Steffen. Thanks for your question. In terms of backlog and the breakdown of the bookings, that's pretty much the same as last year. There's no significant change in terms of length of stay or ADR. We are actually at the moment looking at what I internally call our HomeToGo vacation rental inflation index. Stay tuned on that one. All in all, there's no significant deviation in terms of how the bookings come together compared to the prior years.
In terms of macro trends, and visibility, what we see is that you remember the slide we showed at the Capital Markets Day about consumer spending, and that the summer holidays are the most important consumer spending, and that continues to be the case. All the fears we had by the end of last year about potential gas shortages, about inflation, et cetera, that has not come true. The business is going really strong. As one of your analyst colleagues always says, "As long as people have jobs, they will continue to spend on holidays." As we can see, all around the Western world, unemployment continues to be really low.
All the macro trends are quite going into the right direction. Therefore, you know, in terms of visibility, I was just doing some very quick back of the envelope calculation for myself. I already had like at this point in time, like 90% of our IFRS revenues visible for me. You know, it's maybe not sufficient to put that in a prospectus, but for me, I have quite a good visibility. I feel really strong about what we currently see in the market and what's coming in, both in terms of revenues as well as in terms of underlying profitability. That is also going really nicely.
If that continues, we are looking very positively and then, you know, hopefully we can also have some positive surprises on top. For now, we continue to be conservative. With regards to your question on customer acquisition cost , could you please provide a little bit more detail what you're looking for?
Sure, Steffen. Yeah. Just wondering if, you know, you could just say a little bit more details in terms of app usage, which I remember was one of the other drivers potentially to reduce customer acquisition costs.
That also continues to work out well. The actual growth rate for the app, I don't have at hand now, but I can certainly provide that at a later point in time. What we can see is that the app outload continues to work out very nicely. We are well ahead, and we have a, how to say, we have mentioned it in our annual report that it continues to be better than what we see in the overall market. It's growing at 88%. I now have the number, sorry about that. 88% between 2019 and 2022, and that trend continues.
Okay, thank you very much.
Silvia, Patrick here. As you also saw on our on our slides in regard to customer retention, this is also a trend that we continuously seeing in this year. The increase of retention from customer side on the demand side in general.
The next question comes from the line of Volker Bosse with HomeToGo. Please go ahead.
Volker Bosse from HomeToGo. I'm from Baader Bank. Thanks for the great presentation and the impressive set of figures. I would like to start with a question on your take rate. Could you give us a kind of range also, where do you expect the take rate to be in 2023, given the on-site share increases I expect take rates to go, but your take on that would be interesting for me, please. Second would be on the segment, subscription sales. In 2022, you benefited from M&A activities, obviously. Could you provide us a kind of organic growth, underlying growth, which we can expect for the subscription segment for 2023 to be achieved, of course, in regards to revenues?
Third question would be on, you mentioned M&A activities, perhaps could you please elaborate, what are you looking for and what should a potential target look like? What are the parameters you're screening the market for to have a good fit here as you actively mentioned M&A twice here in your presentation? If I may also a fourth one, it's regarding the competitive environment and how that is evolving. If I watch TV, I see commercials of Airbnb and booking, focusing on alternative accommodations. That is your USP, but also others try to push into that niche. How do you look at the overall competitive situation? Thank you.
Yeah. Hi, Volker. It's Steffen. I answer your first question on the take rate and then hand over to Patrick on Subscription Services as well as on M&A. On the take rate, as you have seen that, what we had by the end of December with the 10.3%, that's also a trend we see.
Yeah.
in Q1. We also see that not only by with regards to on-site, but also good development with the off-site take rate and therefore are quite optimistic that we are able to continue this trend in 2023. Expecting an upgrade. What the... If you now ask for concrete numbers, I will... As you can notice from my hesitation to really put a concrete number there is always difficult as we have that mix, and in particular, giving the focus on profitability, we should, we want to maximize contribution, et cetera.
All in all, that 10.3% you have seen there is something where I feel is a good benchmark to aim for.
Okay. Thank you.
Hi, Volker. Patrick here. Regarding your question in regards to Subscription and Services, obviously like SECRA contributed and AMIVAC contributed in 2022 as we laid out. If we look at organic growth, especially like we see very strong growth of Smoobu, and this also continues into 2023, where we see that monthly recurring revenues, like in February, are year-over-year, more up than 100%. We believe that this is actually a quite good kind of outlook, in general, also on the organic part, for these parts of the business. If we look at further M&A, as you know, that's, and we also marked, right?
That's something we are, we are constantly looking, if there are targets that could be interesting and we will notify obviously the markets if there are targets that we are interesting to follow up on. As for this, we cannot provide further information, but it's part, as you also can see in regards to our overall idea around like reaching EUR 1 billion in booking revenues by 2028, 2029. It's part of that strategy, so it's something we will continue, but especially with value driving and profitable targets on the M&A side like we did before. Also like, mainly focusing on our two topics around, strategic topics around on-site as well as subscription and services around the marketplace.
Yeah. Thanks.
For your fourth question on competition and especially TV commercials of Airbnb and so on, let me answer it like this. Obviously, we are not commenting on market participants in general, but it's also good to see that others follow us even with similar ideas on German TV, like we did at the end of last year. As you know, we feel very confident at HomeToGo with having the largest supply in vacation rentals globally, but especially in Europe and more especially in the DACH region, to be a very successful market participant ourselves. This is how we look at that situation.
On the other side, as you know, we work with a lot of what you named as competitors in the market anyway, in various situations. Like on one side, obviously on the marketplace, but also for instance with Airbnb, with our service companies.
Thank you. For clarification regarding the subscription sales segment sales in 2023, I mean, you mentioned 100%, that was a figure above 100%, it was also a figure in 2022. What is the underlying growth for 2023, just roughly? Is again, 100% or did I miss something?
We are not commenting on that at that time. What I commented on was specifically Smoobu will be already seeing like more than 100% MRR growth for February year to date, compared to 2022 and 2023.
That was on Smoobu one. Yeah. Okay.
Yeah.
Okay. Fair enough. Thank you very much and all the best. Thank you.
Ladies and gentlemen, If you would like to ask a question, please press star followed by one on your telephone. The next question comes from the line of Felix Ellmann with Warburg. Please go ahead.
Hello and congratulations on the figures. Just a small question. At the beginning of the call you mentioned that you also will focus on AMIVAC as a brand for France. I have on the top of my head that you originally planned to focus on solely on HomeToGo as a brand. Maybe you could elaborate on that topic.
Hi, Felix. Patrick here. Thanks for the question. Good that you ask. Happy to clarify. Obviously HomeToGo is the, the main global brand of HomeToGo. But on the supply side, we have localized brands in various markets, especially AMIVAC being a brand that we acquired from Groupe SeLoger, an Axel Springer SE subsidiary, and being like well-known in the market for hosts that want to list their properties on a subscription-based model. This is how we will use AMIVAC further down the line, also as a lead generator and not as a lead brand. Maybe this is the thing to clarify on the supply side. A host or supply side facing brand in that regard.
Okay, thank you.
We have a follow-up question from the line of Volker Bosse with HomeToGo. Please go ahead.
Yeah, thank you. No, I'm still with Baader Bank, Volker speaking. Yeah, it's not too much demand. I would like to come up with a follow-up as said, that would come back to a question from Silvia from Deutsche Bank, on the customers' booking behavior. I mean, any changes here, for example, shorter stays or cheaper offers? In the past you had a chart in the presentation also with the average basket size trends. How is that evolving? You left it out this time, but perhaps you can give us a bit more color on the wording. Thanks.
Hi Volker, it's Steffen again. Well spotted. We didn't include it this time. What we basically see is that the basket size in North America continues to increase.
Mm-hmm.
That's more driven by ADR, less by length of stay. We also have a slight increase in Europe, but that's not that significant. But as I mentioned before, the length of stay pretty similar and that is only a little bit of ADR. Therefore, also with the higher share of North America, in particular based on the Q1 bookings we have seen, our average basket size has increased. That's really a function of the higher U.S. market share.
Yeah. Clear. Okay. Thank you.
You're welcome.
Once again, if you would like to ask a question, please press star followed by one on your telephone. There are no further questions at this time. I will now hand it back over to management for any closing comments.
Thank you everyone for joining our call, and, see you next time at our earnings call for the first quarter.