Update of Beefree’s three-year plan: ARR as of December 2024 attained, at 16 mln USD ARR as of end 2027, at 24-27 mln USD

Milan, 24 February, 2025 – Growens S.p.A. – GROW (the “Company” or the “Issuer” or “Growens”), a company admitted to trading on the multilateral trading facility Euronext Growth Milan and operating in the cloud marketing technology field, has announced today that the Board of Directors has reviewed and updated the Beefree development plan (the ‘Development Plan’), as announced on the same day by the USA subsidiary, the main guidelines of which were previously published on April 15, 2024.

The update, approved today (the ‘Updated Plan’), is based on the excellent 2024 results and includes business and industry factors that extend the time horizon, as well as objectives, maintaining the strategic guidelines.

Target 2024

For the fiscal year 2024, the budget guidelines for Beefree communicated on April 15, 2024, include the following aspects, especially influenced by the expected returns from the Really Good Emails (RGE) investment—which have been slower than anticipated—and by some strategic adjustments necessary to optimize resource utilization.

Here follow the main amendments.

Development Plan (as of 15 April, 2024)	Updated Plan
The launch of a new commercial package offering for Beefree (March 2024) and Beefree SDK (by Q3 2024).	This activity was successfully completed within the scheduled timeline.
In R&D, the development of new features leveraging generative AI, introduction of incremental improvements, launch of a multi-region infrastructure, new features for the Enterprise market, and new connectors to integrate new platforms into Beefree.	The release of the multi-region infrastructure has been postponed to March 2025, with its impact on ARR still under evaluation. Investment in incremental innovations, including generative AI-based features, and in the development of features for the Enterprise segment continues.
Go-to-market initiatives, leveraging resources acquired with RGE: partnerships, community, indirect channel development, multilingual approach, development of a new Growth Marketing team.	The indirect channel has been replaced by the Beefree SDK Startup program, which shows excellent potential. The development of the multilingual approach has been postponed to make room for other initiatives. The Growth team, led by Mike Nelson, started in January 2025 and will work to increase both the size of the new user acquisition channel (with particular focus on the Really Good Emails website, acquired during 2024) and the conversions among current free users/visitors. The investment in the Community area, led by Justine Jordan, is expected to yield medium-term returns, with significant current indications guiding the product development roadmap.
ARR as at the end of 2024: USD 15-18 mln.	Beefree’s ARR in December 2024 was USD 16 million.

Summary of the Beefree Updated Plan 2025-2027

Beefree’s mission is to democratize the design of complex digital assets – such as emails and landing pages – by creating tools that empower people to do their best work.

The explosion of generative AI is changing the perception of how content is created and, consequently, the entire marketing technology industry. It is a crucial time for exploration and experimentation, in order to catch growth opportunities as well as reduce the risk of obsolescence.

In the current context, the projections of the industrial plan appear particularly complex and subject to frequent fluctuations due to the extremely dynamic nature of the sector and the presence of numerous constantly changing factors. Consequently, it is possible that the estimates will be frequently revised and adjusted, requiring ongoing strategic tweaks to respond to market dynamics and emerging challenges.

The main factors influencing the Updated Plan are:

1. a more modest growth of the Beefree App compared to forecasts, mainly due to lower virality of the freemium model. This scenario underscores the need to further refine distribution and engagement strategies in order to optimize performance and support a more robust long-term expansion;
2. the SaaS (Software-as-a-Service) sector’s growth, which has halved year over year, while Beefree has recorded an increase at twice the pace of the market average. Therefore, although it shows a performance below the initial forecasts, Beefree’s developments are superior to those observed in the reference market.

In response to the evolving market context, investments have been reallocated, focusing particularly on the development and optimization of Beefree SDK, the solution aimed at developers. This decision, stemming from a careful analysis of the current landscape, has already shown a sustained growth trend, with 33%+ ARR growth for Beefree SDK in 2024. This refocusing thus opens prospects for medium-term acceleration.

Management’s view is that, given the current market context characterized by slowed growth, a return to the growth rates predicted by the original plan is not sustainable.

Here follow the main amendments.

Development Plan 2024-2026 (as of 15 April, 2024)	Updated Plan
Revenue CAGR 2023-2026 exceeding 35%	Revenue CAGR 2024-2027: 20 -23%
Steady-state gross margin (2026) exceeding 75%	Steady-state gross margin (2026) exceeding 80%
EBITDA break-even in 2025	EBITDA break-even in 2027
Steady-state EBITDA margin exceeding 15%	Confirmed
Negative cash flow in the biennium 2024-2025 for USD 8-10 million, breaking even in 2026	Negative cash flow in the biennium 2024-2025 for USD 12 million, breaking even in 2028
ARR as of December 2026 between USD 30-35 million	ARR as of December 2026 between USD 21-23 million ARR as of December 2027 between USD 24-27 million

Disclaimer

The Beefree Updated Plan includes forward-looking statements that may not reflect actual future results due to various uncertain factors beyond the control of Growens and Beefree. These statements are based on assumptions and projections that may not materialize as expected, thereby influencing the future results of Growens and Beefree. The Company does not guarantee the updating of forward-looking statements, unless required by law, and these should not be used as a reliable indication of future performance. Additionally, the provided Plan is for informational purposes only and does not constitute an offer to sell or a solicitation to buy financial instruments. Finally, the distribution of the Plan may be subject to restrictions in certain jurisdictions. Neither the Company nor any member of the Group nor any of its or their representatives, directors, or employees assume any obligation of any kind regarding this Plan or its contents or in relation to any losses arising from its use or reliance on it.

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