DADA : Press Release Results 1Q 2017

Press release pursuant to CONSOB Regulation 11971/1999, as subsequently amended

1Q17 CONSOLIDATED RESULTS APPROVED: REVENUE UP BY +7% TO €18.0 MN1 YoY

(€16.8 MN IN 1Q16)

EBITDA2 UP BY +7% TO €3.2 MN, WITH 18% MARGIN ON REVENUE

(€3.0 MN IN 1Q16)

EBIT UP BY +20% TO €1.7 MN, ACCOUNTING FOR 9% OF REVENUE

(€1.4 MN IN 1Q16)

NET PROFIT UP TO €0.7 MN

(€0.1 MN IN 1Q16)

NET FINANCIAL POSITION IMPROVES TO -€26.5 MN

(FROM -€29.5 MN AT 31/12/2016)

KEY BUSINESS METRICS CONTINUE TO GROW: CUSTOMER BASE INCREASES TO 650,000, +12% VS 1Q16 STOCK OF DOMAINS UNDER MANAGEMENT GROWS BY 4% MARKET SHARE CONSOLIDATES IN MAIN GEOGRAPHIES Florence, 10 May 2017 - Today, the Board of Directors of DADA S.p.A., listed in the STAR segment of the Milan Stock Exchange, a European leader in digitization and business services tailored to SMEs, approved the consolidated quarterly report at 31 March 2017.

Claudio Corbetta, CEO of DADA: "We are very satisfied with the results achieved in the first three months of 2017, in which we continued to expand the customer base, now at the record quota of 650,000, up by +12% YoY. The growth in revenue from renewals, including the new customers recently acquired, also confirms the soundness of our sales strategies, as well as the appreciation for the wide range of products and consulting services that we offer to SMEs. In the current year, we aim to further consolidate our position on the

1 On 06 July 2016, DADA S.p.A., through its subsidiary Register S.p.A., acquired Sfera Networks S.r.l.. The investment is fully consolidated as from 1 July 2016. In 1Q17, Sfera contributed €0.8 million to consolidated Revenue and €0.2 million to consolidated EBITDA. The growth in Revenue and EBITDA in 1Q17, on a like-for-like basis and at constant exchange rates, would be +6% and +5% respectively.

2 EBITDA is gross of impairment losses and non-recurring items

NB: for the sake of clarity, changes in percentage and absolute terms appearing in this Press Release have been calculated using exact amounts.

European D&H market, also strengthening our presence in Cloud & Server solutions that we

are enhancing with the launch of managed and custom solutions."

Lorenzo Lepri, General Manager & CFO of DADA: "The first quarter of 2017 ended on a positive tone, with a solid growth in Revenue, Operating Margin and Net Profit together with further improvement in the Net Debt. The Revenue, which grew by approximately 11% net of fx effects, have reached the highest levels in the past three years, thanks to the effectiveness of our business choices and the constant improvement of operations. We confirm the guidance for the full year in progress, which points to a mid-single digit increase in Revenue and a further improvement in Operating Profit."

CHANGES IN THE SCOPE OF CONSOLIDATION

To offer a clearer picture of quarterly figures between the two years mention should be made that on 6 July 2016, through its subsidiary Register.it S.p.A., DADA S.p.A. acquired 100% of Sfera Networks S.r.l., specialized in Virtual Hosting and Network & Private Cloud services. The investment in Sfera is fully consolidated as from 1 July 2016; as a result, 1Q16 had no financial benefit from this company.

All the following comments and analysis on income statement and cash flow figures in this press release stem from the abovementioned new Group scope.

GROUP RESULTS IN 1Q17

The DADA Group ended 1Q17 with consolidated Revenue of €18.0 million, up by +7% versus

€16.8 million in 1Q16.

The revenue performance reflects in particular the trend of the appreciation of the Euro against the British Pound, which impacted negatively for approximately €0.6 million versus 1Q16, as well as the consolidation of the results of Sfera, as from 1 July 2016, which contribute €0.8 million to revenue in 1Q17.

Net of the impact of the Euro/British Pound exchange rate, revenue would have grown by approximately 11% versus 1Q16, while organic growth, at constant exchange rates, net of Sfera's contribution, would have amounted to 6%.

Foreign-based activities accounted for 52% of consolidated revenue in 1Q17, dropping slightly versus 55% reported in 1Q16 (due mainly to the depreciation of the British Pound and to the contribution of the domestic revenue of Sfera), confirming, however, the significant weight of international business in the overall development of the Group.

In 1Q17, consolidated EBITDA came to €3.2 million, with an approximately 18% margin on

revenue, up by +7% versus 1Q16 (€3.0 million).

The EBITDA performance, as for revenue, reflects the adverse trend of the appreciation of the Euro against the British Pound, which weighted approximately -€1 million in 1Q17 versus 1Q16, as well as the consolidation of the results of Sfera, as from 1 July 2016, which contribute €0.2 million.

Looking at the impact of the main aggregates on each line of the income statement:

• Service costs in 1Q17 amounted to €9.9 million, up by 5% versus €9.5 million in 1Q16, representing 55% of revenue from 56%. Specifically, the cost of goods sold increased, due partly to the consolidation of Sfera Networks and partly to the continued promotional campaigns launched to support customer growth;
  • Payroll costs in 1Q17 amounted to €5.4 million, up by 9% versus €5.0 million in 1Q16, steady at 30% of revenue. The trend is mainly ascribable to the increase in staff (438 units at 31 March 2017 versus 416 at 31 March 2016), due mainly to the consolidation of Sfera Networks;

  • Change in Inventories and increase in own work capitalized, amounting in 1Q17 to

€551 thousand, or 3% of consolidated revenue down by approximately 6% versus

€589 thousand in 1Q16, consists of expenses incurred for the development of the proprietary platforms needed to launch and manage the services provided by the DADA Group.

Consolidated EBIT at 31 March 2017 amounted to €1.7 million, with a 9% margin on revenue,

up by +20% versus 1Q16 (€1.4 million, 8% margin).

In addition to the EBITDA trend, EBIT's performance reflects the following elements:

- depreciation and amortization, amounting to €1.4 million (8% of revenue), €0.8 million of which for tangible assets and €0.6 million for intangible assets; the overall figure dropped by 9% versus 1Q16 (€1.6 million, 9% margin on revenue), a reduction that affected almost equally tangible and intangible assets;

- impairment losses, provisions and other non-recurring income/charges amounted to

€77 thousand in 1Q17 (€10 thousand in 1Q16), and mainly included charges related to

the efficiency of the organizational structure.

Financial activities in 1Q17 (the difference between financial income and charges, including the income statement effects of forex movements) came to -€0.6 million versus -€0.9 million in 1Q16. The trend of this aggregate in the period was unaffected by the impact of forex fluctuations, which had brought a negative contribution of €0.2 million in 1Q16. Total financial charges, net of exchange losses, improved in 1Q17 versus 1Q16 (€0.6 million at 31 March 2017 versus €0.7 million at 31 March 2016), due to both the trend in spreads, which benefited also from the renegotiation of loans made in late 2016.

The consolidated tax burden in 1Q17 amounted to -€0.3 million (-€0.4 million in 1Q16) and reflects: (i) current taxes of -€0.2 million (-€0.3 million in 1Q16), thanks to the higher taxable income in countries where the Group makes use of tax losses, (ii) deferred taxes of

-€0.1 million, in line with 1Q16.

The consolidated Net Profit at 31 March 2017 came to a positive €0.7 million, improving

significantly versus the positive €0.1 million in 1Q16.

GROUP BALANCE SHEET AND FINANCIAL POSITION AT 31 MARCH 2017

The consolidated Net Financial Position at 31 March 2017 came to

-€26.5 million, improving by approximately €3.0 million versus -€29.5 million at 31 December 2016. The figure mainly reflects the positive Cash flows from Operating activities of €5.0 million generated by the Group in 1Q17, before outlays for tax and financial items (€4.6 million in 1Q16). Mention should be made that the first quarter of the year generally benefits from an higher cash flow levels from operations than in the following quarters.

Total Investments in the reporting period amounted to approximately €1.2 million (€1.1 million at 31 March 2016), €0.7 million of which for tangible investments in technology (€0.4 million in 1Q16), and €0.6 million of which for intangible assets (€0.7 million in 1Q16), consisting mainly of costs for the development of the processes and proprietary platforms.

The DADA Group's Net Working Capital came to -€14.2 million at 31 March 2017 versus -

€12.2 million at 31 December 2016 and -€13.3 million at 31 March 2016. It should be noted that the trend of this aggregate over the four quarters of the year is closely tied to operations, which normally report higher cash-ins in the first quarter for service revenue than in subsequent quarters; part of this revenue is subsequently recognized over the full year as deferred income on a pro-rata basis. The abovementioned deferred income (€15.6 million at 31 March 2017 versus €14.1 million at 31 December 2016) is included in other payables, but will not entail future financial disbursements, rather the recognition of revenue in the income statement.

The DADA Group's Equity amounted to €53.7 million at 31 March 2017 versus €52.9 million at 31 December 2016; the change is explained mainly by the positive contribution of net profit for the period of €0.7 million.

BUSINESS PERFORMANCE IN 1Q17

In 1Q17, the DADA Group strengthened its position in the European market of services for the online presence, visibility and business development of SMEs, continuing to expand its customer base, and adding new tailor-made services to its suite of products, such as website building, and IT managed solutions. DADA currently operates in 7 European countries through highly-established brands such as Register.it (Italy), Nominalia (Spain), Amen (France, Portugal and Holland), Namesco.uk.co, Simply Hosting & Server and Register365 (UK and Ireland), which hold leadership positions in their markets of operation, including in Italy and the UK, where the Group ranks as second and third player, respectively.

The growth strategies on marketing investments, initial offering campaigns and product development, contributed in 1Q17 to expanding the customer base, to consolidating market shares in the main geographies, and to strengthening operating profit, against an increasingly challenging backdrop marked by the growing combination of top players at international level.