IONOS SE (=) : More customers today, more upselling tomorrow?

Research evidence excerpt

IONOS SE (=) : More customers today, more upselling tomorrow?

EQUITIES

IT SERVICES

IONOS SE NEUTRALPRICE* EUR30.8  TARGET PRICE EUR27 (DOWNSIDE 12%)

More customers today, more upselling tomorrow?

Record customer acquisition remains dilutive to ARPU13 MAY 2026

Securities Research Report IONOS delivered another record quarter of new customer additions (+180k in Q1), but near-term

Production time: 05:44* (London time) monetization remains constrained as most new customers enter on 6–12-month discounted

Research Analysts & Publishing Entities contracts. While these discounts should have started unwinding in Q1’26, ARPU remained flat Y/Y,

Ines Mao reflecting the dilution from elevated customer acquisition. Looking ahead, we see a credible upsell

BNP Paribas London Branch opportunity from AI on an enlarged user base and inclusion of new use cases. Overall we expect+44 207 595 6564

ines.mao@uk.bnpparibas.com limited revisions to Cons. estimates, with Q1 Group growth (+7.6% ccy) running in line with FY26

guidance (7-8%).Ben Castillo-Bernaus

BNP Paribas London Branch

(+44) 203 430 8527 Our long-term view on IONOS is unchanged

ben.castillo-bernaus@uk.bnpparibas.com We continue to see risks on the durability of customer acquisition and pricing power, with mgmt.

acknowledging pricing pressure in entry-level products. This is particularly relevant given Co.

reiterated the WP&P growth algorithm, split equally between price increases, upselling and customer

adds. Web Hosting remains one of the software categories most exposed to AI disruption, and

IONOS differentiation remains in its “one stop shop” SMB offering. Elsewhere, Cloud remains

relatively small-scale, with growth largely supported by the ITZBund contract. We view Co’s 20%