DGAP-News: EQS Group AG publishes preliminary sales figures for 2021

EQS Group AG publishes preliminary sales figures for 2021
Strong growth planned for the 2022 financial year

- Sales grow by 34 percent to EUR 50.4 million

- New ARR rises by 68 percent to EUR 8.9 million

- Total SaaS customer base increases by 1,018 to over 4,000

- Integration of Business Keeper GmbH largely concluded

- Strong growth planned up to 2025. Medium-term goal of EUR 130 million revenue confirmed

Munich - 27 January 2022

EQS Group AG (ISIN: DE0005494165) generated revenues of EUR 50.4 million for the financial year 2021, according to the preliminary unaudited figures now available (previous year: EUR 37.6 million). The increase over the previous year is around 34 percent. A volume of EUR 8.9 million is calculated for the new ARR performance indicator, which quantifies the new contractually agreed, annually recurring revenue. The number of new SaaS customers is 1,018.

The Group's revenue growth in the financial year 2021 is in line with expectations and characterised by a significant increase in the sale of compliance cloud products. The acquisitions of Business Keeper GmbH, Got Ethics A/S and C2S2 GmbH made a contribution of EUR 7.7 million. New customer growth is significantly above the previous guidance from November 2021. The momentum increased considerably, especially in the fourth quarter, with 425 new customers. This is all the more remarkable as national legislation on the mandatory introduction of an internal reporting channel for companies in the European Union has not yet been implemented in almost all member states.

Achim Weick, Founder and CEO of the EQS Group AG: "The momentum of new customer acquisitions in the fourth quarter indicates the growth trajectory for the 2022 financial year. We have further strengthened our position as the leading European cloud provider for whistleblowing systems and have almost completed the integration of Business Keeper GmbH. Therefore, we are starting the new financial year with great confidence and are sure that we will be able to increase the high growth in new customers even further with the implementation of the European Whistleblower Directive in Germany."

Many companies in the European Union will need to deal with compliance subjects for the first time based on the EU Directive 2019/1937 which prescribes the obligatory introduction of an internal whistleblower channel for companies. EQS Group AG has been making intensive preparations for this for more than a year in order to achieve high market penetration.

Outlook
Strong growth in 2022
For the financial year 2022, the Management Board is planning an increase in sales of 30 to 50 percent to then EUR 65 million to EUR 75 million. Investments in sales and marketing for the acquisition of new customers in connection with the implementation of the EU Directive on the protection of whistleblowers will remain high. EBITDA is expected to be in the range of EUR 6 million to EUR 10 million. For the new ARR performance indicator which quantifies the new contractually agreed, annually recurring revenue, we expect a volume of EUR 11 million to EUR 16 million. In addition, 2,500 to 3,500 new customers are to be acquired, the majority of them for the product area of whistleblower systems. The outlook is based on the assumption that the EU Directive will be transposed into German legislation in the course of the first half year of 2022.

Medium-term goal for 2025 confirmed
EQS Group AG confirms its target of achieving sales of EUR 130 million in the financial year 2025 with an EBITDA margin of at least 30 percent.

Preliminary key figures for the result of the 2021 financial year are not available yet. However, the earnings target was already achieved after nine months. EQS Group AG will publish the audited figures for the 2021 financial year and the annual report on 25 March 2022.

More information:

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EQS Group is a leading international provider of regulatory technology (RegTech) in the fields of corporate compliance and investor relations. In working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex national and international disclosure obligations, minimizing risks and communicating transparently with stakeholders.

EQS Group's products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, business approvals, third party management, insider list management and disclosure obligations. In addition, listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.

EQS Group was founded in 2000 in Munich, Germany. Today the group employs more than 550 professionals and has offices in the world's key financial markets.

Contact:

André Marques

CFO

Tel.: +49 89-444430033

Mobile: +49 175-5250009

Email.: andre.marques@eqs.com