DGAP-News: EQS Group continues on growth trajectory in first half of 2022

EQS Group continues on growth trajectory in first half of 2022

German government introduces act on whistleblower protection in Germany

• Revenue grows by 33 percent to EUR 29.92 million
• 456 new SaaS customers (previous year 367)
• Number of SaaS customers rises to 4,591 (previous year 3,386)
• New ARR at EUR 3.55 million (previous year EUR 4.25 million)
• EBITDA of EUR 1.14 million on target (previous year EUR 1.33 million)
• German government passes draft act on whistleblower protection in Germany

Munich 12 August 2022

EQS Group AG (ISIN: DE0005494165) continues its growth trajectory in the first half of 2022. In the first six months, the Group generated sales revenue of EUR 29.92 million (previous year EUR 22.53 million). This results in an increase of 33 percent compared with the same period in the previous year. EBITDA declined to EUR 1.14 million (previous year EUR 1.33 million). Consolidated net income for the year stood at EUR -1.79 million. Earnings per share amounted accordingly to EUR -0.19.

For the new ARR indicator, which quantifies the new contractually agreed, annually recurring revenue, a volume of EUR 3.55 million is calculated (previous year EUR 4.25 million). The number of new SaaS customers is 456.

The picture for the second quarter is as follows: Revenues amounted to EUR 15.80 million (previous year EUR 11.98 million), EBITDA declined to EUR 891 thousand (previous year EUR 1.02 million), and consolidated net income was EUR -818 thousand. Earnings per share for the period from April to June were EUR -0.08 (previous year EUR -0.06).

Revenue growth in the first half of the year is within the guided range and characterised by the significant increase in sales of Compliance Cloud products and the acquisition of Business Keeper GmbH which contributed a revenue of EUR 5.23 million. However, delays in transposing the EU Whistleblower Directive to national law prevented a dynamic acquisition of new customers. So far, the act has only been introduced in six countries in the EU. In our most important market of Germany, the government has now adopted the draft act at the end of July and thus paved the way for its entry into force in the second half of the year.

Segment development

Revenue in the Compliance segment rose in the first half of 2022 by 60 percent. In the Investor Relations segment, revenue fell slightly by 2 percent. The annual recurring revenue at Group level had a ratio of 88 percent of total revenue.

Achim Weick, Founder and CEO of the EQS Group AG: The time has come at last. After the implementation of the EU Directive, 300,000 European companies will be obliged to set up an internal whistleblowing channel. Many medium-sized companies are now addressing compliance issues for the first time. We have been preparing for this point in time for 5 years when we developed our first SaaS whistleblowing solution. We are highly confident that as the largest European provider, we will benefit disproportionately from the expected wave.

Concretized outlook for 2022
Outlook confirmed, lower end of the planned range likely depending on the timing when the act on whistleblower protection takes effect.

For the 2022 financial year, the Management Board is planning an increase in revenue of 30 to 40 percent to then EUR 65 million to EUR 70 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 key figure new ARR, which quantifies the contractually new concluded annually recurring business volume, we expect a volume of least 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. We assume that the lower end of the planned range will be achieved due to the delays in the implementation of the EU Directive on the protection of whistleblowers in German law.

The Executive Board will outline the business results in todays video conference from 11.00 a.m. (CEST). Login is not necessary. This will be broadcast live online at EQS HY1 2022. Questions can be asked using the Q&A feature (chat) beforehand or during the webcast.

More information:

The figures for HY1 2022 are unaudited.

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EQS Group is a leading international cloud provider in the fields of corporate compliance, investor relations and sustainability reporting (ESG tech).

Working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex regulatory requirements in a reliable and secure manner, minimizing risks and communicating their business success and its impact on society and the climate transparently to stakeholders.

EQS Groups products are pooled in the cloud-based software EQS COCKPIT. This platform ensures the professional handling 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.

Specific applications for sustainability reporting are available, including automated ESG data collection, management and filing in compliance with regulations.

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 around 600 professionals and has offices in the worlds key financial markets.

Contact:

André Marques

CFO

Tel.: +49 89-444430033

Mobile: +49 175-5250009

Email.: andre.marques@eqs.com