EQS Group AG publishes its 2020 annual report

EQS Group AG publishes its 2020 annual report
Revenue growth of 20 to 30 percent planned in 2021 financial year

• All annual targets achieved
• Revenue increased by 18 percent to EUR 37.6 million
• New annual recurring business volume amounts to EUR 5.3 million
• 301 new SaaS customers
• EBITDA rises to EUR 4.8 million (previous year: EUR 2.6 million)
• Revenue growth of 20 to 30 percent planned in 2021

 

Munich – 31 March 2021

EQS Group AG (ISIN: DE0005494165) successfully continued its growth course in its 20th year and generated revenues of EUR 37.6 million in the 2020 financial year. The year-on-year increase was 18 percent, adjusted for ARIVA.DE AG, which was deconsolidated after the first half of 2019. EBITDA increased to EUR 4.8 million. The consolidated net loss for the year amounted to kEUR -832. Earnings per share were EUR -0.12.

For the new ARR key figure, which quantifies the new annual recurring business volume, a volume of EUR 5.3 million has been concluded. Onboarding of customers to the new COCKPIT progressed as expected and showed a strong increase. By the end of the year, 631 new contracts had been signed and the migration of customers from the regulated market in Germany had been completed on schedule. The number of new SaaS customers is 301.

While growth in the COCKPIT applications segment was in line with expectations, increased demand for webcasts and filings resulted in revenues at the upper end of the forecast range. The high scalability of the business model is the main reason for the jump in earnings compared to the previous year.

In Q4 2020, the Group achieved revenues of EUR 10.0 million (+14%), while EBITDA fell to kEUR 465.

Segment development

In the Compliance segment, revenue increased by 12 percent in the 2020 financial year, adjusted by the revenue from ARIVA.DE AG, which was deconsolidated as of the second half of 2019. Adjusted revenue growth in the Investor Relations segment was 26 percent.

The annual recurring revenue at Group level in the fourth quarter was 78 percent. For SaaS customers in Germany the figure is 80 percent. This is based on a customer base of 1,251 customers.

Achim Weick, Founder and CEO of the EQS Group AG: “The 2020 financial year was not only challenging because of the coronavirus pandemic. I am very proud of our team. Together we have achieved all our goals, but now we are looking ahead: the implementation of the EU whistleblower protection directive opens up huge potential for us. We intend to significantly expand our customer base this year and next, bringing us much closer to our goal of shaping EQS Group AG into the leading European cloud provider for global investor relations and corporate compliance solutions in 2025.”

The EU Directive 2019/1937 stipulates the mandatory introduction of an internal reporting channel for companies with 250 employees or more by the end of 2021 and thereafter with 50 employees or more by the end of 2023. Most companies in the European Union will be considering the introduction of a whistleblower system and compliance topics for the first time. EQS Group AG has strengthened its market position with the acquisition of Got Ethics A/S and created the perfect starting point to achieve high market penetration in the establishment of whistleblowing systems. Other components of this strategy are the investment in C2S2 GmbH, an innovative SaaS provider for policy management that markets a service for the comprehensible communication of corporate guidelines under the Rulebook brand, and the opening of new locations in Milan and Madrid. Local presence creates the basis for working together in a spirit of trust, especially in the sensitive area of compliance. EQS Group AG is now represented on all attractive markets in the EU.

Outlook
Further growth in 2021 with higher marketing and sales expenditure related to the implementation of the EU whistleblower protection directive.

For the 2021 financial year, the Executive Board is planning an increase in revenue of 20 to 30 percent to between EUR 45 million and EUR 49 million. Investments in marketing and sales for the acquisition of new customers in relation to the implementation of the EU whistleblower protection directive will temporarily lead to a lower EBITDA in the range of EUR 1 million to EUR 2 million. We are expecting a volume of at least EUR 6 million for the new ARR key figure, which quantifies the newly concluded annual recurring business volume. In addition, 1,500 to 2,000 new customers are to be acquired, the majority of them for the whistleblower systems product area.

The Executive Board will be explaining the business results in today’s video conference from 11.00 a.m. (CEST). No dial-up connection is required since it will be broadcast live over the internet at https://www.webcast-eqs.com/register/eqs20210331/en. For questions, please use the Q&A function (chat) before or during the broadcast.

Key figures* (IFRS; in € mln.)	FY 2020	FY 2019**	+/-
Revenues	37.636	31.869	+18%
Operating Expenses	35.020	32.632	+7%
EBITDA	4.760	2.298	+107%
EBITDA (IFRS)	4.760	2.554	+86%
EBIT	.163	-2.865	>+100%
Group Earnings	-.832	-1.373	+39%
Operating Cash Flow (IFRS)	5.786	2.397	>+100%
Equity-Ratio (%)	58	50	–

 

*Adjusted for the sale of ARIVA.DE AG in 2019
** Prior-year figures partly adjusted. We refer to Point 2.4 Changes in the previous year’s figures in the notes of the annual report 2020

More information:

The figures for FY 2020 are audited.

Receive news from EQS Group AG free of charge on your mobile device: via DGAP News App directly to your AppleWatch or iPhone (http://newsapp.dgap.de/).

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, approval 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 450 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