DGAP-News: EQS Group AG / Key word(s): Quarter Results
Munich - May 18, 2018
The Investor Relations segment added 33 new clients, resulting in a total of 1,929. Sales remained at the previous year's level (2018: EUR4.00 million, 2017: EUR4.05 million). Revenue in the Compliance segment rose to EUR3.82 million, signifying a 34% increase over the previous year's EUR2.84 million. The number of large cap customers increased by 42, up to 939. The number of clients in the XML filing business increased as well as by 85, resulting in a total of 4,170 clients. The LEI issuing service business saw a growth of 6,054 clients, for a total of 9,921.
Investment Offensive Proceeds According to Plan
EQS Group AG is highly focused on implementing its September 2017 decision to expand its core business with an adjacent GRC business unit aimed at exclusively focusing on the development of cloud-based solutions. This strategy is buttressed by an investment offensive aimed at growing the Group into a full-fledged technology company. Over 60 specialists are currently working on the completion of the new COCKPIT. The expansion places a temporary burden on earnings.
Achim Weick, founder and CEO of EQS Group AG, stated: "The investment offensive is proceeding according to plan. Our new COCKPIT will be the first of its kind worldwide and will be completed by the fourth quarter of 2018. Once the COCKPIT goes live, we expect an increase in subscription revenues, as well as increased annually recurring revenues. "
Introduction of New Performance Indicators
With the growth of the Group into a technology company, and the increasing importance of Software-as-a-Service (SaaS) revenues, EQS Group AG introduced new business performance indicators at the beginning of this fiscal year. The focus is now centered on the share of annually recurring revenues in order to elucidate sales quality and scaling potential. The number of new and total customers in the reporting period, as well as average revenue per customer per quarter (QRPC), are key metrics for estimating growth potential.
Recurring revenues in the first quarter were 79% at the Group level and 76% based on 1,081 large cap customers in Germany. The QRPC was EUR3,300. In some foreign markets, the QRPC is still lower in comparison with Germany. However the other metrics are similar across all markets.
Outlook: Further Growth in 2018 with Continued Large Investments
For the 2018 financial year, the Management Board plans a 19%-24% increase in sales, up to between EUR36 million and EUR37.6 million. Simultaneously, investments of around EUR2.8 million are planned. EBITDA is expected to be between EUR1.5 million and EUR2.1 million.
The Board will discuss business results beginning at 11:00 am (CEST) on today's conference call, which will be broadcasted live online at www.eqs.com.
* as of Dec. 31, 2017
The figures for 3M 2018 are unaudited.
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EQS Group is a leading international technology provider for Investor Relations, Corporate Communications, and Corporate Compliance. More than 8,000 companies worldwide use EQS Group's offerings to fulfill complex national and international disclosure obligations, to minimize risk, and to reach stakeholders.
EQS Group is a digital single-source provider for global teams. EQS Group's products and services include a global newswire, regulatory news distribution, investor targeting and contact management, and insider list management. These are integrated within a cloud-based platform, the EQS COCKPIT, to streamline the workflows of Investor Relations, Communications, and Compliance professionals. The Group also offers an innovative whistleblowing and case management software, IR website services, digital reports, and webcasting solutions.
EQS Group was founded in 2000 in Munich, Germany. Today, the group employs over 400 professionals around the globe and has offices in the world's key financial markets.
Head of Investor Relations
Tel.: +49 89-21029833
Mobile: +49 175-5250009
|Company:||EQS Group AG|
|Listed:||Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Munich (m:access), Stuttgart, Tradegate Exchange|
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