EQS Group AG has a successful start to 2023

EQS Group AG has a successful start to 2023

Whistleblower Directive on the home stretch in Germany

 

 

• Q1 revenue increased by 15 percent to EUR 15.94 million
• New ARR amounts to EUR 1.86 million (Q1 2022: EUR 1.81 million)
• 271 new SaaS customers (Q1 2022: 216)
• Total number of SaaS customers increases to 5,257
• EBITDA increases to EUR 1.36 million (Q1 2022: EUR 0.12 million)
• Whistleblower Protection Act to come into force imminently in Germany

 

 

Munich – May 12, 2023

 

EQS Group AG (ISIN: DE0005494165) had a solid start into the year. From January to March, the Group generated revenues of EUR 15.94 million (previous year: EUR 13.81 million). This corresponds to an increase of 15 percent compared to the same period of the previous year. EBITDA increased to EUR 1.36 million (previous year: EUR 0.12 million). Consolidated net profit amounted to EUR -1.20 million. Earnings per share were therefore EUR -0.12. All key figures relate to continuing operations, excluding the discontinued Russian business.

 

A volume of EUR 1.86 million was derived for the key figure new ARR, which quantifies the new contractually concluded, annually recurring revenue. Moreover we gained 271 new SaaS customers.

 

The growth in revenue is attributable to the significant rise in the sales of compliance cloudproducts. 238 new SaaS customers were acquired for the whistleblower systems product. On the cost side, total expenses increased at a lower rate than revenues. This trend will continue on a sustainable level in the coming quarters, and will see a significant boost due to an increase in subscription revenues when the whistleblower protection legislation comes into effect.

 

 

Segment performance

 

Sales in the Compliance segment increased by 19 percent. In the Investor Relations segment, revenue remained virtually constant. The ratio of annual recurring revenues was 88 percent at Group level.

 

 

Developments in the implementation of the Whistleblower Protection Act

 

The legally required introduction of an internal reporting channel has now been enshrined in national law in 21 EU countries, with varying implementation deadlines for companies in the coming months. We are seeing strong momentum in lead generation in countries where the law is due to enter into force soon, such as Spain (June), Italy (July), and Austria (August).

 

On Tuesday (May 9, 2023), the Mediation Committee of the German Bundesrat (Federal Council) agreed on a new bill for the Whistleblower Protection Act. The law had not received the necessary approval in the Bundesrat session on February 10, 2023. The German government therefore called on the Mediation Committee at the beginning of April, which managed to reach an agreement quickly. The law is expected to come into force just one month after promulgation, and is on the agenda for today’s meeting of the Bundesrat.

 

Achim Weick, founder and CEO of EQS Group AG: “We’re pleased that whistleblowers will finally be protected in our country. Employees in particular deserve special protection. Companies will also benefit from the establishment of an efficient early warning system. The implementation of the Whistleblower Protection Act in Germany, our most important market, will lead to a large number of new contracts being concluded and will be clearly reflected in rising sales and earnings figures over the next few quarters.”

 

With EU Directive 2019/1937, which mandates the introduction of an internal reporting channel for companies, many companies in the European Union will be dealing with compliance issues for the first time. EQS Group AG has been preparing vigorously for this development for more than two years in order to achieve deep market penetration. In Germany, the law could now come into force as early as mid-June 2023.

 

 

Outlook
 

For the 2023 financial year, the Executive Board is planning an increase in revenue of 15 to 20 percent, equivalent to EUR 71 million to EUR 74 million. The EBITDA should be in a range of between EUR 9 million to EUR 11 million. For the key figure New ARR, the company expects a volume of EUR 9 million to EUR 12 million. In addition, 2,000 to 3,000 new customers are to be acquired, the majority of them in the product area of whistleblower systems.

 

The Management Board will be explaining the business results in a video conference at 11.00 a.m. (CET). Login is not necessary. It will be broadcast live online Q1 2023 Results (webcast-eqs.com). Questions can be asked using the Q&A feature (chat) beforehand or during the webcast.

 

 

Key figures (IFRS; in € mln.) Q1 2023 Q1 2022 +/- Revenues* 15.944 13.807 15% Operating Expenses* 15.115 14.406 5% EBITDA* 1.359 .120 >100% Group Earnings* -1.200 -1.104 -9% Free Cash Flow 3.090 1.510 >100% Total Assets 188.026 189.373 -1% Cash & Cash Equivalents 11.385 10.655 7% Net Debt 25.991 28.433 -9% Equity-Ratio (%) 59 59 -

 

* From continued operations

 

 

More information:

 

The figures for Q1 2023 are unaudited.

 

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

 

Working with EQS Group, more than 9,000 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 Group’s 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.

 

Listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.

 

In addition, EQS Group develops software for the management of ESG (environment, social, governance) data, the fulfilment of human rights due digilence obligations along corporate supply chains and rule-compliant sustainability reporting.

 

EQS Group was founded in 2000 in Munich, Germany. Today the group employs around 600 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