EQS Group AG with very good first quarter 2020
 

- Adjusted revenue increases by 21 percent

- ARR increases by 88 percent to EUR 1.36 million

- EBITDA jumps to TEUR 799 (previous year TEUR -428*)

- To date, 350 clients with new COCKPIT-contract

 

Munich - 15 May 2020

The EQS Group AG (ISIN: DE0005494165) got off to a very good start in the new year. In the months January to March, the group generated sales revenues of EUR 8.35 million (previous year EUR 8.54 million). Adjusted for ARIVA.DE AG, which was deconsolidated in the second half of 2019, this corresponds to an increase of 21 percent over the same period last year. EBITDA increased to EUR 799k (adjusted EUR 310k), taking into account the accounting guidelines for lease contracts according to IFRS 16. The consolidated net income amounted to EUR -255k (EUR -1.58 million*). Accordingly, earnings per share are EUR -0.17 (EUR -1.10*).

The ARR, which is the new contractually agreed recurring business volume, amounts to EUR 1.36 million (EUR 723k). The onboarding of customers to the new COCKPIT has picked up speed. To date, new contracts have been concluded with 350 customers. The number of new customers (SaaS) is 90.

Revenue growth in the first quarter was slightly higher than expected. In addition to the revenue from the new COCKPIT, which was booked for the first time as planned, this is due to rising demand for video and audio webcasts and a higher news volume as a result of the COVID-19 pandemic. On the cost side, total expenses rose at a lower rate than revenues for four quarters in a row, as forecast, due to the timing of the investment program. This trend will continue sustainably in the coming quarters.

Segment development

In the compliance segment, adjusted revenues could be increased by 21 percent to EUR 4.19 million (EUR 3.46 million*). The number of customers increased by 25 to 1,305 in the SaaS customer segment and by 46 to 4,409 for the XML submission (annual basis). In the investor relations segment, adjusted revenues also increased by 21% to EUR 4.16 million (EUR 3.44 million*). The number of customers increased by 5 to a total of 2,177 in Q1 2020.

Achim Weick, founder and CEO of EQS Group AG: "We had a great start into the new fiscal year. The change to the home office, which took place at the beginning of March, has worked smoothly globally. Our customers can rely on us even during the Corona crisis and can expect our high quality of service as usual. We are making good progress with the onboarding to the new COCKPIT. We are also seeing a significant increase in demand for digital solutions such as video and audio webcasts."

The annually recurring revenues at group level show a ratio of 74% in the first quarter. The figure for SaaS customers in Germany is 76%. This is based on a customer base of 1,246 customers.

Unchanged outlook: Further growth in 2020 with lower investment activity

For the 2020 financial year, the management board is planning an adjusted revenue increase of 10 to 20 percent to between EUR 35.1 million and EUR 38.2 million and a significantly improved EBITDA in the range of EUR 3.5 million to EUR 4.5 million compared to the previous year. A volume of between EUR 4.5 million and EUR 5.5 million is expected for the ARR, which measures the new contractually agreed recurring business volume. Furthermore, 320 to 400 new customers (SaaS) are to be acquired. This forecast is subject to material effects from the corona virus.

The management board will explain the business results in today's telephone conference starting at 11:00 a.m. (CEST). This will be broadcast live on the internet at .

*Adjusted for the sale of ARIVA.DE AG in 2019

More information:

The figures for 3M 2020 are unaudited.

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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, 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 over 350 professionals and has offices in the world's key financial markets.
 

Contact:

André Marques

CFO

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