OTRS AG: Sustainable revenue growth in the 2023 financial year underpins strategic focus

• Revenues increase by 4.0% to EUR 12,312 thousand (2022: EUR 11,839 thousand)
• Strategic focus on recurring revenues — increase of 3.9% to EUR 11,158 thousand (2022: EUR 10,743 thousand)
• EBITDA down to minus EUR 340 thousand due to investments (2022: EUR 1,270 thousand)
• Outlook 2024: Revenue growth to around EUR 12.6 million and earnings at the previous year's level expected

Oberursel, 28 June 2024: OTRS AG (ISIN: ), the manufacturer and world's largest service provider for the OTRS service management suite, today presents its figures for the 2023 financial year. In the past reporting year, the company once again achieved slight revenue growth of around 4.0% to EUR 12,312 thousand (2022: EUR 11,839 thousand) despite the challenging macroeconomic developments and was thus in line with the forecast (EUR 12.3 million to EUR 12.7 million).

The growth is mainly driven by a further increase in recurring revenues. These rose by 3.9% to EUR 11,158 thousand (2022: EUR 10,743 thousand). Recurring revenues include annual contracts with access to OTRS software in various forms as well as security, software updates and support, accounting for 90.6% of total revenue at OTRS (2022: 90.7%). Due to the strategic orientation of OTRS AG, the focus is on developing and increasing recurring revenues. Revenues from other services such as consulting and custom engineering are to be seen as supporting auxiliary revenues for the development of recurring revenues. Revenue from services increased by 7.2% to EUR 1,144 thousand in the reporting year (2022: EUR 1,067 thousand).

Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to minus EUR 340 thousand in the 2023 financial year after EUR 1,270 thousand in the previous year. Due to the negative result for the period and early invoicing at the end of 2022 concerning the introduction of a new ERP program at the beginning of 2023, operating cash flow was minus EUR 1,211 thousand after plus EUR 1,167 thousand in the previous year. The invoices brought forward had led to an increase in deferred income in the 2022 financial year, which has now fallen back to a normal level and thus had a corresponding negative impact on operating cash flow. Earnings before interest and taxes (EBIT) amounted to minus EUR 1,573 thousand compared to EUR 488 thousand in the previous year. Net profit for the year amounted to minus EUR 1,079 thousand in the reporting year (2022: EUR 335 thousand). This corresponds to earnings per share of minus EUR 0.56 (2022: EUR 0.17). The reasons for the decline in EBITDA, EBIT and net profit for the year were the high expenses in the current financial year for the recruitment of new employees, the introduction of an ERP system and the partnership with Gartner for market research.

André Mindermann, CEO of OTRS AG: "In a challenging environment, we were able to close the financial year in line with our expectations. We made considerable investments in human resources and significantly modernized our OTRS platform. Artificial intelligence also plays a central role in this. Innovative solutions such as STORM powered by OTRS show how we support companies in efficiently managing security incidents and protecting themselves against the serious consequences of cyber attacks. With this focus, we are ideally equipped to master future challenges and exploit new opportunities."

Outlook 2024
Despite the challenging overall economic situation, the Management Board is planning revenue growth of around 2% to around EUR 12.6 million for the 2024 financial year, continuing the course of continuous, moderate growth. The Management Board also expects earnings for the current financial year to be on par with the previous year. "Last year, we made targeted investments in expanding our expertise. Now we are concentrating on strengthening and consolidating our available human resources to take advantage of the expected efficiency gains," adds André Mindermann.

Annual Report
The Annual Report 2023 of OTRS AG is published at .

About OTRS Group
OTRS Group is the manufacturer and the world’s largest provider of the enterprise service management suite OTRS. It offers companies industry-independent software solutions for structured communication in customer service, IT service management and security management. In addition to the core product OTRS, the security solution STORM ensures efficient cybersecurity incident management and transparent documentation in accordance with standards such as ISO 27001.

Among its customers are Lufthansa, Porsche, BSI (Federal Office for Security in Information Technology), Helios Kliniken, Haribo, Ameropa und TUI Cruises. The company consists of OTRS AG and its five subsidiaries OTRS Inc. (USA), OTRS S.A. de C.V. (Mexico), OTRS Asia Pte. Ltd. (Singapore), OTRS do Brasil Soluções Ltda. (Brazil) and OTRS Magyarország Kft. (Hungary). OTRS AG is listed on the basic board of the Frankfurt Stock Exchange.

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D-61440 Oberursel
Phone: +49 (0)6172 681988-0
Fax: +49 (0)9421 56818 18
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