EQS Group AG on a strong growth path in HY1 2021
Integration of Business Keeper GmbH underway

- 367 new SaaS customers

- Revenue grows by 22 percent

- EBITDA of EUR 1.33 million fully on target (previous year: EUR 3 million)

- EBITDA of EUR 3.26 million adjusted by higher sales and marketing expenditure

- New annual recurring business volume amounts to EUR 4.25 million

- SaaS customer base increases to 3,386 including Got Ethics A/S and C2S2 GmbH

- Acquisition of Business Keeper GmbH already successfully completed in July

Munich - August 13, 2021

EQS Group AG (ISIN: DE0005494165) continues its growth trajectory at the half year 2021 and is on track to achieve the increased forecast for the full year. In the first six months, the Group generated revenues of EUR 22.53 million (previous year: EUR 18.45 million). That means an increase of 22 percent compared with the same period in the previous year. EBITDA declined as expected to EUR 1.33 million (previous year: EUR 3 million). Consolidated net income for the year stood at EUR -1.32 million. The earnings per share amounted accordingly to EUR -0.17.

For the new ARR indicator, which quantifies the new contractually agreed annually recurring business volume, a volume of EUR 4.25 million is calculated (previous year: EUR 2.94 million). The number of new SaaS customers is 367.

The picture for the second quarter is as follows: Revenues amounted to EUR 11.98 million (previous year: EUR 10.10 million), EBITDA declined to EUR 1.02 million (previous year: EUR 2.2 million), and consolidated net income was EUR -399k. Earnings per share for the period from April to June were EUR -0.06 (previous year: EUR 0.05).

The Group's revenue growth in the first half is in line with expectations and characterised by a significant increase in the sale of compliance cloud products. The acquisitions of Got Ethics A/S and C2S2 GmbH made a contribution of EUR 1.42 million. Further growth momentum was provided by the ESEF regulation which was applied for the first time for the filing of financial reports by listed companies.

Expenses for sales and marketing were gradually increased, as planned, in view of the implementation of the European Whistleblower Directive, in order to create the best possible starting position for customer acquisitions. This is leading to a temporary strain on earnings. Adjusted by these extra expenses, the Group's EBITDA amounted to EUR 3.26 million. The obligation for companies in the European Union to introduce an internal whistleblower channel by the end of 2021 offers high growth potential for compliance cloud products.

Segment development

Revenue in the Compliance segment rose in the first half of 2021 by 33 percent. In the Investor Relations segment, revenue went up by 10 percent. The annual recurring revenue at Group level in the second quarter was 83%.

Acquisition of Business Keeper GmbH

With the acquisition of Business Keeper GmbH, EGS Group AG advanced to become the leading European cloud provider for whistleblowing systems. The purchase agreement was signed in June and the transaction was successfully concluded in July. Since then, integration teams have been working on the perfect setup for the entire group in order to best exploit the potential for compliance cloud products.

Achim Weick, Founder and CEO of the EQS Group AG: "We have started the integration of Business Keeper with a great deal of passion and urgency and are developing the European market leader for whistleblowing systems in the cloud. It is true solidarity that allows us to look to the future with a great deal of confidence, even in the first few weeks after the successful conclusion of the transaction. We are therefore very optimistic that we will achieve the targets we have set ourselves for the second half of the year and the years to come."

Forecast for the 2021 financial year

For the financial year 2021, the Management Board is planning an increase in sales of 30 to 40 percent to then EUR 49 million to EUR 53 million. Investments in sales and marketing for the acquisition of new customers in connection with the implementation of the EU Directive on the protection of whistleblowers will be reallocated together with Business Keeper GmbH. EBITDA is expected to be in the range of EUR 2 million to EUR 3 million (previously EUR 1 million to EUR 2 million). For the key figure new ARR, which quantifies the contractually newly concluded annually recurring business volume, we expect a volume of at least EUR 9 million. In addition, 1,750 to 2,250 new customers are to be acquired, the majority of them for the product area of whistleblowing systems.

The Executive Board will be explaining the business results in a video conference from 11.00 a.m. (CEST). Login is not necessary. It will be broadcast live online at https://www.webcast-eqs.com/eqs20210813. Questions can be asked using the Q&A feature (chat) beforehand or during the webcast.

* EBITDA adjusted for additional expenses into Marketing and Sales
** 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
*** For a better comparison, net interest is reported in Cash flow from financing activities. The prior-year figures have been adjusted accordingly

More information:

The figures for HY1 2021 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, business approvals, third party 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 more than 550 professionals and has offices in the world's key financial markets.

Contact:

André Marques

CFO

Tel.: +49 89-444430033

Mobile: +49 175-5250009

Email.: [email protected]