EQS Group AG publishes its 2021 annual report
Revenue growth of 30 to 50 percent planned in 2022 financial year

• Revenue grows by 33 percent to EUR 50.2 million
• New ARR rises by 68 percent to EUR 8.9 million
• Total SaaS customer base increases by 1,017 to over 4,200
• EBITDA of EUR 2.1 million before purchase price allocation in line with expectations
• Integration of Business Keeper GmbH completed
• Strong growth planned up to 2025. Medium-term target of EUR 130 million revenue confirmed

Munich - March 25, 2022

EQS Group AG (ISIN: DE0005494165) continued its growth trajectory also in the 2021 financial year and generated revenue of EUR 50.2 million (previous year: EUR 37.6 million). The increase over the previous year is around 33 percent. EBITDA declined as planned compared to the same period of the previous year and was in line with the guidance at EUR 2.1 million before purchase price allocation. The consolidated net loss for the year stood at EUR -6.6 million. Earnings per share amounted to EUR -0.81.

For the new ARR indicator, which quantifies the new contractually agreed, annually recurring revenue, a volume of EUR 8.9 million is calculated (previous year: EUR 5.3 million). The number of new SaaS customers is 1,017.

The Group's revenue growth in the 2021 financial year is in line with expectations and characterised by a significant increase in the sale of compliance cloud products. The acquisitions of Business Keeper GmbH, Got Ethics A/S and C2S2 GmbH made a contribution of EUR 7.4 million. New customer growth is significantly above the previous guidance from November 2021. The momentum increased considerably in the fourth quarter particularly with 423 new customers. This is all the more remarkable as national legislation on the mandatory introduction of an internal reporting channel for companies in the European Union has not yet been implemented in almost all member states.

The Group achieved revenue of EUR 14.8 million (+48 %) in the October to December period. The EBITDA declined to EUR -531 thousand (previous year: EUR 465 thousand).

Segment development

Revenue in the Compliance segment rose in the 2021 financial year by 54 percent. In the Investor Relations segment, revenue went up by 10 percent. The annual recurring revenue at Group level had a ratio of 85 percent.

Achim Weick, founder and CEO of the EQS Group AG: "We have further expanded our position as the leading European cloud provider for whistleblowing systems in the 2021 financial year and completed the integration of Business Keeper GmbH. The momentum of new customer acquisition in the fourth quarter indicates the growth trajectory for the 2022 financial year. In Germany, the publication of the draft bill for the Whistleblower Directive is imminent. Therefore, we are starting the new financial year with great confidence and are sure that we will be able to increase the high growth in new customers even further with the implementation of the European Whistleblower Directive."

Many companies in the European Union will need to deal with compliance subjects for the first time based on the EU Directive 2019/1937 which prescribes the obligatory introduction of an internal whistleblower channel for companies. EQS Group AG has been making intensive preparations for this for more than a year in order to achieve high market penetration.

Outlook
Strong growth in 2022
For the 2022 financial year, the Management Board is planning an increase in revenue of 30 to 50 percent to then EUR 65 million to EUR 75 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 remain high. EBITDA is expected to be in the range of EUR 6 million to EUR 10 million. For the key figure new ARR, which quantifies the contractually concluded annually recurring business volume, we expect a volume of EUR 11 million to EUR 16 million. In addition, 2,500 to 3,500 new customers are to be acquired, the majority of them for the product area of whistleblower systems. The outlook is based on the assumption that the EU Directive will be transposed into German legislation in the middle of the year 2022.

Medium-term goal for 2025 confirmed
EQS Group AG confirms its goal of achieving revenue of around EUR 130 million in the 2025 financial year with an EBITDA margin of at least 30 percent.

The Executive Board will be explaining the business results in today's video conference from 11.00 a.m. (CET). Login is not necessary. It will be broadcast live online at FY 2021 Results (webcast-eqs.com). Questions can be asked using the Q&A feature (chat) beforehand or during the webcast.

* EBITDA adjusted for additional expenses into Marketing and Sales & Purchase Price Allocation
** For a better comparison, net interest is reported in Cash flow from financing activities. The prior-year figures have been adjusted accordingly
*** Previous year's figures adjusted. We refer to the notes to the consolidated financial statements under 20.1.4 Changes in presentation and reclassifications

More information:

The figures for FY 2021 are audited.

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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]