EQS Group AG continues growth in HY1 2023

Increasing demand after entry into force of Whistleblowing Directive in key markets

• Revenue increased by 16 percent to EUR 33.73 million
• New ARR of EUR 4.59 million (previous year: EUR 3.55 million)
• 730 new SaaS customers (previous year: 456)
• Total number of SaaS customers increases to 5.688
• EBITDA increases to EUR 3.48 million (previous year: EUR 1.18 million)
• Whistleblower Protection Act in Germany entered into force on July 2

Munich – August 11, 2023

EQS Group AG (ISIN: DE0005494165) continues its growth in the first half year. In the first six months, the Group generated revenues in the amount of EUR 33.73 million (previous year: EUR 29.19 million).  This corresponds to an increase of 16 percent compared to the same period of the previous year. EBITDA increased to EUR 3.48 million (previous year: EUR 1.18 million). Consolidated net profit amounted to EUR -1.27 million. Earnings per share were therefore EUR -0.13. All key figures relate to continued operations, excluding the discontinued Russian business, liquidation of Financial Markets & Media GmbH and liquidation of EQS Group doo.

A volume of EUR 4.59 million was derived for the key figure New ARR, which quantifies the new contractually concluded, annually recurring revenue. Moreover the Group gained 730 new SaaS customers.

The second quarter results in the following picture: The revenue amounted to EUR 17.78 million (previous year: EUR 15.38 million), the EBITDA increased to EUR 2.12 million (previous year: EUR 1.06 million), and the net income of the Group amounted to EUR -72 thousand (previous year: EUR -537 thousand). The earnings per share for the months April to June were at EUR -0.01 (previous year: EUR -0.06).

The growth in revenue is attributable to the significant rise in the sales of compliance cloud products. 675 new SaaS customers were acquired for whistleblowing systems. 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 following the entry into force of the laws on whistleblower protection and measures to impose sanctions in the event of non-compliance.

Segment performance

Revenues in the Compliance segment increased by 19 percent. In the Investor Relations segment, revenue remained virtually constant (+1%). The ratio of annual recurring revenues was 89 percent (previous year: 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 26 EU countries, with varying implementation deadlines for companies in the coming months. The Group is seeing strong momentum in lead generation in countries where the law has recently come in to force, such as Spain (June) and Italy(July), as well as where the law is due to enter into force soon, such as Austria (August). In Germany the law entered into force on July 2, 2023.

Achim Weick, founder and CEO of EQS Group AG: "We are very pleased that the Whistleblower Directive has now been incorporated into national law in almost all countries of the European Union, thus ensuring the protection of whistleblowers. As expected, interest in our whistleblower protection software solution is increasing significantly in our core markets following the entry into force. Sales through our large partner network are also now active. In the coming months, we expect to sign a large number of contracts, especially towards the end of the year. We are confident of achieving our targets for the year."

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 H1 2023 Results (webcast-eqs.com). Questions can be asked using the Q&A feature (chat) beforehand or during the webcast.

* From continued operations

More information:

The figures for HY1 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 diligence obligations along corporate

supply chains and for 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.: [email protected]