EQS Group AG continues growth trajectory in the 3rd quarter of 2020

EQS Group AG continues growth trajectory in the 3^rd quarter of 2020

- Revenue up by 16 percent in the third quarter

- EBITDA rises to EUR 1.3 million (previous year: EUR 499 thousand)

- Earnings target achieved after only nine months

- New recurring business volume of EUR 4.03 million

- 576 customers with new COCKPIT contract, ytd

Munich - 13 November 2020

EQS Group AG (ISIN: DE0005494165) reports a solid 3^rd quarter of 2020 and even reached the earnings corridor it had projected for the entire financial year ahead of time. In the months of July to September, the group achieved sales revenue of EUR 9.17 million (previous year: EUR 7.88 million). Its EBITDA rose to EUR 1.3 million, taking into account the financial reporting provisions for leases under IFRS 16 (EUR 826 thousand in adjusted terms). The group's profit for the year stood at EUR -561 thousand and earnings per share at EUR -0.08 in relation to the number of shares after the split in October.

After nine months, the figure of New ARR, indicating the contractually concluded new recurring business volume, amounts to EUR 4.03 million (previous year: EUR 2.18 million). The onboarding of customers to the new COCKPIT went as anticipated and rose strongly. 576 new contracts have been concluded so far, and 209 new customers (SaaS) could be acquired.

Furthermore, the group reported the following figures for the first nine months, adjusted by the company ARIVA.DE AG which was deconsolidated after the first half of 2019: Sales revenue of EUR 27.62 million (EUR 23.09 million) which is a growth of 20% compared with the previous year' period. Its EBITDA went up to EUR 4.30 million (previous year EUR 392 thousand), taking into account IFRS 16, and the group's profit for the year stood at EUR -444 thousand. Earnings per share amount to EUR -0.06.

While the growth in the field of COCKPIT applications went as expected, a higher demand for digital solutions and a higher news volume caused revenue figures to rise to the upper end of the planning corridor. The business model's high scalability and the cost discipline applied as a measure of prudence during the COVID-19 pandemic, in particular in the field of personnel and marketing, are main reasons for the earnings leap and for the group achieving the earnings corridor it had anticipated for the entire year ahead of time.

Segment development

Revenue in the Compliance segment went up by 12 percent to EUR 14.19 million (EUR 12.67 million), adjusted, in the first nine months of 2020. The number of SaaS customers rose by 46 to 1,326, while 4,217 customers were active in the field of XML filing (annual basis). In the Investor Relations segment, the adjusted revenue climbed by 29% to EUR 13.43 million (EUR 10.41 million). However, the number of customers fell, compared to the beginning of the year, by 37 to a total of 2,135, also due to the migration to the new COCKPIT. 93% of all customers in the regulated market have so far signed a new contract.

Achim Weick, founder and CEO of EQS Group AG: "We achieved our earnings target for the entire year after only nine months which is attributable to the high scalability of our business model and the cost discipline during the CORONA pandemic. In the meantime, we are well able to estimate how the pandemic affects our business. In view of the approaching date for the mandatory introduction of a whistle-blower system in companies based in the European Union at the end of 2021, we plan to successively increase our marketing and sales spending over the next quarters to bring us in an optimum starting position for customer acquisition."

Annually recurring revenues reached a quota of 84% in the third quarter on the group level. This value also stands at 84% for the group's customers in Germany; its customer base comprises 1,228 customers.

Outlook for the 2020 financial year

The board still plans to achieve an adjusted increase in revenue of 15 to 20 percent to between EUR 36.7 million and EUR 38.2 million and a significantly improved EBITDA year-on-year in a range of EUR 4.0 million to EUR 5.0 million. A value of EUR 4.5 million to EUR 5.5 million is anticipated for New ARR, i.e. the contractually concluded new recurring business volume. In addition, it is planned to acquire between 300 and 350 new customers (SaaS).

The board will explain the business results in a video conference to be held from 11:00 am (CET). No dial-up connection is required, since it will be broadcast live over the internet at https://www.webcast-eqs.com/register/eqs20201113/de. For questions, please use the Q&A function (chat) before or during the broadcast.

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

More information:

The figures for 9M 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

Tel.: +49 89-21029833

Mobile: +49 175-5250009

Email.: andre.marques@eqs.com