HEEROS OYJ During the first half of the year adjusted EBITDA increased by 65%, operational cashflow by 51% and contract revenue by 4%.
This release is an unofficial translation of the summary of Heeros Half-Year Report 1 January–
April –
- Revenue increased by 1% from the comparison period to
EUR 2.9 (4-6/2023: 2.9) million. - Recurring revenue (contract and transaction revenue) increased by 1% to
EUR 2.8 (2.7) million. Contract revenue increased by 6% toEUR 2.3 (2.1) million. Transaction volumes decreased by 6% and transaction revenue declined by 15% toEUR 0.5 (0.6) million. - EBITDA increased by 105% to
EUR 0.8 (0.4) million, representing an EBITDA margin of 28% (14%). - Adjusted EBITDA increased by 94% to
EUR 0.9 (0.5) million, representing an EBITDA margin of 30% (16%) of revenue. - New customer order intake in terms of Annual Recurring Revenue (ARR) was approximately
EUR 330 (150) thousand.
January –
- Revenue decreased by 0.4% year-on-year to
EUR 5.6 (1-6/2023: 5.7) million. - Recurring revenue (contract and transaction revenue) was at the level of comparison period at
EUR 5.4 (5.4) million. Contract revenue increased by 4% toEUR 4.4 (4.2) million. Transaction volumes decreased by 8% and transaction revenue declined by 16% toEUR 1.0 (1.1) million. - EBITDA increased by 63% to
EUR 1.3 (0.8) million, representing an EBITDA margin of 24% (15 %). - Adjusted EBITDA increased by 65% to
EUR 1.5 (0.9) million, representing an EBITDA margin of 26% (16%). - New customer order intake in terms of Annual Recurring Revenue (ARR) was approximately
EUR 430 (360) thousand. - Operational cashflow increased by 51% to
EUR 1.4 (0.9) million.
| EUR thousand | Q2/2024 | Q2/2023 | Change % | H1/2024 | H1/2023 | Change % | 2023 |
| Revenue | 2,898 | 2,859 | 1% | 5,644 | 5,666 | 0% | 11,296 |
| Recurring revenue 1 | 2,758 | 2,722 | 1% | 5,363 | 5,367 | 0% | 10,774 |
| Contract revenue | 2,269 | 2,148 | 6% | 4,413 | 4,237 | 4% | 8,578 |
| Transaction revenue | 490 | 574 | -15% | 950 | 1,130 | -16% | 2,195 |
| EBITDA | 816 | 397 | 105% | 1,343 | 825 | 63% | 2,478 |
| EBITDA, % of revenue | 28% | 14% | 24% | 15% | 22% | ||
| EBITDA (adjusted) 2 | 878 | 454 | 94% | 1,455 | 882 | 65% | 2,654 |
| EBITDA (adj.), % of revenue | 30% | 16% | 26% | 16% | 23% | ||
| EBIT | 334 | -151 | 300 | -269 | 293 | ||
| EBIT, % of revenue | 12% | -5% | 5% | -5% | 3% | ||
| EBIT (adjusted) 2 | 396 | -94 | 411 | -212 | 469 | ||
| EBIT (adj.), % of revenue | 14% | -3% | 7% | -4% | 4% | ||
| Profit for the period | 291 | -170 | 235 | -323 | 177 | ||
| Profit for the period, % of revenue | 10% | -6% | 4% | -6% | 2% | ||
| Rule of 40, % | 30% | 15% | 23% | 17% | 24% | ||
| Rule of 40, % (adjusted) 2 | 32% | 17% | 25% | 18% | 25% | ||
| Operational cash flow | 628 | 516 | 22% | 1,354 | 898 | 51% | 2,016 |
| Equity ratio, % | 69% | 58% | 66% | ||||
| Return on Equity (ROE), % | 3% | -5% | 3% |
1 Recurring revenue is divided into two parts: contract revenue (fixed usage fees and service agreements) and transaction revenue.
2 The adjusted figures for Q2/2024 include an adjustment of
“Heeros’ second quarter delivered outstanding results across all metrics. Profitability improved as anticipated, even though the decline in transaction volumes continued to affect revenue growth. In positive news,
EBITDA increased over 90%
During the second quarter our EBITDA (adjusted) saw a significant increase of 94%, reaching
During the second quarter EBITDA-Cash, where investments in tangible and intangible assets have been deducted from EBITDA, rose by over 430% to
Contract revenue grew by 4% during the half-year period. Net revenue retention (NRR) remained strong at 103% (107%). Success in these areas reflects our focus on building sustainable customer relationships and minimizing customer churn.
Revenue growth driven by increased contract revenue
During the quarter, revenue started growing again, driven by a positive increase in contract revenue (+6% compared to the previous quarter).
Economic activity in
Despite the positive trend in contract revenue, total revenue in the second quarter increased by only 1%, reaching
Significant growth in new customer acquisition
New customer orders, measured by order intake ARR, grew by 120% during the quarter, reaching
Several customers’ progress with their ERP projects and ongoing market shifts, such as the announced end-of-life for Telia Talous, Visma Payroll, and Digia Enterprise Payroll, will in our estimate impact positively Heeros’ sales.
We have seen a decline in customer hesitation when making decisions. The number of leads, meetings, and new sales cases has increased significantly compared to the past few years. If this trend continues, we expect the positive sales momentum to carry on into the second half of the year after several challenging quarters.
Progress in product development as planned
During the second quarter, we made significant progress in product development, focusing on financial management software, where we achieved several notable sales wins. In addition, customers have enthusiastically welcomed the updated reporting tool in our PSA product.
Towards a brighter future
Having served as CEO for just over a year, I am pleased to see the positive changes in
During the second quarter, our largest shareholder,
FINANCIAL OUTLOOK FOR 2024 (PUBLISHED ON
FINANCIAL INFORMATION IN 2024
Board of Directors
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