Netcompany - Interim report for the nine months ended 30 September 2023
November 02 2023 - 2:30AM
Netcompany - Interim report for the nine months ended 30 September
2023
Netcompany grew topline by 9.2% in Q3 driven by strong
performance internationally. Cash flow improved sequentially from
Q2 as expected.
Company AnnouncementNo. 12/20232 November 2023
Summary
In Q3 2023, Netcompany grew revenue to DKK 1,461.7m – equal to
8.4% growth compared to Q3 2022 and 9.2% in constant
currencies.
Adjusted EBITDA was DKK 219.9m compared to DKK 308.9m in Q3
2022. Adjusted EBITDA margin was 15% in Q3 2023 compared to 22.9%
in Q3 2022.
The average number of full time employees grew from 7,039 in Q3
2022 to 7,760 in Q3 2023.
Free cash flow was DKK 100.4m compared to DKK 221.5m in Q3
2022.
“In Q3, we grew revenue by 9.2% - once again driven by strong
results in the international operation of the Group. The prolonged
decision processes experienced in Q2 in the Danish private segment
were extended into Q3 too, which led to lower revenue in Denmark
than anticipated. At the same time we saw stronger than anticipated
growth in Netcompany-Intrasoft.
FTEs grew in line with revenue at 10.2% - driven by hirings in
the international operation of the Group.
Despite the current softness in our operation in Denmark, our
assesment is that market demand for digital transformation remains
intact, and our expectation is that more pipeline cases will begin
to convert during Q4 2023 and into Q1 2024.
Based on realised performance and outlook for the remaining part
of 2023, we narrow our expectation to revenue growth to between 8%
and 10% and we expect margin to be realised in the lower end of the
guided range of 15% to 18% - both within original guided target
ranges.
We remain committed to our mid-term financial targets.”
André Rogaczewski,Netcompany CEO and Co-founder
Performance highlights for Q3
- Revenue increased by 8.4% to DKK 1,461.7m in reported
currencies and by 9.2% in constant currencies.
- Adjusted EBITDA decreased 28.8% to DKK 219.9m.
- Adjusted EBITDA margin was 15% compared to 22.9% in Q3
2022.
- Average employees increased by 721 FTEs to 7,760 FTEs.
- Free cash flow was DKK 100.4m.
- Cash conversion ratio was 93%.
- Debt leverage to 12 months rolling adjusted EBITDA was
1.6x.
Financial overview
For full details on financial performance, see enclosed Company
announcement Q3 2023.
Conference call details
In connection with the publication of the results for Q3 2023,
Netcompany will host a conference call on 2 November 2023 at 11.00
CET.
The conference call will be held in English and can be followed
live via the company’s website; www.netcompany.com
Dial-in details for investors and analysts:DK: +45 78 76 84
90UK: +44 203 769 6819US: +1 646 787 0157Pin: 598046
Webcast Player URL:
https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-9-months-of-2023
Additional information
André Rogaczewski, CEO+45 70 13 14 40
Thomas Johansen, CFO+45 51 19 32 24
Frederikke Linde, Head of Investor Relations+45 60 62 60 87
- Netcompany_CompanyAnnouncement_Q3
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