Heeros lowers its financial outlook for 2023 due to decline in transaction volumes

This release is an unofficial translation of the Heeros Company announcement released on 18 Oct 2023. The original Heeros Company announcement is available on the company’s website at www.heeros.com/sijoittajille/tiedotteet

The combined EBITDA margin and revenue growth percentage (Rule of 40, adjusted) was 18% in H1 2023 (H1 2022: 39%). As stated in the half-year report, the prevailing economic situation has put pressure on revenue growth. Heeros’ revenue continued to grow, although at a slower pace compared to the same period last year.

As communicated in the half-year report, Heeros expects the EBITDA margin to increase in the second half of 2023 compared to the second half of 2022.

However, revenue from implementation projects has not reached targets and weakening economic development in Finland has decreased purchase and sales invoice transaction volumes. For these reasons Heeros changes its financial outlook for 2023.

New financial outlook for 2023:
Heeros estimates that its combined EBITDA margin (EBITDA, % of revenue) and revenue growth percentage (Rule of 40) will be 23-27% during the 2023 financial period. We will focus on securing profitable growth during 2023, and we expect the EBITDA margin to increase in the second half of 2023 compared to the second half of 2022.

Previous financial outlook, provided 1 February 2023 and last refined 13 July 2023:

Heeros estimates that its combined EBITDA margin (EBITDA, % of revenue) and revenue growth percentage (Rule of 40) will be at the level of 30% during the 2023 financial period. We will focus on securing profitable growth during 2023, and we expect the EBITDA margin to increase in the second half of 2023 compared to the second half of 2022.

Heeros publishes its Business Review for January-September 2023 on Thursday 26 October at around 9:30 EEST.

Additional information:

Niklas Lahti, CEO, tel. +358 40 774 1777, [email protected]

Distribution:

Nasdaq Helsinki
Essential media outlets
http://www.heeros.com/en/for-investors

About Us:

Heeros is a Finnish software company specializing in business critical, cloud-based business management solutions. Established in 2000, Heeros’ shares are listed on Nasdaq First North Growth Market Finland under the trading ID HEEROS. www.heeros.com/en/