Netcompany publishes Interim report for Q1 2022

Netcompany realised a strong and on track start of 2022 throughout the Group, and grew revenue more than 60%.

In Q1 2022, Netcompany grew revenue to DKK 1,371.5m – equal to 60.4% growth compared to Q1 2021, of which 46.6 percentage points was non-organic and related to Netcompany-Intrasoft.
Organic revenue growth was 13.8%.

In constant currencies, revenue grew 59.4% compared to Q1 2021, of which 12.8 percentage points was organic and 46.6 percentage points was non-organic.

Adjusted EBITDA was DKK 259.4m compared to DKK 234.8m in Q1 2021. Adjusted EBITDA margin was 18.9% in Q1 2022 compared to 27.5% in Q1 2021.

Adjusted EBITA for Netcompany Core in Q1 2022 was DKK 202.3m compared to DKK 216.3m in Q1 2021. Adjusted EBITA margin for Netcompany Core was 20.8% in Q1 2022 compared to 25.3% in Q1 2021.

Average number of full time employees grew from 3,109 in Q1 2021 to 6,513 in Q1 2022. The acquisition of Netcompany- Intrasoft accounted for 2,895 employees of the growth while Netcompany Core accounted for 509 employees of the growth.

Free cash flow was DKK 50.5m compared to DKK 100.6m in Q1 2021.

A share buyback programme of DKK 50m will be initiated in connection with the release of the Q1 2022 statement and will be executed during Q2 2022.

Revenue visibility for 2022 increased by 64.3% to DKK 4,543.6m compared to DKK 2,765.4m at the same time last year. The acquisition of Netcompany-Intrasoft accounted for DKK 1,395.1m of the increase.

Netcompany maintains expectations to revenue growth and margins for 2022. 

“In Q1, we grew revenue by more than half a billion to DKK 1,371.5m – or more than 60% compared to Q1 in 2021. Netcompany-Intrasoft accounted for 46.6% of the growth, leaving organic revenue growth for the remainder of the Group at 13.8% against Q1 2021 – as expected.

It humbles me deeply to see the strong performance that our employees continue to deliver quarter after quarter, and I am grateful for the onboarding of all of our new colleagues from Netcompany-Intrasoft. In an ever increasing competitive labour market we have welcomed more than 3,400 new employees bringing the total headcount in the Group to 6,700.

I am confident that we will continue to deliver strong results to our clients leading to strong financial performance throughout the year.

I believe that our continued focus on delivering society and business critical projects will prove to be a strong foundation for our ability to hire the best talents – enabling our continued growth.”

André Rogaczewski, CEO and Co-founder

 

Performance highlights for Q1 2022

  • Revenue increased by 60.4% to DKK 1,371.5m in reported currencies and by 59.4% in constant currencies.
  • Organic revenue grew by 13.8%.
  • Gross profit margin was 30.4% against 38.1% in Q1 2021.
  • Adjusted EBITDA increased by 10.5% and yielded a margin of 18.9%.
  • Adjusted EBITDA margin was 23.2% for the organic businesses.
  • Free cash flow was DKK 50.5m.
  • Netcompany Core generated a tax normalised free cash flow of DKK 174m compared to DKK 173.8m in Q1 2021.
  • Cash conversion rate normalised for tax payment was 80.2% compared to 84.1% in Q1 2021.
  • Debt leverage to 12 months rolling adjusted EBITA was 2.8.

 

For additional information, please contact:

André Rogaczewski, CEO, +45 70 13 14 40
Thomas Johansen, CFO, +45 51 19 32 24

About Netcompany

Netcompany was founded in 2000 and has its headquarters in Copenhagen Denmark. Today, we are an international company with more than 7000 employees working from 17 countries. We serve a wide array of customers in their digital transformation journeys in public and private sectors across Europe.

Media enquiries

presse@netcompany.com Karen Clement Head of PR & Communications kacl@netcompany.com +45 4090 9241

Interim report Q1 2022

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