EG continues to grow and invest in its long-term strategy
Copenhagen, 28 June 2024 - EG, a market leading vendor of Nordic vertical software, today published its annual report and separate ESG report for 2023.
In 2023, EG delivered a total revenue growth of 13.0% and a growth in recurring revenues of 15.5%. The share of recurring revenues increased from 81.9% in 2022 to 83.7% in 2023, equivalent to 5.8% organic recurring revenue growth, year over year, with an adjusted EBITDA margin of 35.1%.
EG continued to invest in growing the business through acquisitions and in the onboarding and integration of acquired businesses. The investment in EG's common way of operating and which has been ongoing for the last four years, was finalized at the end of 2023 and has significantly transformed the way EG operates. This will enable EG to scale and support its customers faster and more efficiently going forwards.
EG continues to consolidate the Nordic vertical software market
In 2023, EG strengthened its market positions with the acquisitions of six businesses. At the end of 2023, EG had more than 32,000 customers across the Nordic region, up from 29,000 at the end of 2022.
"Despite a more uncertain environment, EG delivered, yet again, a solid performance reaching DKK 2.3bn in total revenues in 2023. This is the outcome of executing our strategy of delivering industry-specific and mission-critical SaaS offerings to our many customers, at scale and with high quality based on our very resilient business model", says Klaus Holse, Chair of EG.
During 2023, EG's divisional structure was changed to better align its organization and capabilities with EG's customers and their industry-specific needs. The three divisions EG Construction & Property, EG Healthcare & Citizen Welfare and EG Industrials & Trade now each have a clear focus and vision to support the entire value chains of their respective sets of customers.
"Our customers expect EG to deliver new technology with a higher speed and in a way that is specific to their business, covering their entire business ecosystem and value chain. With the three strong divisions we can now support their needs better due to improved knowledge sharing, cross sales and smart integrations between our systems that adds value to their business”, says Mikkel Bardram, CEO of EG, continuing:
"I would like to thank EG's employees for all we have achieved over the last few years. Looking back, we have come far in the last five years, finding a scalable way to operate and innovate together, as well as adding 37 strategic and complementary acquisitions to EG during the same period."
The profitability of the business operations continued its positive development with an adjusted EBITDA growth of 10.5% in 2023 and 14.9% when measured in constant currencies.
EG's net profits were negatively affected by rising interest rates, the continued investment in the internal operating model and the depreciation of the Norwegian and Swedish kroner. Due to the chosen capital structure and the increasing interest rates, EG was faced with 76% higher financial expenses compared to 2022.
In November 2023, EG completed a DKK 3bn investment round, including a combination of capital into the business and transfer of shares, broadening EG’s ownership structure with a group of leading international investors.
Klaus Holse expressed his satisfaction with the outcome of the investment round: "I am happy to welcome the new investors on board and see their investment as an acknowledgement of the great work the EG team has done and of the continued growth potential that the business has going forward. In addition, we prolonged the maturity of our loans from 2026 to 2028, further supporting our ability to develop EG in the years to come."
Positive outlook for 2024
EG has positive financial expectations for 2024 and predicts a year of continued growth and strengthening of the company's leading market position in the Nordics. Overall, 15-20% revenue growth is expected to be driven by continued growth in subscription-based revenue. Further, it is expected that the Adjusted EBITDA margin will be slightly above 2023.
Download EG Annual Report 2023 (pdf)
Download EG ESG Report 2023 (pdf)
More information
Spokesperson: Mikkel Bardram, CEO, EG
Press contact: Communication Manager Per Roholt, EG, +45 2060 9736.
About EG
We craft the vertical software of tomorrow, bringing sustainable impact to customers and society. EG employs 2,400+ people primarily in the Nordics and in 2023, Group revenue was DKK 2,3 billion.