In Q4 2021, Netcompany grew revenue in constant currencies to DKK 1,140.8m – equal to 47.6% growth compared to Q4 2020.
Netcompany publishes Interim report for the 12 months ended 31 December 2021
Netcompany grew revenue by 27% and realized a 21.8% margin in 2021 – in line with expectations
In Q4 2021, Netcompany grew revenue in constant currencies to DKK 1,140.8m – equal to 47.6% growth compared to Q4 2020. In reported currencies, revenue grew by 49.1%. Of the total revenue growth, 37 percentage points were non-organic related to the acquisition of Intrasoft International S.A.
Adjusted EBITDA was DKK 238.4m in reported currencies, which was in line with results in Q4 2020. Adjusted EBITDA margin for Netcompany Core [1] was 24.3% and 9.7% for Netcompany-Intrasoft.
Adjusted EBITA was DKK 210.3m in Q4 2021 compared to DKK 223.5m in Q4 2020. Adjusted EBITA margin was 18.3% including results from Netcompany-Intrasoft, which diluted margins by 3.6 percentage points.
The average number of full-time employees in Netcompany Core grew 513 from 2,996 in Q4 2020 to 3,509 in Q4 2021, while the acquisition of Intrasoft added another 2,862 FTE. End of 2021, the total FTE´s for the Group was 6,380.
For the full year, Netcompany realized total revenue growth of 27.9% in reported currencies, which resulted in total reported revenue of DKK 3,623m for the year. In constant currencies, revenue grew 27% – in line with guidance for the year – of which 10.1 percentage points was non-organic related to the acquisition of Intrasoft International in 2021.
For 2021, adjusted EBITDA for the Group was 24.2%, which was slightly above guidance. For Netcompany-Intrasoft, adjusted EBITDA was 9.7%, which was above guidance. For Netcompany Core adjusted EBITA was 23.1% – in line with guidance.
Free cash flow for the year was DKK 408m compared to DKK 557m in 2020. The normalized cash conversion ratio was 94.3%. Cash and cash equivalents increased by around DKK 100m.
Revenue visibility increased by 79.4% to DKK 3,824.8m for 2022 compared to DKK 2,131.7m for 2021. Netcompany Core accounts for DKK 2,488.1m, which is an increase of 16.7% compared to 2021. Netcompany-Intrasoft accounts for DKK 1,336.6m.
For 2022, Netcompany expects revenue growth in constant currencies of between 48-56%, of which 13-18 is expected to be organic.
The adjusted EBITDA margin is expected to be above 20% and adjusted EBITA margin for Netcompany Core is expected to be above 23%.
[1] Netcompany Core is defined as Group less Netcompany-Intrasoft
In Q4, we completed the acquisition of Intrasoft International S.A. as planned and I am excited to welcome all Intrasoft employees, customers, and other stakeholders to the Netcompany Group.
The acquisition of Intrasoft impacted our revenue growth by 37%, for the two months of 2021 that were under our ownership, which lifted our total revenue growth for the quarter to close to 50%.
Despite new COVID-19 imposed restrictions in December and increased sickness through the Group related to the Omicron variant, we succeeded in meeting our guidance for the full-year revenue growth and margins as revenue grew 27% in constant currencies and adjusted EBITA margin for the Group was 21.8%.
With the acquisition of Intrasoft and the continued talent acquisition in Netcompany Core, we enter 2022 with more than 6,500 talented employees, which will lay a strong foundation for our continued growth.
I look into 2022 with great enthusiasm as I firmly believe that Netcompany stands in a strong position to be a leading player in the continued digitalization of societies. With our platforms and our deep IT skills embedded in all of our employees, we will be in a favorable position to accelerate our European presence further and continue our work towards our goal – to become a European IT services leader within the decade. André Rogaczewski, Netcompany CEO and Co-founder
Q4 Performance highlights
Revenue increased by 49.1% to DKK 1,152.1m in reported currencies and by 47.6% in constant currencies.
Organic revenue grew by 12.1%.
The gross profit margin was 33.5% against 42.4% in Q4 2020.
Adjusted EBITA decreased 5.9% and yielded a margin of 18.3%.
Adjusted EBITA margin was 21.8% for the organic businesses.
Free cash flow was DKK 134.7m.
Fair value adjustment of the investment in the Netherlands reflected a decrease of the total expected purchase price and impacted net profit positively by DKK 29.4m.
The cash conversion rate was 78%. Adjusted for the fair value adjustment to the contingent purchase price and normalized for tax payment, the conversion rate was 112.3%.
Debt leverage to 12 months rolling adjusted EBITA was 2.7.
