Company Announcements

Netcompany - Interim report for the nine months ended 30 September 2022

Source: OMX
Netcompany - Interim report for the nine months ended 30 September 2022

Based on strong performance in Q3 2022 Netcompany expects full year results within original guidance

Company Announcement
No. 27/2022
3 November 2022


In Q3 2022, Netcompany grew revenue to DKK 1,348.1m – equal to 68.9% growth compared to Q3 2021 of which 50.7 percentage points was non-organic and related to Netcompany-Intrasoft. Organic revenue growth was 18.2% (constant 18%).

Adjusted EBITDA was DKK 308.9m compared to DKK 221.1m in Q3 2021. Adjusted EBITDA margin of 22.9% in Q3 2022 (constant 23.1%) compared to 27.7% in Q3 2021.

Adjusted EBITDA margin for Netcompany Core was 28.5% in Q3 2022 (constant 28.7%) compared to 27.7% in Q3 2021.

Average number of full time employees was 7,039 compared to 3,385 in Q3 2021. The acquisition of Netcompany-Intrasoft accounted for 3,088 employees of the growth, while employees in Netcompany Core grew by 566.

Free cash flow was strong in the quarter and improved by 21.1% to DKK 221.5m.

Churn rates and sickness level are normalising and employee satisfaction was slightly improved from 2021.

Revenue visibility for 2022 increased by 61.8% to DKK 5,296.2m compared to DKK 3,273.8m at the same time last year. The acquisition of Netcompany-Intrasoft accounted for 49.1 percentage points of the increase.

For the full year Netcompany narrows expectation to revenue growth in constant currencies to between 50% and 52% for the Group. Expectation to Group EBITDA margin in constant currencies is maintained at above 20%.

”In line with our expectations we realised high growth and strong margins in Q3 2022 driven by solid performance in both Netcompany Core and Netcompany Intrasoft.

Our ability to attract new employees remains intact, which, combined with the lower churn ratio observed, gives us a strong foundation to continue to add new employees to the Netcompany family. At the end of September our Group totals more than 7,000 employees.

I am proud and humbled to see that the annual employee survey conducted for Netcompany Core confirms that our employees continue to be very satisfied with Netcompany as an employer, leading to an improvement in the overall employee satisfaction score for the Group compared to last year.

Despite unrest in both geo-political matters and macro environments in general, we remain confident of our ability to grow our Group revenue of between 50% and 52% and realise EBITDA margin of more than 20% for the Group - both in line with our original guidance for 2022” 

André Rogaczewski, CEO and Co-founder

Performance highlights for Q3

  • Revenue increased by 68.9% to DKK 1,348.1m in reported currencies and by 68.7% in constant currencies.
  • Organic revenue grew by 18.2%.
  • Gross profit margin was 34.9% against 41.2% in Q3 2021.
  • Adjusted EBITDA increased by 39.7% and yielded a margin of 22.9%.
  • Adjusted EBITDA margin was 28.5% for the organic businesses.
  • Free cash flow remained strong and improved to DKK 221.5 compared to DKK 182.9m in Q3 2021.
  • Free cash flow normalised for tax payments improved by 22.8% to DKK 168.2m.
  • Cash conversion rate normalised for tax payment was 85.4% compared to 118.5%, impacted by the inclusion of Netcompany-Intrasoft.
  • Debt leverage to 12 months rolling adjusted EBITA was 2.1x.
  • Strong free cash flow was used to reduce Group debt with DKK 200m.

Financial overview

For full details on financial performance, see enclosed Company announcement Q3 2022.

Conference call details

In connection with the publication of the results for Q3 2022, Netcompany will host a conference call on 3 November 2022 at 11.00 CET.
The conference call will be held in English and can be followed live via the company’s website; 

Dial-in details for investors and analysts:

DK: +45 78 15 01 09

UK: +44 33 33 00 92 67

US: +1 646 722 4904

Webcast Player URL:

Additional information

André Rogaczewski, CEO
+45 70 13 14 40

Thomas Johansen, CFO
+45 51 19 32 24