Heeros (HEEROS) Investor presentation summary

Key investment highlights

• High-quality SaaS portfolio focused on AP/AR automation, financial management, and vertical ERP for SMEs.

• Strong market position in Finland, serving 17,000 SME customers across accounting offices, direct clients, and PSA vertical.

• Scalable, cost-effective business model with high recurring revenue, low churn, and robust ERP integrations.

• Clear pricing power, with successful price increases and packaging changes having minimal impact on churn.

• Profitability has increased significantly due to operational efficiency improvements and cost savings.

Product and customer focus

• Comprehensive cloud-based solutions for financial management, HR, payroll, and business intelligence.

• Modular, easy-to-use products tailored for accounting offices, direct SME customers, and PSA companies.

• Continuous product renewal, including new mobile apps, ERP connectors, and integrated HR solutions.

• Strong focus on digitalization trends impacting CFOs, emphasizing efficiency, data quality, and decision support.

Financial performance and SaaS metrics

• Q3 2024 revenue stable at €2.8M; contract revenue up 3%, transaction revenue down 16%.

• EBITDA up 42% to €1.2M, with margin at 44%; adjusted EBITDA up 26% to €2.3M.

• Annual recurring revenue (ARR) at €10.9M, net revenue retention at 102%, ARPA at €58.

• Sales momentum strong, with new ARR intake at €122K for Q3 and 16% growth Jan–Sep.

• Net debt position improved significantly, now net debt positive due to operational profitability and loan cancellations.