Inderes (INDERES) Q3 2021 earnings summary

Executive summary

• Q3 revenue rose 41% YoY; all three business areas grew, while profitability eased as expected against an exceptionally strong comparison quarter.

• Growth was supported by new and expanding customer relationships, virtual events and analysis subscriptions; listing activity strengthened the outlook.

• Active community membership increased by 6,000 during Q3; the First North listing was completed successfully.

Financial highlights

• Q3 revenue was €2.580m, up 41% YoY; EBITDA was €0.558m, down 4%, EBITA €0.530m, down 5%, and operating profit €0.445m, down 5%.

• Q3 recurring revenue grew 27% and represented 59% of revenue, versus 65% a year earlier; project revenue also grew strongly.

• 9M revenue was €8.386m, up 46% YoY; EBITDA was €1.722m, up 22%, EBITA €1.627m, up 22%, and operating profit €1.372m, up 28%.

• 9M recurring revenue represented 52% of revenue, versus 62% in 9M 2020; virtual-event solutions and subscription analysis were the main revenue growth drivers.

Outlook and guidance

• FY2021 guidance remained unchanged: revenue of €11.6–12.3m and EBITA of €2.1–2.6m.

• Virtual-event demand was expected to remain strong in H2; Helsinki listing activity and stronger competitive position supported growth in the analysis contract base.

• Investment in long-term growth and the technology platform was to continue alongside maintaining good profitability.

• Long-term target: maintain a combined revenue growth rate and EBITA margin of 30–50% regardless of market cycle.