2022 financial performance and 2023 guidance

Financial performance against guidance for 2022


With the acquisition of Intrasoft International S.A in October 2021 a range of detailed performance metrics were introduced for 2022, with the ambition to create full transparency of the performance of Netcompany-Intrasoft as a standalone business. During the year, more business than anticipated was done as joint projects shifting revenue and margins from Netcompany Core to Netcompany-Intrasoft, making it less relevant to view performance against individual targets but rather focus on targets for the Group all together.

Group revenue grew by 52.5% in constant currencies in 2022 – well within the guided range of 48% and 56% as set out in the beginning of the year, and slightly above the narrowed guidance range between 50% and 52% as communicated in connection with the Q3 2022 report.

Group adjusted EBITDA margin in constant currencies was slightly above 20% – also in line with the original guided target of above 20% as set out in the beginning of the year and reiterated in connection with the Q3 2022 report.

Guidance for 2023


The financial guidance for the Group for 2023 is based on an assumption that Europe will be in a recession for part of the year. While it is expected that the demand for continued digitalisation of both societies and enterprises will continue to be present it is inherently difficult to predict timing of new projects in a recession scenario, which is reflected in our expectations for 2023.

It is also anticipated that the recession will lead to more “wait and see” situations related to decisions on when to initiate new projects with our customers, which potentially will have negative impact on revenue growth and margin. It is further anticipated that price adjustments will be lower than underlying CPIs as a recessionary market makes large 1:1 CPI-based price increases difficult.

The Group does not expect any non-organic contribution to revenue growth or margin for 2023.

Fewer working days in Denmark, Norway and UK will have a negative impact on margin of around 0.5 percentage point.

Salary costs are expected to increase more than normal as a combination of regular salary increases and increase of variable remuneration. This will impact margin by around 1.5 percentage points.

The move to a new corporate headquarter in Copenhagen is expected to have a dilutive impact on margin of around 0.5 percentage point.

The introduction of the new “Go-To-Market” approach requires investments in 2023 and is expected to impact margin negatively by around 0.5 percentage point.

Investments into new office facilities for Netcompany-Intrasoft and investment into a common administrative IT infrastructure for Netcompany-Intrasoft is expected to impact margins negatively by around 0.5 percentage point.

Expected discontinuation of Netcompany-Intrasoft in Africa and the Middle East is of minor impact and is included in the guidance.

For 2023, Netcompany expects to grow revenue in constant currencies by between 8% and 12% and expect adjusted EBITDA margin to be between 15% and 18%.

Free cash flow from operations is expected to increase in absolute terms from the level of 2022. Free cash flow will for all material matters be used to deleverage the debt ratio of 1.6x end of 2022 significantly.

The Group does not expect to initiate any share buyback programmes or to pay out dividends during 2023.

Netcompany’s expectations for 2023 reflects an unprecedented uncertainty in Europe, not only related to macroeconomic factors but also to continued high uncertainty regarding the geopolitical environment in Europe as well as globally, which might have even further negative spillover effects on Europe.



Expected margin for 2023 compared to realised 2022 margin