Our mission is to create software that makes running a business easier
Heeros as an Investment
Heeros is a Finnish software company offering business-critical, cloud-based financial administration solutions in a growing market. Founded in 2000, Heeros is a pioneer in its field with ca. 18 000 end customers.
Our portfolio covers solutions to digitalize key business processes from financial and human resources management to enterprise resource planning. We target especially CFO buyer personas and intend to have a long-term relationship with the CFO office.
Digitalization is fundamentally reshaping the traditional roles and responsibilities in companies, moving CFO/finance departments towards a business role and bringing a completely new set of needs. We aim to meet those needs with integrated, user-friendly systems used across the organization.
Heeros has demonstrated consistent growth in recent years. From 2020 to 2022 revenue increased by 20%. This positive momentum has carried over into 2023, with a continued emphasis on driving both growth and profitability.
Presentation: Key Investment Highlights
Get to know Heeros operating model, strategy, portfolio and customers.

Key investment highlights

Unique one-stop-shop for modular, business-critical process applications
Customer needs are changing, particularly in the SMB sector. Customers now seek integrated, user-friendly systems that can be utilized throughout their entire organization. To cater to these changing needs, Heeros has broadened its offering. Our recently renewed business management cloud portfolio prioritizes key areas such as invoice processing, accounting, HRM, and ERP, specifically designed to meet the needs of CFOs.
What sets us apart is our focus on modularity. Thanks to the modular design of our products, our customers can implement only the solutions that best serve their business requirements and easily expand usage as their business evolves.

Scalable, cost-effective business and distribution model
One of the key strengths of Heeros lies in its scalable SaaS-business model, which enables efficient delivery of its services to SMBs not only in Finland but also internationally. Heeros can effectively offer and deliver its solutions to a wide customer base, regardless of geographical boundaries.
Furthermore, Heeros' distribution model allows for the upselling of partner products, thereby expanding the range of solutions available to customers. Additionally, Heeros has established robust partnerships with industry leaders such as Opentext and Enable Banking. These partnerships enable Heeros to deliver its services across multiple countries, leveraging the expertise and resources of its trusted collaborators.
Sticky long-term customer relationships
The strong relationships that Heeros maintains with its customers also present valuable upsell and cross-sell opportunities. Through its own software development efforts and inorganic growth, Heeros can offer additional products and services to its customer base, capitalizing on their trust and confidence in the company.

Clear pricing power and agenda with limited churn
One of Heeros' notable strengths is its ability to implement multiple pricing and packaging changes over the past 12 months without experiencing a significant increase in customer churn.
Looking ahead, Heeros anticipates continuing these changes in pricing and packaging, which provides an opportunity for growth. With a relatively low end-customer ARPA of €54 in H1 2023, there exists significant untapped potential in gradually increasing the share of wallet within its customer base of approximately 18,000.
Furthermore, Heeros has made changes to its customer delivery model, enabling the company to effectively nurture smaller or non-ICP customers through a tech touch approach. This allows customer engagement and support without incurring additional fixed costs.

Solid profitability through sharp focus on operational performance
Heeros has embarked on a significant transformation project since early 2020, aimed at continuously improving operational performance. These efforts have resulted in consistent improvements in profitability. Notably, the company's EBITDA has grown from less than 1 MEUR in 2019 to nearly 2 MEUR in 2022. This upward trajectory is expected to continue in 2023, as evidenced by a 15% year-on-year growth in H1 2023.
The scalability of Heeros' business model plays a pivotal role in achieving solid and continuously increasing profitability as the company grows. During H1 2023, contract revenue (MRR) grew by 9%, setting the stage for a robust growth trajectory in the future. Importantly, Heeros' improved profitability during H1 2023 has allowed the company to become self-funded and cash flow positive. Despite this, Heeros remains committed to investing in future growth opportunities.
Ability to effectively drive growth through M&A
This integration expanded the range of solutions offered to our customers. Looking ahead, Heeros foresees many opportunities for similar deals in the future with great potential for cross-selling expanded product suite to its 18 000 end customers.
Heeros' financial targets
Heeros’ financial outlook for 2023
Heeros estimates that its combined EBITDA margin (EBITDA, % of revenue) and revenue growth percentage (Rule of 40) will be at the level of 30% during the 2023 financial period.
Long-term strategic financial target
Heeros aims to maintain its annual combined EBITDA margin and revenue growth percentage (Rule of 40) at over 40%. Heeros will actively seek inorganic growth opportunities and impact of those are not included in the long-term financial target.