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. 17 000 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, 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

Work together

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, specifically designed to meet the needs of CFOs and ERP's for companies operating in professional services management.  

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. Heeros solutions can be easily integrated to support any existing software a customer may have. For example, they enhance ERP systems by adding more capabilities in a cost-effective manner.

Business partner

Sticky long-term customer relationships

Heeros fosters long-term customer relationships with approximately 17,000 existing customers. Heeros demonstrates a low churn rate, reflecting loyalty and stickiness of its customer base. Moreover, over 95% of Heeros' revenue is recurring, highlighting the predictability of its business model. This is further reinforced by a good net revenue retention rate of 106 % at end of 2023.

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.
Developing a business plan

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.

Business to business sales

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 €52 in 2023, there exists significant untapped potential in gradually increasing the share of wallet within its customer base of approximately 17,000.

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.

Business objectives

Strongly increasing profitability driven by operational efficiency improvements and scalable cost base

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 (adj.) has grown from less than 1 MEUR in 2019 to 2,7 MEUR in 2023. Current run-rate profitability is significantly above the level achieved in 2023, and overall profitability is expected to grow in 2024.

The scalability of Heeros' business model plays a pivotal role in achieving solid and continuously increasing profitability as the company grows. During 2023, contract revenue (MRR) grew by 9%, setting the stage for a robust growth trajectory in the future. Importantly, Heeros' improved profitability 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

One of Heeros' strengths lies in its ability drive growth through M&A as demonstrated by the integration of Taimer. Not only did the takeover result in the realization of sales and cost synergies, but it also introduced PSA as an integral part of Heeros' product suite.

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 17 000 end customers.


Efficiency megatrends driving growth

European software market has become increasingly open as SaaS solutions have become readily available even for smaller companies searching for "efficiency products”. This brings substantial opportunities to Heeros offering solutions for digitizing critical business processes.

Rising use of emerging technologies such as AI, cloud adoption and digital transformation support and drive the European software market growth, which is estimated to be in double-digit numbers during the next few years. Supported by these megatrends, Heeros taps into the SMB segment, which is missing one-stop-shop vendors that can serve companies across multiple countries and support CFO offices going international.

Heeros' financial targets

Heeros’ financial outlook for 2023

Heeros expects that both revenue and EBITDA for 2024 financial period improve from 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.

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From the CEO

Views of Heeros CEO on the business and strategy.

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Investor calendar

See important dates for investors.
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