Our mission is to create software that makes running a business easier

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.

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. 

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.

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.

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.