OTRS AG publishes annual report for 2018: Strong growth in profit and revenue / New product strategy shows sustained effect

- Sales revenues increased solidly to EUR 8,314 thousand (previous year: EUR 7,645 thousand)

- The EBITDA amounts to EUR 970 thousand (previous year: EUR 510 thousand)

- Outlook 2019: Growth of total revenues to more than EUR 9 million

Oberursel - Germany, May 2, 2019: OTRS AG (ISIN DE000A0S9R37) published its 2018 annual report and forecast for the current fiscal year today.

OTRS AG, the manufacturer and world's largest service provider of the OTRS Service Management Suite, has managed to continue its growth path in the 2018 fiscal year. Based on an adjusted product strategy and increased demand for cloud services, the company achieved strong growth in revenue and operating profit in the 2018 fiscal year, achieving its intended fiscal goals. Revenues increased by 8.8% to EUR 8,314 thousand after having been EUR 7,645 thousand in the previous year.

The new product strategy was reflected in the increased sales. The shift will see features of current OTRS Versions flow into the free ((OTRS)) Community Edition after a waiting period. On the other hand, customers who opt for OTRS, which is subject to a fee, receive a state-of-the-art solution with the latest features and a full range of services. This includes consulting, operation and maintenance as well as a reliable Customer Solutions Team of OTRS Experts who provide support. Additionally, it is possible to run OTRS in your own data center. OTRS is still offered as both "fully-managed" and "on-premise" solutions.

In addition, essential recurring revenues based on OTRS Software again increased. As of the 2018 balance sheet date, the AG recorded growth of more than 18.6% from EUR 5,830 thousand to EUR 6,914 thousand. Measured against total revenue, recurring revenue now accounts for 83.1% (previous year: 76.3%). The aim is to continue generating a steady stream of revenue through recurring income in order to achieve greater predictability and visibility.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 970 thousand in fiscal year 2018, compared to EUR 510 thousand in the previous year. OTRS AG achieved an operating cash flow of EUR 1,014 thousand, compared to EUR 1,703 thousand in the previous year.

Based on extensive research and development activities at OTRS, OTRS AG recorded solid growth. Earnings before interest and taxes (EBIT) amounted to EUR 579 thousand in the year under review compared with EUR 128 thousand in the previous year. The number of active contracts rose by 54 from 715 to 769. The share of the managed solution increased from 30% to 38% of the total contract volume in 2018.

"We are very satisfied with the course of our business in 2018. Significantly surpassing the revenue forecast of EUR 8 million and the increased operating profit underline the success of OTRS AG. Additionally, the positive developments of the past fiscal year reaffirm our decision to adjust our product strategy. We enthusiastically look forward to the current 2019 fiscal year and to further exciting innovative developments", says André Mindermann, CEO of OTRS AG.

OTRS Outlook 2019

Against the backdrop of advancing digitalization, OTRS AG is pushing the development of its software in order to be able to profit from growing demand. Increased interest in cloud-based software has been confirmed by market figures: A forecast by IT market researchers Gartner assumes that the global market for cloud computing will grow to 278.3 billion US dollars by 2021. This development should also drive demand for OTRS. The new product strategy implemented in the 2018 fiscal year should have a supporting effect.

In the current fiscal year, the Management Board plans to further increase OTRS (managed) sales in particular. In line with the corporate strategy, the Management Board expects total revenue to grow to more than EUR 9 million.

Detailed information can be found in the Annual Report at
EN: https://corporate.otrs.com/investor-relations/financial-publications/ (available June 12)
DE: https://corporate.otrs.com/de/investoren/finanzberichte/

About OTRS AG
OTRS AG is the manufacturer and world's largest service provider for the OTRS Service Management Suite, awarded the SERVIEW CERTIFIED TOOL seal of approval. It offers enterprises of all sizes flexible solutions for process and communication management, in order to save time and money. Its customers include Lufthansa, Airbus, IBM, Porsche, Siemens, Bayer Pharma AG, BSI (German Federal Office for Information Security), Max Planck Institute, Toyota, Huawei, Hapag Lloyd and Banco do Brazil (Bank of Brazil). More than 170,000 companies worldwide use OTRS, including over 40 percent of the DAX 30 companies. OTRS is available in 38 languages. The company consists of OTRS AG and its six subsidiaries OTRS Inc. (USA), OTRS S.A. de C.V. (Mexico), OTRS ASIA Pte. Ltd. (Singapore), OTRS Asia Ltd. (Hong Kong), OTRS Do Brasil Soluções Ltda. (Brazil) and OTRS Magyarország Kft. (Hungary). OTRS AG is listed on the Basic Board of the Frankfurt Stock Exchange. Further information can be found at: www.otrs.com

Press Contact OTRS:
OTRS AG
Saskia Stähle-Thamm
Zimmersmühlenweg 11
61440 Oberursel
Telephone: +49 (6172) 681988-43
Email: [email protected]

Investor Relations:
CROSSALLIANCE communication GmbH

Susan Hoffmeister

Bahnhofstr. 8
82166 Graefelfing/Munich

Telephone: +49 (89) 891250903-30

Email: [email protected]

Internet: www.crossalliance.de