Better Collective’s 2023 revenue increased by 21% year-on-year, following a 52% growth the previous year. This exceeded the target revenue range of €315m-€325m set in the 2022 earnings report. Recurring revenue reached €189m, up by 47%. The company also saw a 31% increase in EBITDA before special items, amounting to €111m and aligning with the high end of its €105m-€115m objective. The EBITDA margin stood at 34%, in line with the group’s goal of 30%-40% outlined in the 2022 report. Jesper Søgaard, Better Collective’s founder and CEO, highlighted the successful year, marked by profitable growth and strategic investments.
In Q4 2023, Better Collective achieved revenue of €85m, meeting its targets for the year. Recurring revenue for the quarter was €47m, a 15% increase compared to the previous year, indicating higher quality revenue. The company reported a slight decrease in overall revenue compared to Q4 2022, with organic revenue growth at -7%. EBITDA before special items for Q4 was €30m, down by 16% from the previous year, but the EBITDA margin finished at 35%, at the higher end of the 2023 range.
Better Collective’s 2023 expansion included the acquisition of Playmaker Capital for €176m in November, marking one of its largest deals. This acquisition is expected to strengthen the company’s position in North America and establish market leadership in South America. Following this acquisition, the company revised its 2023-2027 targets, raising the EBITDA margin before special items to a range of 35%-40%. Better Collective also welcomed BLS Capital Fondsmæglerselskab A/S as a new major shareholder, with 6.7% of the voting rights. Additionally, the company is now listed on Nasdaq Stockholm and Nasdaq Copenhagen.
Looking ahead to 2024, Better Collective has set ambitious financial targets, aiming to achieve revenues of €390m-€420m, representing growth of 19%-29%. EBITDA is expected to reach €125m-€135m, with a target growth of 13%-22%. The company plans to maintain net debt to EBITDA below 3x. The Playmaker Capital acquisition is anticipated to have an 11-month impact on 2024 results, with revenue and earnings expected to remain stable, but increasing over time as the acquisition ramps up.
