Milestone Systems surpasses DKK 1 billion revenue mark in latest financials
16 April 2020
WITH AN annual growth rate of 14% over the last five years, open platform VMS specialist Milestone Systems’ net revenue increased to DKK 1.03 billion in 2019. Operating income (EBIT) was DKK 124 million compared with DKK 194 million the previous year, a planned consequence of increased investments in innovation and development.
The positive revenue development primarily derived from an increase in license and Care sales. Moreover, and impressively, Milestone Systems continued to increase sales in all of its markets.
“Two major factors have impacted our positive result,” observed Interim CEO Lars Larsen. “Our continued focus on long-term and sustainable growth, which has resulted in profitability every year since the company was established 22 years ago, and perhaps more importantly our people. Focusing on long-term sustainable growth requires the best people who can identify the right opportunities for our company. If you don’t have the right people, then even the strongest of business strategies may fail.”
In the past five years, Milestone Systems has nearly doubled the number of its employees to more than 900. Across the last 12 months, increased investments have been made in R&D capacity, expanded engineering teams in Copenhagen and Sofia and the establishment of a new engineering hub in Barcelona.
Flexibility to make the right choice
Milestone Systems continues to deliver flexibility for its community of dedicated partners and end user customers, enabling them to respond swiftly to new disruptive technologies. The company's open technology platform allows partners to integrate with its software, while Milestone Marketplace (Milestone's open business platform) enables them to grow their business on a faster footing.
For its part, Milestone Marketplace was launched last year and connects buyers and sellers to co-create innovative solutions. In 2020, the business will launch version 2.0 of Milestone Marketplace, thereby enabling customers to find resellers and integrators who deliver video solutions.
“With these two open platforms,” outlined Larsen, “we continue to bring the power of 'open' to our partners. To drive them forward, we've funded a programme entitled Accelerate Innovation, and made significant investments in our engineering teams. Last year, we actively continued these investments. We're already starting to see the results in 2020.”
Milestone Systems expects to further strengthen its global market position. Revenue growth will be driven by a continued expansion of its competitive portfolio of innovative products, including both Video Management Software and NVRs, as well as the international business ecosystem of channel partners, camera vendors, technology and solution partners.
As was the case in 2019, the business expects to witness continued growth in both invoiced revenue and net revenue. Costs are expected to grow in balance with the top line growth.
Referencing the current situation, Paulsen concluded: “As a consequence of the COVID-19 virus outbreak, forward-looking expectations, and especially so those that relate to future revenue and operating profit, are subject to risks and uncertainties which may cause actual development to differ materially from expectations. The present situation at any given time is, of course, being evaluated on a continual basis by the management team.”