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14 Mar 2019

Continued growth: novomind generates revenues in excess of EUR 34 million and continues its international expansion

Hamburg-based software developer grows at double-digit rate for 13th consecutive year / Revenues up by 10%, more than 25 new customers in e-commerce and customer service / Entry into UK market planned for 2019

novomind AG continues to grow and looks back on another successful financial year: in 2018, the independent software developers from Hamburg generated revenues of EUR 34 million (2017: EUR 31 million). Growing its revenues by 10% on the previous year, the company reached its double-digit growth target for the 13th consecutive year.

Consolidated revenues of the novomind Group, which in addition to novomind AG also includes novomind iSHOP GmbH, novomind messaging GmbH, piazza blu² GmbH as well as the international subsidiaries in Alexandria (Egypt) and Dubai (UAE), totaled EUR 42 million in 2018 (2017: EUR 38 million). More than 25 new customers were won across all business segments, including Europe's leading ticketing company, CTS EVENTIM, the Dorgeriemarkt Müller drugstore chain as well as shopping center management company ECE. For Mammut, the Swiss mountaineering brand and existing novomind customer , novomind implemented the first US web shop to support Mammut’s entry in the US market.

The year 2018 was marked by three important milestones for novomind: By setting up novomind MEA (Middle East and Africa) in April 2018, novomind entered the Middle Eastern and North African markets; the new distribution company ideally complements the existing fulfillment center in Egypt (novomind Egypt LLC). In August, novomind became one of the first official WhatsApp Business solution providers and is now able to integrate the official WhatsApp Business API of the successful global messaging service for enterprises and institutions – a milestone in the customer service segment. Also in the summer, novomind opened a branch in Rostock, its second location in Germany, where a 10-strong team is working to implement the company’s further growth plans and targets. After all, novomind will continue to pursue its strategy of moderate expansion also in 2019.

International expansion, partner network and even greater independence

novomind is set to continue its growth. “We want to further increase our revenues in a market that is becoming increasingly global,” says Peter Samuelsen, founder and CEO of novomind. The course for this growth has been set over the past years in a market-oriented and customer-centered manner. The next steps will be taken in 2019: “We have also positioned ourselves more broadly at the top, as we already have ambitious plans for this year,” Samuelsen says to explain why the company expanded its Management Board earlier this year. Four long-serving executives have joined the Management Board, which is now composed of seven members. The areas of responsibility have thus been allocated efficiently for the coming tasks. At the same time, the owner-managed company has become much more independent: the novomind shares held by Hamburg-based investment company Haspa BGM (Beteiligungsgemeinschaft für den Mittelstand) were repurchased on 1 November 2018 and offered to junior managers.

The company will also continue its international expansion. This will be done with the usual caution but also with great determination and with the help of selected partners. “We are systematically expanding our international partner network,” says Samuelsen. After all, there is great demand for intelligent, customized and easy-to-integrate software solutions. As an independent product developer, novomind is able to respond quickly to all requirements and to act flexibly, also on an international scale, with the help of its partners.

The company’s next step will be the entry into the UK market. “We have found a partner who not only knows the UK e-commerce market inside out, but who will also act as a door-opener for us,” says Samuelsen. The first UK customers are therefore expected to integrate the novomind iSHOP shop system before the end of this year, thus benefiting from the advantages of this high-performance SaaS (Software-as-a-Service) solution.

novomind products are used in the areas of customer service, e-shops, product information management (PIM), international marketplace integration and customer service. Customers include institutions, associations and companies as well as government agencies of all sizes, financial services providers and mid-sized companies as well as international conglomerates.