Management's review
Beskrivelse af virksomhedens væsentligste aktiviteter:Business review
The Company’s purpose is to help customers deliver delightful digital solutions to their audience by making Umbraco friendly, simpler and social. The purpose includes running the Umbraco Open Source CMS project. Further, the company offers products and services around the open-source software like: • Umbraco Cloud which is the Umbraco CMS with a convenience layer including hosting • Partnerships with web agencies in the ecosystem • Service and support contracts with enterprise customers • Add-on products and services complementing the open-source software. In 2023 the company continued to invest in building solid organizations in key markets - Nordics, United Kingdom, Benelux and the United States of America. Futher the company has invested in product development including building data centers in the United Kingdom as well as Oceania, as we saw high demands from these areas. During 2023 we successfully launched our new Partner Program enabling agencies to gain further flexibility in partnering with Umbraco. We introduced a credit system in which partners can use Umbraco products and services. As credits have a lifetime of two years, compared to the yearly partnership in the previous program, it has in 2023 and will in 2024 result in a significant increase in the deferred revenue, resulting in a lower booked revenue on approx. 1. 600 tEUR in 2023 and estimated to 1. 100 tEUR in 2024.
Financial review The Company experienced a very satisfying growth in sales of 41 % compared to 2022. Our sales growth was mainly driven by our Umbraco Cloud offerings, but also bye new partnerships with agencies and support agreements with enterprise clients that have contributed to making the overall business more solid and sustainable. The income statement for 2023 shows a net loss for the year of 2. 152 tEUR compared to a loss of 940 tEUR last year, and the balance sheet from December 31, 2023 shows an equity of 2. 131 tEUR. As mentioned above, our new Partner Program with 2 years of deferrals instead of 1 year has had a significant impact and reduced the booked revenue for 2023, however we will see that revenue in the 2024 books. Management considers the Company's financial performance in 2023 to be satisfactory. For 2024, we will continue to invest further in growth. As for 2023 this means product development, community activities and increased sales and marketing costs in key markets. We continue to expect a 25% average YOY sales growth across markets and products resulting in a positive EBITDA of minimum 500 tEUR.
Organization, Staff and diversity and inclusion Umbraco has staff and offices covering the UK, the USA, the Netherlands, and the Nordics. However, Umbraco has customers worldwide and trades with customers in more than 100 countries. By the end of December 2023, there are more than 130 employees with the Company. Mirroring the global reach of the company, Umbraco employs 27 different nationalities across the world. In 2023 Umbraco hired 41 new employees. Staff can be located anywhere following our introduction of a “work from anywhere” policy in late 2020. Umbraco has invited staff to join as shareholders. Around 45% of the eligible staff members have become shareholders in the company since the introduction of the program in 2021. The ambition is to invite staff to become shareholders on a regular basis e. g. on a 12-18 months frequency. Diversity and Inclusion We want to be good at what we do. We believe that working actively with diversity and inclusion helps us understand customers and markets better thus making us better at what we do. In general we strive to create a diverse environment in and around Umbraco, where everyone feels welcomed and included. Within IT/Tech it is commonly known that women are underrepresented both as employees and among the talent pools that we are recruiting from e. g. developers. That is why we as a company have set the goal to be above the Danish IT-industry average on the underrepresented gender. We are currently on par with the Danish IT industry gender breakdown of approximately 30% female and 70% male. In order to improve on this we have initiated the following initiatives in recruiting in 2023: • Gender neutral job ads and bias free recruitment • Encouraging everybody from different backgrounds to apply • Always present a diverse line-up of candidates to hiring managers • Hiring the candidate that brings the most value - not necessarily the one with the best traditional skill set. • 40% of new hires in 2023 have been females We have continued to facilitate representation of the underrepresented gender through: • Ensuring that we are diverse and inclusive in all our activities e. g. developer community activities, marketing, communication • Insisting on a diverse speaker lineup at all Umbraco events • Only participating in, and supporting diverse events • Offering equal opportunities for staff through onboarding, internal career paths and other supporting activities on the individual level • Actively supporting activities outside the company facilitating diversity and inclusion in our local communities e. g. Hack your future, coding classes, mentor program for female students at colleges etc. Gender composition in 2023 • Gender composition of the company is approximately 30% non male hence on par with the Danish IT-industry • Board of directors: 20% female (13% female board member in the Danish IT industry) • 1st level: CEO - 100% male • 2nd level: C-Suite - 22% female • 3rd level: Team leads and Group leads - 28% female • New hires in 2023: 40% female
Knowledge resources In 2023 we shipped two major versions - Umbraco 12 and Umbraco 13, with the latter being a LTS (Long Term Support)-version. This is on .NET 8 which is also LTS. Both versions were released on time and brought new features with them - including, but not limited to, full headless capabilities, webhooks, EF-core support, dynamic root and blocks in the RTE. The Open source nature of our core product lets us be user-centric in our product development, through community involvement via our External Product-Stakeholder-groups (think: advisory boards for all of our products). Furthermore, we shipped more releases of our other products than ever before: • 45 Umbraco CMS releases • 36 Umbraco Forms releases • 45 Umbraco Deploy releases • 36 Umbraco Workflow releases For our Cloud platform, we finalized: • CI-CD flow, to let you work with your code how you want to • We added a UK and an AUS region to the mix • Automatic Minor-upgrades • Shared secrets • Availability and Performance dashboards • Our cloud platform continues to evolve and mature with rock solid operations and high availability, and we are looking at a rich roadmap adding functionalities and flexibility that will open doors to more customers in new segments.
Aqusitions In 2023 Umbraco also acquired “Vendr” - which adds an ecommerce product to Umbraco. It was rebranded under the name “Umbraco Commerce” and is sold on a recurring subscription basis. We have continued the development of the product throughout the year. Along with Vendr, also the product “Konstrukt” was acquired - this is now known as “Umbraco UI builder”. Both products are add-ons to our core CMS. Our marketplace, the hub for discovering and promoting Umbraco Integrations, continues to grow. At the end of 2023, we had more than 300 integrations available, thus reducing transaction time for clients and partners. For more information, see our Product Roadmap history on: https://umbraco. com/products/roadmap/roadmap-history/
Customers including service and support With an overall NPS of 75 over the year among customers using Umbraco Support, we are very satisfied to comfortably be able to claim that we are among the top SåS companies using NPS to gauge their customer satisfaction. We maintain a decent ticket response time which without doubt has been contributing to the NPS score. Umbraco Support at a glance • NPS: 75 • Opening hours: 8 am to 11 pm CET (Mon-Fri) • Channels: phone, chat and email • Responding to 90% of all tickets within opening hours: 91% • Resolving 94. 5% of all tickets in 1st line support *Net Promoter Score can range from negative 100 to 100 ( -100 to +100). The industry standard is on average 45-50 according to general publicly available surveys. Other noteworthy achievements in 2023 are: • Launch of a new training platform with four on-demand training courses available since the release in May 2023.
Sustainability In 2023 our efforts remained as focused as ever to reduce our carbon footprint. All of the initiatives that were launched in 2022 remained active and a few new ones saw the light of day. The road towards carbon neutrality 2023 is the second year for which we will have been calculating and offsetting the CO2 impact of the entire company. We will be releasing a report of our CO2 emissions, in the Umbraco Impact Report 2023 which will be available ultimo March 2023. Further in 2023 we introduced “carbon neutral workforce” meaning that we offset all employees' individual carbon footprint, based upon the national per capita average in our main markets. Offsetting is done through the supplier Ecologi (ecologi. com/umbraco), focusing primarily on funding CO2 avoidance projects such as funding of renewable energy projects and other projects that remove or reduce carbon emissions equal to our emissions. It is important to note that offsetting is not our primary or ideal solution to minimizing our climate impact. Reducing our own emissions and those of our suppliers as much as possible will always be option 1. We will continue this effort year by year as more information and opportunities for choosing the carbon friendly alternative are becoming available.
Vetting of new suppliers and more information from existing suppliers As we have identified that a lot of our total emissions originate from our suppliers, we have since 2022 been going over all new suppliers investigating their sustainability efforts before we start working with them. This effort continued in 2023 to ensure that we are selecting the right suppliers not only from a price/delivery point but also looking at sustainability. As part of obtaining an overview of all emissions related to running Umbraco as a company, we are in touch with our existing suppliers requesting information about their CO2 emissions, in order to make the most precise calculations of the full impact of Umbraco and to encourage them to reduce their emissions. Reduce average co2 emissions per employee with 10 percent in 2024 As a growth company with customers in 100 countries our need for e. g. business travel is also growing. Despite this we have set a goal of reducing the average carbon emission per employee with 10% in 2024. This is done through e. g. replacing business flights with more carbon friendly alternatives when meeting with clients/partners/customers. This is an example of how we want to reduce our emissions first, and offset secondly. Regardless, we still offset the travel that we can’t avoid.
Sustainability using our software In May 2023 we launched our community sustainability team with the purpose of highlighting best practices on building digital solutions from a sustainability point of view - enabling users of Umbraco to evaluate an implementation not only from a technical perspective but also a sustainability perspective. The team has received significant recognition during the year for its initiatives aimed at fostering sustainability within the Umbraco ecosystem. Umbraco was highly commended in the 'Best Value Chain Initiative' category at the Sustainability in Tech Awards 2024, highlighting Umbraco’s commitment to sustainability. Advocacy Over the year we have been advocating for reducing carbon emission through consciously using implementation methods and code practices that reduce carbon emissions. This is done at colleges and universities in our key markets as well as industry organizations.
The Umbraco Community In 2023, the Umbraco community continued to uphold its reputation as the friendliest open-source community worldwide, emphasizing collaboration and support. Members remained dedicated to enhancing Umbraco, not only through code contributions but also by addressing critical issues such as diversity, sustainability, and accessibility. The community's commitment to listening and fostering collaboration remained unwavering. Community Champions and MVPs Umbraco MVPs continued to emerge as influential advocates, both for Umbraco itself and for their fellow community members. In 2023, the MVP program welcomed 17 new MVPs and reinstated 2, expanding its roster of dedicated individuals to 83. Additionally, the introduction of a Champions Program empowered MVPs to extend their impact further. This initiative enabled Umbraco HQ to support various community-driven initiatives, including efforts focused on diversity, equity, and inclusion (DEI), as well as facilitating workshops for students within their respective communities. Connecting Through Events - Umbraco Festivals and Meetups Umbraco Festivals and meetups served as vital hubs for connection and knowledge sharing in 2023. These events transcended geographical boundaries, fostering inclusivity, and facilitating meaningful interactions among community members. The year witnessed an expansion of Umbraco meetups across various regions, with new meetups organized in India, Turkey, and a restarted one in Norway. The community's global reach was further underscored by the attendance of 1750+ individuals at 111 community-run and organized meetups.
Events after the balance sheet date No events materially affecting the Company's financial position have occurred subsequent to the financial year-end.
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