The Human Capital Management market is attractive,
growing by 8 – 10%* annually
Zalaris is a leading European provider of global payroll and human capital management solutions, operating in a market characterised by strong positive trends. These trends are driven by large and mid-size enterprises that are streamlining their operations across borders in pursuit of cost reduction and increased efficiency. The expected market growth is particularly high in the multi-country segment.
Zalaris has a strong market position through PeopleHub
Through the comprehensive suite of payroll and HR services offered by Zalaris PeopleHub, we assist our customers in cost reduction and process streamlining, all based on a unified IT platform with local presence. As a leading provider in the multi-country segment, we hold a prime position in the most attractive segment of the payroll services market.
Zalaris has a history of consistent growth
We have a strong track record, with 22 years of uninterrupted growth, a trend we expect will continue. Zalaris PeopleHub is gaining popularity among mid-market and large customers looking to digitalise their Payroll & HR processes, resulting in a reported revenue growth of 24% in the last year. We have now reached the milestone of being a company with an annualised revenue of 100 MEUR, and we aim to continue delivering above our target of 10% organic growth for the next 36 months.
Zalaris has an attractive, scalable operating model with a predictable recurring revenue base
Our revenue stream is stable, with around 80% of revenue being recurring or recurring like. On average, each customer contract within our Managed Services has a duration of approximately 5 years, and we experience minimal annual churn of just 2 – 3%. Zalaris PeopleHub is a scalable solution, supporting our industrialised approach to HR & Payroll, facilitated through our centralised global service delivery centers.
Significant financial targets (to 2026)
- Growth: Organic revenue growth +10%
- Adj. EBIT margin: 12 -15%
- Cash conversion: >70% of adj. EBITDA
- Leverage: NIBD/adj. EBITDA <2.5
- Dividend: ~50% net profit before tax
*Source: Gartner IT Services Forecast Q2’22, European HCM and Payroll Management Applications Market Forecast 2021-2026
