"Celonis is now entering a new phase."
Mr. Nominacher, there are reports from investment banks suggesting that Celonis is planning to go public in New York next year. How advanced are you in the preparations for this?
We have very long-term ambitions, but we currently have no specific plans for an IPO or anything similar. This is not a topic we are actively addressing at the moment. Our primary focus is on our customers and product development.
How do you explain the information from the banks then?
I don't spend my time speculating on what the investment banks are doing. I don't know where these speculations come from. They have been around for a while. Successful companies seem to have to deal with various scenarios being speculated about.
Asked differently: Do you have contact with investment banks?
We are in regular contact with major investment banks. On the one hand, they are our clients, and on the other hand, last year, we concluded a credit facility of up to $600 million with a consortium involving several leading investment banks. Additionally, we are exploring acquisition targets, which is another reason for our contact with investment banks.
It appears that the investment banks are planning the IPO, and Celonis is not aware of it yet.
Investment banks naturally aim to present options and drive things forward. Perhaps this is also due to the current market environment where there are few IPOs. However, as entrepreneurs, our focus is on taking Celonis to the next stage of development.
In general, going public is still an option for you, correct?
Certainly. With our software, we can help many companies become more efficient and reduce costs. To fulfill this mission, it may eventually make sense for us to become a publicly traded company. However, we currently have no fixed timeline or concrete plans for an IPO.
This could change with the need for fresh capital. When will that happen?
We don't have such a need because we are very solidly financed: on the one hand, with cash flow from our business, and on the other hand, thanks to funding rounds and the revolving credit facility. This gives us significant flexibility. Therefore, there is no specific timeframe.
Your investors, however, may eventually want to monetize their investment.
We have very long-term oriented investors. They want to build a successful and large company with us. Therefore, we feel no time pressure.
Regardless of the timing for an IPO: do you favor a listing in New York?
When the time comes, we will consider all possibilities. Different stock exchanges have different advantages. In New York, for example, many software companies are listed. However, since we have no concrete plans yet, there is no predestined location.
Are there arguments for the Frankfurt Stock Exchange?
Yes – or for London. If it becomes concrete, the choice would depend on conditions such as the market and regulation. Many things cannot be predicted at this point.
Have you utilized the available credit line?
No, we have not used it so far. We have raised a significant amount of equity and still have a lot of room for financing our growth.
The most recent funding round in the summer of 2022 brought in $400 million. Are there larger acquisition targets for which Celonis would use this money, besides the smaller acquisitions?
For our business and innovations, we have two drivers: our own product development and acquisitions. Prerequisites for acquisitions are that the technology and culture align with ours; the company must have a stable business with many satisfied customers and be well-financed.
Given the high interest rates, financial investors are currently cautious. Do favorable opportunities arise for you now, also considering the price of companies?
On average, prices are now lower. Many companies are currently looking for a strong partner and a platform. Often, there are short-term opportunities, but, as I mentioned, the companies must fit perfectly with us.
Symbio seems to fit perfectly. Celonis recently announced the acquisition of this company in Aschheim near Munich with 40 employees. What do you expect from this?
This is a significant step to offer our customers even more comprehensive process intelligence. Symbio expands our platform, allowing customers not only to analyze processes to identify opportunities and create value but also to shape and optimize their processes with an AI-driven solution.
In the first years after its founding in 2011, Celonis generated profits. According to the Bundesanzeiger, a loss of €6.5 million occurred in the business year 2018/19. You haven't released more recent figures. Are you still in the red?
Since 2016, we have been in investment mode. The annual result depends on our projects and how much we invest each time.
Okay, you're keeping financial figures under wraps. Celonis has doubled its revenue for a long time. Is that still the case?
We have a very large addressable market that we want to tap into as quickly as possible. Therefore, we are growing very strongly. We had a doubling for a long time. This is no longer the case now because the base is very large. However, in comparison to the industry, we are still at the upper end with our significant growth.
There are estimates that annual revenue has now reached a mid-three-digit million amount. You don't disagree with that?
We do not provide information on that.
You don't keep it a secret how many employees you have: more than 3,000.
Yes. And we are still hiring in our core areas. In Munich, for example, we are looking for good developers. We have around 800 employees here; this is our heart.
The second headquarters is in New York. How many people does Celonis employ there?
Including our branches, we have almost 1,000 employees in the USA.
According to market researchers from Gartner, some customers criticize Celonis' service. Has the company grown too quickly?
When growing very fast, there are always aspects that need improvement, such as customer service. Generally, though, we have very high customer satisfaction. The number of users of our systems has grown rapidly and significantly. The data volume of our customers has grown even faster than revenue. Therefore, we must constantly invest in our infrastructure to maintain our position as a market and innovation leader. It is also important that we have an open culture of learning from mistakes: we want to achieve the best results for our customers.
Celonis is still the market leader in "Process Mining." However, corporations like SAP, Salesforce, Servicenow, and Microsoft are now also in this business. How does Celonis plan to assert itself in the long run?
By staying close to the customer, continuing to convince with innovations and technical excellence, and thanks to our motivated and strong team. We are now entering a new phase: it's about the broad adoption of our product platform.
What does that mean?
We believe that Process Mining will become a standard for companies, like email, customer relationship management, and the like. Companies that do not make their processes more efficient and optimize them like their competitors with Process Mining will not be competitive in four or five years.
In which industries?
For example, where there are high purchasing volumes or a large number of invoices. Here, our software helps significantly reduce the number of manual interventions in the procurement or invoicing process. For instance, using Celonis, Pepsico reduced the number of rejected customer orders by 86% in its Order-to-Cash process. And this is just one example among many.
Why isn't everyone using the software?
Some companies prioritize differently or have not yet become aware of Process Mining. Almost every company can achieve value in a short time with it.
Do you have an example?
We offer apps for optimizing inventory and working capital. This has been a pressing issue for many companies for some time, especially because many customers take more time to pay. With our "Duplicate Checker" app, companies avoid paying invoices that are sent two or three times. This has a direct impact on success. Customers prevent losing several million euros per year this way.
