Stability in the German software market

Initially launched in the Benelux region in 2012, the Main Software 50 has grown into a respected index of leading private software companies in North-Western Europe. Over the years, the ranking has expanded into Main’s other operating regions, including Germany and, for the first time this year, the Nordics. Now returning for the third consecutive year in Germany, software companies in the region can showcase their achievements, gain recognition and benchmark their success with other competing contestants. The ranking is intended to highlight the importance of the often under-reported economic and societal impact of the enterprise software sector. Main indexes hundreds of companies that sign up each year based on seven objective business metrics: revenue, revenue growth, profitability, cloud/SaaS services revenue, recurring revenue, international revenue, and revenue from partner channels. The results are verified by the independent research institute Fraunhofer ISI.

Performance Benchmark: 2024 versus 2023 edition

This year’s results underline the growing adoption of SaaS solutions, with these types of solutions contributing 38% of total revenue, up from 34% in the previous year. Recurring revenue also saw a notable increase, now accounting for 67% of total revenue compared to 62% last year. This shift underscores the strategic alignment of German software companies with scalable and predictable revenue streams, enabling long-term growth and customer retention. Moreover, a remarkable 86% of companies invest more than 10% of their revenue in R&D, an increase from 82% last year. This commitment to innovation positions German software companies as leaders in technological advancement, driving product differentiation and market competitiveness. However, profitability remains a challenge, with only 58% of companies achieving an EBITDA margin above 10%, compared to 72% in the previous year. This dip can be explained by the SaaS transition software companies are going through and suggests increased investments in growth and innovation amid competitive market pressures. Employment among the top 50 software companies grew by 15%, bringing the total to 5,746 full-time employees (FTEs). Average revenue per FTE rose by 10% to €124,000, reflecting improved productivity and operational efficiency. These trends suggest that German software companies are successfully balancing workforce expansion with productivity enhancements.

Winners of the Main Software 50 Deutschland 2024

Five awards were presented at the award ceremony: the Overall Champions Awards for the top three, the Highest Growth Award for the company (with more than 1 million euros in revenue) that managed to achieve the highest revenue growth between 2022 – 2023 and the Cloud Champion Award for the company that with the highest revenue from cloud-based activities. The rankings for this year highlight stand-out achievements from software companies that are shaping the German enterprise software landscape.

 Overall Champions 2024: cisbox GmbH, PERBILITY GmbH and Link11 GmbH

Security Software provider, Link11 GmbH, founded in 2005 and based in Frankfurt, remains in the top 10 of the Main Software 50 Deutschland ranking, earning third place in this year’s edition. This demonstrates Link11’s leading role in tackling growing cybersecurity challenges, providing advanced solutions that protect businesses from evolving threats, such as DDoS attacks and data breaches. Leading Human Resource Management software provider PERBILITY GmbH, founded in 2009 and based in Nuremberg, secured second place this year, climbing from 5th place in the Main Software 50 Deutschland 2023 edition. This demonstrates PERBILITY’s proficiency in adapting to shifting workforce dynamics and delivering solutions that enhance HR efficiency and foster employee engagement. Procurement software provider, cisbox GmbH, founded in 2005 and based in Solingen, secured first place in this year’s ranking, significantly advancing from 6th place in the previous edition. This achievement underscores cisbox’s operational excellence and its ability to meet the growing demand for streamlined procurement and spend management solutions.

Highest Growth Award: Verso Group GmbH

This year, the Highest Growth Award was won by Verso Group GmbH, an ESG reporting software company based in Munich, founded in 2010. Verso Group, a newcomer to the ranking, delivers solutions that help organizations measure, manage, and optimize their sustainability and environmental impact. Its impressive growth in both revenue and workforce between 2022 and 2023 underscores the increasing importance of sustainability-focused technology in today’s enterprise business environment.

Cloud Champion Award: Link11 GmbH

In addition to earning third place in the overall rankings, Link11 GmbH was endowed with this year’s Cloud Champion Award, recognizing its excellence in cloud-based cybersecurity solutions. Link11’s innovative approach to cloud-native DDoS protection and secure web services has been instrumental in helping businesses safeguard their cloud environments against cyber threats. The company’s solutions enable high availability, scalability, and robust protection, making it a trusted partner in the German cloud software market.

Sven van Berge Henegouwen, Managing Partner and Head of DACH at Main Capital Partners, mentioned: “The Main Software 50 Deutschland ranking remains a valuable barometer of the software industry’s performance, showcasing the dynamism and adaptability of the German software market. The participating companies’ commitment to innovation, scalability, and customer value continues to drive their success, setting benchmarks for software excellence across Europe.”