German-Lithuanian software developer NFQ Technologies’ revenue reached 19.5 million euros last year as its team grew to 450 employees in Lithuania and Poland. This year the company plans to grow even more on the back of recovering aviation and travel markets, a golden age in logistics and e-commerce, and fruitful strategic partnerships with major European startups.
NFQ’s revenue was 30 percent larger last year than in 2020. The size of the company’s team in Lithuania and Poland grew 23 percent during the year, and its pretax profit more than doubled to 3.1 million euros. This year NFQ plans revenue of 28 million euros, a full 45 percent more than last year.
According to NFQ’s CEO, Paulius Insoda, last year’s results and this year’s ambitious forecast reflect recovery and expansion in strategic sectors, strong new partnerships and the success of existing clients, including large corporates and international businesses with strong growth potential.
“The aviation and travel markets haven’t reached pre-pandemic levels yet, but in terms of technology, they’re working intensely to boost process efficiency and prepare for the future. Other priority sectors of ours – mobility, logistics, e-commerce and digitalization – are going through a post-pandemic golden age. In these areas, we’re developing extremely fast-growing projects with partners like Alaiko, Atlantic Express and a few others whose names are still confidential. Last year in Lithuania we opened, and we’re going to continue intensively expanding, an IT competence center for the German technology giant valantic, which will allow Lithuanians to work on the world's largest companies’ e-commerce products. And finally, HomeToGo, the holiday rental search platform we’ve been developing since day one, went public last year on the Frankfurt Stock Exchange and became a unicorn, which has also contributed to NFQ’s strong results and volume of new work,” P. Insoda notes.
A winning strategy
NFQ’s CEO says the company works with products that are big or have big growth potential, and the strategy is visible in the operating results and offers advantages in the talent market.
“Most of NFQ’s clients are companies that come to us not for hours or lines of code, but for broad vision, experience, ideas and solutions, and only after that for execution. Additionally, we invest through NFQ group companies in some high-potential startups and grow them ourselves. This strategy helps us work more effectively and, most importantly, leads to greater satisfaction on the team,” the head of the company notes.
The main products NFQ is developing at present are the HomeToGo vacation rental search platform, the KAYAK flight search engine, the Alaiko e-commerce logistics platform, home24, which is Germany’s largest e-commerce system for furniture, the Zivver platform for cybersecurity solutions, the real.digital e-commerce technology platform, and many others.
More ways to find and develop the needed IT professionals
Last year NFQ opened its first office in Poland, in Krakow. More than 20 staff currently work there, and this year’s plan is to grow to 60. NFQ strategic partner valantic LT’s growth plan for this year also involves about 60 team members, and NFQ’s other Lithuanian units plan to add another 50 new employees.
“A lack of specific competences we need remains a major challenge for growth. This year we plan to address that by opening and trying out more avenues for attracting specialists besides all the traditional forms of talent search, by expanding our organization into new markets, and by investing even more in developing employees’ competences and growing talent and leaders within the company,” Paulius Insoda says.
“We have many years of experience cultivating young talent in-house. Just to begin with, more than 650 IT professionals have gone through the NFQ Academy we organize. So we know that we need to and can help people with big professional goals to grow. We plan many new motivational, wellbeing and professional growth initiatives for existing team members. So we’re confident that we will manage to continue growing successfully,” he adds.
NFQ specializes in the e-commerce, transport and logistics, mobility and travel industries, business management systems, digital transformation projects and businesses with big growth potential. Worldwide, more than 850 people work at NFQ.