FastPassCorp (FASTPC) H2 2024 earnings summary

Executive summary

• 2024 results did not fully meet management expectations due to a postponed order and timing issues, but new orders and a strong sales pipeline led to a 10% increase in ARR, meeting targets.

• EBIT improved to -1.2 MDKK from -1.82 MDKK year-over-year; net result after tax was -2.2 MDKK versus -3.1 MDKK in 2023.

• 24% of 2024 billings came from new customers, including two US Fortune 500 companies; US now represents 29% of revenue.

• Product focus on identity verification (IVM) and self-service password reset (SSPR); SSPR remains the main revenue driver.

Financial highlights

• Annual Recurring Revenue (ARR) grew 10.3% to DKK 7.83m as of 31.12.2024, up from DKK 7.10m at end-2023.

• Factoring in a change in revenue recognition, all software sales are now recognized linearly over contract periods.

• EBITDA for 2024 was DKK 1.68m, with a target of DKK 2.1m for 2025.

• No dividend proposed for the year.

• Cash position at year-end: DKK 330.9k; net cash outflow for the year.

Outlook and guidance

• Management expects a 10% ARR increase and EBITDA of approx. DKK 2.1m in 2025, with higher costs planned to support growth.

• Focus remains on US and European markets, with continued product innovation and expansion of the sales pipeline.