Risk Intelligence (RISK) Q2 2024 earnings summary

Executive summary

• Achieved strong revenue growth in Q2 and H1 2024, with recognized revenue up 28% and invoiced revenue up 36% year-over-year.

• Maintained 0% churn and 100% renewal ratio, reflecting robust client retention and upsell activity.

• Added five new maritime and two new LandRisk clients, and secured a major partnership with Bosch for LandRisk Logistics.

• Advisory services revenue increased, with growth in expert witness work and larger legal client reports.

• Continued rollout of the new platform and API product area, with a significant API license agreement set to impact revenue from Q3.

Financial highlights

• Q2 2024 recognized revenue was DKK 5,970k (+21% YoY); H1 2024 recognized revenue was DKK 11,923k (+28% YoY).

• Invoiced revenue for Q2 up 24% to DKK 5,335k; H1 invoiced revenue up 36% to DKK 11,284k.

• Gross margin (SaaS) at 96.9% in Q2; EBITDA loss reduced to DKK -962k in Q2 (+36% YoY) and DKK -1,855k in H1 (+51% YoY).

• Net loss for H1 reduced to DKK -3,914k (from DKK -5,450k YoY); earnings per share improved to DKK -0.08 in Q2.

• Operational cash flow positive at DKK 889k for H1 2024; net cash flow positive at DKK 464k.

Outlook and guidance

• 2024 guidance unchanged: ARR growth 15–30%, System ARR DKK 22.4M–25.3M, EBITDA around zero, net result negative, net cash flow positive.

• Continued rollout and upsell of the new platform, with price increases for most clients until mid-Q4.

• Partner product launches with integrated data expected in H2, though launch dates may shift.

• 2025 is expected to deliver positive EBITDA for the full year.