Risk Intelligence (RISK) Q3 2024 earnings summary

Executive summary

• Achieved first positive EBITDA in five years, reaching DKK 65,000 in Q3 2024, marking a milestone toward profitability in 2025.

• System ARR grew 28% to DKK 23.2M, total ARR up 27% to DKK 24.3M, and churn remained extremely low at 0.2%.

• Added three new maritime clients, expanded advisory service projects, and hired new heads of commercial operations and development.

• Continued rollout of new platform, low churn with only one small license terminated, and successful upsell during renewals.

• Cash flow from operations improved by DKK 6.2M year-to-date.

Financial highlights

• Q3 recognized revenue increased 32% year-over-year to DKK 6.6M; invoiced revenue up 48% to DKK 6.8M.

• Gross margin improved to 65% in Q3 (SaaS margin: 91.8%).

• EBITDA improved to DKK 65K in Q3 from -1.3M YoY; YTD EBITDA loss reduced by 65% to -1.8M.

• Earnings per share improved to -0.05 from -0.23.

• Cash flow from operations improved by 61% in Q3 and by over DKK 6M for the nine-month period, though still slightly negative.

Outlook and guidance

• 2024 guidance revised to modest negative EBITDA, negative net result, but positive net cash flow; System ARR expected at DKK 22.4M–25.3M (15–30% growth).

• Black figures (profitability) targeted for full year 2025, with positive cash flow as a priority.

• No outlook for LandRisk or 2025 provided yet; to be communicated when ready.

• Continued platform roll-out and price increases for most clients, except those on multi-year deals.