Risk Intelligence (RISK) Q4 2024 earnings summary

Executive summary

• Revenue grew 30% year-over-year to DKK 25.4M for FY 2024, with Q4 revenue up 31% compared to Q4 2023.

• EBITDA loss improved by 56% year-over-year, reaching -DKK 3.2M for FY 2024, with Q4 EBITDA at -DKK 1,412K due to one-time costs.

• Net loss narrowed by 26% to -DKK 8.6M for FY 2024, and earnings per share improved by 89%.

• System ARR increased 20% and total ARR 21% year-over-year, with NRR at 124% and churn at 1.4%.

• Cash flow from ordinary activities improved by 52% year-over-year, turning positive at DKK 807K, and net cash flow improved by nearly DKK 1.2M.

Financial highlights

• Gross margin increased to 58% for FY 2024, with SaaS gross margin at 94.8%.

• Costs rose 7% year-over-year, significantly below revenue growth.

• Net loss for 2024 was DKK -8,553K, an improvement from DKK -11,487K in 2023.

• Net cash flow for FY 2024 was DKK 831K, up from -DKK 326K in 2023.

• Operating margin improved to -13% for 2024 from -37% in 2023.

Outlook and guidance

• 2025 guidance targets ARR growth of 15–30% and System ARR of DKK 26.9M–30.4M.

• Management targets positive EBITDA, a net result of zero, and positive net cash flow for 2025.

• Business segmentation strategy to be implemented in 2025, with specialized staff and targeted marketing for each segment.

• Resource allocation will prioritize segments based on ARR, ARPU, and price sensitivity.