RISMA Systems (RISMA) Q1 2025 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) increased by 23% year-over-year to 43.8 MDKK as of Q1 2025, reflecting robust growth despite market challenges.

• Sales in Norway and Sweden saw significant improvement compared to the same quarter last year, while Denmark remains highly competitive with low prices.

• EBITDA nearly reached break-even, showing substantial improvement from Q1 2024.

• RISMA maintains a strong financial position with no debt, approximately 10 MDKK in cash, and an unused credit facility of 12 MDKK.

Financial highlights

• ARR grew by 8.2 MDKK compared to the end of Q1 2024, reaching 43.8 MDKK.

• Upselling to existing customers totaled 4.8 MDKK over the past 12 months.

• Revenue churn increased to 11% from 5% year-over-year, mainly due to a single ESG solution.

• Net revenue retention rate declined to 101% from 108% year-over-year.

• EBITDA improved to -0.1 TDKK from -1.4 TDKK in Q1 2024.

Outlook and guidance

• ARR guidance for 2025 revised downward to 44-49 MDKK from 49-52 MDKK.

• EBITDA guidance for 2025 updated to a range of +0.2 to +3.2 MDKK, reflecting cost reductions and market uncertainties.

• Cost base to be reduced by approximately 10 MDKK annually, with a 4 MDKK impact expected in the current year.