RISMA Systems (RISMA) Q3 2024 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) increased by 29% year-over-year to 39.2 MDKK as of Q3 2024, driven mainly by direct sales in Denmark.

• Sales in Norway and Sweden, as well as partner channel sales, were below expectations, though Norway saw record sales in October.

• Customer mix is shifting toward larger and more mature GRC and ESG customers, with SMB sales focusing on broader solutions.

Financial highlights

• ARR grew by 8.9 MDKK compared to the end of Q3 2023, reaching 39.2 MDKK.

• Upselling to existing customers totaled 3.7 MDKK over the last 12 months.

• Revenue churn increased to 8% from 7% year-over-year.

• Net revenue retention rate improved by 1 percentage point to 104%.

• Customer acquisition cost rose to 167 TDKK, up by 56 TDKK year-over-year.

Outlook and guidance

• ARR guidance for 2024 is set at 42-45 MDKK, representing a growth rate of 24-33%.

• EBITDA guidance for 2024 is between -4.6 and -8.6 MDKK.