RISMA Systems (RISMA) Q4 2024 earnings summary

Executive summary

• ARR grew 24% year-over-year to 42.0 MDKK, with revenue up 32% to 40.5 MDKK and improved EBITDA at -4.2 MDKK, reflecting commercial and operational strengthening.

• Focus in 2024 was on building for growth and preparing for profitability, with investments in sales, customer success, product development, and marketing.

• RISMA ended 2024 with 9.7 MDKK in cash, no financial debt, and an unused credit facility of 12 MDKK, providing strong liquidity for 2025 activities.

• The company expects to reach positive EBITDA and cash flow no later than 2026, with deferred tax assets potentially restoring equity.

Financial highlights

• Revenue increased 32% to 40.5 MDKK in 2024 from 30.7 MDKK in 2023, driven by recurring license sales and implementation revenue.

• EBITDA improved to -4.2 MDKK from -7.0 MDKK year-over-year, aided by higher capitalized development work and revenue growth.

• Gross profit rose to 27.9 MDKK from 18.3 MDKK, while staff costs increased to 32.1 MDKK due to expanded teams.

• Net loss for the year was -7.6 MDKK, an improvement from -12.2 MDKK in 2023.

• Cash at year-end was 9.7 MDKK, with no loans drawn and a 12 MDKK unused facility available.

Outlook and guidance

• ARR guidance for 2025 is 49-52 MDKK, representing 17-24% growth.

• EBITDA guidance for 2025 is -3.0 to 1.0 MDKK, reflecting continued investment and operational improvements.

• Growth in 2025 will be impacted by EU CSRD reporting changes, leading to higher churn and lower sales in sustainability solutions.