Penneo: Decent Q1, FCF estimates largely unchanged - ABG

Decent Q1: ARR in line with ABGSCe, adj. EBITDA weaker
'23e-'25e ARR unchanged; 1-7% EBITDA cut on higher costs
FCF estimates largely unchanged; FVR reiterated at DKK 6-13


ARR in line, ~4pp gross margin beat, adj. EBITDA 10% weaker

Penneo delivered a decent Q1. ARR of DKK 74m (~27% y-o-y) was in line with ABGSCe despite a negative DKK 0.9m FX impact (FX-adjusted growth was 28.5%). Revenue was marginally weaker vs. ABGSCe, while the gross margin was 3.9pp better. However, adj. EBITDA came in 10% below ABGSCe, primarily due to higher staff costs from more hirings than we expected. The FY'23 guidance was reiterated, as expected (DKK 87m-95m ARR and negative DKK 10m-15m adj. EBITDA).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/penneo/Equity-research/2023/5/penneo---decent-q1-fcf-estimates-largely-unchanged--/