Relesys: Continuing the strong growth momentum - ABG

46% y-o-y ARR growth to DKK 49.4m (+4.4% vs. ABGSCe)
Major customer win sends strong signal; '23e-'25e ARR up 1-3%
Shorter path to profitability; FVR of DKK 3.7-8.3 (3.7-7.3)


Continuing strong momentum with 46% y-o-y ARR growth

Relesys delivered a very strong quarter in terms of growth (it only reported SaaS metrics, revenues, and cash position). Q1 ARR was DKK 49.4m (+4.4% vs. ABGSCe at DKK 47.3m), equivalent to 46% y-o-y growth. The beat was primarily driven by new ARR of DKK 9.8m (+20.8% vs. ABGSCe at DKK 8.1m). Uplift ARR was 2.8% weaker vs. ABGSCe, while churn remained low at 3.0% (vs. ABGSCe at 5.0%). Revenue was largely in line (-0.6% vs. ABGSCe). FY'23 guidance was reiterated (ARR of DKK 59m-64m and revenues of DKK 54m-60m). Cash burn was limited due to the usual strong cash inflow from invoicing in Q1, leaving the cash balance at DKK 28.2m (vs. DKK 31.3m at YE'22).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/relesys/Equity-research/2023/5/relesys---continuing-the-strong-growth-momentum/