Agillic releases Q3 2024 financial report with 8% decrease in ARR from Subscriptions YoY, EBITDA of DKK 1.8 million and DKK 6.7 million in cash flow from operations
Announcement no. 07 2024
Copenhagen – 22 October 2024 – Agillic A/S
ARR from subscriptions YTD decreased 8% primarily due to clients’ technology consolidations in Q1 2024. ARR from subscriptions increased modestly by 2% in Q3 2024 vs. Q2 2024. Agillic maintains its 2024 guidance due to expected growth from both existing clients and new sales in Q4 2024. Cash flow from operations was DKK 6.7 million in Q3 2024, an increase of DKK 12.6 million YoY.
Key financial and SaaS highlights
(DKK million)
| Income statement | YTD 2024 | YTD 2023 | Change | Q3 2024 | Q3 2023 | Change | |
| Revenue Subscriptions | 37.0 | 40.2 | -8% | 12.1 | 13.6 | -11% | |
| Revenue Transactions | 7.4 | 9.1 | -19% | 2.7 | 3.0 | -10% | |
| Other revenue | 0.0 | 0.0 | n/a | 0.0 | 0.0 | n/a | |
| Total revenue | 44.4 | 49.3 | -10% | 14.8 | 16.6 | -11% | |
| Gross profit | 36.1 | 39.6 | -9% | 11.7 | 13.4 | -13% | |
| Gross margin | 81% | 80% | - | 79% | 81% | - | |
| Other operating income | 0.6 | 0.5 | 20% | 0.2 | 0.2 | 0% | |
| Employee costs | -23.7 | -26.0 | 9% | -7.1 | -7.9 | 10% | |
| Operational costs | -11.2 | -10.6 | -6% | -3.6 | -3.2 | -13% | |
| EBITDA | 1.8 | 3.5 | -49% | 1.2 | 2.5 | -52% | |
| Net profit | 1.2 | -5.1 | n/a | -2.4 | -0.4 | -500% | |
| Financial position | |||||||
| Cash | 3.7 | 11.5 | -68% | 3.7 | 11.5 | -68% | |
| ARR development | |||||||
| ARR Subscriptions | 52.5 | 56.8 | -8% | 52.5 | 56.8 | -8% | |
| ARR Transactions | 10.6 | 12.1 | -12% | 10.6 | 12.1 | -12% | |
| Total ARR | 63.1 | 68.9 | -8% | 63.1 | 68.9 | -8% | |
| Change in ARR | -5.8 | 2.5 | - | 1.4 | 2.5 | - | |
| Change in ARR % | -8% | 4% | - | 2% | 4% | - | |
Reclassification between other operating income, employee costs, and operational costs is updated in 2023 figures.
ARR
ARR from subscriptions decreased 8% YoY which was related to clients’ business and technology consolidation and in line with our expectations. ARR from transactions decreased 12% YoY as a consequence of lower volumes due to geopolitical factors. The decline in ARR mainly happened in Q1 2024, while ARR increased modestly in Q3, and we expect both ARR from subscriptions and ARR from transactions to increase further in Q4 2024.
Revenue
Total Revenue decreased 10% YoY related to the decrease in ARR. Total Revenue is expected to increase in Q4 2024.
EBITDA
EBITDA YTD was negatively impacted by the decrease in revenue and by an increase in operational costs related to a one-time cost of DKK 1.0 million for consultancy services. However, with an increase in the gross margin from 80% to 81% YTD, and a decrease in employee costs, we delivered a positive EBITDA in Q3 2024 YTD of DKK 1.8 million.
Cash
At the end of Q3, at the cash position was DKK 3.7 million in line with expectations. This was primarily a result of an increase in cashflow from operations to DKK 6.7 million (Q3 2023: DKK -5.9 million).
Financial guidance 2024 (unchanged)
| Revenue | DKK million | 62 to 66 |
| EBITDA | - | 0 to 2 |
| ARR Subscriptions | - | 56 to 60 |
| ARR Transactions | - | 10 to 14 |
| Total ARR | - | 66 to 74 |
For further information, please contact:
Emre Gürsoy, CEO
+45 30 78 42 00
[email protected]
Claus Boysen, CFO
+45 28 49 18 46
[email protected]
Certified Adviser
John Norden, Norden CEF A/S
Disclaimer
The forward-looking statements regarding Agillic’s future financial situation involve factors of uncertainty and risk, which could cause actual developments to deviate from the expectations indicated. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the presented outlook. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Please also refer to the overview of risk factors in the ‘risk management’ section of the annual report.
About Agillic A/S
Agillic is a Danish software company offering brands a platform through which they can work with data-driven insights and content to create. automate and send personalised communication to millions. Agillic is headquartered in Copenhagen, Denmark, with teams in Germany, Norway, and Romania.
For further information, please visit www.agillic.com
Appendix: Financial development per quarter
| DKK million | 2024 | 2023 | 2022 | |||||||||||||
| INCOME STATEMENT | Q3 | Q2 | Q1 | FY | Q4 | Q3 | Q2 | Q1 | FY | Q4 | Q3 | Q2 | Q1 | |||
| Revenue Subscriptions | 12.1 | 12.3 | 12.6 | 52.4 | 12.2 | 13.6 | 13.5 | 13.1 | 49.9 | 13.5 | 13.1 | 12.2 | 11.1 | |||
| Revenue Transactions | 2.7 | 2.5 | 2.2 | 12.0 | 2.9 | 3.0 | 2.9 | 3.2 | 16.7 | 6.0 | 4.8 | 3.3 | 2.6 | |||
| Other revenue | 0.0 | 0.0 | 0.0 | 0.3 | 0.3 | 0.0 | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 | 0.1 | 0.3 | |||
| Total revenue | 14.8 | 14.8 | 14.8 | 64.7 | 15.4 | 16.6 | 16.4 | 16.3 | 67.0 | 19.5 | 17.9 | 15.6 | 14.0 | |||
| Gross profit | 11.7 | 12.1 | 12.3 | 52.2 | 12.6 | 13.4 | 13.2 | 13.0 | 49.6 | 15.5 | 11.4 | 11.7 | 11.0 | |||
| Gross margin | 79% | 82% | 83% | 81% | 82% | 81% | 80% | 80% | 74% | 80% | 63% | 75% | 78% | |||
| Other operating income | 0.2 | 0.2 | 0.2 | 0.6 | 0.1 | 0.2 | 0.2 | 0.1 | 0.3 | 0.3 | 0.0 | 0.0 | 0.0 | |||
| Employee costs | -7.1 | -8.0 | -8.6 | -36.8 | -10.8 | -7.9 | -9.4 | -8.7 | -32.5 | -9.2 | -7.3 | -8.0 | -8.0 | |||
| Operational costs | -3.6 | -4.3 | -3.3 | -14.1 | -3.5 | -3.2 | -3.0 | -4.4 | -16.3 | -5.1 | -2.7 | -3.7 | -4.8 | |||
| EBITDA | 1.2 | 0.0 | 0.6 | 1.9 | -1.6 | 2.5 | 1.0 | 0.0 | 1.1 | 1.5 | 1.4 | 0.0 | -1.8 | |||
| Net profit | -2.4 | 7.0 | -3.4 | -27.5 | -22.4 | -0.4 | -1.8 | -2.9 | -10.6 | -2.0 | -1.2 | -2.7 | -4.7 | |||
| BALANCE SHEET | ||||||||||||||||
| Cash | 3.7 | 4.4 | 7.2 | 9.8 | 9.8 | 11.5 | 18.3 | 26.9 | 7.4 | 7.4 | 1.8 | 12.6 | 7.5 | |||
| Total assets | 42.8 | 45.8 | 51.5 | 47.1 | 47.1 | 64.9 | 69.0 | 75.8 | 52.8 | 52.8 | 54.0 | 58.7 | 55.4 | |||
| Equity | -17.8 | -16.0 | -23.6 | -20.2 | -20.2 | 1.5 | 1.8 | 3.4 | -15.0 | -15.0 | -13.2 | -12.0 | -9.6 | |||
| Borrowings | 19.1 | 21.4 | 24.3 | 23.7 | 23.7 | 23.0 | 24.2 | 25.7 | 24.3 | 24.3 | 23.7 | 26.1 | 26.4 | |||
| CASH FLOW | ||||||||||||||||
| Cash flow from operations | 4.1 | 2.6 | 0.0 | -6.5 | -0.6 | -2.8 | -4.3 | 1.2 | 3.1 | 7.3 | -4.9 | 9.0 | -8.3 | |||
| Cash flow from investments | -2.6 | -2.7 | -3.0 | -11.7 | -2.1 | -3.1 | -3.2 | -3.3 | -13.5 | -3.3 | -3.3 | -3.7 | -3.2 | |||
| Cash flow from financing | -2.2 | -2.7 | 0.4 | 20.6 | 1.0 | -0.9 | -1.1 | 21.6 | -2.8 | 1.6 | -2.5 | -0.2 | -1.6 | |||
| Net cash flow | -0.7 | -2.8 | -2.6 | 2.4 | -1.7 | -6.8 | -8.6 | 19.5 | -13.2 | 5.6 | -10.8 | 5.1 | -13.1 | |||
| EMPLOYEES & CLIENTS | ||||||||||||||||
| Employees end of period | 40 | 39 | 41 | 50 | 50 | 50 | 50 | 46 | 48 | 48 | 47 | 51 | 47 | |||
| Clients end of period | 114 | 113 | 116 | 122 | 122 | 120 | 120 | 118 | 118 | 118 | 111 | 108 | 105 | |||
| ARR & SAAS METRICS | ||||||||||||||||
| ARR Subscriptions | 52.5 | 51.7 | 52.2 | 57.8 | 57.8 | 56.8 | 54.9 | 54.2 | 54.1 | 54.1 | 50.3 | 49.6 | 48.5 | |||
| ARR Transactions | 10.6 | 10.0 | 8.9 | 12.3 | 12.3 | 12.1 | 11.5 | 17.3 | 22.6 | 22.6 | 19.6 | 14.6 | 10.3 | |||
| Total ARR | 63.1 | 61.7 | 61.1 | 70.1 | 70.1 | 68.9 | 66.4 | 72 | 76.7 | 76.7 | 69.9 | 64.2 | 58.8 | |||
| Change in ARR (DKK) | 1.4 | 0.6 | -9.0 | -6.6 | 1.2 | 2.5 | -5.1 | -5.2 | 21.0 | 6.8 | 5.7 | 5.4 | 3.1 | |||
| Change in ARR % | 2% | 1% | -13% | -9% | 2% | 4% | -7% | -7% | 38% | 10% | 9% | 9% | 6% | |||
| Average ARR | 0.6 | 0.5 | 0.5 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | |||
| Yearly CAC | - | - | - | 0.2 | - | - | - | - | 0.1 | - | - | - | - | |||
| Months to recover CAC | - | - | - | 6 | - | - | - | - | 3 | - | - | - | - | |||
Definitions
- Cash is defined as available funds less bank overdraft withdrawals.
- ARR: the annualised value of subscription agreements and transactions at the end of the actual reporting period.
- Average ARR: the average Total ARR per client.
- Customer Acquisition Costs (CAC): the sales and marketing cost (inclusive salaries, commissions, direct and share of costs of office) divided by the number of new clients. CAC is calculated end of year.
- Months to recover CAC: the period in months it takes to generate sufficient gross profit from a client to cover the acquisition cost.
Published on 22 October 2024
Attachment
