Annual Report 145% increase in ARR in 2021 is best in class performance

DecideAct A/S [ACT]
Company Announcement No. 04-2022:
NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
09 April 2022

DecideAct’s Annual Report for the period January 1 to December 31, 2021, was approved by the Board of Directors today. The DecideAct Annual Report 2021 is attached to this release and can be read here: https://www.decideact.net/investor-relations/

We have delivered on our growth strategy. The achievements in 2021 prove that DecideAct appeals to customers in new markets and new industries and that it is committed and able to deliver on its objectives. The pandemic made it an uncertain start, so our team is especially proud of our quantum leap forward. DecideAct is now a well-established company with a global SaaS solution and continued ARR growth. All in all, we’re perfectly aligned with our long-term growth strategy.

2021 marked by very high growth. With an ARR of DKK 8.74 million at the end of 2021, DecideAct has increased its annual recurring revenue by 145% since the IPO in December 2020 which is best in class. Equity was DKK 17.2 million, and the cash reserve was DKK 12.8 million. The company’s annual result of DKK -18.6 million for 2021 is as expected, influenced significantly by important investments in further product development, marketing, sales, and customer success management.  Other important 2021 accomplishments include:

• zero churn (no customers have discontinued subscriptions)
• constantly growing pipeline facilitated by well-structured marketing and sales procedures
• new industries and new countries entered
• new customers in four markets (Iceland, Denmark, France, and Canada)
• customer success process streamlined
• technological platform improved and new front-end technology deployed
• new strong module to help organizations deliver on their ESG strategies
• significant additional financing secured through a private placement
• loan commitment from Vækstfonden (Danish Growth Fund)

Growing pains. Small companies with an uncompromised focus on meeting their commercial targets are rarely the first ones to establish first-class administrative skills and procedures. During the audit process, it has become clear that DecideAct is no exception to this rule and administrative mistakes have been found and fully corrected. These have had no negative effect on the result or the reporting for 2021. The issue has been addressed by onboarding a new experienced, interim CFO and by engaging PwC to assist with the establishment of mature procedures.

145% increase in ARR is best in class. It is highly unusual with ARR growth of more than 100% year over year. In fact, according to the Danish Software-as-a-Service index produced by HC Andersen Capital, all included Danish companies in the category have ARR growth below 100%. For more information, please see “DecideAct Company Introduction to investors, March 2022”. Link: https://www.decideact.net/wp-content/uploads/2022/03/Investor_company-intro-march22_11.pdf

Our long-term goal: DKK 100 million in ARR. Our sales pipeline indicates expected growth in ARR in 2022 of 80–150%. Our next big financial goal is to reach DKK 100 million in ARR and thus continue to create value for our customers and investors.

Flemming Videriksen, CEO and co-founder of DecideAct, states: “DecideAct entered 2021 as a newly listed company with very little commercial footprint—predominantly in Iceland, with a first-generation product and an ambitious plan supported by a strong team. That seems like years ago already. Our growing pains in terms of administrative errors have been addressed and corrected and I am proud that we have met our goals and have gained traction in several countries and verticals, continued to build strong client relationships, had a churn rate of zero (no customers lost) in 2021, and our sales channels indicate excellent growth.”

The Annual Report for 2021 will be presented at an online conference (in Danish) on 11 April at 1:00 pm CET. Register for the conference at: https://hcandersencapital643.clickmeeting.com/decideact-praesentation-af-arsrapporten-2021/register