DecideAct H1 Report 2023: 16% growth in customer base since June 2022 and fit and proper to reach break-even in 2024.

DecideAct A/S [ACT]
Company Announcement No. 13-2023:
NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
12 AUGUST 2023

DecideAct’s half-year Report for the period 1 January to 30 June 2023, was approved by the Board of Directors today. The Report is attached to this release and can be read here: https://www.decideact.net/investor-relations/

On 30 June 2023, DecideAct reached a growth in ARR before churn of 22% (YOY) and an ARR of DKK 10 million. Like other SaaS companies, DecideAct has been affected by companies taking a step back and cutting their fixed costs. Despite these extraordinary circumstances, DecideAct has managed to keep ARR unchanged and to grow its customer base by 16% YOY and by 8% in the first half of 2023, while a retention rate of 91% is considered quite satisfactory and in line with the category norm.

Based on the strengthened strategic focus and solid solutions, it is considered realistic to reach break-even in 2024 and ensure continued growth with an emphasis on the following focus areas:

• The public sector in Denmark and Iceland
• Strategic partnerships for growth
• Artificial Intelligence (AI)

THE METRICS

(CONSOLIDATED FOR THE GROUP ON 30 JUNE 2023)

ARR: DKK 10 million

ARR GROWTH YOY: 22% (BEFORE CHURN)

ARR GROWTH YOY: 4% (AFTER CHURN)

CHURN: 9%

GROWTH IN THE NUMBER OF CUSTOMERS YOY: 16%

NEW CASH RESERVE AFTER THE BALANCE SHEET CLOSING: DKK 10.8 million

EQUITY: DKK 6.8 million

NEW INVESTMENTS (SOFTWARE DEVELOPMENT): DKK 3.1 million

INTANGIBLE ASSETS: DKK 17.3 million

Key figures
	H1 2022	H1 2023
Gross profit (DKK)	-7,191,520	-4,025,222
Operating profit/loss (DKK)	-10,299,077	-7,955,204
Profit/loss for the year (DKK)	-9,890,317	-7,628,835

Since the end of 2022, DecideAct has gained the following operational achievements:

• Continuously grown the customer base and entered new verticals
• Strengthened sales efforts and expanded the pipeline
• Made further improvements to the platform with new beneficial features.
• Totally pivoted the company’s marketing approach to be fully data-driven
• Entered new and important strategic partnerships
• Taken further vital steps to achieve a dominant position in the Danish public sector

Developments in activities and finances

The company’s result of DKK -7.6 million for the first half of 2023 is as expected, influenced significantly by investments in further product development, sales and marketing, and our customer success management. We have reached an ARR of DKK 10 million, consolidated for the group on 30 June 2023, the company’s equity amounts to DKK 7.5 million and intangible assets are DKK 17.3 million.

To support the ongoing operations and the achievement of DecideAct’s long-term goals, the company continuously monitors its liquidity needs.

Given the current situation in the world market, the management considers the company's financial performance to be acceptable. DecideAct has secured a situation with many deals in the contract phase and a strong pipeline, and therefore DecideAct's management is very optimistic about achieving the company's goal of reaching break-even in 2024 and laying the foundation for further growth.

The future is about narrowing the focus further on customer segments where there is the most immediate match and the shortest path to a sale. With an ultra-sharp and targeted effort in selected areas, while cutting unrelated costs, DecideAct is now further streamlining and optimizing the execution of the company’s growth strategy.