Financial report Q3 2022 - Outlook adjusted - Inside information

Company announcement 17-2022

Søborg, October 25, 2022

Financial report Q3 2022 - Outlook adjusted

As a consequence of the increased macro-economic and geo-political uncertainties the financial outlook for 2022-2024 is adjusted. The financial report for Q3 2022 shows an annual recurring revenue growth of 38%. The previous outlook of 40-60% for 2022 is reduced to 25-30%.

The strategy “unfolding the potential” remains and is anchored in a prioritized focus on improving the profitability.

Financial report for the period January 1 to September 30, 2022

Annual Recurring Revenue (ARR) amounted to DKK 16.6m corresponding to an annual growth of 38%. In Q3 2022, Annual Recurring Revenue (ARR) increased by DKK 1.0m compared to DKK 1.3m for Q2 2022.

Konsolidator is seeking DKK 5-10m to finance the operations for 2023 and beyond and to restore the negative equity, which totals DKK 5.7m.

“Q3 2022 was impacted by international uncertainties. Customers are more thoughtful, and the sales cycle is longer. Our pipeline remains strong and with all sales resources now concentrated in Copenhagen, I strongly believe that we are prepared for troubled water ahead”, says CEO Claus Finderup Grove.

Financial highlights

• Revenue in Q3 2022 amounted to DKK 4.4m, an increase of 31% compared to Q3 2021 and for the first nine-month of 2022, revenue increased by 41%, which is in line with expectations.
• EBIT for Q3 2022 amounted to DKK (3.9m) compared to DKK (4.7) for Q3 2021. For the year, EBIT was DKK (17.1m) compared to DKK (17.9m) in 2021.
• In Q3 2022, Konsolidator issued new shares in a directed issue of DKK 3m and secured a credit facility of DKK 2m.
• Cash and cash equivalents amount to DKK 2.8m on September 30, 2022.

SaaS metrics

• In Q3 2022, Annual Recurring Revenue (ARR) increased by DKK 1m compared to DKK 1.3m for Q2 2022. On September 30, 2022, the total ARR amounted to DKK 16.6m, an increase of 38% compared to September 30, 2021, which is below expectations.
• The ARR net increase of DKK 1.0m in Q3 2022 has been generated by a cash cost of DKK 4.3m compared to DKK 6.1m for generating ARR DKK 1.3m in Q2 2022.
• The net retention amounted to index 102 as of September 30, 2022, compared to index 102 as of June 30, 2022. The net retention is compounded of 12.0% upsale offset by 9.7% churn.
• On September 30, 2022, the churn for the last 12 months was 9.7%. Up from 8.1% on June 30, 2022.
• The Customer Acquisition Cost (CAC) divided by ARR has been calculated to be 36 for Q3 2022 compared to 36 for Q2 2022, which is the number of months it will take for the customer to be profitable for the acquired ARR.
  
  

Outlook:

Longer sales cycle and higher churn lead to an adjusted outlook for 2022:

• ARR of DKK 17-18m (prev. DKK 19-22m), corresponding to a growth of 25-30% (prev. 40-60%)
• Revenue of DKK 16-18m (prev. DKK 18-21m), corresponding to a growth rate of 20-40% (prev. 40-60%).
• EBIT loss of DKK 20-22m (prev. a loss of DKK 15–20m)
  
  

For 2023 and 2024 the macro-economic and geo-political uncertainties have led to an adjusted outlook:

• Adjusted outlook for 2023:
  • ARR of DKK 20-22m (prev. DKK 27-35m), corresponding to a growth of 20-30% (prev. 40-60%)
  • Revenue of DKK 19-21m (prev. DKK 25-33m), corresponding to a growth rate of 20-30% (prev. 40-60%).
  • EBIT loss of DKK 8-11m (prev. a loss of DKK 5-11m)
    

• Adjusted outlook for 2024:
  • ARR of DKK 24-28m (prev. DKK 37-55m)
  • Revenue of DKK 23-27m (prev. DKK 35-54m)
  • EBIT profit remains at DKK 0-10m (prev. a profit of DKK 0-10m)

Investor webinar
On October 25, 2022 at 15.00 (CET) an investor webinar will be held. Sign up here.

Contacts

• CEO: Claus Finderup Grove, mobile +45 2095 2988, [email protected]
• CFO: Jack Skov, mobile, +45 2282 8845, [email protected]

Certified Adviser

• Grant Thornton, Jesper Skaarup Vestergaard, phone +45 3527 5011, www.grantthornton.dk
  
  

About Konsolidator
Konsolidator A/S is a financial consolidation software company whose primary objective is to make Group CFOs around the world better through automated financial consolidation and reporting in the cloud. Created by CFOs and auditors and powered by innovative technology, Konsolidator removes the complexity of financial consolidation and enables the CFO to save time and gain actionable insights based on key performance data to become a vital part of strategic decision-making. Konsolidator was listed at Nasdaq First North Growth Market Denmark in 2019. Ticker Code: KONSOL

Attachment

• Konsolidator_Q3_report