Impero releases H1 Report 2023: Realizes DKK 27.6M in Annual Recurring Revenue corresponding to 40% growth compared to 30 June 2022

Company Announcement No. 10-2023

Copenhagen, 24 August 2023

At the end of the first half of 2023, Impero realized a 40% year-on-year Annual Recurring Revenue (ARR) growth rate and continued to demonstrate solid SaaS metrics. Revenue for H1 increased by 42%, while capacity costs (other external expenses and staff costs) only increased by 2%, contributing to the planned improvement in EBITDA and lower cash-burn from operations. Impero maintains guidance for the full year of 2023 with ARR within the DKK 29M to 33M range and EBITDA expected within the DKK -13M to -11M range.

Financial highlights on 30 June 2023

• ARR increased by 40% to DKK 27.6M, from DKK 19.7M on 30 June 2022
• Net ARR growth in H1-2023 amounted to DKK 4.9M, compared to DKK 3.1M in H1-2022
• Uplift was 21% YoY, compared to 14% in the 12-month period ending 30 June 2022
• Churn was 4% YoY compared to 2% in the 12-month period ending 30 June 2022
• Net Revenue Retention was 117% compared to 112% in the 12-month period ending 30 June 2022
• Revenue in H1-2023 increased by 42% to DKK 12.8M, compared to the same period in 2022
• EBITDA for H1-2023 was negative DKK 6.8M, compared to negative DKK 9.9M for the first half year of 2022

We were pleased to onboard 24 new customers in H1-2023 across Germany, Denmark, Sweden, and Ireland, up from 14 in H1-2022. The new customers landed in Q2-2023 include the global training provider Maersk Training which joined other Maersk companies in using Impero for optimizing month-end-close activities, a large Danish customer implementing Impero to support their ESG compliance reporting, as well as another large German automotive company using Impero for tax compliance management.

H1-2023 saw good progress in attracting and retaining customers, executing our land-and-expand strategy with uplift from existing customers of 21% over the past 12 months. Combined with the churn rate of 4%, our performance in H1-2023 demonstrates the enduring value of Impero’s mission to pioneer simplicity in compliance.

We continue to see a growing interest in ESG reporting solutions, compounded by the EU’s Corporate Sustainability Reporting Directive (CSRD) which takes effect for a broad set of large companies, as well as listed SMEs. The Directive obliges companies in many markets to report their compliance, and more than 50,000 European companies comprise the market for such solutions from 2024 and onwards.

Our partnership with KPMG Denmark to support a readiness assessment for the CSRD has demonstrated and strengthened the case for Impero, with potential far beyond the Danish borders. With the Impero platform the underlying documentation and reporting processes are simplified in order to accommodate the increasing scope of audits – exactly as is the case with financial audits.

Going forward, we expect growth in the use of templated solutions. Currently, these solutions cover financial/month-end close compliance, tax compliance management, and the newly launched CSRD solution, all developed with strong partners throughout the first half of 2023.

“I am very pleased to see good progress in our ability to attract new business and uplift from our current customers. The expanding use of Impero in other parts of an organization and strong interest in Impero as a platform to support emerging compliance demands, such as our ground-breaking CSRD solution launched with KPMG in June 2023, opens further opportunities for growth,” says CEO Rikke Stampe Skov.

Capital

By the end of H1, Impero is well on track to lower cash-burn from ordinary and investing activities compared to net new ARR generated, with the aim of improving this ratio further towards the end of the year.

Impero ends H1-2023 with a cash position of DKK 10.9M and maintains the flexibility to manage with current funding.

With exciting opportunities to further enhance the reach of the Impero platform the company is currently evaluating its funding needs for additional investments supporting continued high growth rates in the periods to come.

Financial guidance

Impero maintains the outlook for 2023 with ARR in the range of DKK 29M to 33M by the end of 2023. The ARR outlook corresponds to growth rates between 28% and 46%. Impero will continue to invest in scaling the organization to ensure long-term ARR growth and at the same time focus on lowering the cash-burn. EBITDA for 2023 is expected to be in the range of DKK -13M to -11M.

Read the Report in its entirety via Impero.com/investors or in the attached.

CEO Rikke Stampe Skov and CFO Morten Lehmann Nielsen will present the H1 Report at a webinar on 25 August 2023, at 1:00 PM CET.

Register for the webinar via: inderes.dk/videos/impero-praesentation-af-halvarsregnskabet-2023