Impero releases Q1 Report 2023: Realizes DKK 25.3M in Annual Recurring Revenue corresponding to 40% growth compared to 31 March 2022

Company Announcement No. 8-2023

Copenhagen, 11 May 2023

At the end of the first quarter 2023, Impero realized a 40% year-on-year Annual Recurring Revenue (ARR) growth rate and continued to demonstrate solid SaaS metrics. Revenue increased by 46% while capacity costs (other external expenses and staff costs) only increased 3%, leading to the intended improvement in EBITDA. Impero further lowered its cash-burn from ordinary activities compared to net new ARR generated. Impero maintains guidance for the full year of 2023 with ARR within the DKK 29M to 33M range and EBITDA expected within the DKK -13 to -11M range.

Financial highlights on 31 March 2023

• ARR increased by 40% to DKK 25.3M, from DKK 18.1M on 31 March 2022
• Net ARR growth in Q1-2023 amounted to DKK 2.6M, compared to DKK 1.5M in Q1-2022
• Uplift was 19% YoY, compared to 12% in the 12-month period ending 31 March 2022
• Churn was 2%, YoY compared to 3% in the 12-month period ending 31 March 2022
• Net Revenue Retention was 118% compared to 109% in the 12-month period ending 31 March 2022
• Revenue in Q1-2023 increased by 46% to DKK 6.1M, compared to the same period in 2022
• EBITDA for Q1-2023 was negative DKK 3.6M, compared to negative DKK 5.1M for the first quarter of 2022

Impero onboarded 15 new customers in Q1-2023 in Germany, Denmark, Sweden, and Ireland. Our new customers’ use cases include tax compliance management, SOX compliance, month-end closing, and financial compliance. We saw an uplift from several large organizations in the German, Danish, and North American markets, which is testament to the ongoing value Impero brings as its use is expanded to other domains of our customers’ businesses.

Impero continued to experience a solid inflow of leads in its main markets and traditional customer segments, and land-and-expand remains a strategic focus.

To date, the Impero platform has to a high degree been customized to each customer. This is ideally suited to larger organizations with complex compliance frameworks and strong in-house competencies and continues to be the strategy for enterprise customers. However, as further regulations and market expectations affect a wider range of companies, Impero will launch solutions to address these in close collaboration with key partners.

During Q1-2023 Impero finalized a templated solution for tax control management in partnership with KPMG Germany, targeted at the 15,000 German mid-market companies with revenue between EUR 10M and EUR 100M.

“Together with our partners, during Q1-2023 we have laid the foundation for Impero to help businesses of many sizes live up to their promises. This is an important step in Impero’s journey and demonstrates the enduring value of the mission we work towards every day,” says CEO Rikke Stampe Skov.

Capital

At the beginning of 2023, several warrant holders decided to exercise their warrants, with total proceeds for the company of DKK 1.4M. In combination with improved working capital, Impero ends Q1-2023 with a solid cash position of DKK 15.5M and with sufficient funding for continuing the planned investments in the commercial organization for at least this calendar year.

As reflected in the outlook, management is focusing on striking a balance between improving EBITDA and investing in the development of the company. By the end of Q1-2023 Impero is well on track to lower cash-burn from ordinary activities compared to net new ARR generated.

Organization

Continuing to scale Impero, the team is pleased to welcome two senior appointments. The new Head of Sales in Germany, Nicolas Weisensee, started at the beginning of May, and the team is looking forward to welcoming Giuseppe Geresia as the new Chief Sales Officer mid-May. Giuseppe brings substantial experience from international scaling of SaaS businesses and will join the senior leadership team taking responsibility for the continued international expansion of Impero.

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 Q1 Report at a webinar 12 May 2023, at 1:00 PM CET.

Register for the webinar via: https://www.inderes.dk/videos/impero-praesentation-af-q1-2023