Impero releases Q3 Report 2024: Realizes DKK 36.9M in Annual Recurring Revenue corresponding to 31% year-on-year growth and delivers positive cash flow from operating activities

Company Announcement No. 13-2024

Copenhagen, 14 November 2024

At the end of Q3 2024, Impero realized a 31% year-on-year Annual Recurring Revenue (ARR) growth, delivering the strongest absolute net-ARR growth ever both for the third quarter as well as year-to-date. Revenue for the first three quarters of 2024 increased by 29%, while capacity costs (other external expenses and staff costs) increased by 12%, contributing to the planned improvement in EBITDA and positive cash-flow from operating activities for the first nine months of 2024. Impero maintains the guidance for the full year of 2024 with ARR within the DKK 38M to 42M range and EBITDA expected within the DKK -11M to -9M range.

Financial highlights on 30 September 2024

• ARR increased by 31% to DKK 36.9M, from DKK 28.1M on 30 September 2024
• Net ARR growth Q3 2024 YTD amounted to DKK 6.5M, compared to net ARR growth of DKK 5.5M by end of Q3 2023
• Uplift was 13% YoY, compared to 19% in the 12-month period ending 30 September 2023
• Churn was 4% YoY, compared to 6% in the 12-month period ending 30 September 2023
• Net Revenue Retention was 109%, compared to 113% in the 12-month period ending 30 September 2023
• Revenue by the end of Q3 2024 YTD increased by 29% to DKK 25.8M, compared to the same period in 2023
• EBITDA by the end of Q3 2024 YTD was negative DKK 6.7M, compared to negative DKK 9.4M for the 9-month period ending 30 September 2023

Impero A/S has continued to achieve significant milestones in the third quarter including onboarding of seven new enterprise customers and the addition of several new product features, marking a strong performance from our team and reaffirming our market position.

Furthermore, 31% year-over-year growth in ARR, along with the highest net-new ARR for a 12-month period and positive cash-flow from operating activities year-to-date, demonstrates the progress of our strategy execution and our commitment to helping customers navigate increasing compliance challenges.

Building on the foundation we established in the first half of the year, our efforts in the DACH region have delivered strong results. Our targeted market penetration strategies in Germany and Austria have led to an increase in customer acquisition, with onboarding of four new enterprise level customers and further expansion of existing customers into new compliance domains. By the end of the third quarter the DACH region contributes 42% of the total ARR compared to 37% by the end of Q3 2023.

Similarly, our initiatives in Denmark have solidified our standing as a key player in the market, now serving 32% of the members of the C25 index.

Easing the burden of complexity in compliance

This quarter, we rolled out several new features. Our focus at Impero was clear: enhance the user experience in control management and improve operational efficiency to tackle the escalating compliance challenges our customers face.

One of the key features is the new extended control overview, which consolidates all control-related data into a single, comprehensive view, securing oversight of the entire control framework. For instance, a compliance manager can now easily filter and sort controls by department or risk level, helping prioritize focus areas more effectively.

Improved cash burn to net new ARR ratio

As planned, we have significantly improved the cash burn to net new ARR ratio in Impero to -0.7 by the end of Q3 2024, compared to a ratio of -1.7 at the same time last year. This reflects both the growth in ARR, our disciplined financial management and the success of our cost-control measures, highlighting our commitment to invest in sustainable growth while maintaining a robust financial position as described in our strategic direction in connection with our 2023 annual report.

For the first nine months of the year, Impero has improved the cash flow from ordinary operating activities from negative DKK 5.7M by the end of Q3 2023 to DKK 0.1M by the end of Q3 2024. As reflected in our outlook and strategy, management is focusing on striking a balance between improving EBITDA and investing in the development of the company.

Impero ends Q3 2024 with a solid cash position of DKK 15.0M, and with sufficient funding for continuing investments in accordance with the strategy.

“We continue to deliver value to our customers while strengthening our financial foundation. Our focus remains on expanding our reach and enhancing our platform to meet the evolving compliance needs of businesses globally.” says CEO Rikke Stampe Skov.

Welcoming new Chief Commercial Officer

Throughout Q3, we have continued to see our team develop and we are very much looking forward to welcoming Mansoor Malik as Impero’s Chief Commercial Officer starting December 1st, 2024.

We extend our heartfelt gratitude to our team, customers, partners, and shareholders for their support and dedication to our mission of empowering companies to deliver what they promise, to become and stay compliant.

Outlook

Impero maintains the outlook for 2024 with ARR in the range of DKK 38M to 42M by the end of 2024. The outlook corresponds to growth rates between 25% and 38%. Impero will invest in scaling the organization to ensure long-term ARR growth and at the same time focus on improving the cash-burn to net-new ARR ratio. We expect EBITDA for 2024 to be in the range of DKK -11M to -9M.

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 Q3 Report at a webinar on 15 November 2024, at 10:00 AM CET.

Register for the webinar via: https://www.inderes.dk/videos/impero-praesentation-af-q3-2024