Konsolidator reduces cost base - improving EBIT guidance from 2022-2024 - inside information
Company announcement no 7-2022
Søborg March 30, 2022
Konsolidator reduces cost base - improving EBIT guidance from 2022-2024
Konsolidator reduces the cost base to improve profitability and key SaaS metrics. The growth in revenue and Annual Recurring Revenue (ARR) is sustained but Konsolidator reduces staff from 38 to 31, corresponding to 18%. The cost reduction is primarily in the development department postponing part of the planned product road map. The reduction improves the EBIT guidance by DKK 2 – 4 million in 2022 and DKK 5 – 7 million in 2023 reaching break-even in 2024.
CEO Claus Finderup Grove comments: “It is with great sadness that we have to dismiss 7 employees in order to adjust our cost base. Konsolidator is a people’s business and attracting highly qualified employees is important for Konsolidator to succeed. We believe that the team we have in place will continue to deliver on our strategic promises unfolding the potential in the years to come.”
Adjusting the cost base
Konsolidator is a growth company both focusing on top-line growth as well as a tight cost control. Growing ARR is the main focus but will be balanced with a tighter cost control going forward.
The cost adjustment includes employees as well as other cost reducing measures and will have effect from the second half of 2022 and the adjustment will reduce the cost base by DKK 2 – 4 million in 2022. The full effect of the adjustment will be reached in 2023 and 2024 where a cost reduction of DKK 5 – 7 million is expected.
CFO Jack Skov comments: “We have recognized the need for a tighter cost focus to improve our Cash Flow from Operations. The full effect of the cost reduction of DKK 5 – 7 million will be visible in 2023 and is a reduction of approximately 15%. The reduction will make it possible to reach break-even a year earlier than originally anticipated.”
The cost reduction will not affect the growth rates on ARR and revenue in 2022-2024 which will remain at 40 – 60% growth. The cost reduction will improve the EBIT guidance for 2022 by DKK 2 – 4 million from DKK (23) – (18) million to DKK (20) – (15) million. In 2023 the EBIT guidance will improve by DKK 5 – 7 million to DKK (11) – (5) million reaching break-even in 2024.
Outlook 2022-2024
| DKK million | 2022 | 2023 | 2024 |
| ARR and revenue growth | 40 – 60% | 40 – 60% | 40 – 60% |
| ARR (unchanged) | 19 - 22 | 27 - 35 | 37 - 55 |
| Revenue (unchanged) | 18 - 21 | 25 - 33 | 35 - 54 |
| EBIT (Previous guidance) | (23) – (18) | (18) – (11) | (5) - 5 |
| EBIT (New Guidance) | (20) – (15) | (11) – (5) | 0 - 10 |
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
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