Penneo realises 43% year-on-year ARR growth rate at the end of 2022-Q1

Company Announcement No. 17-2022
Copenhagen, 24 May 2022
Financial report for the period 1 January 2022 - 31 March 2022

Key features 2022-Q1

• ARR increased by 3.0 M to 58.5M in 2022-Q1 corresponding to 43% year-on-year (YoY) growth at the end of 2022-Q1
• Net ARR retention rate amounted to 120%
• ARR churn rate amounted to 3%
• ARR uplift amounted to 23%
• ARR growth from new customers decreased by 25% in 2022-Q1 compared to 2021-Q1
• Average Revenue Per Account (ARPA) increased by 19% in 2022-Q1 compared to 2021-Q1
• EBITDA amounted to negative 6M DKK as a result of the planned investments

Guidance
ARR
Penneo maintains ARR guidance of 77M-82M DKK at the end of 2022 corresponding to an ARR growth rate of 40%-49%.

EBITDA
In 2022, Penneo continues to invest in long-term ARR growth in accordance with the announced expansion strategy in the Prospectus. The investments in long-term ARR growth will be intensified in 2022 as a result of the capital raise in 2022-Q1 (company announcement 6-2022). However, these investments will not impact ARR guidance for 2022.

Consequently, Penneo adjusts the previously announced EBITDA guidance of negative 5-10M DKK to negative 15-20M DKK.

Business summary
Raising growth capital to accelerate the execution of the strategy

As announced in company announcement no. 6-2022, Penneo completed a private placement and directed offering of new shares to a number of institutional investors resulting in net proceeds of 59M DKK. 

The proceeds of the private placement will accelerate the execution of the strategy and its three investment streams:

• Upsell Penneo KYC product to auditors
• Penetrate AML-governed industries with Penneo’s KYC and Sign product 
• Fuel expansion through the Audit and Accounting vertical to become the de facto standard for auditors in Europe

The proceeds are being invested into sales, product development and business operations to continue building the structures that support the enterprise-grading and Nordic roll out of Penneo KYC and the continued international expansion of Penneo Sign.

Events after the period
Steffen Peter Anker Heegaard joins the board of directors of Penneo

With reference to company announcement no. 17-2021, Steffen Peter Anker Heegaard was recommended for election as new member of the board of directors of Penneo at the annual general meeting on 27 April 2022. Consequently, Steffen Peter Anker Heegaard was elected new member of the board of directors at the annual general meeting. 

At the constituent meeting following the annual general meeting, the board constituted itself with Christian Sagild as chairman of the board and Rikke Stampe Skov, Morten Kenneth Elk and Steffen Peter Anker Heegaard as members of the board.

Penneo signs KYC deal with PwC Denmark

With reference to company announcement no. 16-2022, Penneo announced the deal to expand the cooperation and onboard PwC Denmark to Penneo’s KYC software.

The expanded cooperation is of strategic importance and demonstrates execution of a keystone in Penneo’s strategy and primary investment streams; to upsell Penneo KYC to auditors across existing and new markets. The strategic focus was announced in the outlook section of Penneo’s 2021 annual report.

PwC Denmark is an existing Penneo Sign customer.

Presentation
The 2022-Q1 report will be presented at an online conference on 25 May 2022 at 2:00pm CET.

Register for the conference at:
https://hcandersencapital643.clickmeeting.com/penneo-presentation-of-q1-report-2022/register

For more details please see the 2022-Q1 report attached.