Penneo realises 50% ARR growth rate in 2021

Company Announcement No. 5-2022
Copenhagen, 21 February 2022
Financial report for the period 1 January 2021 - 31 December 2021
*Sections regarding EBITDA guidance and Capital raise contain inside information*

Key features 2021

• ARR increased by 18.5M DKK to 55.5M DKK corresponding to 50% growth end of 2021
• Net ARR retention rate amounted to 124%
• ARR churn rate amounted to 2%
• ARR uplift amounted to 26%
• ARR from new customers increased by 46% end of 2021 compared to 2020
• Average Revenue Per Account (ARPA) increased by 21% end of 2021 compared to 2020
• EBITDA amounted to negative 14.1M DKK as a result of the planned investments

Outlook for 2022

ARR guidance
In 2022, Penneo expects continued growth in ARR and guides ARR at the level of 77M-82M DKK at the end of 2022 corresponding to an ARR growth rate of 40%-49%.

EBITDA guidance
In 2022, Penneo continues to invest in long-term ARR growth in accordance with the announced expansion strategy in the IPO document. Consequently, Penneo expects an EBITDA at a level of negative 5-10M DKK.

Capital raise
As announced in Company Announcement No. 16-2021, Penneo intended to raise up to 100M DKK. However, it is the assessment of the Board of Penneo that a capital raise of 100M DKK in the current capital market conditions would not contribute to the long term value creation for the current shareholders in Penneo.

Instead, Penneo intends to complete a smaller capital raise of app. 5-10 % of Penneo’s market cap within the next 6 months in order to maintain the growth momentum and secure the foundation for investing in continued high growth rates in 2023.

Business development in 2021

Penneo signed a deal with Bankdata
As announced in Company Announcement No. 32-2021, Penneo entered into an agreement with Bankdata to roll out Penneo’s Sign software in Bankdata and eight financial institutions in Denmark; Sydbank, Jyske Bank, Djurslands Bank, Skjern Bank, Sparekassen Sjælland-Fyn, Ringkjøbing Landbobank, Kreditbanken and Nordfyns Bank. 

The deal with Bankdata is of strategic importance and demonstrates execution of the strategy and the investment streams which were announced in Company Announcement No. 26-2021. Bankdata covers approximately 20% of the market for IT solutions to the financial sector in Denmark.

Penneo signed a deal with KPMG Norway
As announced in Company Announcement No. 15-2021, Penneo entered into an agreement with KPMG Norway to roll out Penneo’s KYC software in KPMG Norway. The deal is testament to the augmented value proposition provided by the acquisition of CLA Reply’s Know-Your-Customer (KYC) software in October 2020. It shows the result of the commercial focus in 2021 announced in the Annual report for 2020 to roll out the KYC software to auditors.

Over the course of 2021, Penneo focused on enterprise-grading the KYC software to prepare the product for international roll out, in parallel to onboarding new customers to the software in the Nordic countries.

Leadership transition in Penneo
Christian Sagild was elected Chairman of the Board of Directors at the annual general meeting on 28 April 2021.

Rikke Stampe Skov was elected member of the Board of Directors at the extraordinary general meeting on 5 March 2021.

Christian Stendevad was appointed CEO of Penneo and succeeded interim CEO Nicolaj Højer Nielsen. Christian Stendevad took up the position as CEO on 18 August 2021.

Main Market aspirations
As announced in Company Announcement No.16-2021, Penneo intends to apply for admission to trading on Nasdaq Copenhagen Main Market.

By moving onto the Main Market, Penneo expects to be able to attract a wider range of national and international institutional investors. Penneo was listed on First North on 2 June 2020 and has since the listing made several key accomplishments:

• Fulfillment of the growth strategy put forth in the IPO document
• Acquisition of CLA Reply’s KYC software
• Realised an ARR growth rate of 50% in 2021 compared to a guided ~40% ARR growth rate in the IPO document

Consequently, migrating to Main Market is a natural next step for Penneo and the listing process is progressing according to the plan as announced in Company Announcement No. 16-2021.

Presentation

The annual report for 2021 will be presented at an online conference on 23 February 2022 at 1:00pm CET.

Register for the conference at:
https://hcandersencapital643.clickmeeting.com/penneo-praesentation-af-arsrapporten-2021/register

For more details please see the annual report attached.