Relesys A/S realizes growth in Annual Recurring Revenue (ARR) of 37% in 2023

Relesys A/S | Annual Report
Company Announcement No. 2-2024
Copenhagen, March 20. 2024
Financial report for the period 1 January 2023 - 31 December 2023

Relesys ended 2023 with a best-ever Q4, taking full-year ARR to DKKm 61.9, a 37% increase year-on-year. In addition to the realized ARR, Relesys signed agreements with additional ARR of DKKm 5.6 that will be realized during 2024. In 2024, ARR is expected to increase 34% - 42% while revenue is expected to increase by 26% - 33%.

Summary:

Relesys continued to deliver double-digit growth rates in ARR and revenue. During 2023 Relesys signed with three enterprise size retail grocery clients, which added significantly to the ARR growth in 2023 and reinforced Relesys’ strong position in the Nordic retail grocery market with more than 150,000 users.

• ARR increased from DKKm 45.2 to DKKm 61.9, corresponding to 37% growth year-on-year
• Net ARR retention rate was 112% year-on-year. ARR net uplift was 16%, while ARR churn rate was 4%
• ARR from new clients was DKKm 11.4 in 2023
• Revenue increased 29% to DKKm 57.1. SaaS revenue increased 35% and accounted for 91% of total revenue.

Financial Guidance 2024:

Relesys continues to focus on growing the existing markets in Northen Europe. Relesys will also continue its sales and marketing activities towards North America during 2024.

Relesys maintains current ARR guidance for 2024 of DKKm 83 - 88, corresponding to 34% - 42% year-on-year growth.
Furthermore, Relesys maintains current revenue guidance for 2024 of DKKm 72 - 76, corresponding to 26% - 33% year-on-year growth.  

CEO, Jesper Roesgaard says:

” Relesys continued its double-digit growth trajectory in 2023. ARR grew 37%, resulting in an average annual ARR growth rate of 41% since the IPO in 2021. EBITDA and free cash flow also improved significantly. Our strategic focus on large enterprise clients paid off with a healthy 59% increase in ARR from enterprise clients, and our net ARR retention rate continued to rise and was 112% in 2023. All in all, another strong year for Relesys, both operationally and financially, thanks to the entire Relesys team who continue to find innovative solutions to meet our client’ needs while ensuring we deliver on our promises.”