Risk Intelligence launches 2025 strategy
Risk Intelligence A/S (“Risk Intelligence” or "Company") hereby publishes its 2025 strategy. A presentation of the strategy is available on the Company's investor website (investor.riskintelligence.eu/strategy).
Highlights and goals
- Positive net result from 2023
- Average annual revenue growth of 30% with a target 50 MDKK in 2025
- ARR average growth 30%
- Market leader in security risk analysis
- Refocusing the business on maritime security
- Land-based security as an independent business area
- Strong commercial partnerships
- New ESG objectives
Risk Intelligence to deliver a positive net result from 2023
With the new strategy, Risk Intelligence will see an average growth of 30% year-on-year during the period to and including 2025. The growth in revenue will be markedly higher than the growth in cost and deliver a positive EBITDA for the full year 2023. The positive EBITDA and reduced financial costs will lead to positive net result from the full year 2023 and onwards.
Risk Intelligence to reach average annual revenue growth of 30%
Historically, Risk Intelligence has had an average growth of about 20%, which is the basis for future growth. A combination of new clients, upsell to existing clients and revenue from partner sales will deliver the additional 10% growth. A new unique platform with a range of new features and new third-party data will provide additional revenue from existing and new clients and subsequently increase the ARPU and ARR. ARR is targeted to grow with an average of 30% per year.
The revenue target for 2025 is 50 MDKK.
Refocusing the business on maritime security
The strategy marks a return to a focus on maritime security and intelligence analysis. Product, market, partner, and technology development mainly will take place within this area, and Risk Intelligence will partner with the best technology partners to power its solutions. The first major step will be the launch in 2023 of a new technology platform for the maritime products Risk Intelligence System (MaRisk and PortRisk), delivered by a partner company, and this, as well as new partnerships, will be strong enablers for this renewed focus.
Land-based security as an independent business area
LandRisk and LandRisk Logistics will continue on the existing platform and will increasingly become a scalable yet bespoke product. The land-based business will have its own dedicated team, managing solution sales to existing clients and potential clients in the pipeline. Additional resources will be added when needed and warranted by revenue.
The land-based business and especially LandRisk Logistics will still be a strong potential upside.
Strong commercial partnerships
Risk Intelligence will significantly increase partnerships, which will deliver Risk Intelligence System data to partners’ clients and thereby expand the market horizontally and vertically. The partner sales will expand horizontally through the addition of new markets that have only been addressed marginally until now, or not at all.
The partner sales will also expand the market vertically, as existing Risk Intelligence clients can acquire navigation, fleet management, or similar systems for their fleet with integrated Risk Intelligence System data, without that cannibalising existing revenue.
ESG objectives
The three most important ESG goals are to support local projects in countries/communities of risk where the company operates, to become CO2 neutral over time through emission reductions and offset programmes, and to seek as much compliance with main market governance objectives as possible.
CEO Hans Tino Hansen
"It is a great pleasure to present our new 2025 Strategy, which will refocus Risk Intelligence's direction and deliver growth and profit at the same time.
The strategy has been under way for a year. The management team and the Board of Directors have taken the necessary time and resources to work through every element of the Company and our markets, including having third party expert studies conducted. This comprehensive analytical process has resulted in a strong 2025 strategy, anchoring some important decisions for Risk Intelligence's future.
One of the most important steps is the decision to concentrate resources and investments in what are Risk Intelligence’s core strengths: Intelligence analysis and maritime security. This means that we will refocus the development of our operations on intelligence analysis, and partner with the best suppliers on the market to deliver platforms and technology. At the same time, we will center our market efforts on the maritime security markets. The land-based security business will still be further developed when warranted by major deals and revenue and will be managed by an independent team.
Our growth in revenue will be based on the historic 20% year-on-year average growth, derived from our maritime security business. An additional 10% will be generated from increases in license agreements from existing and new clients from the planned new platform, in combination with increased revenue from partners, and revenue from the land-based security business. The strategy target of an average year-on-year growth rate of 30% results in a total revenue target of 50 MDKK in 2025.
As Risk Intelligence is already getting closer to a break even in EBITDA with the current strategy, the growth in revenue in combination with a lower growth rate in costs will result in a positive net profit from the full year of 2023."
A presentation of the strategy can be downloaded here: investor.riskintelligence.eu/strategy
This information is information that Risk Intelligence A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below, on 21 September 2022.
