Strategy Update: Following a successful AGM, DecideAct aims to break even in 2024 after emerging stronger from a turbulent 2022

Yesterday, DecideAct held its annual general meeting, where the company’s CEO, Flemming Videriksen, took stock of 2022 and gave an update on the strategy. In 2022, DecideAct passed DKK 10 million in ARR, and the year thus marked the end of the company's first 10x growth journey. This result was achieved in a year when SaaS companies in general were severely challenged. Now DecideAct aims to break even in 2024.

At the end of 2022, the growth in ARR was 37% gross and 14% net after churn. Like other SaaS companies, DecideAct was affected by many companies taking a step back and cutting their fixed costs. However, a retention rate of 92% is considered quite satisfactory and in line with the current norm for the category.

Although the year turned out lower-than-expected in ARR growth, 2022 nevertheless marked the end of DecideAct's first 10x growth journey. Furthermore, the keys to continuous growth were identified: The public sector as a potential game-changer, strategic partnerships for growth, and GenAI and integrations to ensure a leading position.

In all these areas, DecideAct is breaking through the ice. There is strong interest in the product, the pipeline is growing steadily, and inbound sales are starting to come in as a result of successful marketing efforts. The company will now further optimize operations with the aim of reaching break-even by 2024.

The current focus is on:

• The public sector in Denmark and Iceland as a potential game-changer
• Strategic partnerships for growth and helping to modernize consulting through technology
• DecideAct as a leading infrastructure and decision support for strategy - GenAI and Integrations
• Break-even in 2024 and continuous growth

A LOOK AT THE FUTURE

The keys to continuous growth have been identified

DecideAct is now beginning to see how its 2nd generation technology platform drives inbound pipeline and revenue through partners (focused on individual industries and geographies) and digital marketing (SEO, retargeting, etc.). As mentioned, 2022 marked the end of DecideAct's first 10x growth journey, and at the same time the keys to continuous growth were identified: The public sector as a potential game-changer, strategic partnerships for growth, and GenAI and integrations to ensure a leading position.

The three areas where the DecideAct will focus its execution:

• The public sector in Denmark and Iceland as a potential game-changer: The challenges in the public sector are growing and DecideActs' platform is a perfect match to help public sector organizations deliver on policy agendas such as climate and get more out of increasingly tight budgets. DecideAct has good case studies in both Denmark and Iceland, there is a good dialogue with large public-owned companies and public organizations, and the first contracts are signed.

• Strategic partnerships for growth – modernizing consulting through technology: Several contracts are already won through partners, and there has been a positive experience working together with new clients. In addition, DecideAct has identified the types of partnerships that work and those that do not, as well as the key requirements for successful partnerships. DecideAct has recently signed several partnership agreements, including with KPMG in Iceland and the first partnerships in the US, more strategic partnerships will be entered, and good results from this focus area are expected.

• DecideAct as a leading infrastructure and decision support for strategy - GenAI and Integrations: DecideAct can orchestrate the strategic overview for executives and shield them from the constant noise of different strategic projects and programs. And when a business decision is required in line with key strategic priorities, DecideAct can bring order to the business implications so that a portfolio decision can be made on an informed basis, and then help implement the decisions and ensure optimal execution using the software.

Furthermore, DecideAct is focusing on English-speaking markets, as a strong position here will provide the best basis for scaling. Initially, the focus will be on maturing the Canadian market, which has been identified as a sweet spot for sales of DecideActs products based on multiple contract wins, a promising pipeline, and a well-functioning partner model. Reaching proof of concept in the Canadian market, DecideAct is looking into the possibilities to scale further.

Driving the business toward breaking even in 2024
With the comfort of knowing that the strategy is working, that the core team and technology are in place, that the customer/reference footprint is growing, and that partners and online presence are driving license sales and local implementation, DecideAct is ready and able to scale what works.

The company’s approach is and will be balanced. DecideAct is working towards breaking even in 2024, and with the current pipeline and an adjusted and streamlined cost level, it is expected that DecideAct will be able to deliver on this target. The mantra is to grow fast but with caution. To raise the necessary capital, no more, no less. This is done gradually to show that the formula for growing and scaling the business works, step by step.

Support and confidence from the investors
DecideAct stands today with a strengthened leadership team, a strengthened product, a more cohesive marketing/sales process, a larger pipeline of higher quality leads, better partnership models, and a greater focus on the geographies and verticals where the company gets the most out of its efforts, a tighter cost structure and has the greatest opportunity to make breakthroughs despite the continued turbulence in the world.

Product-wise, DecideAct remains second to none, and to ensure being in the best position to become a dominant player, the company must also be able to match the competition on the other critical parameters. It is therefore reassuring to note that investor support and confidence in DecideAct’s long-term ambition remain high.

Focus on delivering on the ARR

The company’s focus for 2023 is all about delivering on the ARR and preparing to deliver in the coming years. The short-term focus is on growing the customer base and working on additional strategic initiatives to strengthen growth and not at least drive the business towards break-even in 2024.

A BRIEF LOOK BACK AT 2022

Entering new industries and verticals

In 2022, DecideAct signed contracts with several new customers. Entering new industries and verticals has proven that DecideAct is relevant to all companies and organizations, public or private, in all industries, geographies, and functional roles.

Several contracts won through partnerships

In 2022 DecideAct won several contracts in Canada and Denmark, many of them through a well-functioning partner model. A scalable foothold has been established in various verticals and based on successful cases from here, an influx of new customers in these verticals with a particular emphasis on the public sector is expected.

Expanding the pipeline through data-driven marketing

During 2022, DecideAct made some significant changes to the company’s marketing approach and is now building a solid foundation for a long-term marketing strategy that builds a scalable structure and supports DecideAct’s long-term growth plans. The biggest and most important change was to merge sales and marketing into one unit to further align operations and performance data between the two divisions. The pipeline has grown steadily, and DecideAct has more in the contracting phase than ever before.

Redesign of user interface and new unique features

In 2022, DecideAct further improved the technical platform and user interface. Together with the international design house e-Types DecideAct developed a brand-new design and user experience. In addition, new smart and highly requested features in the platform were implemented. DecideAct is already the most flexible platform for Strategy Execution Management on the market, and newly added initiative types and KPIs allow for even greater flexibility in strategic management.

Wheels turning – inbound sales

While market realities resulted in some obvious challenges, other wheels began to turn more smoothly. With strong (show)cases in public and/or infrastructure-related organizations, sales began to materialize with a much shorter lead time and often based on inbound leads—from partners or recommendations from existing customers or simply from SEO and retargeting. This shows that DecideAct has crossed the bridge from direct to indirect (inbound) sales generated by partners and digital marketing in established markets.

On par with or ahead of the competition

Finally, DecideAct has tested its wings in competition with other vendors specializing in SEM. This has served as confirmation that the SEM space is still in its early stages without a clear market leader, and the conclusion is that DecideAct's technology is highly competitive and that its progress with partners is on par with or ahead of the competition.

A COMPLETE TRANSFORMATION IN JUST OVER TWO YEARS

Since the IPO in December 2020, DecideAct has undergone a profound transformation from an aspiring start-up to an established player in the market where the goal is to become dominant. Step by step, the company has strengthened the foundations and likelihood of success in achieving this goal:

• Before the IPO in late 2020, DecideAct provided primarily a consulting-heavy service to clients in Iceland. Today, the company has a strong and scalable product that is sold in four countries and to a wide range of industries - both private companies and the public sector.
• From a relatively small and homogeneous team, DecideAct today represents a wide diversity of gender, identity, ethnicity, and age.
• The product was in the development phase. Now, DecideAct offers customers the best available on the market.
• The company had no marketing office. Today, well-run marketing activities generate many leads among carefully selected segments of decision-makers.
• A first-generation website has been transformed into a state-of-the-art, data-driven web platform integrated into the company’s sales structure.
• From being at the bottom of Google's search hierarchy, DecideAct, thanks to targeted SEO efforts, now ranks high and generates qualified leads directly through hits on relevant keywords and topics.
• In the past, DecideAct had to take the initiative to give presentations in relevant fora. Today, the company's experts are invited by knowledge and business networks who want to learn about the concept.

All this is good, but DecideAct can't be the best at everything for everyone. So, the future is about narrowing the focus further on customer segments where there is the most immediate match and the shortest path to a sale. With an ultra-sharp and targeted effort in selected areas, while cutting unrelated costs, DecideAct is now further streamlining and optimizing the execution of the company’s growth strategy.