Risk Intelligence A/S: Q4 Interim and Year-End Report 1 January - 31 December 2024

Highlights:

• Total revenue increased 30% FY and 31% in Q4  
• Total ARR growth 21% FY
• EBITDA 2024 increased 56% and 35% in Q4
• Cash Flow from ordinary activities improved by 52% FY

CEO Hans Tino Hansen

"With this report we are presenting our results for Q4 and 2024, while at the same time presenting important changes in how we approach our business for 2025 and onwards.

An important indicator of our ability to deliver on our strategy to create growth and ultimately profit is the spread between top line growth and growth in costs, where we in 2024 delivered growth in recognised revenue of 30% and increase in costs of 7%. This 23% spread is the most important driver in assessing our ability to reach our goals as prudent cost control and continued growth in revenue will deliver the results.

The Q4 EBITDA of DKK -1,412K is partly due to extraordinary costs in operations due to restructuring as well as one-time costs. The EBITDA should be seen in this light as some of these costs will improve the 2025 EBITDA. Furthermore, the financial costs in Q4 also included one-time costs, which increased the total financial costs.

Total growth in System ARR in Q4 reached 20% compared to Q4 2023, which is within our guidance and a result of new sales, upsell to existing clients minus churn of three licenses as well as a reduction in license value primarily due to mergers between two times two clients. Some of this license value will return in 2025, but it is still unknown when and how much. Furthermore, one of the churned licenses will likely return in 2025 as well. The modest net increase compared to Q3's reported System ARR is a result of the above.

Cash flow from ordinary activities before financial costs provided in positive cash flow of DKK 807K in 2024 compared to DKK -3,460K in 2023 or an improvement of DKK 4,267K during the year. This clearly underlines the change in our operational result from absorbing cash flow to providing cash flow. Furthermore, our recent refinancing package will reduce financial costs during 2025 and further improve cash flow.

For 2025 we are setting off with a new commercial strategy with a well-defined business segmentation of our existing clients in five different segments, which each have their own distinctive type of business and target group, their own price and decision-making profile, as well as average revenue per client. The five segments are: Commercial maritime, Energy, Insurance, Government & Defence, and Land-based logistics

We will be addressing each segment more specifically and the whole organisation will be part of this development with increased specialisation for each segment. Ultimately, this will drive growth, new clients and client satisfaction during 2025 and onwards."

Reporting period October 2024 - December 2024

DKK `000

Reporting period January 2024 - December 2024

DKK `000

Metrics FY 2024: 

DKK `000 (2023)   

Guidance 2025:

• ARR Growth: 15 - 30%   
• System ARR: 26.9M - 30.4M DKK  
• EBITDA: Positive   
• Net result: Zero
• Net cash-flow: Positive

Video presentation:

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