DecideAct H1 Report 2024: A streamlined company on a path to profitability, organic growth and a strong foundation for scaling

DecideAct A/S [ACT]
Company Announcement No. 7-2024:
NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
31 AUGUST 2024

In the first half of 2024, DecideAct has finalized optimizing and streamlining the company into a lean and efficient organization with a clear focus on supporting selected market segments as stated in May 2023. DecideAct Group maintains its target to reach profitability and an ARR of DKK 18 million by 2025 and increase ARR to more than DKK 50 million by 2030.

On 30 June 2024, DecideAct Group reached a growth in ARR before churn of 20% (YOY) and a total realized ARR of DKK 8.93 million. Even though DecideAct, like other SaaS companies, has been affected by companies generally taking a step back and cutting fixed costs, DecideAct Group has managed to grow its customer base with an increase of 2% YOY before churn.

After several years of steady growth, DecideAct has had a strong focus on stabilizing the business in the latter part of 2023 and into the first half of 2024. DecideAct Group has slightly increased ARR compared to the end of H1 2023. Considering the market situation, the overall result can be considered satisfactory, and the company is still in a good position to deliver on the overall goals in the future.

Towards new goals with an unrivaled AI-powered product

DecideAct A/S is relentlessly pursuing its ambition and course to achieve a dominant position in the industry by delivering best-in-class products. In the first half of 2024, the parent company has invested DKK 1.5 million in software development - including new AI-based features and customized solutions for public and private companies.

Developing new, strong tools for decision-making

AI will completely change the business landscape over the next 3-5 years, generally eradicating 30% of the workforce and certainly disrupting strategic consulting. DecideAct intends to be part of this disruption, as it has already done as a first mover in strategy execution innovation. In the second half of 2024, DecideAct will launch version 1 of its new AI CSO - and soon after a new, stronger decision support tool in versions 2 and 3.

Persistent strong support from investors

To secure the best conditions for becoming a dominant player, DecideAct A/S must be able to match the competition on all critical parameters, which is not possible without the necessary backing and trust from investors. It is therefore reassuring that investors' confidence in DecideAct A/S' long-term ambitions remains high.

Developments in activities and finances

To support ongoing operations and the achievement of DecideAct A/S' long-term goals, the parent company continuously monitors its liquidity needs. The liquidity position at the end of H1 2024 was considered sufficient to cover liquidity needs for the next 12 months, considering that the company received additional liquidity of DKK 1,800,000 from a directed issue of new equity after the balance sheet date to support the new AI tools and ongoing growth.

Given the current world market situation, management considers DecideAct A/S' financial performance to be acceptable. The company group has secured a situation with many agreements in the contract phase and a strong pipeline, and therefore DecideAct A/S' management is very optimistic about the future. It is currently assessed that the general uncertainties in the world market will not affect the parent company's financial position and development.

Key figures

Continued focus on profitability and growth

Throughout 2023 and the first half of 2024, the DecideAct Group has worked hard to optimize and streamline the business to become a lean and efficient organization with a very clear focus on supporting selected market segments such as investment funds and their portfolios as well as large and complex organizations, including the public sector.

Development-wise, the product is stronger than ever, and the business group sees the right indicators for the growth potential to unfold to full effect in the coming years. To lay the foundation for further scaling, all the DecideAct Group's strategic priorities in the coming period will have the overall aim of strengthening customer traction and increasing sales in both the private and public sectors.

The four strategic focus areas remain as announced in the latest annual report: Investment funds and their portfolio companies, the public sector in Denmark and Iceland, strategic partnerships for growth, and Artificial Intelligence (AI). In addition, DecideAct Group will prioritize the Nordic and English-speaking markets and further maturation of the North American market, where DecideAct Group has already won several contracts.

Today, the DecideAct Group is profitable in its sales operations in Canada and Iceland. The Group has reached an ARR of DKK 8.93 million (consolidated for the Group) on 30 June 2024 and expects to continue to increase ARR by 50% during 2024, break even in the first half of 2025, reach profitability for the full fiscal year 2025, and grow to more than DKK 50 million in 2030.

With the current pipeline, a strengthened sales effort, lean operations, and an adjusted and streamlined cost level, it is still expected that DecideAct Group will be able to deliver on this target.

The Half Year Report is attached to this announcement and may also be found at the Company's website: https://www.decideact.net/investors

Contact Information

Company:
CEO, Flemming Videriksen
+1 (949) 670-9224
E-mail: ir@decideact.net
DecideAct A/S
Østre Kajgade 3, 3730 Nexø, Denmark

Certified Adviser:
Keswick Global AG