Adjusted ARR guidance for 2021

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Company Announcement No. 24-2021
Copenhagen, 12 November 2021

*Contains inside information*

Penneo adjusts ARR guidance for 2021 from 56-60M DKK to 54-57M DKK. The adjusted ARR guidance corresponds to a year-on-year growth rate of 46%-54%. EBITDA guidance of negative 15-20M DKK remains unchanged.

In Company Announcement No. 19-2021, Penneo announced improved ARR guidance of 56-60M DKK from 54-59M DKK. After the improved ARR guidance for 2021 was announced, the following assumption has changed:

  • A lower inflow of new customers across industries and markets

Historically, Q3 is a low season for Penneo with the exception of extraordinary results in 2020-Q3 caused by the deadline extension for filing annual reports as a consequence of Covid-19. In addition, the lower inflow of new customers is attributable to a combination of the following two items:

Automating the lead-to-cash cycle In 2021-Q3 
Penneo initiated a process to automate certain touchpoints in the customer journey to secure long term scalability, this led to a short term decrease in closing rates. This has now been mitigated, but has affected 2021-Q3.

Higher than expected turnover of commercial staff In 2021-Q3
The turnover negatively slowed down the inflow of new customers.

Consequently, the ARR guidance for 2021 is adjusted to 54-57M DKK.

Fulfillment of the ARR guidance depends on the following key drivers and assumptions to continue:

  • A continued low ARR churn rate
  • A continued level of engagement with the platform
  • A continued ability to obtain new customers across industries and markets

The 2021-Q3 report is expected to be released on 25 November 2021.

Forward-looking statements
Statements about the future reflect Penneo’s current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the company’s actual results may differ from the guided figures

Further information
CEO, Christian Stendevad
Mobile (+45) 27 29 50 02

Certified Advisor
Grant Thornton, Jesper Skaarup Vestergaard 
Direct (+45) 35 27 50 11

About Penneo A/S
Penneo is a Software-as-a-Service (SaaS) provider originally established to help companies with digital document signatures. Penneo was founded by six Danish entrepreneurs, who joined forces with a shared ambition to reduce the “hassle of getting documents signed” by replacing pen and paper with a digital alternative. This new digital “pen” (Pen-neo) was launched in 2014. Today, Penneo has evolved into an eco-system of automation solutions that digitize company workflows in connection with onboarding of customers (KYC) and secure and easy signing and management of documents. The company offers a RegTech solution that gives companies an efficient and inexpensive tool for complying with regulatory requirements . Penneo holds a strong position in the Nordic countries. In Denmark alone, more than 620,000 people signed documents electronically with Penneo in 2020. 

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