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Penneo accelerates ARR growth rate from 40% in 2019 to 48% in 2020 and reaches 37M DKK ARR

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Company Announcement No. 7-2021
Copenhagen, 25 March 2021

Financial report for the period 1 January 2020 - 31 December 2020


  • Annual Recurring Revenue (ARR) grew 48% in 2020 - from 25M DKK end of 2019 to 37M DKK end of 2020. The ARR growth rate in 2019 was 40%
  • Penneo increased average ARR per new customer by 67% in 2020 compared to 2019
  • Penneo achieved 21% net annual growth from existing customers in 2020 compared to 12% net annual growth in 2019


In 2021, Penneo expects continued growth in ARR

  • For the first half-year of 2021, Penneo expects ARR at the level of 41-45M DKK, as announced in Company Announcement no. 1-2021
  • For the entire year 2021, Penneo expects ARR at the level of 52-57M DKK

Consequently, the ARR growth rate for 2021 is expected to be at the level of 40%-56%.

Chairman of Penneo, Morten Elk comments: “We are extraordinarily pleased with 2020. We have entered new markets and improved our offering, supported by the acquisition of CLA Reply. And, most importantly, we have succeeded in delivering growth. We have grown our ARR by 48% in 2020 as opposed to 40% in 2019, an acceleration which we consider a major achievement.”

Management commentary

International growth - entering two new markets
In 2020, Penneo successfully integrated the Finnish eID FTN standard and the Belgian eID Itsme® standard as a part of the strategy to roll out Penneo’s solution in new markets. Subsequently, Penneo signed its first audit customer in Finland, Accado, and its first Big 10 audit customer in Belgium, VGD.

Home market growth
In 2020, Penneo realized a 25% ARR uplift on existing customers before churn. As announced in Company Announcement no.1-2021, the uplift is attributed to increased platform usage by existing customers. The increased usage is a testament to a rising demand for Penneo’s services in a growing market. 

The acquisition of CLA Reply
In 2020, Penneo augmented its product offerings through the acquisition of the Anti-Money Laundering (AML) and Know Your Customer (KYC) software from CLA Reply. The software is currently being rolled out to Penneo’s existing and new customers across verticals andmarkets. The KYC software is expected to contribute to an increase in average revenue per account (ARPA).

In 2020, Penneo was accepted for trading on Nasdaq First North Growth Market Denmark. The proceeds from the listing are being invested in accordance with Penneo’s internationalization strategy to become the de facto standard for the audit and accounting industry in Europe.


The Annual report will be presented at an online conference Thursday 25 March 2021 at 12.00-12.30 CET. Register for the conference at: https://hcandersencapital643.clickmeeting.com/546315854/register For more details please see the Annual report attached.

Further information

Interim CEO, Nicolaj Højer Nielsen
Mobile (+45) 25 46 25 80

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

About Penneo A/S

Penneo A/S (Penneo) is a Software-as-a-Service (SaaS) company, originally focused on delivering the digital pen (Penneo = new pen) back in 2014. Today, Penneo has evolved into an eco-system of automation solutions that digitizes company workflows related to onboarding of customers (KYC), and signing and management of documents in a secure and easy way. The Company offers a RegTech solution that helps companies comply with regulations in an efficient and inexpensive way. Penneo has a strong position in the Nordics and in Denmark, where more than 620.000 people used Penneo’s workflow in 2020.

For information about Penneo visit https://penneo.com/investors/


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