Half-Year Report 1 January 2021 – 30 June 2021

Growth continues to be strong supporting the full year guidance

Risk Intelligence A/S (“Risk Intelligence” or "Company") hereby publishes the Half-year Report for the period January - June 2021. The report is available on the Company's Investor website.

Highlights

• A very strong quarter with continuing growth
• Full year guidance for 2021 intact
• Revenue Q2 increased by 58%
• EBITDA 1H increased by 32%
• Net profit 1H increased by 21%
• Total revenue in 1H increased by 29%
• Total ARR growth of 24%
• Renewal rate Q2 of 100% (churn 0%)
• 2-year extension signed with Saipem S.p.A.
• 12 new clients during H1 (6 new clients in Q2)
• 6 new maritime Risk Intelligence System licenses in H1 (included in the above 12)

Reporting period 1H January 2021 – June 2021
DKK ‘000

• Revenue:                                       7,062      (5,495)    +29%
• Costs:                                           10,210       (10,121)       +1%
• EBITDA:                                        -3,148      (-4,626)    +32%
• EBT:                                             -4,940      (-6,253)    +21%
• Profit/loss for the period:            -3,853     (-4,880)    +21%
• Earnings per share:                       -0.36        (-0.58)    +37%

Reporting period Q2 April 2021 – June 2021
DKK ‘000

• Revenue:                                       2,822      (1,787)    +58%
• Costs:                                            5,273      (4,482)    +18%
• EBITDA:                                       -2,450     (-2,695)      +9%
• EBT:                                              -3,380     (-3,587)      +6%
• Profit/loss for the period:             2,736     (-2,800)      +3%
• Earnings per share:                      -0.26        (-0.33)     +23%

SaaS metrics 1H 2021

DKK ‘000          

Guidance 2021:

Unchanged

• Growth: 15-30%

• Revenue: 18.0M-20.5M DKK
• EBITDA: Positive
• Net result: Not positive
• Net cash-flow: Positive

CEO Hans Tino Hansen says:
“The first six month of 2021 has been characterised by three important developments. One was the initiatives into increased digital marketing and sales lead generation. This both generated increased new sales to existing clients and attracted new clients to our services. This led to a substantial increase in the Advisory Services business area. Furthermore, we completed the development of the LandRisk Lane Threat Assessment tool which has led to the new LandRisk Logistics product. In addition, we have continued our high renewal rate for our license agreements.

The first half year has resulted in a continued strong revenue growth of 29%.  Our cost control led to a cost increase of only 1% which obviously had a strong impact on all financial figures. The net cost increase was mainly due to increased investments and activity in sales and marketing.

As a company delivering analysed data in the form of intelligence and based on a SaaS business model with license-based recurring revenue one of the most important metrics is the Annual Recurring Revenue (ARR). The total ARR increased with 24% during the first half year to DKK 14.073M. At the same time the churn was 1.8%. This is a testimony to our high client satisfaction and quality of our products as well as the close relationship with our clients.

The plan for the second half of the year is continue the introduction of new initiatives within sales and marketing and to launch the new LandRisk Logistics product to the market. During the first half year several potential clients for LandRisk Logistics have been testing the product during its development resulting in an increasing pipeline. In addition, new layers will be added to the Risk Intelligence System, which will generate additional recurring revenue.

Based on the first half year financial figures and the assumptions for the business climate for the year, the guidance for 2021 is unchanged with a revenue growth of 15-30%, equating DKK 18.5M to 20.5M, a positive EBITDA and a negative result.

Finally, the management team and the Board of Directors are focusing on the growth strategy for 2025, which will be approved and presented during end Q4.”

Live presentations:
Live presentation (in Danish) of the Q2 2021 Interim Report with HC Andersen Capital 18 August at 13.30: Q2 2021 presentation HCA Capital in Danish

Presentation (in English) with NyhetsByrån Direkt will be available from about 15.00 18 August on our Investor presentations together with a recorded version of the above.

For more information on services and the System:
Please watch our corporate video: Knowing Risk

For further information about Risk Intelligence, please contact:
Hans Tino Hansen, CEO
Jens Krøis, CFO
Telephone: +45 7026 6230
E-mail: investor@riskintelligence.eu

Website and social media:
Website:             investor.riskintelligence.eu
Twitter:                twitter.com/riskstaff
LinkedIn:              linkedin.com/company/risk-intelligence
Facebook:            facebook.com/riskstaff

Risk Intelligence A/S was founded in 2001 by Hans Tino Hansen. The company has evolved to become a prominent company in security risk management by delivering threat and risk assessments worldwide. Risk Intelligence operates and assists customers and partners from headquarters located north of Copenhagen, the office in Singapore as well as through representatives in Europe, Asia and North America. The business model is designed with international scalability in mind and the company is globally regarded as an expert in its field. Risk Intelligence’s core product is the ‘Risk Intelligence System (MaRisk + PortRisk + LandRisk)’, a digital solution that allows clients to monitor global security risks and enables them to plan and implement missions in risk areas. Risk Intelligence is listed on the Spotlight Stock market [RISK].