Interim Report 1 January 2020 - 30 September 2020

Risk Intelligence A/S (“Risk Intelligence” or the “Company") hereby publishes the Interim Report for the period January 2020 - September 2020. The report is available on the Company’s website  investor.riskintelligence.eu/.

Recurring revenue in Q3 2020 increased by 20% to TDKK 3,114 compared to Q3 2019 (TDKK 2,601) and churn in Q3 was 0%. Total costs in Q3 2020 saw a decrease of 26% and Q1-Q3 2020 total costs decreased by 14% compared to 2019. Due to the loss of revenue in Q2 total revenue decreased 4% in Q1-Q3 2020 to TDKK 9,027 compared to Q1-Q3 2019 (TDKK 9,425). Revenue in Q3 2020 increased 1% to TDKK 3,532 (TDKK 3,521). EBITDA increased by 76% in Q3 and by 28% Q1-Q3.

CEO Hans Tino Hansen says:

“After a challenging Q2, not only for us and many of our clients, but nearly everyone, we saw a noteworthy improvement in Q3 with cautious optimism for the remainder of 2020 even if uncertainty still plays a significant role.

The third quarter saw an important 20% increase in recurring revenue which is highly positive as each new license on average adds MDKK 1.2 to future cash flows, and at the same time it offset the decrease in revenue from bespoke Advisory Services resulting in a modest growth in total revenue. The new license agreements will provide a strong basis for further growth in 2021.

At the same time, we have managed to reduce costs by 26% in Q3 and thereby increased EBITDA significantly. We are confident that in Q4 we will deliver a significant positive EBITDA, based on renewed real growth in revenue and the reduced cost base. However, because of the accumulated negative EBITDA in Q1-Q3 it may be difficult to reach a positive EBITDA for the full year.

Furthermore, and almost needless to say, the importance of close and strong client relations and a high-quality product is once again underlined by the 0% churn during Q3. We are investing more resources into continuously improving our product with new features, where some will generate additional license revenue, while at the same time further deepening our client relationships during the remainder of 2020 and during 2021. One of the important steps in this direction has been the wide range of successful webinars organised since April.

With the cautious optimism and the new clients for the maritime business in combination with a positive pipeline of agreements for LandRisk, where we expect the first major agreement in Q4, we do expect growth in revenue and positive EBITDA for 2021”

Reporting period Q1-Q3: January 2020 – September 2020

• Revenue: TDKK 9,027 (9,425) -4%
• Total costs: TDKK 14,106 (16,482) -14%
• Earnings before interest, taxes, depreciation and amortization (EBITDA): TDKK –5,079 (-7,057) +28%
• Earnings before taxes (EBT): TDKK -7,813 (-8,223) +5%
• Profit/loss for the period: TDKK -6,120 (-6,414) +5%
• Earnings per share: DKK -0.68 (-0.76)

Reporting period Q3: July 2020 – September 2020

• Revenue: TDKK 3,532 (3,522) +1%
• Total costs TDKK 3,987 (5,424) -26%
• Earnings before interest, taxes, depreciation and amortization (EBITDA): TDKK -454 (-1,902) +76%
• Earnings before taxes (EBT): TDKK -1,561 (-2,391) +35%
• Profit/loss for the period: TDKK -1,241 (-1,865) +34%
• Earnings per share: DKK -0.16 (-0.22)

Visit Risk Intelligence’s new investor site:
Please go to the page here :  investor.riskintelligence.eu/

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:

Investor site: https://investor.riskintelligence.eu/
Website: www.riskintelligence.eu
Twitter: www.twitter.com/riskstaff
LinkedIn: www.linkedin.com/company/risk-intelligence
Facebook: www.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 platform 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].