Q3 Interim Report 1 January – 30 September 2021

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Strong growth supports the full year guidance.

Risk Intelligence A/S (“Risk Intelligence” or "Company") hereby publishes the Q3 2021 Interim Report for the period January - September 2021. The report is available on the Company's Investor website.

A strong quarter with continuing growth

  • Full year guidance for 2021 changed
  • Revenue Q1-Q3 increased by 25%
  • EBITDA Q3 increased by 51%
  • EBITDA Q1-Q3 increased by 32%
  • Net profit Q1-Q3 increased by 28%
  • Total revenue in Q3 increased by 20%
  • System ARR growth of 24%
  • Renewal rate Q3 of 100% (churn 0%)
  • Launch of LandRisk Logistics
  • 15 new clients during first 9 months (3 new clients in Q3)
  • 9 new maritime Risk Intelligence System licenses in first nine months (included in the above 15)

Reporting period Q1-Q3 January – September 2021 (DKK ‘000*)

  • Revenue:
11,293 (9,027)    +25%
  • Costs:
14,665 (14,106) +4%
   -3,372    (-5,079) +34%
  • EBT:
   -6,061    (-7,813) +22%
  • Profit/loss for the period:
   -4,728    (-6,120) +23%
  • Earnings per share:
     -0.43 (-0.67) +37%

Reporting period Q3 July – September 2021 (DKK ‘000)

  • Revenue:
4,231 (3,532)    +20%
  • Costs:
4,455 (3,987) +12%
   -224 (-454) +51%
  • EBT:
  -1,121    (-1,561) +28%
  • Profit/loss for the period:
   -875    (-1,241) +29%
  • Earnings per share:
     -0.1 (-0.14) +23%

SaaS metrics Q1-Q3 2021(DKK ‘000)

  • ARR total
14,654 (11,902)
  • ARR Net increase
2,752        (176)
  • ARR Growth
23%        (2%)
  • System ARR
13,491 (10,877)
  • System ARR Net increase
2,614 (92)
  • System ARR Growth
24%       (1%)
  • ARPU
128        (102)
  • Renewal Ratio (Quarter)
100% 100%
  • Renewal Ratio (Annual)
        98.3%       (98.2%)
  • Churn Quarter
0% 0%
  • Churn (YTD)
1.7% 1.8%

Guidance 2021:

  • Growth: 20–30%                               (changed from 15-30%)
  • Revenue: 18.8M-20.5M DKK            (changed from 18.0-20.5M)
  • EBITDA: Around zero                        (changed from ”Positive”)
  • Net result: Not positive
  • Net cash-flow: Positive

CEO Hans Tino Hansen says:
The year's first nine months has resulted in continued strong growth in revenue of 25% with a cost increase of 4%, leading to strong and positive development in all financial figures. The cost increase is mainly the result of increased investments and activity in sales and marketing. This will continue during the coming quarter. These investments will boost the sales pipeline and sales in Q4 2021, as well as during 2022.

As providers of Intelligence as a Service (analysed data in the form of intelligence), based on a SaaS business model with license-based recurring revenue, one of the most important metrics for us is the Annual Recurring Revenue (ARR). For the first nine months, the total ARR increased by 23% to DKK 14,654M. At the same time, the churn was 1.7 %, which again is a testimony to our high client satisfaction, the quality of our products, as well as the close relationship we have with our clients.

In Q3, we launched a dedicated sales and marketing campaign for the new product: LandRisk Logistics. This led to product trials by a range of new potential clients, as well as a continued dialogue with existing leads. As the lead time is considerably longer for LandRisk than for our maritime products due to the complexity of this client segment's organisations and their operations, we must remain patient, even if everyone in the involved teams is eager to deliver the deals. The current pipeline does look promising, however.

Based on the first nine month's financial figures and the assumptions of the business climate for the rest of the year, our guidance for 2021 has now changed from 15-30% revenue growth to 20-30%, equating DKK 18.8M to 20.5M in top line revenue. However, the increased investments in primarily sales and marketing, may result in an EBITDA around zero or a small positive or negative figure. The net result will remain negative.

Finally, the management team and the Board of Directors are looking forward to finalise and present the growth strategy for 2025 during Q1 2022.

Live presentations:
Live presentation (in Danish) of the Q3 2021 Interim Report with HC Andersen Capital 18 November at 14:00: Q3 2021 presentation HCA Capital in Danish

Presentation (in English) with NyhetsByrån Direkt will be available from about 16.30, 17 November, on our Investor presentations page 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

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].