Q4 Interim and Year-End Report 1 January – 31 December 2021

Risk Intelligence A/S (“Risk Intelligence” or "Company") hereby publishes the Q4 Interim and Year-End Report for the period January - December 2021. The report is available on the Company's investor website (investor.riskintelligence.eu).

Highlights

• Strong and positive development in all financial figures
• Positive quarterly EBITDA up by 113% to 2.4M
• Improving full year EBITDA up from -3,937 to -939
• Total revenue up by 20% to 18.8M
• Risk Intelligence System recurring revenue amounted to 78% of total revenue
• Renewal rate of 96.8% (churn 3.2%)
• 12 new maritime clients signed during 2021
• 2 new government clients signed during 2021

Reporting period January 2021 – December 2021

• Revenue:                                   TDKK 18,820    (15,703)     +20%
• Costs:                                        TDKK 19,758    (19,641)       +1%
• EBITDA:                                    TDKK     -939    (-3,937)      +76%
• EBT:                                          TDKK  -4,765     (-7,788)     +39%
• Profit/loss for the period:           TDKK  -3,613     (-5,962)     +39%
• Earnings per share:                    DKK    -0.33        (-0.66)     +50%

Reporting period Q4: October 2021 – December 2021

• Revenue:                                  TDKK  7,527       (6,676)       +13%
• Total costs:                                TDKK  5,093      (5,534)         -  8%
• EBITDA:                                    TDKK  2,434      (1,143)       +113%
• EBT:                                          TDKK  1,297           (25)       +N/A%
• Profit/loss for the period:           TDKK  1,478         (158)      +N/A %
• Earnings per share:                    DKK     0.13        (0.02)      +N/A%

Proposed distribution of profit:

Dividend = 0%

Metrics 2021:

Guidance 2022:
Revenue growth in 2022 is expected to be at least at the same level as in 2021 equal to a revenue of 21.5M-23.5M (15-25% growth), based on assumptions for the 2022 business climate. Risk Intelligence will continue its growth strategy throughout 2022, which will lead to negative EBITDA and subsequently a negative net result.

• Growth: 15 - 25%                  
• Revenue: 21.5M - 23.5M DKK        
• EBITDA: Negative                 
• Net result: Negative
• Net cash-flow: Positive*

* Based on the current budget, management will ensure a capital structure sufficient to support operations and planned investments during 2022.

CEO Hans Tino Hansen's statement:
The most important outcome of 2021 for Risk Intelligence was the delivery of 20% growth from our maritime business, a growth rate we have managed to keep as an average since the launch of the Risk Intelligence System with MaRisk in 2008. With the addition of new clients from the land-based business - several already in the final decision phases as the year drew to a close - I have full confidence that our growth rate will rise well beyond 20% in the coming years. 

We expected to close several LandRisk clients in Q4, thus increasing our growth further in an already positive year. However, we were faced with the unpredictable consequences still looming from the pandemic; several of our prospects' management teams were severely affected by the omicron spike, and decisions had to be postponed. This impacted our expected turnover and consequently the expected EBITDA, which ended a bit more negative than expected but improved almost 3M DKK compared to 2020. However, the turnover reached the lower end of our otherwise upwards revised forecast with 20% growth at 18.8M DKK.

Looking back at 2021, we have signed 12 new maritime clients for the Risk Intelligence System and succeeded in increasing license sizes for a range of existing clients which led to the healthy growth in the maritime business. With a churn of 3.2 % for the year - slightly higher than previous years - we remain at the low end compared to our peers, and while a churn of zero percent is a dream scenario for any subscription-based business it is unrealistic, given the restructuring, mergers, change of commercial focus etc. taking place with our clients in these years.

In the land-based business, we undertook a development project with the delivery of a new product, LandRisk Logistics, that was declared fully operational in October. At the same time, our marketing and lead generation team increased the quarter-on-quarter generation of marketing qualified leads by 89%, and the number of qualified free trial requests with 380% from Q3 to Q4. This achievement provided a growth burst across all System pipelines; for LandRisk Logistics, as well as the maritime products, MaRisk and PortRisk. Finally, as published in December 2021, we entered a partnership agreement with NAVTOR, a leading company within maritime navigation systems.

Looking into 2022, we are strongly positioned to maintain our growth in the maritime business with the enhancements to our commercial setup, which will strengthen our acquisition of new clients, increases to existing licenses, as well as increased revenue from partner sales. The new agreement with NAVTOR is expected to play an important role in the latter.

The investments we made in the second half of 2021 to increase the sales pipeline will continue during 2022. Leads generated in Q4 are expected to result in new contracts in both business areas during Q1 and Q2, and to further capitalize on the growing pipeline, we are expanding our sales team with two new sales executives: one in Singapore and one in Europe in the first half of the year. LandRisk Logistics sales from the existing pipeline will initially be covered by the existing resources, and it is currently expected that 3-4 agreements will be closed during Q1 and Q2 2022. At the same time, the management team and the Board of Directors is working on the strategy for 2025, which will be finalised and presented during first half of 2022.

With our track record of 20% growth from our maritime business, and the combination of continued growth in the maritime business as well as new growth in the land-based business, I foresee a higher total growth rate in 2022 than we saw in 2021 based on the current expectations for the global economy.

Video presentation:
Presentation (in English) with NyhetsByrån Direkt will be available from about 15.00, 23 February, on our Investor presentations page.                         

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].