Cashflow from operations positive in Q4 2023

With the 2025 Strategy launched in 2022 Risk Intelligence is on a growth journey that will lead to increased topline, positive cashflow from operations and profitability.

Due to the implementation of the new income recognition model, that leads to a time-lag in revenue recognition, the reported financial figures may not meet the growth targets outlined in the strategy, particularly in terms of reported topline growth. However, as demonstrated in Q1, the reported revenue growth of 17% falls significantly short of the actual (invoiced) revenue growth of 43% compared to Q1 2022. 

Based on the current revenue performance during Q1 and Q2, and 66% of the annually invoiced revenue being generated in the second half of the year due to a large part of renewals falling in Q3 and Q4, it is expected that cashflow from operations will become positive by Q4 2023.

Given that the operational cost structure will only increase moderately during 2024, cashflow from operations will continue to be positive throughout 2024, leading to a net positive cashflow for the entire year.

Funding package

From the end of May until today, the Company has successfully obtained DKK 2.5M in funding through loans from private investors and lenders, as part of the DKK 6M loan facility announced in the 2022 Annual Report. These lenders are existing shareholders in Risk Intelligence and the loan terms have been agreed upon using `arm's length' principles. The loan package is a component of a more comprehensive funding plan aimed at financing the strategic initiatives required to achieve the objectives outlined in the 2025 Strategy, and they complement the two directed share issues that were conducted earlier in the year.

Hans Tino Hansen, CEO of Risk Intelligence says:

"The forecast of positive cashflow from operations by Q4 is a milestone that we have been looking very much forward to, and it will significantly alter our liquidity and need for funding for the remainder of the 2025 Strategy. Going forward we will only see moderate increases in operational costs, while revenue will continue to grow at a higher growth ratio. Based on known and budgeted cost levels, confirmed revenue and existing recurring revenue in second half of the year, we have a relatively high confidence in our forecast."

About Risk Intelligence

Risk Intelligence is a security risk intelligence provider delivering security threat and risk analysis to clients all over the world via the cloud-based Risk Intelligence System, as well as consulting services.
A large part of Risk Intelligence's clients is maritime, and these clients currently operate more than 15.4% of the global merchant fleet.

With its headquarters in Hellerup (Copenhagen), Denmark, an office in Singapore, and locations in North America, the dedicated staff of Risk Intelligence works in all major time zones to support their clients' operations. Since 2018, the company has been listed on the Spotlight Stock Exchange in Stockholm.

The Risk Intelligence System is a digital security intelligence solution developed in close collaboration with global businesses that are established within the fields of shipping, offshore, oil and gas. The digital solution is designed based on insights directly from customers and their needs as well as Risk Intelligence's experienced security risk analysts and developers' knowledge of intelligence and assessment needs.

The Risk Intelligence System offers clients a complete picture of immediate, short-, and medium-term security risks for coastal areas, ocean, port, and landside threats. The analysis is focused on insurgency, piracy, organised crime, activism, terrorism, military conflicts, and any interplay between these. Risk Intelligence identifies where serious events arise and presents an assessment of how great the threat is in each area, while at the same time providing 24/7/365 situational awareness with incident reports and alerts. This enables companies to evaluate both current and future security risks in real time and to minimise risks across their operations.

For more information on services and the Risk Intelligence System:
Please watch our corporate video:Knowing Risk (https://riskintelligence.eu/about-risk-intelligence)