Highlights:

• System recurring revenue (ARR) increased 33%
• Churn 0%

• Net Retention Rate (NRR) 124%

• Total invoiced revenue increased 36% YTD and by 24% in Q2

• Total revenue increased 28% YTD and 21% in Q2
• Costs have increased 8% in Q2 and 5% YTD
• Gross Margin (SaaS) 96.9% compared to Gross Margin (Reported) 59%
• EBITDA 2024 increased 51% and 36% in Q2
• Net profit in 2024 increased 28% and 6% in Q2

• Cash Flow from ordinary activities DKKt 889 and Net Cash Flow DKKt 464 YTD

• 5 new maritime and 2 LandRisk clients signed during Q2 2024

• Partnership agreement with Bosch signed during Q2 2024

Reporting period April 2024 - June 2024

DKK `000 (2023)

5,970 (4,920) +21%

• Revenue:

5,335 (4,301) +24%

• Revenue (Invoiced):

59% (57%) +3%

• Gross Margin

96.9% (98.6%) -2%

• Gross Margin (SaaS)

    6,932   (6,417) +8%

• Costs:

-962 (-1,497) +36%

• EBITDA:

-2,722 (-2,884) +6%

• EBT:

  -2,128 (-2,271) +6%

• Profit/loss for the period:

-98 (-1,085) +91%

• CFFO

-64 (-304) +79%

• Net Cash Flow

-0.08 (-0.20) +60%

• Earnings per share:

Metrics Q2 2024:

   100%   (99.1%)

• Renewal Ratio

0% (0.9%)

• Churn

Reporting period January 2024 - June 2024

DKK `000 (2023)

11,923 (9,332) +28%

• Revenue:

11,284 (8,279) +36%

• Revenue (Invoiced):

57% (52%) +10%

• Gross Margin

95.5% (96.7%) -1%

• Gross Margin (SaaS)

    13,778    (13,099) +5%

• Costs:

-1,855 (3,767) +51%

• EBITDA:

-5,017 (-6,787) +26%

• EBT:

  -3,914   (-5,450) +28%

• Profit/loss for the period:

889 (-3,072) +129%

• CFFO

464 (-339) +237%

• Net Cash Flow

-0.15 (-0.49) +69%

• Earnings per share:

Metrics FY 2024:

DKK `000 (2023)

   100%   (99.1%)

• Renewal Ratio

0% (0.9%)

• Churn

24,152 (18,521)

• Total ARR

5,631 (N/A)

• Total ARR Net increase

33% (N/A)

• Total ARR Growth

23,032 (17,381)

• System ARR

5,651 (N/A)

• System ARR Net increase

30% (N/A)

• System ARR Growth

124% (116%)

• NRR

Guidance 2024 (unchanged):

• ARR Growth: 15 - 30%
• System ARR: 22.4M - 25.3M DKK
• EBITDA: Around 0
• Net result: Negative
• Net cash-flow: Positive

CEO Hans Tino Hansen

This quarter has followed the positive trend from Q1, and we are pleased to present continuing positive progress in literally all key financial figures, and we have continued delivering according to our forecast during the first six months of 2024 with a ARR growth of 33%.

During the first six months of 2024 we have managed to deliver 36% growth in top line i.e. invoiced revenue, while costs have increased by 5%, which is mainly a result of increased resources on the commercial side. For the reported revenue we have seen a growth of 28%, which provides the basis for improved EBITDA with 51%, EBT with 26% and net result with 28%. Cash-flow from ordinary activities was 2.5M DKK with a net cash flow of 464K DKK.

The reporting period has seen continued roll-out of the new platform and 5 new maritime clients for the Risk Intelligence System. At the same time, we have again achieved a zero percent churn as a testimony to the high quality of our service and our long-time relationships with our clients. This is furthermore supported by the NRR of 124%. In Advisory Services, especially expert witness work on maritime cases has seen growth during the quarter.

On the landside of our business, Q2 saw one new major client along with one smaller client, and one major partnership with Bosch providing a promising platform for further growth for LandRisk Logistics.

The geo-political landscape has not changed for the better and the recent development between Hezbollah and Iran on one side and Israel on the other side may further escalate the situation. At the same time there is little perspective for a peaceful solution to the Russian invasion of Ukraine. This means there is still increased demand for our products and services especially within Advisory Services.

The rest of the year has got an excellent kick-off with the major API license agreement for the Risk Intelligence System impacting revenue from Q3. Adding to the API license agreement from Q2 and other existing agreements, API will be developed into its own product area with increased focus for both major commercial clients as well as government clients. The API also plays a key role in the integration of our data into partner products, where the first one will become available to the market during the second half of the year.

Video presentation:

Live presentation 15 August 15.00 at Stokk.io, please subscribe on Stokk.io live event (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fapp.stokk.io%2Fapp%2Frisk-intelligence%2Fevent%2F164%2Fq2-2024-presentation-and-qa%2F&data=05%7C02%7Cjkr%40riskintelligence.eu%7Cdc15e06491764dfd4f6a08dcb5e8f6a6%7C740420ed704e4675afd5e2986b6a0d64%7C0%7C0%7C638585259390730904%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=7eUAdZ4g3zE3ypUVouh9ZSUmAlvSKRLs0MQ3JI%2F67YU%3D&reserved=0)                        

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

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 and riskintelligence.eu
Twitter:twitter.com/riskstaff (http://www.twitter.com/riskstaff)
LinkedIn:linkedin.com/company/risk-intelligence (http://www.linkedin.com/company/risk-intelligence)
Facebook:facebook.com/riskstaff (http://www.facebook.com/riskstaff)

Risk Intelligence A/Swas 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].