Agillic announces Q1 2023 results with 22% growth in Total

Announcement no. 8 2023

Copenhagen – 4 May 2023 – Agillic A/S (Nasdaq First North Growth Market Denmark: AGILC) releases its financial results for Q1 2023. Total ARR of DKK 71.5 million (up 22% YoY), Total Revenue of DKK 16.3 million (up 17% YoY) and EBITDA of DKK 0.0 million in Q1. 

Emre Gürsoy, CEO of Agillic comments

”We continued to see the positive effects of our strategy in Q1 2023, resulting in an EBITDA improvement of DKK 1.7 million vs. Q1 2022. Our financial strategic goal of being cash EBITDA positive in 2024 is supported by our delivered positive cash flow from operations of DKK 1.2 million in Q1 vs DKK -8.3 million in Q1 2022. Total ARR increased 22% YoY and ARR from transactions continued to stay strong with 68% growth vs Q1 2022.

Our Total Revenue increased 17% YoY and despite increasing cost prices, the gross profit margin increased to 80% from 79% in Q1 2022 and from 74% in Q4 2022. 

We proudly welcomed our new largest shareholder, Viking Venture that acquired 20.48% of the shares in Agillic in March, equivalent to 2,265,975 shares. The shares acquired were a combination of existing shares acquired from six existing shareholders and issuing of new shares. Agillic issued 801,058 new shares of DKK 0.1 each at a market price per share of DKK 28.08 equivalent to aggregate gross proceeds of DKK 22,493,709. The net proceeds increased Agillic’s equity and cash at bank.  

I am pleased to see the dedication and huge efforts delivered by our employees, which has contributed to our strong platform and continued growth. Going forward, we will continue to invest in our platform while focusing on international business growth via strong partnerships.

Our main strategic financial goals remain double-digit percentage growth in ARR subscriptions, positive cash flow from operations, a positive EBITDA as well as cash-EBITDA positive in 2024.”

Key figures and ratios

    2023   2022       2023   2022     DKK million   YTD   YTD    Change   Q1   Q1    Change INCOME STATEMENT                         Revenue   subscriptions   13.1  11.1  18%  13.1  11.1  18%Revenue transactions   3.2  2.6  25%  3.2 2.6 25% Other revenue   0.0  0.3  -100%  0.0  0.3  -100%Total revenue   16.3  14.0  17%  16.3  14.0  17%Gross profit    13.0  11.0  18%  13.0  11.0  18%Gross margin   80%  79%  –   80%  79%  – Employee costs   -7.4  -6.5  -14%  -7.4  -6.5  -14%Operational costs   -5.6  -6.2  10%  -5.6  -6.2  10%EBITDA   0.0  -1.7  –   0.0  -1.7  -Net profit   -2.9  -4.7  38%  -2.9  -4.7  38%FINANCIAL POSITION                         Cash1   26.9  7.5  257%  26.9  7.5  257%ARR DEVELOPMENT                          ARR subscriptions    54.2  48.5  12%  54.2  48.5  12% ARR transactions   17.3  10.3  68%  17.3  10.3  68%Total ARR2   71.5  58.8  22%  71.5  58.8  22%Change in ARR (DKK)   12.7  3.1     -5.2  3.1    Change in ARR (%)   22%  6%       22%  6%    

1. Cash is defined as available funds less bank overdraft withdrawals.
2. ARR Annual Recurring Revenue is defined as the annualised value of subscription agreements and transactions at the end of the actual reporting period.

Financial guidance 2023

In 2023, revenue is expected to grow to DKK 79-83 million, which is equivalent to 18-24% growth, while Total ARR is expected to grow 16-23%, supported by growth in ARR from subscriptions.

Guidance as announced 23 February 2023:

DKK million2023Revenue79 – 83EBITDA1 – 4ARR Subscriptions66 – 70ARR Transactions23 – 25Total ARR89 – 95

Strategy going forward

We will continue to execute our Reboot 2.1 strategy and have added ‘Positive cash-adjusted EBITDA’ by 2024 as an additional financial goal.
Agillic continues its focus on internationalisation through a two-pronged go-to-market model, and cooperation with best-of-breed technology partners and global solution partners. Apart from Denmark, markets of particular interest are the DACH region, Norway, Sweden. Our target clients are digitally mature and data-driven B2C-businesses in industries such as retail, finance, travel & leisure, NGO and charities, and subscription businesses in e.g. entertainment & gaming, energy and utilities, media & publishing, and technology, software & cloud.

For further information, please contact:
Emre Gürsoy, CEO, Agillic A/S
+45 30 78 42 00
emre.gursoy@agillic.com

Claus Boysen, CFO, Agillic A/S
+45 28 49 18 46
claus.boysen@agillic.com

Certified Adviser
John Norden, Norden CEF A/S

Disclaimer
The forward-looking statements regarding Agillic’s future financial situation involve factors of uncertainty and risk, which could cause actual developments to deviate from the expectations indicated. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the presented outlook. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Please also refer to the overview of risk factors in the ‘risk management’ section of the annual report.

About Agillic A/S

Agillic is a Danish software company offering brands a platform through which they can work with data-driven insights and content to create, automate and send personalised communication to millions. Agillic is headquartered in Copenhagen, Denmark, with sales and R&D teams in Berlin, Malmö, Oslo, Cluj-Napoca and Kyiv.

For further information, please visit www.agillic.com  

Agillic A/S (publ) (Nasdaq First North Growth Market Denmark: AGILC) is obligated to publish the above information in compliance with the EU Market Abuse Regulation Article 17.

The information was published via agent by Agillic A/S on 4 May 2023.

Appendix: Financial development per quarter

  2023 2022    2021   DKK million Q1 Q4Q3Q2Q1 Q4Q3Q2Q1             INCOME STATEMENT             Revenue subscriptions 13.1 13.413.112.211.1 10.811.011.911.3 Revenue transactions 3.2 6.04.83.32.6 2.71.81.21.0 Other revenue 0.0 0.00.00.10.3 0.30.30.20.3Total revenue 16.3 19.417.915.614.0 13.713.113.312.6Gross profit  13.0 15.511.411.711.0 10.711.112.111.2Gross margin 80% 80%64%75%79% 78%85%91%89%Employee costs -7.4 -8.6-5.6-5.9-6.5 -5.5-6.2-6.8-6.9Operational costs -5.6 -5.4-4.4-5.8-6.2 -7.7-4.5-3.2-3.6EBITDA 0.0 1.51.40.0-1.7 -2.50.42.10.7Net profit -2.9 -2.0-1.2-2.7-4.7 -4.6-3.1-0.5-2.3             BALANCE SHEET            Cash 26.9 7.41.812.67.5 20.618.622.023.8Total assets 75.8 60.354.058.755.4 61.665.769.567.2Equity 3.4 -15.0-13.2-12.0-9.6 -4.51.02.93.2Borrowings 25.7 24.323.726.126.4 27.228.228.629.0             CASH FLOW            Cash flow from operations 1.2 7.3-4.99.0-8.3 6.00.01.2-1.6Cash flow from investments -3.3 -3.3-3.3-3.7-3.2 -2.0-3.8-2.5-2.8Cash flow from financing 21.6 1.6-2.5-0.3-1.6 -2.00.4-0.511.7Net cash flow 19.5 5.6-10.85.0-13.1 2.0-3.4-1.87.4             EMPLOYEES & CLIENTS            Employees end of period 46 48475147 44474950Clients end of period 118 118111108105 97929186             ARR & SAAS METRICS             ARR subscriptions  54.2 54.150.349.648.5 45.744.043.242.4 ARR transactions 17.3 22.619.614.610.3 10.07.34.84.2Total ARR2 71.5 76.769.964.258.8 55.751.348.046.6Change in ARR (DKK) -5.2 6.85.75.43.1 4.43.31.40.1Average ARR3 0.6 0.60.60.60.6 0.60.60.50.5Yearly CAC4   0.1    0.3   Months to recover CAC5   3.1    7.8   

1. Cash is defined as available funds less bank overdraft withdrawals.
2. ARR, i.e., the annualised value of subscription agreements and transactions at the end of the actual reporting period.
3. Average ARR, i.e. the average Total ARR per client.
4. Customer Acquisition Costs (CAC), i.e., the sales and marketing cost (inclusive salaries, commissions, direct and share of costs of office) divided by the number of new clients. CAC is calculated end of year.
5. Months to recover CAC, i.e., the period in months it takes to generate sufficient gross profit from a client to cover the acquisition cost.

Agillic Company Announcement no. 8-2023 Financial report Q1 2023