Reports

Published: 2021-02-24 10:50:29

Risk Intelligence A/S: Q4 Interim and Year-End Report 1 January – 31 December 2020

Risk Intelligence A/S ("Risk Intelligence" or "Company") hereby publishes the Q4 Interim and Year-End Report for the period January - December 2020. The report is available on the Company's website (www.riskintelligence.eu).

Highlights

  • First positive quarterly EBITDA and net result since IPO
  • Strong and positive development in all financial figures
  • Risk Intelligence had a growth in revenue of 39% growth in Q4 2020 to 6.7m DKK and 10% in 2020 to 15.7m DKK.
  • Risk Intelligence reduced total costs by 30% in Q4 and by 19% for 2020.
  • Risk Intelligence had a positive EBITDA of 1.1M DKK in Q4 2020 and a positive Net profit of 0.2M DKK in Q4 2020
  • Risk Intelligence System recurring revenue amounted to 81% of total revenue in 2020 with a renewal rate of 98.6% (churn 1.4%)
  • First LandRisk client signed in January and first major client, Sony Europe, signed in December 2020.
  • 17 new maritime clients signed during 2020.
  • 3 new government clients signed during 2020.

Reporting period January 2020 – December 2020

  • Revenue:                                    TDKK 15,703 (14,221)         +10%
  • Costs:                                          TDKK 19,641 (24,397)        -19%
  • EBITDA:                                      TDKK  -3,937 (-10,177)       +61%
  • EBT:                                             TDKK  -7,788 (-12,331)      +37%
  • Profit/loss for the period:             TDKK   -5,962 (-9,613)        +38%
  • Earnings per share:                      DKK      -0.35 (-1.14)          +69%

Reporting period Q4: October 2020 – December 2020

  • Revenue:                                    TDKK 6,676 (4,796)            +39%
  • Total costs:                                 TDKK 5,534  (7,916)            -30%
  • EBITDA:                                     TDKK 1,143  (-3,120)        +137%
  • EBT:                                            TDKK     25  (-4,107)        +101%
  • Profit/loss for the period:            TDKK   158  (-3,198)         +105%
  • Earnings per share:                      DKK  0.02  (-0.38)           +105%

Proposed distribution of profit:

Dividend = 0%

Metrics 2020:           

                                  

  • ARR total
12,767,000 DKK
Maritime Land based
  • ARPU
127,500 DKK  425,000 DKK (estimated)
  • CAC
   84,000 DKK 232.000 DKK
  • LTV
982,000 DKK 3.288,000 DKK
  • CAC/LTV
11.7 14.7
  • Client acq. Time
4.5 months 9-12 months
  • Recover CAC
0.6 years 0.7 years
  • Churn
1.4% 0%

Guidance 2021:

Risk Intelligence assumes that the company will be able to conduct business during 2021 in a similar business environment globally as during Q4 2020 (with direct or indirect impact from COVID-19 during the full year) and the budget and forecast is based on this assumption. Any improvement in the global business climate is assumed to have a positive effect.

  • Growth: 15-30%
  • Revenue: 18.0M-20.5M DKK
  • EBITDA: Positive
  • Net result: Not positive
  • Net cash-flow: Positive

CEO Hans Tino Hansen

It is a great pleasure to present the first positive EBITDA and first positive result in a quarter since the IPO in 2018. The result in Q4 is a significant milestone, demonstrating that Risk Intelligence is on the right track in spite of chalenging local and global circumstances. I am proud that we have managed to increase revenue and reduce costs during the year. Risk Intelligence started facing the impact of COVID-19 already in February due to our global exposure, but nevertheless secured 16% growth compared to Q1 2019. This was followed by a negative Q2 with a decrease in revenue of 34% compared to Q2 2019, which was due to new sales almost coming to a halt as clients were focused on securing their own operations and adapting new ways of working. The business started to pick up slowly in Q3 with 1% growth compared to Q3 2019, and accellerated back into strong growth during Q4 with 39% compared to Q4 2019. The year saw a total growth of 10% compared to 2019, which is satisfactory given the challenges during the year.

During 2020 Risk Intelligence managed to increase revenue and reduce costs. The costs were reduced with DKK 4,756 thousand and EBITDA increased with DKK 6,230 thousand to DKK -3,937 thousand compared to 2019. Revenue was increased both by new clients signing up, which included 17 maritime clients, 2 land based clients and 3 government clients, as well as increased business originating from existing clients. Some of the existing clients signed up for three-year agreements and also increased their licenses for the Risk Intelligence System. I am confident that this development will continue during 2021, where we are also launching new layers for the Risk Intelligence System.

The outlook for 2021 is positive compared to 2020, but with certain conservative assumptions. Our assumptions are there will still be impact from COVID-19 during the full year either as direct impact from the pandemic and restrictions or indirectly due to a potential downturn in global economy and decreased or ceased government and international COVID-19 support packages. Risk Intelligence assumes that the company will be able to conduct business during 2021 in a similar business environment globally as during Q4 2020 and the budget and forecast is based on this assumption. Any improvement in the global business climate is assumed to have a positive effect.

For the first time since the IPO, we are issuing guidance and the growth in revenue for 2021 is expected to be in the range 15-30% with a revenue target of DKK 18.0 to DKK 20.5. The target for 2021 is to reach a positive EBITDA for the full year, but a positive net result is not expected. Finally, the company expects positive net cash flow for the year.

The important LandRisk milestone with Sony Europe and several initiatives including the Data, AI and machine learning strategy and the digital marketing and lead generation investments, which are already delivering strong results, have secured a solid foundation for growth not only in 2021, but also for the years to follow.

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].

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