Agillic announces 2023 results with 7% growth in ARR from subscriptions, 71% increase in EBITDA, and publishes guidance for 2024

Advertisement

Announcement no. 1-2024

Contain insider information

Copenhagen – 22 February 2024 – Agillic A/S (Nasdaq First North Growth Market Denmark: AGILC) releases financial results for 2023 and guidance for 2024

Advertisement

Emre Gürsoy, CEO of Agillic comments on the developments in 2023:
“Given the current macroeconomic context, I am pleased that we have shown our ability to adapt to rapidly changing market conditions and increased our EBITDA to DKK 1.9 million. The total ARR decreased to DKK 70.1 million due to a decrease in ARR from transactions. Our clients, especially in certain segments, have been directly impacted by the turbulent conditions, geopolitical conflicts, inflation, and fluctuating interest rates, causing a 46% YoY decline in our ARR from transactions. Even so, we have achieved our target of delivering an increased EBITDA for the 4th consecutive year.

Agillic’s scalable and international go-to-market strategy successfully allows investment in both technology and commercial initiatives for short- and long-term impact.

In 2024, we will continue our strategy of investing in sustainable growth with an increased focus on international markets. We expect 2024 to continue to be affected by geopolitical uncertainties, but we also expect our future clients to truly recognise the pain points we address in their business through Agillic’s customer experience platform, delivering top and bottom-line growth. The business solutions we deliver are similar across borders. This supports our belief that we are poised for future international growth with a best-of-breed, ready-to-integrate technology product.”

Key figures and ratios 

   2023  2022     2023  2022    
DKK million  YTD  YTD  Change5  Q4  Q4  Change5 
INCOME STATEMENT                   
Revenue subscriptions  52.4 49.9 5% 12.2 13.4 -9%
Revenue transactions  12.0 16.7 -28% 2.9 6.0 -52%
Other revenue  0.3 0.4   0.3 0.0  
Total revenue  64.7 67.0  -3% 15.4 19.4 -21%
Gross profit   52.2 49.6  5% 12.6 15.5 -19%
Gross margin  81% 74%    82% 80%  
Other operating income 4 0.6 0.3   0.6 0.3  
Employee costs 4 -36.8 -32.5 13% -13.3 -8.6 45%
Operational costs 4 -14.1 -16.3 -14% -1.5 -5.5 -70%
EBITDA  1.9 1.1  71% -1.6 1.5 n/a
Net profit 3  -27.5 -10.6    -22.4 -2.0 n/a
FINANCIAL POSITION               
Cash 1 9.8 7.4  33% 9.8 7.4  33%
Cash flow from operating activities -6.5 3.1   -1.8 7.3  
ARR DEVELOPMENT               
ARR subscriptions   57.8 54.1  7% 57.8  54.1  7%
ARR transactions  12.3 22.6  -46% 12.3  22.6  -46%
Total ARR 70.1 76.7  -9% 70.1  76.7  -9%
Change in ARR (DKK)  -6.6 21.0    -6.6  21.0   
Change in ARR (%)  -9% 38%    -9%  38%   

1. Cash is defined as available funds less bank overdraft withdrawals.  
2. ARR is the annualised value of subscription agreements and transactions at the end of the actual reporting period. 
3. Net profit in 2023 is negatively impacted by a provision for tax and interest of DKK 14.3 million related to a change in practice by the Danish Tax Authorities on how they assess and interpret the Tax Credit Scheme and uncertainty related to the outcome of an appeal related to tax credits in 2019.
4. Costs for 2022 have been reclassified between other operating income, employee costs and operational costs. The total is unchanged.
5. Percentage change has been calculated based on numbers in thousands as presented in the annual report

Financial guidance 2024
In 2024, revenue is expected to amount to DKK 62-66 million (2023: DKK 64.7 million), and EBITDA is expected to remain positive between DKK 0-2 million (2023: DKK 1.9 million).

DKK million  2024 2023 
Revenue  62 to 66 64.7 
EBITDA  0 to 2 1.9 
ARR Subscriptions  56 to 60 57.8 
ARR Transactions  10 to 14 12.3 
Total ARR  66 to 74 70.1 

The general market conditions are leading to an increase in both business and technology consolidations. This may lead to a reduction in ARR which we have reserved for in the 2024 guidance. We have in 2023 also seen a significant reduction in ARR from transactions in certain segments mainly related to geopolitical factors.

Due to the change in assessment and interpretation of Tax Credit from the Danish Tax Authorities, the risk of a repayment of the tax credit received for 2019 and 2020 plus interest has increased. As of 31 December 2023, the total potential liability equals DKK 8.3 million. This may impact cash, and thereby the timing of investment in growth in 2024.

Strategy going forward
We will continue to execute our Reboot 2.1 with increased focus on internationalisation and profitability through sustainable growth and operational excellence.

Agillic has 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 and gaming, energy and utilities, media and publishing, and technology and software.

Annual Report 2023
The full Annual Report 2023 is attached to this press release and can be found on our website here: https://agillic.com/investor/financial-reports/

ESG Report 2023
We have published our second ESG report covering the year 2023. The report is available here: https://agillic.com/esg/

For further information, please contact:
Emre Gürsoy, CEO, Agillic A/S
+45 30 78 42 00
[email protected]

Claus Boysen, CFO, Agillic A/S
+45 28 49 18 46
[email protected]

Certified Adviser
John Norden, Norden CEF A/S

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 teams in Germany, Norway, and Romania. 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 22 February 2024.

Agillic A/S
Masnedøgade 22, 2
2100 Copenhagen
https://agillic.com/  

Appendix: Financial development per quarter

  2023   2022   2021
DKK million Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
INCOME STATEMENT                            
Revenue subscriptions 12.2 13.6 13.5 13.1   13.5 13.1 12.2 11.1   10.8 11.0 11.9 11.3
Revenue transactions 2.9 3.0 2.9 3.2   6.0 4.8 3.3 2.6   2.7 1.8 1.2 1.0
Other revenue 0.3 0.0 0.0 0.0   0.0 0.0 0.1 0.3   0.3 0.3 0.2 0.3
Total revenue 15.4 16.6 16.4 16.3   19.5 17.9 15.6 14.0   13.8 13.1 13.3 12.6
Gross profit  12.6 13.4 13.2 13.0   15.5 11.4 11.7 11.0   10.7 11.1 12.1 11.2
Gross margin 82% 81% 80% 80%   80% 67% 75% 78%   78% 85% 91% 89%
EBITDA -1.6 2.5 1.0 0.0   1.5 1.4 0.0 -1.8   -2.6 0.4 2.2 0.7
Net profit -22.4 -0.4 -1.8 -2.9   -2,0 -1.2 -2.7 -4.7   -4.6 -3.1 -0.5 -2.3
           

 

                 
BALANCE SHEET                          
Cash 9.8 11.5 18.3 26.9   7.4 1.8 12.6 7.5   20.6 18.6 22.0 23.8
Total assets 47.1 64.9 69.0 75.8   52.8 54.0 58.7 55.4   61.6 65.7 69.5 67.2
Equity -20.2 1.5 1.8 3.4   -15.0 -13.2 -12.0 -9.6   -4.5 1.0 2.9 3.2
Borrowings 23.7 23.0 24.2 25.7   24.3 23.7 26.1 26.4   27.2 28.2 28.6 29.0
           

 

                 
CASH FLOW                          
Cash flow from operating activities -1.8 -2.8 -3.1 1.2   7.3 -4.9 9.0 -8.3   6.1 0.0 1.2 -1.6
Cash flow from investments 1.2 -3.1 -6.5 -3.3   -3.3 -3.3 -3.7 -3.2   -2.0 -3.8 -2.5 -2.8
Cash flow from financing 2.2 -0.8 -2.3 21.6   1.6 -2.5 -0.3 -1.6   -2.0 0.4 -0.5 11.8
Net cash flow 1.6 -6.7 -11.9 19.5   5.6 -10.7 5.0 -13.1   2.1 -3.4 -1.8 7.4
           

 

                 
EMPLOYEES & CLIENTS                          
Employees end of period 50 50 50 50   48 47 51 47   44 47 49 50
Clients end of period 122 120 120 118   118 111 108 105   97 92 91 86
           

 

                 
ARR & SAAS METRICS                          
ARR subscriptions 57.8 56.8 54.9 54.2   54.1 50.3 49.6 48.5   45.7 44.0 43.2 42.4
ARR transactions 12.3 12.1 11.5 17.3   22.6 19.6 14.6 10.3   10.0 7.3 4.8 4.2
Total ARR2 70.1 68.9 66.4 71.5   76.6 69.9 64.2 58.8   55.7 51.3 48.0 46.6
Change in ARR (DKK) 1.2 2.5 -5.1 -5.2   6.8 5.7 5.4 3.1   4.4 3.3 1.4 0.1
Average ARR3 0.6 0.6 0.6 0.6   0.6 0.6 0.6 0.6   0.6 0.6 0.5 0.5
Yearly CAC4 0.2         0.1         0.3      
Months to recover CAC5 6         3         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.

 

Attachments

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. AfternoonHeadlines.com takes no editorial responsibility for the same.