Agillic Announces Q3 2022 Results with 36% Total ARR Growth and 19% Revenue Growth, and Positive EBITDA

Agillic A/S

Announcement no. 16 2022

Copenhagen – October 14, 2022 – Agillic A/S (Nasdaq First North Growth Market Denmark: AGILC) reports its financial results for the third quarter of 2022. Total ARR of DKK 69.9 million (up 36% YoY), total turnover of DKK 46.6 million (up 19%). % YoY) and a positive EBITDA of DKK 1.4 million in Q3. The financial guidance for Total ARR and Total Revenue was raised on October 12, 2022. The guidance for Subscription ARR and EBITDA remains unchanged.

Comments from Emre Gürsoy, CEO of Agillic

“We continued to see good growth in the third quarter of 2022, resulting in a strong total ARR of DKK 69.9 million, a 36% year-on-year increase. The positive development of transaction ARR continued through Q3 2022 and increased 169% YoY, while subscription ARR increased 14% YoY.Our focus on internationalizing our customer base has given promising results, and 44% of customers won so far this year have come from international markets.

Our total revenue increased by 19% year-on-year and despite the increase in cost prices, our operational optimization efforts resulted in an EBITDA improvement of DKK 1.4 million in Q3 2022 , an increase of DKK 0.8 million compared to the third quarter of 2021.

The cash position at the end of the third quarter of 2022 was DKK 1.9 million and in line with our expectations. As announced in the first half of 2022, the repayment of two loans in the third quarter of 2022 of DKK 2.5 million has been completed, and we have continued the planned investments in our platform for a total of DKK 3.3 million. Operating cash flow is negative due to the seasonality of contract renewals, while the fourth quarter of 2022 will be positive and fully aligned with our Reboot 2.1 strategy of positive operating cash flow at the end of the year.

A timely focus on adapting to volatile market conditions and continued customer focus are the two main reasons we raised our 2022 financial guidance on October 12, 2022. With our new guidance, we expect to achieve an increase in total revenue of 16% to 23%. compared to our 2021 results, total ARR is expected to increase by 22% to 36%, and EBITDA is expected to be positive between DKK 0 and 3 million.

I am pleased to see the dedication and tremendous efforts of our employees, who have contributed to positive developments. Going forward, we remain fully committed to improving our operational performance and investing more in our platform while focusing on growing international business through strong partnerships.

Our top three strategic financial goals for 2023 remain double-digit percentage growth in ARR subscriptions, positive operating cash flow and positive EBITDA.

Key figures and ratios

2022

2021

2022

2021

million danish kroner

YTD

YTD

To change

Q3

Q3

To change

INCOME STATEMENT

Paid subscriptions

35.5

34.2

4%

12.2

11.0

11%

Income transactions

10.7

4.0

169%

4.8

1.8

163%

Other income

0.4

0.8

-57%

0.0

0.3

-99%

Total income

46.6

39.0

19%

17.0

13.1

30%

Gross profit

34.1

34.4

-1%

11.4

11.1

2%

Gross margin

73%

88%

67%

85%

Personnel costs

-23.2

-23.2

0%

-7.3

-8.0

-9%

Operational costs

-11.2

-8.0

40%

-2.7

-2.8

-1%

EBITDA

-0.3

3.2

1.4

0.4

265%

net profit

-8.6

-5.9

45%

-1.2

-3.1

-60%

FINANCIAL SITUATION

Cash

1.9

18.6

-90%

1.9

18.6

-90%

ARR DEVELOPMENT

ARR Subscriptions

50.3

44.1

14%

50.3

44.1

14%

ARR operations

19.6

7.3

169%

19.6

7.3

169%

Total ART1

69.9

51.4

36%

69.9

51.4

36%

Amendment of the ARR (DKK)

18.5

7.3

18.4

7.3

Change in ART (%)

36%

13%

36%

13%

1. Cash is defined as cash on hand less bank overdraft withdrawals.
2. ARR, i.e. the annualized value of subscription agreements and transactions at the end of the actual reporting period.
3. Average ARR, i.e. the average total ARR per customer.
4. Customer acquisition costs (CAC), i.e. sales and marketing costs (including salaries, commissions, direct costs and office cost sharing) divided by the number of new customers. The CAC is calculated at the end of the year.
5. Months to recoup CAC, ie the period in months it takes to generate sufficient gross profit from a customer to cover the cost of acquisition.

Financial advice

Based on the third quarter 2022 report and the latest developments, Agillic raised its financial guidance on October 12, 2022 for:

million danish kroner

2022

Revenue

61 – 65

EBITDA

0 – 3

ARR Subscriptions

56 – 60

ARR Transactions

12 – 16

Total ARR

68 – 76

Strategy moving forward

As articulated in the Reboot 2.1 strategy, Agillic continues to grow by winning and retaining customers, going international through a two-pronged go-to-market model, and cooperating with top technology partners and global solution partners. Besides Denmark, markets of particular interest are the DACH region, Norway, Sweden and North America. Our target customers are digitally mature, data-driven B2C businesses in industries such as retail, finance, travel and leisure, NGOs and charities, and subscription businesses in, for example , entertainment and gaming, energy and utilities, media and publishing, and technology, software and cloud.

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

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

Certified Advisor
John Norden, Norden CEF A/S

Disclaimer
Forward-looking statements regarding Agillic’s future financial condition involve factors of uncertainty and risk, which could cause actual developments to differ from the stated expectations. Statements regarding the future are subject to risks and uncertainties that could cause material differences from the outlook presented. In addition, some of these expectations are based on assumptions about future events, which may prove to be inaccurate. 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 information and content to create, automate and send personalized communications to millions of people. Agillic is headquartered in Copenhagen, Denmark, with sales and R&D teams in Berlin, Malmö, Oslo, Cluj-Napoca and Kyiv.

For more information, please visit www.agillic.com

The information was released via an agent by Agillic A/S on October 14, 2022.

Appendix: Financial evolution by quarter

2022

2021

2020

million danish kroner

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

INCOME STATEMENT

Paid subscriptions

12.2

12.2

11.1

10.8

11.0

11.9

11.3

10.5

10.5

10.8

12.0

Income transactions

4.8

3.3

2.6

2.7

1.8

1.2

1.0

1.4

1.0

0.8

2.2

Other income

0.0

0.1

0.3

0.3

0.3

0.2

0.3

0.5

0.2

0.1

0.5

Total income

17.0

15.6

14.0

13.8

13.1

13.3

12.6

12.4

11.7

11.7

14.7

Gross profit

11.4

11.7

11.0

10.7

11.1

12.1

11.2

10.7

10.6

11.1

11.9

Gross margin

67%

75%

79%

78%

85%

91%

89%

87%

91%

94%

81%

EBITDA

1.4

0.0

-1.7

-2.6

0.4

2.2

0.7

0.5

-0.4

0.6

-0.4

net profit

-1.2

-2.7

-4.7

-4.6

-3.1

-0.5

-2.3

-1.4

-3.4

-0.5

-2.7

BALANCE SHEET

Cash

1.9

12.6

7.5

20.6

18.6

22.0

23.8

16.3

14.8

15.2

-6.1

Total assets

54.0

58.7

55.4

61.6

65.7

69.5

67.2

63.8

55.7

59.3

38.4

Equity

-13.2

-12.0

-9.6

-4.5

1.0

2.9

3.2

-5.8

-4.6

-1.4

-18.7

Loans

23.7

26.1

26.4

27.2

28.2

28.6

29.0

28.9

28.9

28.3

28.5

CASH FLOW

Operating cash flow

-4.9

9.0

-8.3

6.1

0.0

1.2

-1.6

5.0

1.7

-1.7

-4.4

Cash flow from investing

-3.3

-3.7

-3.2

-2.0

-3.8

-2.5

-2.8

-7.6

-3.2

-2.8

-3.3

Cash flow from financing

-2.5

-0.3

-1.6

-2.0

0.4

-0.5

11.8

4.2

1.0

25.9

5.5

The net cash flow

-10.7

5.0

-13.1

2.1

-3.4

-1.8

7.4

1.6

-0.5

21.4

-2.2

EMPLOYEES & CUSTOMERS

End of period employees

47

51

47

44

47

49

50

53

57

61

64

End of period customers

111

108

105

97

92

91

86

82

79

83

84

ARR & SAAS METRICS

ARR Subscriptions

50.3

49.6

48.5

45.7

44.0

43.2

42.4

40.7

40.1

43.6

47.0

ARR operations

19.6

14.6

10.3

10.0

7.3

4.8

4.2

5.8

4.1

3.3

8.9

Total ARR2

69.9

64.2

58.8

55.7

51.3

48.0

46.6

46.5

44.2

46.9

55.8

Amendment of the ARR (DKK)

5.7

5.4

3.1

4.4

3.3

1.4

0.1

2.3

-2.7

-8.9

0.8

Average ARR3

0.6

0.6

0.6

0.6

0.6

0.5

0.5

0.6

0.6

0.6

0.7

Annual CAC4

0.3

0.5

Months to recover the CAC5

8

12

1. ARR, i.e. the annualized value of subscription agreements and transactions at the end of the actual reporting period

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