Agillic (AGILC) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was DKK 29.6 million, a 9% YoY decrease, with EBITDA at DKK 0.6 million and 113 clients, despite client churn impacting revenue and ARR.

• ARR declined 7% YoY to DKK 61.7 million, with subscription ARR at DKK 51.7 million (down 6%) and transaction ARR at DKK 10 million.

• Net profit improved to DKK 3.6 million from a loss of DKK -4.7 million in H1 2023, mainly due to a favorable tax credit decision.

• SaaS-based business model operates in 10 markets, focusing on personalized, data-driven customer communication and AI integration.

• Strategic focus on AI-driven product innovation, international expansion, and operational efficiency.

Financial highlights

• H1 2024 revenue: DKK 29.6 million (down 9% YoY), with DKK 24.8–24.9 million from subscriptions and DKK 4.7 million from transactions.

• EBITDA: DKK 0.6 million (down DKK 0.4 million YoY); normalised EBITDA DKK 1.4 million after one-time consultancy costs.

• Gross profit margin increased to 82% from 80% YoY, with gross profit at DKK 24.4 million.

• Cash flow from operations positive at DKK 2.6 million in H1 2024.

• Equity improved to DKK -16.0 million from DKK -20.2 million at year-end 2023.

Outlook and guidance

• 2024 guidance: revenue DKK 62–66 million, EBITDA DKK 0–2 million, ARR from subscriptions DKK 56–60 million, ARR from transactions DKK 10–14 million, total ARR DKK 66–74 million.

• Expects H2 to be stronger, with Q4 historically the heaviest quarter and a robust sales pipeline.

• Strategic goals for 2025: double-digit ARR subscription growth, positive EBITDA, and positive cash flow from operations.

• Investments will focus on sales, platform development, and international growth.

• Guidance includes reservations for potential ARR reductions due to client consolidations.