Agillic (AGILC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was DKK 44.4 million, down 10% year-over-year, with ARR and SaaS subscription ARR both declining 8% year-over-year due to client churn and technology consolidations.

• EBITDA was DKK 1.8 million, down DKK 1.7 million year-over-year, but remained positive due to lower employee costs; net profit for Q3 was negative at DKK -2.4 million.

• Cash flow from operations improved significantly to DKK 6.7 million, a DKK 12.6 million increase year-over-year.

• Committed future revenue increased by DKK 2.1 million from Q3 2023, driven by longer contractual commitments.

• The company maintains a focus on sustainable, organic growth, operational efficiency, and a lean structure, with strategic goals to achieve cash-adjusted positive EBITDA and self-sufficiency by 2025.

Financial highlights

• Total revenue for Q3 2024 was DKK 44.4 million, down 10% year-over-year; SaaS subscription ARR was DKK 52.5 million, total ARR DKK 63.1 million, both down 8% year-over-year.

• Transaction ARR was DKK 10.6 million, down 12% year-over-year, but saw a sequential increase in Q3.

• Adjusted for one-time costs, EBITDA would have been DKK 2.8 million.

• Free cash flow improved to DKK 6.7 million, reflecting operational efficiency and R&D optimisation.

• Cash position at end of Q3 was DKK 3.7 million, after loan repayments of DKK 5.3 million.

Outlook and guidance

• 2024 guidance maintained: total ARR DKK 62–66 million, revenue DKK 62–74 million, EBITDA DKK 0–2 million.

• Subscription revenue expected at DKK 56–60 million, transaction revenue at DKK 10–14 million.

• Q4 is expected to be cash flow positive from operations, with anticipated ARR pickup from seasonality and contract renewals.

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

• Revenue and ARR are expected to increase in Q4 2024, driven by growth from existing and new clients.