Konsolidator (KONSOL) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached DKK 9.9 million, a 6% year-over-year increase, but ARR growth was only 5% due to higher churn and lower-than-expected sales.

• EBIT loss was DKK 7 million, exceeding the guided maximum loss of DKK 5 million due to higher costs and new investments.

• Konsolidator Banking® launched as a new business segment; Konsolidator Iberia signed first customers and partners, contributing to international expansion.

• Outlook for 2024 was lowered due to underperformance in Q2; focus shifts to cost reduction and capital structure improvement.

Financial highlights

• H1 2024 revenue: DKK 9.9m (H1 2023: DKK 9.4m); ARR at DKK 19.6m (H1 2023: DKK 18.7m).

• EBIT loss for H1 2024: DKK 7.0m (H1 2023: DKK 6.5m); Q2 2024 EBIT loss: DKK 4.3m.

• Net loss for H1 2024: DKK 8.4m (H1 2023: DKK 8.3m); negative equity of DKK 0.4m at June 30, 2024.

• Subscription revenue continues to outpace onboarding and consultancy income.

• Contribution margin remained high at 93% for H1 2024.

Outlook and guidance

• 2024 guidance revised: ARR DKK 21-23m (previously DKK 24-28m), revenue DKK 21-23m (previously DKK 23-27m), EBIT loss DKK 10-12m (previously DKK 0-5m).

• Cash flow positivity is targeted for 2025, not 2024, with ongoing cost reductions and digital marketing outsourcing.

• Growth from new initiatives (partners, Iberia, Sweden, BI, banking app) expected to materialize mainly in 2025.

• Focus for H2 2024 on cost reduction, capital structure restoration, and improved churn.