Konsolidator (KONSOL) Q3 2024 earnings summary

Executive summary

• ARR reached DKK 20 million at the end of September 2024, up 7% year-over-year, with Q3 marking the highest quarterly ARR increase in 2024.

• Revenue for the first nine months of 2024 was DKK 14.8 million, a 4% increase year-over-year.

• Cost optimization included staff reductions and outsourcing digital marketing to improve cash flow and reduce customer acquisition costs.

• Growth initiatives focus on direct sales, Microsoft Dynamics 365 partnerships, expansion in Iberia, development of a data warehouse, and Konsolidator Banking.

• Negative equity of DKK 3.4 million as of September 30, 2024, with further actions planned to restore positive equity.

Financial highlights

• Q3 2024 revenue was DKK 4.9 million; nine-month revenue was DKK 14.8 million, driven by subscription growth but offset by declines in onboarding and consultancy.

• EBIT loss for Q3 2024 was DKK 2.4 million, and DKK 9.4 million for the nine months, both higher than the prior year.

• Net loss for Q3 2024 was DKK 3.1 million; nine-month net loss was DKK 11.5 million.

• Cash position at quarter-end was DKK 0.3 million; a capital increase of DKK 2.2 million was completed in early October.

• Staff costs rose 13% year-over-year due to Konsolidator Iberia and customer success hires.

Outlook and guidance

• Maintained 2024 guidance: ARR and revenue of DKK 21–23 million, EBIT loss of DKK 10–12 million.

• Achieving revenue guidance depends on new sales in emerging business segments.

• Confident in reaching DKK 21 million ARR on core business; DKK 23 million would require additional growth from new initiatives.

• Positive operational cash flow expected in the latter part of 2025, with profitability targeted as growth initiatives mature.

• Churn is expected to improve in 2025 as customer success initiatives take effect.