Penneo (PENNEO) Q2 2024 earnings summary

Executive summary

• ARR grew 21% year-over-year to 95.6M DKK in H1 2024, with foreign markets driving 66% of new business and Belgium adding 120 customers.

• EBITDA improved to (2.2)M DKK in H1 2024 from (10.3)M DKK in H1 2023, reflecting cost management and operational efficiency.

• 206 new customers were onboarded in Q1 2024, up 86% from Q1 2023, with 73% of new business ARR from foreign markets.

• Cash position at the end of H1 2024 was 29.2M DKK, with expectations to reach a point where ARR exceeds the overall cost base by year-end.

• A new Board of Directors was onboarded, reaffirming financial goals and bringing SaaS, international, and investment expertise.

Financial highlights

• Recognized revenue increased by 13% compared to H1 2023, reaching 45.2M DKK.

• Gross profit margin decreased to 83% from 85% in H1 2023.

• Staff costs decreased by 15% year-over-year, while other external expenses rose by 7%.

• Total new ARR trailing 12 months was 12.5M DKK, with CAC payback improving to 14 months.

• Free cash flow remains negative but improved compared to previous periods.

Outlook and guidance

• ARR guidance for 2024 is set at 105M DKK to 112M DKK, representing 18%-25% growth.

• EBITDA guidance for 2024 is positive, expected between 5M DKK and 10M DKK.

• Continued investment in sales, marketing, and product development, with flexibility to adjust based on market conditions.