Risk Intelligence (RISK) Q4 2024 earnings summary

Executive summary

• Revenue grew 30% year-over-year in 2024, reaching DKK 25.4M, with Q4 revenue up 31% compared to Q4 2023.

• EBITDA loss improved 56% year-over-year to DKK -3.2M, with Q4 EBITDA at DKK -1,412K, impacted by one-time restructuring costs.

• Net loss narrowed by 26% to DKK -8.6M for FY 2024, and earnings per share improved by 89%.

• Cash flow from ordinary activities improved 52% year-over-year, turning positive at DKK 807K, and net cash flow for FY 2024 was DKK 831K.

• A new business segmentation strategy was launched, targeting five segments: commercial maritime, energy, insurance, government and defense, and land-based logistics.

Financial highlights

• Gross margin increased to 58% for FY 2024, with SaaS gross margin at 94.8%.

• Costs rose 7% year-over-year, significantly below revenue growth.

• Net cash flow for FY 2024 was DKK 831K, up from -DKK 326K in 2023.

• Operational cash flow improved by DKK 4,267K from 2023.

• Results before taxes improved by DKK 3.4M, from minus DKK 14.3M to minus DKK 10.9M.

Outlook and guidance

• 2025 guidance targets ARR growth of 15–30% and System ARR of DKK 26.9M–30.4M.

• Management expects positive EBITDA, a net result of zero, and positive net cash flow for 2025.

• Cost growth expected to be lower than 7% in 2025, with reduced financial costs due to refinancing.

• Focus on implementing the segmentation strategy with specialized staff and targeted resource allocation.