RISMA Systems (RISMA) Q2 2024 earnings summary

Executive summary

• Annual recurring revenue (ARR) rose 33% year-over-year to 39.1 MDKK as of June 30, 2024, with H1 ARR growth of 5.2 MDKK.

• Revenue increased 33% to 19.5 MDKK in H1 2024, driven by new sales and stable upselling.

• Direct sales in Denmark and Norway met expectations, while Sweden and partner sales underperformed, prompting organizational changes.

• New product launches include a DORA solution for the financial industry and version 10.0 of the software, set for release in late October or early November.

• Provides governance, risk, and compliance solutions with a unique four-step process, supported by expert-created questionnaires and six support modules.

Financial highlights

• Gross profit increased to 13.4 MDKK in H1 2024 from 9.9 MDKK in H1 2023.

• EBITDA was -3.6 MDKK in H1 2024, slightly below -3.3 MDKK in H1 2023.

• Net loss for H1 2024 was -5.3 MDKK, compared to -5.0 MDKK in H1 2023.

• Staff costs rose to -17.0 MDKK from -13.1 MDKK year-over-year, reflecting workforce expansion.

• Cash and cash equivalents stood at 10.1 MDKK as of June 30, 2024.

Outlook and guidance

• ARR guidance for 2024 remains at 45–49 MDKK, expected at the lower end.

• EBITDA guidance for 2024 is unchanged at -5.6 to -9.6 MDKK.

• Pipeline remains strong, with continued investment in growth initiatives.

• Positive impact from increased investments in sales and marketing expected in 2025, but no specific guidance for 2025 provided yet.

• Strategy remains to invest surplus cash in growth initiatives while targeting cash-neutral operations for 2024 and 2025.