Konsolidator: H1 2024 Growth Initiatives and Financial Update
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H1 2024 Report - Implementing New Growth Initiatives
Company announcement no 14-2024
H1 2024 report highlights the implementation of new growth initiatives aimed at driving revenue and improving market performance.
In Q2 2024, the net ARR increase amounted to DKK 0.2m, reaching DKK 19.6m, reflecting a 5% increase year-over-year. During this quarter, the company focused heavily on the development of the new Konsolidator Banking application, coupled with initiatives to bolster growth across various sectors. Despite satisfactory sales performance in Denmark, international sales lagged behind expectations due to extended decision-making processes, leading to a revision of the company's initial full-year forecasts.
The second quarter involved significant efforts to finalize the first version of the new banking application, including the closure of initial customer contracts in Konsolidator Iberia. However, despite these advancements, sales outcomes in the existing business portfolio were underwhelming. Consequently, Konsolidator adjusted its ARR expectations from DKK 24-28m down to a revised range of DKK 21-23m, anticipating an EBIT loss between DKK 10-12m for the year.
Looking towards Q3 2024, the focus will pivot towards enhancing the company's capital structure while ensuring operational efficiency and securing funding avenues. Konsolidator is actively exploring financial supports from investors, lending institutions, and other loan providers to facilitate these developments.
CEO Claus Finderup Grove stated, "H1 2024 faced challenges largely due to a downturn in international sales, which adversely impacted our Customer Acquisition Cost (CAC) and new ARR. The current restructuring of our marketing efforts aims to enhance these metrics moving forward. Our expectations remain high surrounding the performance of the new Konsolidator Banking Application and our Spanish expansion in Konsolidator Iberia."
Financial Highlights
Financial results for Q2 2024 revealed that revenue totaled DKK 4.9m, an increase from DKK 4.7m in the corresponding quarter of the previous year. Though revenue for the first half of 2024 rose by 5%, it fell short of initial projections. The EBIT loss for Q2 amounted to DKK 4.3m, a decline from a loss of DKK 3.6m in Q2 2023. For the first half of the year, the total EBIT loss reached DKK 7m, compared to DKK 6.5m in H1 2023.
On June 30, 2024, Konsolidator reported a negative equity figure of TDKK 0.4m, contrasting with a positive equity of DKK 2m from the prior year. As of the same date, cash and cash equivalents stood at DKK 0.3m.
SaaS Metrics Overview
The Annual Recurring Revenue (ARR) saw a minor increase of DKK 0.2m in Q2 2024 from the prior year's Q2, with an overall ARR of DKK 19.6m. This translates into a 5% upswing year-over-year. The anticipated growth initiatives, coupled with efforts to mitigate churn, are expected to forge higher growth rates compared to previous years.
Customer Acquisition Cost (CAC) Analysis
The CAC concerning new ARR decreased to 55 in Q2 2024 from a previous rate of 68 in Q2 2023. With reduced costs in sales combined with digital marketing outsourcing strategies, Konsolidator anticipates a further improvement in its CAC/ARR ratios.
Retention and Churn Metrics
In Q2 2024, the net increase in ARR was achieved at a cash cost of DKK 4.1m, resulting in a performance measure of 0.05 times. This represents a notable contrast compared to 0.0 times in the prior year. The churn rate for the last 12 months was reported at 13.7%, up from 9.2% in the previous year, with management expecting improvements due to ongoing customer retention initiatives.
2024 Outlook
Konsolidator has revised its outlook for 2024, reflecting the challenges encountered in the current market environment. The forecast now includes an ARR of DKK 21-23m, down from an earlier prediction of DKK 24-28m. Projected revenue is adjusted to DKK 21-23m from DKK 23-27m, while expectations for EBIT losses are set between DKK 10-12m instead of a light loss of DKK 0-5m.
Investor Engagement
As part of its ongoing outreach, Konsolidator is scheduled to host an investor webinar to discuss the findings and future plans. This webinar aims to provide insights into the company's strategies and engage directly with stakeholders.
Contacts
CEO: Claus Finderup Grove, mobile +45 2095 2988, cfg@konsolidator.com
CFO: Jack Skov, mobile +45 2282 8845, js@konsolidator.com
About Konsolidator
Konsolidator A/S specializes in financial consolidation software, focusing on enhancing the effectiveness of Group CFOs through automated financial consolidation and reporting in the cloud. The company's innovative approach simplifies the complex process of financial consolidation and allows CFOs to save time while extracting actionable insights from key performance data. Established by finance professionals and actively traded on the Nasdaq First North Growth Market since 2019, Konsolidator continues pushing towards optimizing financial operations for businesses.
Frequently Asked Questions
What significant changes were made in Konsolidator's growth expectations for 2024?
Konsolidator has revised its ARR expectations to DKK 21-23m, down from DKK 24-28m, reflecting lower international sales performance.
What were the key financial highlights for Q2 2024?
For Q2 2024, revenue increased to DKK 4.9m, while EBIT loss rose to DKK 4.3m compared to the previous year.
How has the CAC metric changed for Konsolidator in 2024?
The Customer Acquisition Cost (CAC) decreased to 55 for Q2 2024, showing improvements in cost management strategies.
What is the projected EBIT loss for Konsolidator in 2024?
The projected EBIT loss for the year is now forecasted between DKK 10-12m, up from earlier estimates.
What is Konsolidator's core business focus?
Konsolidator specializes in providing financial consolidation software to improve efficiency and effectiveness for Group CFOs globally.
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