H1 2024 Report - New Growth Initiatives in Action
Company announcement no 14-2024
The H1 2024 report showcases the launch of new growth initiatives designed to boost revenue and enhance market performance.
In the second quarter of 2024, the net Annual Recurring Revenue (ARR) saw an increase of DKK 0.2m, bringing it to DKK 19.6m, which is a 5% rise compared to the same period last year. During this quarter, the company dedicated significant resources to developing the new Konsolidator Banking application while also implementing strategies to drive growth across multiple sectors. Although sales in Denmark performed satisfactorily, international sales did not meet expectations due to prolonged decision-making processes, prompting a revision of the company's original full-year forecasts.
Throughout the second quarter, substantial efforts were made to complete the first version of the new banking application, including securing initial customer contracts in Konsolidator Iberia. However, despite these advancements, sales results from the existing business portfolio were disappointing. As a result, Konsolidator has adjusted its ARR expectations from a range of DKK 24-28m to a new forecast of DKK 21-23m, anticipating an EBIT loss between DKK 10-12m for the year.
Looking ahead to Q3 2024, the company will shift its focus towards strengthening its capital structure while ensuring operational efficiency and exploring funding options. Konsolidator is actively seeking financial support from investors, lending institutions, and other loan providers to facilitate these initiatives.
CEO Claus Finderup Grove remarked, "H1 2024 presented challenges primarily due to a decline in international sales, which negatively affected our Customer Acquisition Cost (CAC) and new ARR. We are currently restructuring our marketing efforts to improve these metrics moving forward. We remain optimistic about the performance of the new Konsolidator Banking Application and our expansion into Spain with Konsolidator Iberia."
Financial Highlights
The financial results for Q2 2024 indicated that revenue reached DKK 4.9m, up from DKK 4.7m in the same quarter last year. While revenue for the first half of 2024 increased by 5%, it still fell short of initial projections. The EBIT loss for Q2 was DKK 4.3m, compared to a loss of DKK 3.6m in Q2 2023. For the first half of the year, the total EBIT loss amounted to DKK 7m, up from DKK 6.5m in H1 2023.
As of June 30, 2024, Konsolidator reported negative equity of TDKK 0.4m, a decline from positive equity of DKK 2m the previous year. On the same date, cash and cash equivalents were recorded at DKK 0.3m.
SaaS Metrics Overview
The Annual Recurring Revenue (ARR) experienced a slight increase of DKK 0.2m in Q2 2024 compared to the same quarter last year, resulting in a total ARR of DKK 19.6m. This reflects a 5% year-over-year growth. The anticipated growth initiatives, along with efforts to reduce churn, are expected to lead to higher growth rates than in previous years.
Customer Acquisition Cost (CAC) Analysis
In Q2 2024, the CAC for new ARR decreased to 55, down from 68 in Q2 2023. With reduced sales costs and the implementation of digital marketing outsourcing strategies, Konsolidator expects further improvements 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, yielding a performance measure of 0.05 times. This marks a significant improvement compared to 0.0 times in the previous year. The churn rate over the last 12 months was reported at 13.7%, up from 9.2% the year before, with management anticipating improvements due to ongoing customer retention initiatives.
2024 Outlook
Konsolidator has adjusted its outlook for 2024, reflecting the challenges faced in the current market landscape. The new forecast includes an ARR of DKK 21-23m, reduced from the earlier estimate of DKK 24-28m. Projected revenue has been revised to DKK 21-23m from DKK 23-27m, and expectations for EBIT losses are now set between DKK 10-12m, up from an earlier estimate of a slight loss of DKK 0-5m.
Investor Engagement
Konsolidator is planning to host an investor webinar as part of its ongoing outreach efforts. This session aims to discuss the findings and future plans, providing insights into the company's strategies while engaging 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, aiming to enhance 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, allowing CFOs to save time while gaining actionable insights from key performance data. Founded by finance professionals and actively traded on the Nasdaq First North Growth Market since 2019, Konsolidator continues to strive for optimization in 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.
