Konsolidator lowers expectations for 2024 - inside information
20 August 2024 - 7:38AM
UK Regulatory
Konsolidator lowers expectations for 2024 - inside information
Company announcement no 13-2024
Søborg, August 20, 2024
Konsolidator lowers expectations for 2024
In H1 2024, the net growth in Annual Recurring Revenue (ARR)
only increased by DKK 0.2m, resulting in an ARR of DKK 19.6 m as
per June 30, 2024. The ARR was impacted by fewer new sales and
lower upsales to larger customers than expected. Thus, Konsolidator
lowers the expectations for 2024. The ARR is now expected to be
21-23m for 2024 (previous guidance: 24-28m). Consequently, revenue
is lowered to 21-23m for 2024 (previous guidance: 23m-27m), and
EBIT loss is lowered to 10-12m for 2024 (previous guidance: EBIT
loss of 0-5m), also impacted by the investment in Konsolidator
Iberia of DKK 1-2m.
Denmark remains satisfactory but international sales are
lacking
While sales conversion rates have returned to previous levels
compared to H1 2023 and sales in Denmark remain satisfactory. The
international sales have been challenged as the sales cycles and
the decision-making process have been longer. In H1 2024, new sales
and ARR up-sales amounted to DKK 1.2m, resulting in net growth in
ARR of DKK 0.2m.
The financial outlook for 2024, as presented in the annual
report 2023, reflected both growth opportunities from existing
business and new sales opportunities materializing, including the
newly announced banking application Konsolidator
Banking®. The impact of the new sales opportunities has
been delayed and with the uncertain geopolitical situation,
Konsolidator does not see sales cycles and decision-making
processes change in the short term.
Therefore, the ARR for 2024 is lowered to DKK 21-23 from DKK
24-28m. Revenue is also lowered to DKK 21-23m for 2024 from DKK
23-27m. Further, EBIT loss is lowered accordingly to DKK 10-12m for
2024 from an EBIT loss of DKK 0-5m.
The new financial outlook for 2024 is based on the existing
business and pipeline, not including any revenue impact from the
new banking segment.
Initiatives to reduce cost and improve
churn
Konsolidator has taken initiatives to reduce the sales and
marketing costs to improve the customer acquisition cost. The
number of employees at the end of June 2024 has been reduced from
36 to 30 at the end of August 2024 as well as the digital marketing
will be outsourced. The full impact on the costs will not show
until Q1 2025. During Q4 2024, Konsolidator will launch a new 3
-year strategy. In order to improve churn further, Konsolidator has
from Q2-2024 started to sell 2-year contracts, which should improve
churn from 2025.
Konsolidator Iberia exceeds expectations
Konsolidator Software Iberia S.L. (Konsolidator Iberia) has been up
and running for the entire Q2 2024. The investment in the Iberian
market looks promising, and during Q2 2024, Konsolidator Iberia
signed two customers, which is earlier than expected. The
investment in the Iberian market will have a negative EBIT impact
in 2024 by DKK 1-2m, as announced in company announcement no
2-2024.
Adjusted guidance 2024
Based on the above, the financial expectation for 2024 has been
lowered to:
- ARR of DKK
21-23m
- Revenue of DKK
21-23m
- EBIT loss of DKK
10-12m
Adjusted guidance on other SaaS metrics for 2024:
- CAC/new ARR 40-60
months (previous guidance 25-30)
- Net ARR
increase/Cash Burn above 0.1-0.3 times (previous guidance 0.5)
- Net retention
93-98% (previous guidance 99-101)
- Churn 10-12%
(previous guidance 8-10)
The half-year report will be released on August 22, 2024, and an
investor webinar will be held on August 22, 2024 at 12:30 PM.
Contacts
- CEO: Claus Finderup Grove, mobile +45 2095 2988,
cfg@konsolidator.com
- CFO: Jack Skov, mobile, +45 2282 8845, js@konsolidator.com
Certified Adviser
- Grant Thornton, Jesper Skaarup Vestergaard, phone +45 3527 5011
www.grantthornton.dk
About Konsolidator
Konsolidator A/S is a financial consolidation software company
whose primary objective is to make Group CFOs around the world
better through automated financial consolidation and reporting in
the cloud. Created by CFOs and auditors and powered by innovative
technology, Konsolidator removes the complexity of financial
consolidation and enables the CFO to save time and gain actionable
insights based on key performance data to become a vital part of
strategic decision-making. Konsolidator was listed at Nasdaq First
North Growth Market Denmark in 2019. Ticker Code: KONSOL
- Konsolidator Company announcement no 13-2024