Announcement no. 11 2020
Copenhagen – 30 April 2020 – Agillic A/S (Nasdaq First North Copenhagen: AGILC) announces financial results for Q1 2020. Revenue in Q1 2020 increased by 15% compared to Q1 2019 and amounted to DKK 14.7 million. The license part of Annual Recurring Revenue (ARR) amounted to DKK 46.9 million on 31 March 2020, an increase of 15% compared to 31 March 2019. EBITDA for Q1 2020 amounted to DKK -0.4 million, compared to DKK -3.5 million in Q1 2019.
Emre Gürsoy, CEO of Agillic:
“Currently, many businesses are holding their breath as the impact of COVID-19 is taking its toll. We are keeping a close eye on the development and its consequences on our business. Being a SaaS company, we have not experienced an immediate impact. However, as licenses become due for renewal, there is a risk that clients negatively affected by COVID-19 will not renew their subscription. On top of this, we expect new biz to be affected due to the absence of conferences and other physical lead generating activities. It is a complex market environment, and while some businesses are struggling, we also see companies accelerating their digital transformation, which may well be a permanent trend that will favour Agillic on the other side of the COVID-19 crisis.”
He continues:
“Amid the corona crisis, we are successfully raising new equity capital, and I am very thankful for the trust the shareholders have in Agillic even under the current market circumstances. In March and April, we raised gross proceeds of DKK 22.1 million, of which DKK 16.7 million was paid in cash.”
Performance highlights
| 2020 | 2019 | 2020 | 2019 | |||||||
| DKK million | Q1 | Q1 | Change | Q1 YTD | Q1 YTD | Change | ||||
| Income statement | ||||||||||
| Total revenue | 14,7 | 12,8 | 15% | 14,7 | 12,8 | 15% | ||||
| Gross profit | 11,9 | 9,7 | 22% | 11,9 | 9,7 | 22% | ||||
| Gross profit margin | 81% | 76% | - | 81% | 76% | - | ||||
| EBITDA | -0,4 | -3,5 | 87% | -0,4 | -3,5 | 87% | ||||
| Net profit | -2,7 | -5,9 | 54% | -2,7 | -5,9 | 54% | ||||
| Financial position | ||||||||||
| Cash | 0,9 | 1,3 | -32% | 0,9 | 1,3 | -32% | ||||
| Cash (adjusted)1 | 3,4 | 6,1 | -44% | 3,4 | 6,1 | -44% | ||||
| Software as a Service (SaaS) | ||||||||||
| Subscription part of ARR | 46,9 | 40,7 | 15% | 46,9 | 40,7 | 15% | ||||
| Transaction part of ARR | 8,9 | 12,6 | -29% | 8,9 | 12,6 | -29% | ||||
| Total ARR2 | 55,8 | 53,3 | 5% | 55,8 | 53,3 | 5% | ||||
| Net increase/decrease in ARR | 0,7 | 3,2 | -78% | 0,7 | 3,2 | -78% | ||||
| 1 Cash inclusive trade receivables, trade payables and un-utilised credit facilities | ||||||||||
| 2 Annual Recurring Revenue (ARR), i.e. the annualised value of subscription agreements and transactions at the end of the actual reporting period | ||||||||||
Financial results for Q1 2020
- Revenue in Q1 2020 amounted to DKK 14.7 million compared to DKK 12.8 million in Q1 2019, an increase of 15%.
- Gross profit in Q1 2020 amounted to DKK 11.9 million compared to DKK 9.7 million in Q1 2019, an increase of 22%.
- Gross profit margin in Q1 2020 amounted to 81% compared to 76% in Q1 2019.
- EBITDA amounted to DKK -0.4 million in Q1 2020 compared to DKK -3.5 million in Q1 2019
- Annual Recurring Revenue (ARR) as of 31 March 2020 was DKK 55.8 million compared to DKK 53.3 million as of 31 March 2019, an increase of 5%. The license part of Annual Recurring Revenue amounted to DKK 46.9 million as of 31 March 2020 compared to DKK 40.7 million as of 31 March 2019, corresponding to an increase of 15%. The transaction part of Annual Recurring Revenue amounted to DKK 8.9 million as of 31 March 2020 compared to DKK 12.6 million in 2019, corresponding to a decrease of 29%. Cash position as of 31 March 2020 was DKK 0.9 million compared to DKK 1.3 million on 31 March 2019. Cash position, adjusted for lines of credit, trade receivables and trade payables, amounted to DKK 3.4 million as of 31 March 2020.
Operational highlights in Q1 2020
- New clients, such as Det Kongelige Teater (the Royal Danish Theatre), and Bonnierförlagen in Sweden signed contracts with Agillic.
- As per 1 March 2020, Emre Gürsoy commenced as CEO of Agillic.
- The Company initiated its capital raising consisting of a private placement, conversion of existing debt, and a rights issue with pre-emptive rights for its existing shareholders.
- Due to the COVID-19 situation, on 6 April 2020, Agillic suspended the financial guidance for 2020. The Company will revert with a new guidance as soon as the market situation is sufficiently stable to assess the consequences.
Operational highlights after the end of Q1 2020
- On 24 April 2020 Agillic closed the offering of shares in a right issue for its existing shareholders of 924,669 shares with a market value of DKK 17,753,644.80, and on 30 April the Company announced the results of the offering. On that background, Agillic has in connection with its total capital raising in March and April 2020 raised gross proceeds of DKK 22,053,645, of which DKK 16,704,128,55 was paid in cash.
- Amid the COVID-19 challenge, initiatives to reduce operational costs have been introduced. As part of this, both the management and employees of Agillic have entered a voluntary agreement to reduce salaries by 10% effective as of 1 May 2020 for the remainder of the year.
For further information, please contact:
Emre Gürsoy, CEO, Agillic A/S
+45 30 78 42 00
emre.gursoy@agillic.com
Christian Tange, CFO, Agillic A/S
+45 29 48 84 17
christian.tange@agillic.com
Certified Adviser
Tofte & Company
Sasja Dalgaard sd@toftecompany.com
Christian IX’s Gade 7, 1111 Copenhagen K
About Agillic A/S
Agillic is a Nordic software company enabling marketers to maximise the use of data and translate it into relevant and personalised communication establishing strong relations between people and brands. Our customer marketing platform uses AI to enhance the business value of customer communication. By combining data-driven customer insights with the ability to execute personalised communication, we provide our clients with a head start in the battle of winning markets and customers.
Besides the company headquarter in Copenhagen, Agillic has sales offices in London (UK) and Stockholm (Sweden), Zurich (CH), as well as a development unit in Kiev (Ukraine). For further information, please visit www.agillic.com
Agillic A/S (publ) (Nasdaq First North Copenhagen: AGILC) is obligated to publish the above information in compliance with the EU Market Abuse Regulation. The information was published via agent by Agillic A/S on 30 April 2020.
Appendix
Financial development per quarter
| 2017 | 2018 | 2019 | 2020 | |||||||||||||
| DKK million | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||
| Income Statement | ||||||||||||||||
| Total revenue | 6.3 | 6.2 | 6.1 | 7.1 | 8.2 | 9.5 | 9.1 | 12.2 | 12.8 | 14.3 | 13.0 | 13.7 | 14.7 | |||
| Gross profit | 5.5 | 5.1 | 5.5 | 6.0 | 5.3 | 7.2 | 7.1 | 9.7 | 9.7 | 11.1 | 10.1 | 10.8 | 11.9 | |||
| Gross profit margin | 87% | 83% | 90% | 84% | 65% | 76% | 78% | 79% | 76% | 78% | 78% | 79% | 81% | |||
| EBITDA | 0.6 | -0.6 | 0.2 | -0.3 | -5.4 | -4.0 | -3.4 | -6.3 | -3.5 | -4.8 | -2.8 | -4.3 | -0.4 | |||
| Net profit | 0.3 | -1.6 | -0.8 | -3.2 | -7.2 | -6.1 | -5.8 | -6.7 | -5.9 | -8.6 | -4.1 | -6.5 | -2.7 | |||
| Financial position | ||||||||||||||||
| Total assets | 21.2 | 21.0 | 23.1 | 31.4 | 60.4 | 53.9 | 50.0 | 47.4 | 34.7 | 40.5 | 42.4 | 37.7 | 37.6 | |||
| Equity | 1.8 | 2.7 | 3.4 | 6.4 | 21.4 | 15.4 | 9.9 | 3.5 | -2.1 | -10.5 | -14.3 | -20.6 | -18.7 | |||
| Borrowings | 10.3 | 11.0 | 13.0 | 16.1 | 13.0 | 11.6 | 9.0 | 11.3 | 9.1 | 16.4 | 22.8 | 26.5 | 27.8 | |||
| Dividends paid | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
| Change in cash | 0.3 | -0.8 | -0.4 | -0.2 | 35.1 | -11.0 | -8.5 | -3.3 | -9.6 | -1.7 | -2.0 | -3.0 | -2.2 | |||
| Employees | ||||||||||||||||
| Headcounts (end of quarter) | 18.0 | 18.0 | 23.0 | 27.0 | 32.5 | 43.0 | 49.5 | 56.0 | 60.0 | 62.5 | 66.5 | 64.0 | 63.5 | |||
| Software as a Service (SaaS) | ||||||||||||||||
| Subscription part of ARR | 16.3 | 16.5 | 18.8 | 25.8 | 27.6 | 29.5 | 33.4 | 39.6 | 40.7 | 44.5 | 43.0 | 45.5 | 46.9 | |||
| Transaction part of ARR | 5.1 | 5.1 | 5.1 | 7.4 | 7.4 | 9.3 | 8.5 | 10.5 | 12.6 | 13.8 | 8.7 | 9.6 | 8.9 | |||
| Total ARR1 | 21.4 | 21.7 | 23.7 | 33.2 | 35.1 | 38.8 | 41.9 | 50.1 | 53.3 | 58.2 | 51.7 | 55.1 | 55.8 | |||
| Net increase/decrease in ARR | 0.6 | 0.2 | 2.1 | 9.5 | 1.9 | 3.7 | 3.2 | 8.2 | 3.2 | 5.0 | -6.5 | 3.4 | 0.7 | |||
| Average ARR2 | 0.5 | 0.5 | 0.5 | 0.6 | 0.6 | 0.7 | 0.6 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | |||
| Customer Acquisition Costs (CAC)3 | 0.4 | 0.4 | 0.5 | 0.5 | 0.7 | 0.8 | 0.8 | 0.8 | 1.0 | 1.0 | 1.3 | 1.4 | 1.3 | |||
| Years to recover CAC (years)4 | 1.1 | 1.3 | 1.3 | 1.1 | 1.6 | 1.6 | 1.7 | 1.5 | 1.6 | 1.6 | 2.4 | 2.6 | 2.5 | |||
| 1 Annual Recurring Revenue (ARR), i.e. the annualised value of subscription agreements and transactions at the end of the actual reporting period | ||||||||||||||||
| 2 Average Annual Recurring Revenue, i.e. the average ARR per customer | ||||||||||||||||
| 3 Customer Acquisition Costs, i.e. the sales and marketing cost (inclusive direct related cost, like travel costs, personal IT costs, costs of office etc.) of acquiring one new customer | ||||||||||||||||
| 4 Years to recover CAC (years), i.e. the period in years it takes to generate sufficient gross profit a customer to cover the costs of acquiring the customer | ||||||||||||||||
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