Klappir Green Solutions: Financial statement release for 2023
- Total Revenue increased by 27% YoY.
- Subscription Revenue grew by 35% YoY.
- The European Partner Network has grown to include 13 Partners.
The consolidated financial statement is unaudited and subject to change until the publication of the company's annual accounts on April 18th, 2024.
Main financial highlights for 2023, in Icelandic krona:
- Total revenue was 573.5 million compared to 450.7 million in 2022.
- Operational EBITDA was 97.2 million (16,9%), compared with 31.5 million (7,0%) in 2022.
- Operational profit was 46.0 million, compared with -36.5 million in 2022.
- Net profit was 8.7 million, compared with -35.5 million in 2022.
- Total assets were 802 million, compared with 617 million in 2022.
- Equity was 378 million, compared with 373 million in 2022.
- Total liabilities were 423 million compared with 244 million in 2022.
- Equity ratio was 47.1%, compared with 60.4% in 2022.
- Cash and cash equivalents at end of 2023 was 274 million compared with 151 million in 2022.
Recent business highlights
Substantial growth in Subscription revenue supports strong and healthy operation: An important outcome of Klappir's product-led strategy is the remarkable year-over-year growth of 35% in subscription revenue. The newly introduced ESRS premium plan and the annual statement subscription have positively contributed to this growth, along with an increased number of new Nordic customers. The growing interest and responsibility of customers to lead by example and adhere to sustainability standards have inspired other companies in their value chain to embark on their own sustainability journey, often utilizing Klappir software. This network effect is expected to further motivate companies to initiate their sustainability journey, especially considering Klappir Platform's flexible product and service subscription model, tailored to individual needs. A higher proportion of subscription revenue in the total revenue signifies a robust and healthy operation. Subscription revenue has increased from 53% to 57% of total revenue. Similarly, EBITDA has improved, reaching 97.2M kr or 16.9% in 2023 compared to the previous 31.5M kr or 7% in 2022.
An increased focus on Product innovation and Partner network drive Global expansion:
Klappir's recent expansion into the Danish market has confirmed the strength of its product offering compared to alternatives solutions in the market. This success has encouraged Klappir to further expand into the Nordic and European markets. While Klappir's platform is well-prepared for upcoming EU legislation, the company has never invested more in product innovation to solidify its position as a leading ESG and Sustainability Accounting platform. A key element in Klappir's growth strategy is transitioning into a PLG (Product-Led Growth) company and building a network of solution partners who sell, consult, implement, and provide value-added solutions to the platform. Implementation of this strategy has already begun, with over 13 partners and a team of more than 60 consultants working with Klappir to develop business across Europe in just 6 months. We believe this growth strategy is the right path for Klappir to scale and expand into European countries, setting us apart from the competition.
EU Taxonomy and Sustainable Finance Disclosure Regulations adapted into Icelandic law:
Two major EU legal instruments on sustainability, the EU Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR) were adapted into Icelandic law with Act no. 25/2023, which took effect in May 2023. Both regulations are pillars of the EU sustainable finance framework of the EU Green Deal and aim at establishing a framework for classifying sustainable economic activities and requiring financial institutions and financial market participants to disclose information on the sustainability of their investment products. Data quality and integrity is of the essence and Klappir has had fruitful conversations with several stakeholders, which are starting to materialize.
The Corporate Sustainability Reporting Directive (CSRD) is taking effect: The year 2024 marks the first year that large, listed companies are subject to report on according to the EU's Corporate Sustainability Reporting Directive. EU and EEA member states need to transpose the Directive into their own laws by July 2024. These large, listed companies were already subject to submitting sustainability-related information with their annual reports according to current legislation but the new directive expands the reporting obligations and ensures better conformity and comparability. Klappir's product team has worked hard to keep up with these developments and adapt our solutions to this new reality in order to assist Klappir's customers through this transition. In the coming years, large unlisted companies (reporting in 2026 on 2025 data) and listed SMEs (reporting in 2027 on 2026 data) will follow suit.
Jon Agust Thorsteinsson, CEO:
“We are very pleased with our achievements in 2023. Our sustainability ecosystem is dynamically evolving, boasting a noteworthy milestone of engaging companies that rely on our software for solid sustainability accounting, comprehensive reporting, and seamless data sharing. Undoubtedly, the Klappir ecosystem holds paramount importance in aiding companies to monitor, calculate, and transparently communicate their sustainability performance, thereby facilitating their purposeful sustainability journey.
We are expanding our sales through our partner networks which presents a strategic growth opportunity - together with our partners, we are poised to utilize the opportunity in the EU market effectively. As we focus on expanding our partner network, we're reducing our advisory services to ensure efficient resource allocation together with our partners.
Our continued investment in research and development has ensured that we are able to deliver new, innovative product capability that will empower Klappir customers to comply with the new Corporate Sustainability Reporting (CSRD) directives and the European Sustainability Reporting Standards (ESRS). By our offerings, we are giving Klappir customers a significant edge, positioning them at the forefront of their industry sustainability efforts”.
About Klappir
Klappir is a leading global sustainability software company, founded in 2014 and headquartered in Iceland. Klappir stands out due to its comprehensive approach to operations, trusted experience, groundbreaking product portfolio, and strategic expansion into new markets. In a world increasingly focused on sustainability, Klappir is not only driving its own growth but also spearheading a transformative shift in how businesses align with the complex challenges of sustainability accounting and reporting.
Klappir has emerged as the foremost provider of sustainability software, offering an advanced platform thoroughly crafted to empower effective sustainability management across various sectors such as businesses, municipalities, and governments. The core of Klappir's offering lies in its ability to seamlessly facilitate engagement with sustainability data, enabling enhanced efficiency and well-informed decision-making.
As a global leader in sustainability software solutions, Klappir holistic approach to operations, innovative product offerings, and strategic market expansion pave the way for businesses to thrive in an increasingly sustainability-driven world. Klappir's visionary journey promises not only growth but also a transformative impact on how companies navigate and embrace the complexities of sustainability accounting and reporting.
Klappir B shares are listed on Nasdaq First North Iceland (KLAPP-B). For more information, visit https://klappir.com. The consolidated financial statement release for 2023 can be accessed at: https://www.klappir.com/investors
Contacts for further Information:
Jon Agust Thorsteinsson, CEO
+354 664 9200
jat@klappir.com
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