Penneo released its Q1 2023 report this morning, maintaining its 2023 full-year guidance. By the end of Q1 2023, Penneo's ARR increased to DKK 74.2m, corresponding to 27% YoY growth.
In Q1 2023, Penneo increased ARR by DKK 3.3m (DKK 3.1m in Q1 2022), and Penneo onboarded 111 new customers in the quarter (98 new customers in Q1 2022). 57% of the new ARR was from new customers in foreign markets, primarily driven by Penneo’s successful market entry in Belgium. However, Q1 2023 results were negatively affected by currency headwinds with the declining SEK and NOK compared to the DKK. In Q1 2023, currency effects had a negative impact on the ARR of DKK -0.9m.
Looking at other SaaS metrics, Penneo has managed to keep its churn rate low at 4% and still has a healthy upsell from increased use of its Penneo Sign and cross-sell of Penneo KYC, resulting in a net ARR retention rate of 113%.
In Q1 2023, the gross margin improved to 84% (83% FY 2022 and 80% in Q1 2022) due to the transition from Nem ID to Mit ID, which has a new payment model and lower transaction costs. Despite the positive effect in Q1 2023, Penneo expects a neutralized effect during 2023.
Penneo has also continued its ramp-up of the organization, which has affected the EBITDA result, ending at DKK -6.6m in Q1 2023 (DKK -6.0m in Q1 2022).
The important capital efficiency ratio, FCF / Net new ARR, improved from -1.7 FY 2022 to -1.4 in the last 12 months. Penneo comments that this is the level they are aiming for, even though this ratio may fluctuate and increase in Q2 and Q3 before it is expected to decrease again in Q4.
Penneo maintains its 2023 guidance on both ARR and EBITDA. This implies that ARR is expected to reach the range of DKK 87-95m by the end of 2023, and EBITDA is expected to be in the range of DKK -15m and DKK -10m in 2023.
You can meet and ask questions to Penneo’s CEO Christian Stendevad and CFO Casper Nielsen Christiansen later today at 13:00. They will present the Q1 2023 results and provide an update on the recent development. Sign up here and ask your questions now: https://www.inderes.dk/videos/penneo-presentation-of-q1-report-2023
HC Andersen Capital receives payment from Penneo for a Digital IR/Corporate Visibility agreement. /Kasper Lihn 09:23, 16 May 2023.
Penneo
Penneo er en dansk Software-as-a-Service (SaaS)-virksomhed, der leverer løsninger til digital signering, dokument-workflow og compliance såsom et Know Your Customer-produkt (KYC), der hjælper virksomheder med at overholde anti-hvidvask-lovgivningen (AML). Penneo blev etableret i Danmark i 2014, og virksomheden har nu mere end 2.400 kunder i Danmark, Sverige, Norge, Finland, Belgien og Tyskland. Penneos primære kunder er revisorer, og virksomheden har ambitionen om at blive markedsleder og den foretrukne partner for revisions- og regnskabsbranchen i Europa. Penneo er noteret på Nasdaq Copenhagen Main Market.
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