Penneo: Downgraded ARR guidance 2022

Today, Penneo has downgraded its ARR guidance for 2022 from DKK 77-82 million to DKK 70-75 million, corresponding to a reduced level of DKK 7 million (approx. 9% lower interval). The new ARR guidance interval corresponds to a growth rate of 27-36% YoY. EBITDA guidance for 2022 is maintained between DKK -20 million and -15 million.
The more uncertain macroeconomic environment has affected Penneo’s sales cycle, and Penneo states that both new and existing Sign customers have postponed their decisions to a larger extent than earlier expected. Additionally, cautious buying behavior has also affected the rollout of the KYC solution to larger audit and accounting customers in the Nordics as these customers are postponing their initiatives.
Penneo also highlights that the ARR uplift growth in H1 2021 was fueled by COVID-19 effects due to increased remote working conditions. Looking at the current market conditions, the extraordinary levels of growth with the Sign platform have decreased as the buying behavior have changed, resulting in fewer and smaller deals.
No other specific SaaS metrics were provided in today's announcement, however, the lower increase in engagement with the Sign platform for existing customers may lead to a lower upselling/uplift rate, which was 17% YoY in H1 2022. The Q3 report is expected to be announced on 23 November 2022.
Read the full announcement here: https://lnkd.in/ekFkDmUw
HC Andersen Capital receives payment from Penneo for a Digital IR/Corporate Visibility agreement. /Kasper Lihn 13:00, 13 October 2022.