Risk Intelligence A/S Interim Report Q3 2018
21 November 2018
Risk Intelligence A/S (“Risk Intelligence) hereby reports the interim report for Q3 2018.
Important key figures
Almost 10% increase in total revenue in Q3 2018 compared to Q3 2017.
147% increase in recurring revenue in Q3 2018 compared to Q3 2017.
Ratio of recurring revenue of total revenue increased to 80% in Q3 2018 from 35% in Q3 2017.
Ratio of recurring revenue of total revenue increased to 67% in the period Q1-Q3 2018 from 51% during Q1-Q3 2017.
100% renewal rate during Q3 compared to an average of 98%.
Implementing the growth plan causes an increased operating cost base by the new initiatives. Subsequently, as planned and as communicated during the IPO process, Risk Intelligence will generate negative results in 2018 and 2019. Q3 2018 is in line with that plan with a result of -1.43m DKK.
During and after the period, Risk Intelligence has seen major progress in 4 ways:
First: The core business, The Risk Intelligence System (MaRisk and PortRisk) has seen satisfactory intake of new contracts, most notably US Navy which delivers yet another blue-stamp as well as an open door to a much larger potential.
Second: The development of the LandRisk module for the Risk Intelligence System, will enable Risk Intelligence to address the 10x larger land-based market for security threat intelligence and is progressing according to plan. The first major pilot project clients have been signed, the development of the product is underway with the launch of a test version and the market demand has been confirmed. LandRisk is planned to be ready for launch by end Q3 2019.
Third: By introducing the Client Portal with on-line purchase to clients that request ad-hoc access to ports and terminals in PortRisk and later elements from MaRisk and LandRisk, the addressable market for Risk Intelligence’s services has effectively been doubled. Moreover, the on-line access to single services is expected to serve as an important source of deal-flow to clients that will want to upgrade at a later point to the larger license packages.
Fourth: Last, but not least, Risk Intelligence has completed its organizational expansion as planned and announced prior to the IPO. New, larger offices have been established, the sales organization has been completed and is ready to deliver from Q4. Also, the LandRisk team has been strengthened with more expertise in supply chain security.
CEO Hans Tino Hansen comments: “I am very pleased with our good start after the IPO. We are well positioned to deliver on our promises going forward as well. This includes the completion of LandRisk as planned by end Q3 2019 as well as a doubling or more of our core business by end of 2020. We are well underway. Finally, I would like to draw attention to our primary ratio: recurring revenue as part of total revenue, which has climbed from 35% in Q3 2017 to 80% in Q3 2018. In addition. we continue to experience 98+%, and in this quarter 100%, renewal rates”.
Third quarter (30-07-2018 – 30-09-2018)
Net sales increased to 2,901 (2,661)
Recurring revenue increased to 2,320 (938) or 147% increase
Recurring revenue ratio of total revenue increased to 80% (35%)
Result after tax decreased to -1,313 (259)
Result per share decreased to -0.17(1.44)
Equity ratio amounted to 64.55% (-19.85)
Nine months (01-01-2018 – 30-09-2018)
Net sales decreased marginally to 6,586 (6,599)
Recurring revenue increased to 4,443 (3,411) or 30% increase
Recurring revenue ratio of total revenue increased to 67% (51%)
Result after tax decreased to -4,293 (-987)
Result per share increased to -0.56 (-5.49)
Equity ratio amounted to 64.55% (-19.85)
For more information about Risk Intelligence, contact:
Hans Tino Hansen, CEO
Jens Krøis, CFO
Telephone: +45 7026 6230
E-mail: investor@riskintelligence.eu