First impression Risk Intelligence, Q1 2022: Strong growth in ARR. Low activity in Advisory services weights

Today, Risk Intelligence published its interim report for the first quarter of 2022. Below is a compilation of our first impressions, including deviations from our estimates made after Q4 2021.

• Total ARR was reported at DKK 16.3m, corresponding to an increase of 18 percent. System ARR grew 20 percent to DKK 14.8m. Net sales for the quarter amounted to DKK 3.9 million, corresponding to a negative growth of 7.5 percent. Our estimate was DKK 5.4 million. The revenue was thus weaker than our expectations. The deviation is in large explained by lower revenue from Advisory service.
• Reported EBITDA amounted to DKK minus 1.7 million. Our estimate was DKK minus 0.7 million. The outcome was, therefore, weaker than anticipated. Costs increased compared to the same quarter last year, but not to the anticipated extent.
• Earnings before taxes for the period were DKK minus 2.8 million, compared to our estimate of DKK minus 1.8 million. Earnings per share amounted to DKK minus 0.20. Our forecast was DKK minus 0.12.

The revenue guidance from the company remains at DKK 21.5-23.5 million for the full year 2022. The company is guiding for a negative EBITDA result but a positive cash flow. This is also unchanged.

We intend to provide an updated analysis on Risk Intelligence shortly. Read the last published research update here.

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