This morning, Penneo announced its Q3 report. Total ARR increased to DKK 65.0m by the end of the quarter, corresponding to a growth rate of 29% YoY. Penneo maintains its recent ARR guidance (downgraded in October) and EBITDA guidance for 2022.
In Q3 2022, Penneo’s growth has been lower than the previous quarters due to uncertain market conditions. Consequently, Penneo has gained a lower number of new customers and delivered a lower ARR uplift (15%) on existing customers compared to recent quarters. However, Average Revenue Per Account (ARPA) was stable at DKK 25,288, and the churn rate is still low at approx. 3%. With ARR uplift of 15% and churn rate of 3%, the net ARR retention rate was 112%.
Looking at the geographical split and Penneo’s expansion strategy, ARR from foreign markets still constitutes the lowest part of total ARR compared to the Danish home market (29% in Q3 2022 from foreign markets vs. 26% in Q3 2021 from foreign markets). To support further international growth, Penneo reports that the company has opened a local office in Belgium. As announced in the H1 2022 report, Penneo is also preparing for acceptance of the European Commission Trust List to become a Qualified Trust Service Provider (QTSP) in order to offer Qualified Electronic Signatures (QES). Conditioned upon approval, this will open for market entries outside Scandinavia. Penneo still sees an expected finalization date in H2 2022.
ARR guidance by the end 2022 is maintained (was downgraded in October), implying that Penneo still expects a total ARR of DKK 70-75m by the end of 2022. To reach the guidance, Penneo must deliver a solid Q4 2022 in line with Q4 2021 where Penneo added approx. 5.3 million in new ARR. However, Penneo’s ARR increase in Q3 2022 was only DKK 1.5m.
EBITDA guidance for 2022 also remains unchanged in the range DKK -20m and DKK -15m. For perspective, EBITDA YTD (first 9 months of 2022) amounts to DKK -14.3m. In Q3 2022, EBITDA was DKK -4.7m.
Later today at 13:00, Penneo’s management will present the financial results at a virtual event. Sign up here: https://hca.videosync.fi/penneo-presentation-of-q3-quarterly-report-2022-23-nov-2022/register
Read the full Q3 2022 report here: https://view.news.eu.nasdaq.com/view?id=b9c45264898ec2f7817ba2c45e72fb03b&lang=sv
HC Andersen Capital receives payment from Penneo for a Corporate Visibility/Digital IR subscription agreement. /Kasper Lihn 10:34 (edited 11:22), 23 November 2022.
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Penneo
Penneo is a Danish Software-as-a-Service (SaaS) company delivering solutions for digital signing (Penneo Sign), document workflow, and compliance such as a Know Your Customer product (Penneo KYC) that helps companies comply with Anti Money Laundering (AML) legislation. Penneo was established in Denmark in 2014, and the company has more than 2,500 customers across Denmark, Sweden, Norway, Finland, Belgium, and Germany. Penneo is listed on Nasdaq Copenhagen Main Market.
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