Good afternoon and welcome to the Konsolidator Q2 2025 Call. Konsolidator will begin with a presentation followed by a Q&A session. During the Q&A, the management team will address pre-submitted questions and questions submitted live during the presentation. With that, I will now hand over the call to Konsolidator to begin. Claus, your line is now open.
Hello everyone. My name is Claus. I'm the CEO of Konsolidator, and I believe that most of you have seen me before, so I will just jump right into it. As Anna said, it's a Q2 reporting, but that is also our first 1/2 year report of 2025. The agenda for today, I believe that the presentation will take around 20 minutes, maybe 25 minutes, and then some time for questions at the end. The presentation today will focus on three things: follow up on our strategy, and what our priority is going to be in the second half of 2025. Of course, our financial, how we have performed in the first half of the year, and then I will round up the presentation with some of our most important metrics, the SaaS metrics. That's going to be the content of this presentation today.
I believe that most of you have seen this presentation before, so I will not spend a lot of time on who we are. Yes, we are a SaaS company that provides companies with consolidated numbers of their subsidiaries. That is what we do, and that we will also continue to do in the future. Last year, we announced a new strategy called Resilient Growth, which is running from 2025- 2027. This strategy is built around four pillars. How do we sell more through partners? How can we make a broader product offering to our customers? We are also entering a new segment around banking. We need to focus on our operational foundation. These are the four pillars that the strategy is built around.
Today, I will just give you a small intro to the two of them because these are the ones that we have the most focus on, directly focus on. You can say that the resilience, the last pillar, is a more consequence of the three others. Within the partner segment, we have seen actually a fairly satisfying progress. Now, Sweden and Norway are 100% partner-driven. All leads, all customers we get in Sweden and Norway are through our partners. We have especially two very strong partners in Sweden who are also covering in Norway. That has resulted in that for the last year, 42% of our customers are acquiring through the partner channel. That is very satisfying for us. Two or three or four years ago, we had 0% through the partner channel, so now it's up to 40%. That's, of course, extremely satisfying for us.
On the broader product offering, this is not entirely new for many of you, but we decided that we want to build a data warehouse foundation for our customers. Of course, already Konsolidator's numbers are stored in a data warehouse, but we want to make a broader data warehouse which could also be used for other numbers than what we needed in Konsolidator. There is some fairly high interest in this area. We will hire a new person starting here on 1st September who will be dedicated to build data warehouses to our customers and also help our partners building data warehouses. We have already, you can say, a data warehouse already, which we have built together with one of our partners. As from 1st September, we will have our in-house resources who can also offer this to customers.
As you probably also know, we have decided to build a budget and forecast module, an FP&A module within Konsolidator. We started building this in May, where we also got an in-house resource for building up this product. The plan and the expectation is that we can launch the first version in December. We believe this is going to be very, very strong for both our current customer portfolio, but also for new customers because we're going to be one of the, not the first, but one of the first consolidation tools that can provide also now an automated forecasting for all subsidiaries before they are getting consolidated. We believe that's going to be a strong value proposition for us going up into 2026. Our customers already are showing a huge interest in this product. We look very much forward to that.
The main focus for the rest of 2025 is now we have got some experience from which partners are performing and which partners resonate well with Konsolidator. The remaining of 2025 and of course also next year is going to be both trying to recruit more partners in other areas where we don't have partners already. That is going to be a focus area. How do we attract good partners? Right now we are focusing mainly on the partners to help them to sell and generate leads to them. Of course also training them in onboarding Konsolidator. We want to try to look more into the entire partner value chain. How can we work with partners from before a customer is born until they eventually churn or cease operating? That is something that you can say worked.
It has already been starting, but we will dig a bit more into that in the remaining of 2025. Also, as you can see on this slide, these data warehouses and the FP&A module, of course, will also be a new product where we also need to find the right partners for delivering this to our customers. The second priority this year, that is going a little bit in line with the first priority, is that now we have 11 years of experience selling a consolidation tool, and now we also need to get more experience in how we sell data warehouse solutions and also the FP&A module. We need to be, you could say, trained or be more experienced in trying not only to sell consolidation, but sell the entire Konsolidator suite.
That is also something which is a high priority both in selling and also in marketing our product. Moving to something you can say different or consequences of the past year, that is a financial update. We announced the H1 financials this morning, and I will give you a small introduction into some of the key numbers. If I do not cover everything that you want to hear about, then of course you can ask some questions in the chat, and I will answer them at the end. Starting with the revenue, as you can see, we had a revenue of DKK 12.3 million in the first half of the year, and last year in the first half of 2024, we had DKK 9.9 million. That is actually an increase of 24%. That is fairly high, and also you can say a bit above our expectation.
As you can see below, the main increase is coming from our seed, which is consultancy. We have been much, much better in, you can say, scoping onboarding correctly and getting the right price and also have some other income from other income streams during consultancy. There has been a huge increase in this, and then our subscription fee has increased, you can say, more in line with our expectation around these 12%. All in all, 24% increase in revenue is of course very satisfying. The loss, the EBIT loss here, as I show here just above to the right, you can also see the EBITDA loss, but the EBIT loss was DKK 4 million the first half year compared to DKK 7 million last year. That is an improvement of DKK 3 million, which again for us is also a lot.
There are two elements in that, not so surprisingly. The improved revenue is of course a huge contributor to an improved EBIT loss, but we have also reduced the cost with more than DKK 1 million for the first half compared to the first half last year, mainly because we have reduced the cost in marketing. In general, we are very cost-cautious and of course trying to save as much as we can, mainly in the marketing part of it. The cash flow position, we also see some improvement in the cash flow position, which is not surprising when you have a better EBIT loss than last year. You can say we had a negative cash flow position for the first half of DKK 200,000, which of course is contributed by a capital increase in the first quarter. Besides that, and then of course also the better EBIT.
We have also converted a lot of customers rather than paying quarterly to pay them annually, which of course will not improve your revenue, but it will improve your cash flow situation. We have also worked on that, together with higher onboarding fees. On the balance sheet, our equity is still negative, with the DKK 5 million. That is of course not a positive sign. We are fully aware of that, and we are of course monitoring it closely. We have some commitments from investors to inject DKK 1.8 million, and we believe that we can reassess the equity by a combination of capital injection and improved result over time. It is important that we get the equity up to zero or to a positive, and we believe that we can do that through these two elements going forward. That was what I will say about the financials.
If there are more questions, then of course you're welcome to ask them in the chat. I will move more into the SaaS metrics because I believe that when you have with the SaaS companies to do, it's extremely important that you see how we are performing on some of these SaaS metrics. You're probably aware there are so many different metrics that you can choose among. We have decided these eight, and I will now go through these eight metrics. Starting with The Rule of 40. I believe most of you know this Rule of 40, but The Rule of 40 is extremely important for a company like ours because it consists of two elements: the growth and the profitability. The Rule of 40 is simple: the sum of the growth and the EBITDA margin should be 40, and ours is - 10.
That is of course not where you want to be, but we have followed this for years. As you can see, last year at this time, we were - 42. We had improved it a lot, and we believe and we are confident that we can improve it even more in the future. We are actually fairly confident that this score will be improved a lot over the next period of time. Revenue, as I just also briefly talked about before, was DKK 12.3 million compared to DKK 9.9 million last year. That's this increase of 24%, which is also satisfactory for us. Before I showed the EBIT loss, this is the EBITDA loss. As you can see, that was DKK 2.5 million in loss compared to DKK 5.7 million last year. That's an improvement of 56%. We are getting closer and closer to a break-even on EBITDA level.
That is of course what we are working hard on every day, that is to getting this loss up to positive so we can present a surplus on EBITDA. Obviously, EBITDA profit will come before EBIT. We are following this almost every day. Contracted ARR last year, we called it ARR, but now we're calling it a contracted ARR. It's exactly the same. How much has the customer signed up for? That ended at the 30th of June as DKK 22.5 million compared to DKK 19.6 million last year. That was an increase of 15%. To us, as you all know, the world is difficult. All the new customers, you have to fight for them. We are actually fairly satisfied with the 15%.
If we continue with that and do whatever we do, we believe that we can be at this level also going out in the future and maybe even a bit higher. This is a satisfactory level for us. CAC payback period, that's also getting a little bit more technical now, but that's also an extremely important KPI, not only for us, but for most of the SaaS companies. What it tells you is how many months does it take for new customers to pay back the sales and marketing cost. Obviously, any company spends some cost for sales and marketing, and then we get some customers and how long does it take to pay back these costs. To us, that is 28 months for the last 12 months, coming from 41 months. That's a huge improvement of these 32%.
We still believe that we can get the CAC payback further down. As I mentioned here, we have included 12 months of cost. As I told before, we've made some savings in marketing last year. Some of these costs are in this last 12 months. Those will of course be taken out when you go further out in the future. We believe that we can get an even better ratio here than these 28%. Our churn rate has also improved with 29%, coming from 14% last year to 10% now. It's still in the high end for us. We would like to get it a bit lower. It is, as again, everybody knows, difficult times out there. All companies are looking at their cost.
We also have seen an increase in bankruptcies and also M&A, where some of our customers have been acquired by other bigger groups who had a consolidation tool already. We have seen a churn in there. A year ago, we had some issues with the onboarding churn. Luckily, of course, we have been good, and because we have been focusing on it, we have seen that the onboarding churn has dropped tremendously. We are very, very happy about that. Now at 10%, it's not exactly where we wanted to be, but at least it's an improvement of almost 30% compared to last year. A little bit more complicated KPI is called customer lifetime value over CAC. To explain this KPI shortly, you have a CAC, you have a certain amount of cost that you spend in sales and marketing. Then you have some ARR. That is a CAC over ARR.
That is what you measure in the CAC payback period. The value of the customer you get, because we are a SaaS company, is higher than one year's ARR. What this metric is doing is taking the total lifetime value of a customer and then dividing it with the cost. That is 3.8%, meaning that you are getting almost four times back of your cost of your sales and marketing cost for a customer. That is actually seen as pretty good. Everything above three is good. As you can see, last year we were 1.8%, and now we are 3.8%. That's the best improvement. That's an improvement of 111%. The reason for that is both because we have reduced churn, which is a part of customer lifetime value, and we have increased the average ARR, which is also improving the customer lifetime value.
We have reduced the CAC, the cost for getting a customer. All elements in this ratio have improved over the past year. That is the reason why you are seeing such a high improvement on this actually very, very important metric. It is not a metric that we are using so much in everyday operation, but it's a metric that we are looking at each quarter to see where are we, are we getting the return on the investment we put into sales and marketing. We can say with the 3.8%, a fairly big yes to that. These metrics, and together with the last one, the net retention, which is 96%, small improvement compared to last year. The 96% is not exactly where we want to be. We want to be above 100%. We also believe we can get there with the data warehouse and the FP&A module.
We believe that we can make some great offset or some great values to our customers so we can get the net retention up. A combination of more product on the shelf and a lower churn, we believe that we can get the net retention up to 200% over time. When you look at all of these different numbers as a whole, you can see we are not where we want to be yet because, I mean, The Rule of 40 and the EBITDA is still negative. We are definitely not where we want to be. The KPIs, the metrics in the lower half of this table, are showing that we are actually doing the right things.
Your churn is getting down, the CAC payback period is getting down, and the customer lifetime value over CAC is also showing you that if you are just continuing, then of course we will move into profitability eventually. We are very satisfied with the direction that we are moving. We are not there yet at all. If we continue the hard work, we believe we will be there, of course, sooner rather than later. Yes. Thank you. That was the presentation for today. I'm ready to answer some questions.
Thank you for that, Claus. Let's move directly into the Q&A with the first question here. The first question is, when do you ask to be cash flow neutral, and are you planning on issuing more shares?
Thank you. Taking the first question first, whether we expect to be cash flow neutral, we are doing everything we can. I mean, of course, besides, you can say, improving the revenue and decreasing the cost, which, of course, is a vital part of the cash flow, we are also working very, very hard on our working capital. We are chasing debtors a lot, and we are, I mean, very cautious of paying our creditors. We are actually also doing a lot on the working capital to improve the cash flow situation. If you look at our, you can say, operational cash flow in the balance sheet, you would actually see that the loss, the operating loss per month is around DKK 200,000 in cash flow loss. We are not a long way from at least cash flow positive on the operational. Of course, we also have some finance activities.
I cannot say exactly when we expect, but it's not unrealistic that we can be cash flow positive before we are getting P&L positive because we are doing so much on the working capital. Issue shares, we have already announced that we expect to issue shares, new shares for DKK 1.8 million this year. Besides that, we don't have any plans. We believe that should be enough.
What are your expectations for the upcoming FP&A launch?
I have huge expectations on this FP&A. I mean, I can talk a lot about the FP&A. To do it in short, we have been looking for actually to acquire a strong product for a couple of years. We found out that we could probably build it ourselves better so it matches better to our customers' requirements. The way that you can say data is moving, that the finance function has so much accessibility to data, we believe that we can build a software that can automate what is called iteration of data in the future. I believe that we can help companies tremendously by them just pushing a button, and then they will get a forecasted cash flow, actually, because many companies are doing a P&L forecast, but not that many are making a balance sheet forecast, and then they cannot get a cash flow forecast.
That is, of course, something which is extremely important for all companies that they can forecast their cash flow. We haven't seen any product that we really, we have a few, but not that many products that we really recommend customers when asking for a good FP&A product. Now we will develop one ourselves. We have seen a huge interest, and we believe we can come out with a very strong product, very strong offering. We are looking very much forward to that.
We have a question that we have received live here as well. The question is, what does your ideal partner look like?
That's a very good question. They're difficult to find, actually, because you cannot really look them up on LinkedIn or something else. You don't really know what to look after. A strong partner for us is someone who can do everything themselves, not so much, you can say, in our near market, but more in more distant markets. A good partner is someone who already has some knowledge about our ICP, our customer profile, and then they can sell to that customer, and they can also onboard that customer. One thing is selling, another thing is onboarding. To find someone who can both sell and onboard is not that easy, but that is an IPP, an ideal partner profile. Now we have found some, and now we are trying to see how we can replicate these strong partners to other markets, to other countries.
Daniel has a question as well. The question is, there is a negative equity of around DKK 5.4 million. There is a DKK 1.8 million commitment. How will the gap be closed and when? How will you protect existing shareholders?
The first one, I mean, we expect the gap between DKK 5.4 million and DKK 1.8 million is going to be over time by, I mean, profitability simply from the P&L. That is our plan. As long as we have positive cash flow, then that will also be positive. That's also the way we believe we protect our current shareholders so they're not getting diluted anymore. We are actually taking that fairly high responsibility to the current shareholders. We will not dilute them anymore. That is what we are trying. That is the plan. Was there a question more? I think I only asked for two things. Maybe there were one more.
I think you answered both of them here, but Daniel has a question again. With the partner program, you will lose margin on new customers. How will this affect the key metrics and the path to profitability and cash flow positivity?
Yeah, that's actually a very good question because, of course, it has an impact because the partner also needs to get a cut just for them. If you have an ARR of 100 % to a customer, then, of course, the partner is getting a cut. For example, if that is 20%, then we are only getting 80%. Of course, we are getting 80% instead of 100%. That's a relevant question. The answer to that is that, yes, the average ARR per customer will decrease for those customers through a partner. The CAC is, of course, very low because we don't have the sales and marketing cost. Maybe we do some co-funding on marketing and stuff like that. In general, the CAC over ARR will improve a lot. It's less important, I would say, in Denmark, where we have a fairly strong foothold.
If you want to go into a new market, then it's extremely expensive if you're not doing it through partners. If you move into a totally new market, totally new country, then getting a lower cut there where you didn't have any customers anyway is not a big loss, but your CAC is getting back. You are also cash flow positive almost immediately through this partner channel. I hope that answered the question otherwise.
Yeah. For now, that seems like all the questions that we have received. Before we end the webcast for today, I will just hand over the word for you if you have any final remarks to end with, Claus.
No, not a lot. I hope that I covered almost everything. In general, it has been a good year. We are not there yet. We cannot say we have fully reached what we want, but I believe that we have showed to ourselves and hopefully also to the shareholders that we are on the right track, and we will get there eventually. Thank you.