Good afternoon, and welcome to this Q1 presentation and Q&A with Risk Intelligence. With us today, we have the CEO and CFO. First, there will be a presentation, and afterwards, a Q&A, where the management team will answer questions submitted via Stokk.io. There have already been pre-submitted questions on Stokk.io, and the Q&A is still open so that you can submit questions live as well. I will now hand over the mic to Risk Intelligence to start the presentation. Your line is now open.
Thank you very much for the introduction, and welcome to this presentation on the Q1 report and, not least, the Q&A session with all the great questions you have submitted. I have with me today Jens Krøis, our CFO, and we will start the presentation. So first, a slide that you obviously need to read. And then today's agenda. First, we are going to look into Q1 main activities. What have we done in Q1? Then we are going to look into the highlights of the report, and Jens will go through the numbers. And then we're going to talk about the 2024 outlook and then the Q&A session. First of all, in Q1, we have continued the rollout of the new platform.
As you may remember that we launched it in end last year, and we continued rolling out the platform, both to existing clients, obviously, but also to presenting it to new clients. We've had a renewal process in Q1 with 0% churn and with upsell to many of the renewals. We have landed, so to say, four new maritime clients and one new land risk client during Q1. And we've also had a lot of smaller advisory service projects due to the Red Sea situation. So there we have also gained a number, or actually quite a few new clients, however, not on the system, but on reports. We may turn some of them into system clients over time.
As you probably also saw, then, the financial team, headed by Jens and Communications, have been producing a new format for the Q1 report, and we are obviously interested to hear feedback on the new format as well during today. Then over to you, Jens.
Yes. Thank you, Hans. Looking into the numbers and kind of wrapping it all up, you can say that our revenue, our reported revenue, was 16% up, compared to Q1 in 2022. And our invoiced, which is, so to say, our activity level, was 27% up, compared to last year. If you go down and look at the cost, that's maybe the only negative that I actually will turn into a positive number, because our cost is 3% up, but that's despite the 27% increase the activity level on the invoiced revenue. EBITDA 40% up, slightly under -DKK 1 million , still. However, EBITDA and the net profit is 27% up compared to last year.
Important number, our cash flow for operations is positive by nearly DKK 1 million, and even more positive, our net cash flow is positive by DKK 500,000. A busy table, however, looking at the far left, we have the first quarter. Our ARR growth on the system was 28%, and the total ARR growth was 27%. An ARPU of DKK 162, and again, no churn, which means 100% renewal from our clients. The bottom line, NRR, which is our net retention revenue, is 125%. That is on the same clients. Last year, we invoiced 24%, 25%, 25% more than we did last year.
That's of course a sum of a price increase and upsell from the various things that clients can actually add to their own system. Again, not all clients have an increase because some of our clients have two- and three-year deals. That's more or less what I would say about the numbers, because they are as you see positive, more or less, the whole way through.
Thank you, Jens. Then, a few words about the outlook. We are going to continue the rollout of the new platform, where we foresee upsell at the renewal date, with the existing licenses or earlier, if they have the need. And, that will go on through the year until October, to and including October, because November and December, they got the new platform and have the licenses for 1st of January and onwards. So this means that until October, we will have upsell and the clients will meet the price increase as well, except for those that are on multi-year agreements, unless they are terminating at the end of this year or during this year.
The guidance is unchanged, which means that we have an ARR growth of 15%-30% for the year. We have a system ARR between DKK 22.4 million and DKK 25.3 million. We have an EBITDA around zero and a net negative result. Net cash flow is positive for the year. Then we will move on to the questions, the Q&A session. And we have divided them into three different kind of sections or areas according to the character of the questions. And one is LandRisk, the next one is sales and growth, and the last one is the one related to financial result.
Let's start off with the first question around LandRisk. The LandRisk Logistics deal announced April 10, is that part of the new clients mentioned in the Q1 report, or does this fall into Q2 and have economic impact from Q2 or Q1?
Yeah. The deal with the new client was signed end Q1. And as the press release of tenth of April mentions, it impacts the ARR from Q2 and onwards, actually from 1st of April.
Then the next question around LandRisk: Can you elaborate on the Bosch partnership? Is there any economic effect of the partnership when signed, or is it potential economic impact during the partnership when companies on LandRisk Logistics use the service as a transactional fee? And how big is Bosch in this field, and how many potential clients can they refer?
Good question. It's actually both, because the transactional fee is Risk Intelligence receiving a percentage of the booking fee when the users book through the Bosch system, and they are booking a secure parking area somewhere in Europe. Obviously, in the beginning, it will be a very low amount. But as volume increases, both by users, but certainly also by clients, and the number of bookings they produce or carry through our platform, then that will increase over time. So it's not something that will impact heavily on fee in Q2, Q3, for that matter, or maybe even Q4.
However, it is more important for us, at least initially and probably even in the medium to long run perspective, that on the Bosch platform, together with Bosch, Risk Intelligence will get exposure to a number of Bosch clients that are using or having the similar problems. And some of these problems we can solve with LandRisk Logistics. So it is about referring from Bosch to Risk Intelligence, and that's where the bigger upside is than the transactional value of the individual booking of a parking area.
Then we have the next question that is around sales and growth. Looking at your guidance, can you provide any information to how much of the expected 15%-30% growth for the years is expected to come from existing clients, and how much is expected to come from new clients?
First of all, obviously, the recurring revenue is our growth engine. So you can say that the ARR is the core of our growth, meaning that if we continue to have a very low churn, be it between 0% and 2%, then just like a stairway, we will actually add on new sales to that in recurring revenue every year. Meaning that over a five-year period, the revenue that we already know today from ARR will actually be still a substantial part of our total turnover in five years, even with these growth figures. However, this year, we will have about 10%-15% from new clients, and then 85%-90% from existing revenue.
That's mainly due to the rollout of the new platform, including the price increase and the upsell, initial upsell. Obviously, next year, we are dealing with the same clients, that we will not see the same growth on the same client, most likely because they are not going to double their features and third-party data that they are adding. However, we are also going to add more features, and we're going to add more third-party data into the platform, meaning that there will be a reserve for growth even with the existing clients, besides the 3% price increase that we have in our licenses. From 2025, we will also see an impact from partner sales, which I've mentioned previously in this session, but it's also mentioned in our reports.
And then we will have additional growth from the partner sales, which means that we will have both new sales from Risk Intelligence, we will have recurring revenue from Risk Intelligence, and then we will have increased partner sales and growth in partner sales.
The next question is also around sales and growth. With an LTV over CAC at above 20... on both your SaaS lines, the numbers seems to really look positive. With such high LTV over CAC, investing in customer acquisition should be a no-brainer. So how are you working on maximizing your sales activities, and is it generating leads or closing deals that is most important to speed up customer acquisition?
First of all, the launch of the new platform and also the general geopolitical situation has generated an increased pipeline. We have from last year, from 2023, optimized our lead generation to deliver qualified leads, and we've also automated a number of processes between the lead generation and the CRM system and into our ERP system. So we are doing less manual processes, and the whole automation process is higher. So we've invested quite a lot in that. We've also invested in building a new customer success team, which is in principle a cradle to grave process for a client that enters Risk Intelligence and leaves Risk Intelligence at some point. God forbid it, but some will.
This team will be looking after them, meaning that the sales team can focus on acquiring the new clients and selling more to existing clients together with the account managers. So we both invested in lead generation and in automation between the different systems. We are also investing in this customer success team, and we are also adding one more full-time person on the sales team during 2024.
We have the next question around the financial results: Do you expect cash flow from operations to be positive all quarters in 2024?
No, because the cash flow from operations is expected to be positive for the full year of 2024, as per our guidance. But due to the uneven distribution of the recurring revenue, especially the re-renewal time, time of renewal during the year, and the even distribution of costs, which is basically the same almost every quarter, we may have one or two quarters with around zero or slightly negative cash flow. So the overall picture for the whole year will be positive, but we may have a dip in one or two quarters during the year.
Then we have a live question here as well. When do you expect to begin to see traction from the Bosch referral potential?
That would be in second half of the year. So, end Q3, possibly, because the problem with LandRisk or the challenge with LandRisk Logistics is the long lead time, meaning that the lead time will also be longer on Bosch's part. It should be said that, and I don't think that's a secret, that the Bosch team is very eager to push our product, and they even asked for permission to do it before we signed the agreement, because they went to a big car logistics conference and exhibition in Germany. And I gave them the permission, because I knew that we would sign the deal anyway. So they are very eager, and it will take some time before we see some results.
There is one more question on the financial results, by the way.
Yeah. Then to, to that question, most of my question has been submitted by others already, but seeing the numbers of new clients coming in here in 2022, 2024, put together with your previous communicated average annual revenue per client, has your expectations for the year with a net zero profit changed, or could we see a net positive results for 2024? I also want to say that I think you are doing. You're all doing great. Keep up the good work in the troubled waters.
Thank you very much for the kind words. They are much appreciated. In the forecast, as I mentioned earlier, we have zero in EBITDA or around zero and negative profit. The 2024 forecast is based on recurring revenue and estimated new sales upsell, as we discussed earlier, which means that a certain level of new sales is already included in the forecast. Secondly, with full periodization, so the recognized revenue, the reported revenue, the impact, the revenue impact on the bottom line is postponed into future quarters and also into 2025. Subsequently, we would need a substantially bigger growth to reach positive profit in 2024 because we have this time lag due to the periodization.
That was all the questions, so that finalizes the Q&A for today. Before we end the webcast, I will just hand over the word for you, if you have any final remarks to end with.
Maybe, Jens, if you have something at the very end here?
No. Yeah, that should be the new, our new format in the financial report. That very much appreciate if you could comment on that somehow. Just send an e-mail if, if, if you have anything. But, we are slightly proud of that product actually, because now we are looking like the other big ones, so to speak. But, but it, it, it nails down the way that we actually would like to present our numbers. So, that, that's the only thing I, I just have to say in the end.
Yeah. Thank you. Of course, we would like... It's a process, meaning that it's not finalized. It will be developed over the next quarterly report, so any feedback would be much appreciated. And even if we look like the big ones, we are obviously small, but that's another story. But, with those words, I would like to thank you for spending some time with us this afternoon and listening in. And thank you for the excellent questions. I hope they were all answered. So, you have some good feedback for your investments going forward. Thank you very much.