RISMA launches a new strategy, “Sustainable Growth Journey” and changes 2022 ARR guidance to growth rates of 50-70%

30.8.2022 17:41:56 CEST | Risma Systems A/S | Company Announcement

Company Announcement No. 13-2022 – Inside information

Copenhagen, August 30, 2022

The capital market for Software as a Service companies has changed significantly during the last 12 months. With inflation and increasing interest rates follows increasing focus on profitability and decreasing burn-rates. RISMA takes the consequence of these new market conditions by launching a new strategy, “Sustainable Growth Journey”.

RISMA has previously communicated that we expect to have positive cash flow from operations in Denmark, Norway and Sweden in Q4 2023, 2024 and onwards. This is still the expectation, but in the new strategy we cut cost thereby decreasing growth expectations, but also uncertainties and cash burn. We reduce the yearly cost base with approx. 5 MDKK. The cost reduction will not affect the direct sales teams in either Denmark, Norway or Sweden.

Furthermore, we aim for a capital raise of 10-20 MDKK in Q4 2022 of which 10 MDKK is guaranteed by existing shareholders. A capital raise of 20 MDKK should be more than sufficient to reach break-even of RISMA without utilizing the long-term loan facility of 12 MDKK entered in April 2022 ref. company announcement no. 2-2022. The increased cash availability will also allow RISMA to pursue new possibilities. 

Due to the changed market conditions and slower market penetration in Norway and Sweden the new ARR guidance for 2022 is 23 to 26 MDKK. The previous ARR guidance was 25 to 28 MDKK. The EBITDA guidance remains unchanged for 2022 at -21 to -23 MDKK. 

With all direct sales teams in full operation and with a promising new sustainability related product as from beginning of 2023, it is expected that the absolute ARR increase will be higher in the coming years.

New strategy figures, Denmark, Sweden and Norway

MDKK	2022 (new guidance)	2023* (estimate)
ARR	23 to 26	34 to 38
ARR Growth MDKK	8 to 11	10 to 14
ARR Growth percent	50% to 70%	40% to 60%
EBITDA	-21 to -23	-9 to -13

*     2023 is excluding potential further expansion outside current markets (Denmark, Norway and Sweden)

Further Information

Lars Nybro Munksgaard, CEO & Founder
Mobile [phone]
e-mail: [e-mail]

RISMA Systems A/S
Ejby Industrivej 34-38, 2600 Glostrup, Denmark

Certified Advisor
Grant Thornton
Jesper Skaarup Vestergaard
Direct ([phone], Mobile [phone]
Grant Thornton
Stockholmsgade 45, 2100 Copenhagen Ø, Denmark

About Risma Systems A/S

RISMA is a leading SaaS company empowering companies to take their governance, risk and compliance effort to the next level. We believe in the value of good corporate citizenship, and our customers share our vision of aspiring to make a positive difference in complying with both regulatory and stakeholder expectations.

Our software platform supports our customers to be in control and decision wise when structuring, handling, and documenting their efforts across governance, risk, and compliance. Our core GRC suite offers eight business-critical solutions relevant for all companies regardless of size and industry – GDPR & Privacy, ISMS & ISO27001, ESG & sustainability, Enterprise Risk, Financial & Internal controls, Vendors & Contracts, Policy Management, and Incident Management

RISMA is listed on Nasdaq First North with a mission to become a leading GRC platform for medium and enterprise businesses and organizations. We believe that being a good business – is really great for business.

Attachments

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