Dataproces Group A/S — Report Publication Announcement 2021

Jun 22, 2021

Dataproces®

Dataproces Group A/S presents Annual Report - 2020/21

22.6.2021 15:07:37 CEST | Dataproces Group A/S | Annual report

Company announcement no. 27: Dataproces presents the Annual Report 2020/21 and maintains the expectations for the financial year 2021/22.

Dataproces presents an annual report, that shows a significant increase in the Annual Recurring Revenue (ARR) and which is strongly affected by the COVID-19 situation as well as the capital expansion on Nasdaq First North.

• YoY ARR growth on 191%.
• 8 municipalities on MARS and additional 2 after the balance date.
• 15 municipalities on MARC Fleksløn, and additional 2 after the balance date.
• 5 municipalities on Min Sag.
• Clear progress in accordance with the strategic growth process in the SaaS business.
• Revenue and EBITDA as communicated, however at the low end of the range.

Financial key figures

Financial Highlights	2020/2021	2019/2020
DKK 000
Revenue	15.048	28.475
- Revenue Software	3.367	2.399
- Revenue Data analyses & Others	11.681	26.076
Gross Profit	10.564	24.503
Earnings before depreciations (EBITDA)	-6.264	4.871
Financial income & Expenses	-116	-774
Profit for the year	-6.721	1.558
Equity	24.922	8.260
Total equity and Liabilities	45.238	26.309
Cashflow from operating activities	-4.722	2.131
Cashflow from investment activities	-8.202	-6.110
- Investment in tangible assets	-228	-4.211
Key Figures
# Software contracts (SaaS)	27	15
Annual Recurring Revenue (ARR)	4.143	1.423
Solvency (Equity/total assets)	55%	31%

CEO Kjartan Jensen says:

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The financial year 2020/21 was characterized by COVID-19, which affected the result negatively due to the shutdown the entire spring. This meant, that we had to downgrade our expectations for the year due to weak sales and due to the shutdown in the municipalities.

But we stand stronger:

• A powerful expansion on the MARS platform with several modules
• A promising progression as society continuously reopens, which is reflected in several new contracts announced since May 1st 2021.
• A strengthened organization with an experienced Finance Manager and Sales Manager

Dataproces maintains expectations for 2021/22

• The expectations for 2021/22.
• Revenue of DKK 25-30 million.
• Revenue growth up to 100% on SaaS compared to 2020/21.
• ARR growth up to 100% compared to 2020/21.
• Revenue growth on data analyzes up to 80% compared to 2020/21.
• EBITDA of DKK 2-7 million.

Statement from CEO, Kjartan Jensen

The financial year 2020/21 was characterized by COVID-19, which affected the result negatively due to the shutdown the entire spring. This meant, that we had to downgrade our expectations for the year due to weak sales and due to the shutdown in the municipalities.

But we stand stronger!

We have used the time wisely, and due to resource surplus, we have been able to develop our SaaS platform MARS faster than expected. We now have 4 modules with 11 additional modules compared to 1 module with 6 additional modules by the half year. This significantly increases our market potential and also opens up for sales to customers who are already on the platform. At this time status is, that the 10 customers – who has MARS – have purchased 13 modules and 57 additional modules. A further 27 modules and 53 additional modules can potentially be sold to existing customers! For each additional module that the customers purchase, they receive the technological breakthrough that MARS represents, and realize a further saving on resource consumption and have a validated data foundation. We are constantly in dialogue with customers about further extensions of the platform, and continue to work with qualified demand on the platform.

Min Sag also has a strong pipeline now that society is reopening - which will provide further opportunities. Here, too, we have been able to develop faster than expected, and just last month we launched a new functionality for word recognition, exception and processing, which means that the solution is more user-friendly and is more time saving for the customers. I expect more customers on the solution in the coming year and hope to double the current 5 customers.

MARC Fleksløn also got a good start, with 17 customers on the solution. We have a feeling that MARC Fleksløn also often means that we establish a collaboration outside our normal sales channels, which gives us even better opportunities for expansion with our other products.

I therefore expect that the SaaS business measured on ARR (Annual Recurring Revenue) can grow up to 100% in the coming year in accordance with our guidance. This on top of an atypical year with COVID-19 and shutdown, where we - despite the circumstances, deliver a YoY ARR growth of 191%.

The consulting business, which was affected hardest by the massive shutdown, has also gained momentum again, early in the new financial year. This is clearly indicated by the fact that several agreements are now being closed. On top of this, it can be added that we have also developed new data analyzes, some of which are so far that they are already sold as standard products, while others are in the very last development phase and may soon to be sold in the market.

I therefore look back on a financial year with several major, important milestones and victories for Dataproces. First and foremost, a successful IPO, but also on the acceleration of MARS as an important part of our strategic goals towards SaaS growth. As a result, we have realized strong ARR growth for the year. The overall financial result is in my eyes not at a satisfactory level, but is mainly due to external factors impacting the result.

We have struggled through a difficult time and I would like to take this opportunity to thank the management team and all the dedicated employees for being adaptable, working hard and for showing character in this challenging period. I will also thank the board for its unwavering support, and for the help in keeping focus on the long-term goal. I would also like to thank all shareholders for their trust and for supporting Dataproces' strategic goals. We are in the process of realizing our ambitious growth plan. We look forward to the next year and work dedicatedly and purposefully to create better results and a foundation for growth. We are entering the financial year 2021/22 with a strong pipeline.

Attached: Annual Report Dataproces (in Danish)

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Statements about the future

This report contains statements about the future - including statements about Dataproces Group A/S' future operating results, financial position, cash flows, business strategy and future objectives. The statements are based on expectations or predictions that management deems reasonable at the time of publication of this report. Statements about the future are associated with risks and uncertainty as well as a number of factors, many of which will be beyond control of the company. This may mean that the actual development and the actual result deviate significantly from the expectations in the report. Without being exhaustive, such factors include general economic and business conditions, including market, competition and supplier conditions, as well as financial and regulatory conditions.

Contacts

• John Norden, Certified Advisor, +45 20 720 200, IN@nordencef.dk
• Kjartan Jensen, CEO, +45 41 21 05 01, K@Dataproces.dk

About Dataproces Group A/S

Dataproces is an innovative IT and consulting house, specializing in solutions targeted at the Danish municipalities and their digital administration. The solutions range widely from robot technology and SaaS to data analyzes as well as collaboration and consulting. The starting point and purpose are always the same: to use data to create new knowledge, smarter processes and increased efficiency for the benefit of both citizens and municipalities.

Dataproces - we create value with data!

Attachments

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