Klappir Grænar Lausnir hf. — Earnings Release 2024

Aug 27, 2024

Company Financial Announcement 1H 2024

Company Financial Announcement 1H 2024

Reykjavík, August 27th, 2024

See the full report here

Klappir is Powering Growth and Innovation in 2024

The consolidated financial statement is unaudited. For more information see attached document “Sustainability Journey with Klappir Including Financials for the First Half of 2024”

Accounting principles

Our contracts are increasingly based on annual payments and annual commitments. Therefore an appropriate portion of the committed revenue is allocated to the balance sheet, providing a clearer long-term view of future revenue streams. Consequently, while this method offers enhanced visibility into committed revenue, it results in lower net revenue compared to a model without such allocation.

Impact highlights

• Klappir's ecosystem is expanding, with new opportunities emerging in the global markets.
• The global partner network is growing, now encompassing 24 partners who are steadily increasing Klappir's marketing presence and reach across various markets.
• Significant product releases have been made to ensure compliance with legal sustainability frameworks like the Corporate Sustainability Reporting Directive (CSRD).
• A new Customer Success service portfolio has been released, fully aligned with the Platform subscription plans.
• Subscription revenue increased by 21.8% year over year (YoY).
• Revenue increased by 7.1% YoY.
• The operating profit increased by 415.1% YoY.
• The net profit increased by 121.3% YoY.

Financial highlights

• Annual Recurring Revenue (ARR) was 358.5 million
• Total revenue was 297.4 million compared to 277.8 million in 1H 2023.
• EBITDA was 58.0 million (19,5%), compared with 43.6 million (15,7%) in 1H 2023.
• Operating profit (EBIT) was 31.6 million, compared with 6.1 million in 1H 2023.
• Net profit was 15.6 million, compared with 7.0 million in 1H 2023.
• Total assets were 447.3 million, compared with 683.8 million in 1H 2023.
• Total liabilities were 473.3 million compared with 303.8 million in 1H 2023.
• Equity ratio was 46.8%, compared with 55.6% in 1H 2023.
• Cash and cash equivalents at the end of 1H 2024 was 158.5 million.

Jon Agust Thorsteinsson, CEO:

“As we step into 2024, our commitment to positioning Klappir for rapid growth has been unwavering. We have focused on enhancing the scalability of our Platform and building up Customer Success infrastructure, setting the stage for a future of accelerated expansion.

The first half of the year has been marked by significant achievements, with our impact within the ecosystem continuing to evolve dynamically. A key milestone has been reached as we empower companies with robust sustainability regulatory accounting, comprehensive reporting, and seamless data sharing through our advanced software. Our strategic expansion is gaining momentum as we strengthen our sales channels through a growing partner network. This expansion unlocks new growth opportunities, particularly in the EU market, where we, alongside our partners, are well-positioned to capitalize on emerging possibilities and propel Klappir’s success to new heights.

Our investment in Customer Success has reached new levels of ability. By integrating customer feedback and fostering a customer-centric culture, we have not only enhanced our service delivery but also deepened relationships with our partners and clients. Our ecosystem-driven approach has fostered a cohesive and collaborative environment, fueling mutual success and driving value for all stakeholders.

Our continuous investment in research and development has led to the creation of innovative Platform capabilities, equipping Klappir customers with the tools needed to comply with the latest Corporate Sustainability Reporting (CSRD) directives and European Sustainability Reporting Standards (ESRS). Coupled with our strengthened focus on Customer Success, we are providing our customers with a formidable competitive edge, establishing them as sustainability leaders in their industries.

Financially, the first half of 2024 has been strong. We have achieved notable revenue growth, driven by rising demand for our innovative solutions and strategic market expansions. Our disciplined financial management, coupled with strategic investments, has laid a solid foundation for sustained growth. The improved performance year-on-year is largely due to increased subscription revenues and efficient cost management—achieved through heightened product development efficiency, reduced reliance on consultants, and a lower sales and marketing cost ratio relative to sales results.

Looking ahead, our priorities remain clear: to continue innovating, deepen our commitment to sustainability, and drive customer success. We will leverage our strengths, seize new opportunities, and navigate challenges with resilience and agility.

To enhance Klappir's presence within the Nordic region, we are considering the possibility of a dual listing in another Nordic country. This strategic move would not only bolster our Nordic identity but also provide greater access to larger investor groups with a strong focus on sustainability.”

About Us

Klappir is a rapidly growing sustainability software company with its roots in the Nordic countries.  The company is now broadening its global presence by providing its solutions through an expanding network of partners. Klappir stands out due to its comprehensive approach to operations, trusted experience, groundbreaking product portfolio, and strategic expansion into new markets. In a world increasingly focused on sustainability, Klappir is not only driving its own growth but also spearheading a transformative shift in how businesses align with the complex challenges of sustainability accounting and reporting.

Klappir has emerged as the foremost provider of sustainability software, offering an advanced platform thoroughly crafted to empower effective sustainability management across various sectors such as businesses, municipalities, and governments. The core of Klappir's offering lies in its ability to seamlessly facilitate engagement with sustainability data, enabling enhanced efficiency and well-informed decision-making.

As a world-class innovator in sustainability software solutions, Klappir holistic approach to operations, innovative product offerings, and strategic market expansion pave the way for businesses to thrive in an increasingly sustainability-driven world. Klappir's visionary journey promises not only growth but also a transformative impact on how companies navigate and embrace the complexities of sustainability accounting and reporting.

Klappir B shares are listed on Nasdaq First North Iceland (KLAPP-B). For more information, visit https://www.klappir.com/investors

Contacts for further Information:

Jon Agust Thorsteinsson, CEO

+354 664 9200

jat@klappir.com

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