Personalised communication to millions
Business Reg. no. 25063864
Annual Report 2022
1 January - 31 December 2022
Presented and adopted at the Annual
General Meeting,
29 March 2023
Chair of the meeting: Søren Ingerslev
Annual Report 2022
22
Contents
At a glance
Agillic in numbers 3
Letter from the Chairman 4
Letter from the CEO 5
Key figures and ratios 7
Our business
The Agillic Manifesto 9
Equity story 10
Market maturity 12
News 14
Financial review
Financial review 16
Financial outlook and guidance 19
Governance
Risk management 21
Governance structure 22
Security and IT compliance 23
Shareholder information 25
Financial calendar 2023 25
Board of Directors 26
Exceutive Leadership and Management 27
Financial statements
Statement by the management 29
Independent auditors’ report 30
Income statement 31
Statement of comprehensive income 31
Statement of financial position 32
Cash flow statement 33
Statement of changes in equity 33
Notes to the financial statements 34
Definitions of key figures and ratios 46
Annual Report 2022
NRR Average ARR (DKK ‘000) Months to recover CAC
**
* Guidance is latest confirmed on 19 December 2022 (Company Announcement no. 17)
** For definition of EBITDA, ARR and CAC please see definitions on page 46
3
EBITDA
**
DKK 1.1M
Within guidance of 0-3M*
Total ARR
**
DKK 76.7M
Within guidance of 72-78M*
Change in Total ARR
37.7%
Year-over-year
Revenue
DKK 67M
Within guidance of 65-67M*
Agillic in numbers
2020 2020 20202021 2021 20212022 2022 2022
82%
570
12
103%
106%
570
14%
8
106%
650
3
Annual Report 2022
4
The last two and a half years have not been easy. First a difficult period with Covid and
lock-downs, followed by geo-political conflict. Inflation, increasing interest rates, and a
looming economic recession have transformed many years of positive economic macrotrends
into a perfect negative storm.
Even so, Agillic has managed to grow. With resilience in our DNA and a product that
continuously become more and more relevant for a growing number of businesses, we
maintained our focus and worked hard to deliver. And we continue doing just that.
Closing strong on 2022, we are in a good place and even as we face challenging market
conditions for a foreseeable future, we remain optimistic and, not least, ambitious on behalf
Agillic, our partners, and our clients for 2023 and beyond.
Johnny Henriksen
Chairman of the Board of Directors
Agillic continues to grow and
expand internationally despite
challenging conditions
Letter from the Chairman
Annual Report 2022
5
Agillic delivered solid performance in 2022, with 37.7% total ARR growth YoY, 26.9% total Revenue
growth YoY, positive cash flow from operations, and positive EBITDA for the third consecutive year. We
also reached the EUR/USD 10M SaaS company benchmark with a Total ARR of DKK 76.7M in 2022.
We closed 2022 with strong financial results, a truly scalable international business model, and future
readiness through a ready-to-integrate best of breed product. A special thanks go to the Agillic team,
our partners, and clients for co-creating such strong performance.
The Agillic Omnichannel Marketing Automation Platform
empowers brands to work with data-driven insights
and content to create, automate, and send personalised
communication to millions. Building lasting, meaningful,
and profitable relationships. We work relentlessly to
understand our clients, their customers and how our
platform can help enrich these relationships. Our purpose
is to develop our technology in marketing automation and
personalisation through a relevant, timely and channel
agnostic approach to eliminate communication pollution.
Agillic’s growth strategy ensures resilience in the
current macro environment
I am most proud to see the impact of our Reboot 2.1
growth strategy and its ongoing successful execution
based on an international and scalable go-to-market
strategy leveraging an ecosystem of partners – and with
outstanding SaaS metrics. Now in its second year, we
continued the implementation throughout 2022 with
successful results, including:
•
Internationalisation through geographic business
expansion
•
A two-pronged go-to-market strategy with direct sales
teams and strategic partners
•
Attracting new partners and extend collaboration with
existing
•
Continuous development of the Agillic technology
platform to retain a best of breed position
• Investment in talent for international business growth
on key markets
“Agillic is a growth
engine for our clients”
Agillic is expanding from Nordics to
Europe and beyond – profitably
Letter from the CEO
Annual Report 2022
2021 2022
66
We also delivered on three defined financial goals for
business strategy impact:
•
Double-digit percentage growth rate in annual recurring
revenue (ARR)
• Positive cash flow from operations
• Positive EBITDA
The above financial goals are now expanded to include
positive cash adjusted EBITDA by 2024.
In 2022 we have achieved a Total ARR of DKK 76.7M,
which is an increase of 37.7% YoY, and an all-time high
total number of clients at 118.
39% of our ARR growth in new clients came from inter-
national markets in 2022 – up from 18% in 2021.
Agillic’s international and scalable go-to-market
strategy leverages an ecosystem of partners to ensure
speed to market, client retention and universal appeal
Partnerships is a key pillar in our Reboot 2.1 strategy
and our partnership programme offers the partners an
attractive value proposition, a high level of commitment,
and extensive upselling opportunities. In 2022, the
programme and our internationalisation strategy started to
show results by increasing the number of partners within
our ecosystem as well as strengthening their capabilities
with the Agillic platform, and in the form of new clients, a
strong pipeline, and increasing loyal client base.
We are committed to building our business internationally
together with our partners via co-marketing, co-inno-
vation, co-solutioning, co-selling, and co-growing. And
we are committed to be a “growth engine” for our partners
and together for our clients. It has been our intention to
establish a strong win-win-win model where our clients,
partners, and Agillic benefit from our joint commercial
engagements. Naturally, the most important part of our
collective success is our clients’ business results.
Agillic is a growth engine for its clients
We strive to build the world’s best best-of-breed
marketing automation platform that delivers business
results and improved customer experiences for long lasting
relationships. We celebrate our client’s business success
and cannot think of anyone better to explain the value of
Agillic. In 2022 we launched a series of video stories where
our clients present their business and transformation, and
how Agillic contributes to their growth. We believe success
can be highly inspiring and carry ideas across borders to
new markets, industries, and segments.
From my perspective, regardless of the macro market
developments, companies need to re-prioritise their
investments. There is a great need for companies to
think about efficiency, automation, and short time to
value creation. Brands must cultivate the power of their
first-party data because it creates a relevant customer
experience and loyalty, which in turn results in better ROI
short term and higher, long-term customer-life-time value.
Agillic strongly positioned to win the fast-growing
mid-market segment in Europe
The global marketing automation software market is
growing +18% and is expected to reach EUR 10.1bn by
2027. According to Forrester Consulting study commis-
sioned by Agillic, 80% of companies have yet to unlock the
full business potential of omnichannel marketing. Combine
this with Agillic’s unique “Made in Europe” competitive
advantage of being a fully GDPR compliant marketing
automation platform, and we see strong opportunities
for growth.
Agillic’s growth strategy is based
on five key pillars
Watch our client stories
agillic.com/client-stories
International client wins
Product strategy supporting growth
Pricing strategy
Partner program acceleration
Increase platform utilisation
Expand market presence
15%
By number
of clients
By Subscription
ARR value
18%
36%
39%
Annual Report 2022
77
DKK million 2022 2021 2020 2019 2018
Income statement
Revenue 67.0 52.8 50.5 53.8 39.0
Gross profit 49.6 45.1 44.2 41.7 29.4
Operational costs 48.5 44.4 43.9 57.1 48.5
EBITDA 1.1 0.7 0.3 (15.4) (19.1)
Net financials (2.8) (2.1) (2.3) (1.6) (1.4)
Net profit (loss) for the year (10.6) (10.5) (8.0) (25.1) (25.8)
Balance sheet
Total assets 52.8 61.6 63.8 37. 8 47.4
Equity (15.0) (4.5) (5.8) (20.6) 3.5
Cash 7.4 20.6 16.3 1.2 12.3
Cash flow
Cash flow from operations 3.1 6.1 3.1 (10.3) (4.5)
Investments in tangible assets - - 0.9 0.4 -
Key ratios
Gross margin 74% 85% 88% 78% 75%
Clients end of period 118 97 82 81 73
Average number of employees 48 47 55 59 42
SaaS metrics*
ARR subscriptions 54.1 45.7 40.7 45.5 39.6
ARR transactions 22.6 10 5.8 9.6 10.5
Total ARR 76.7 55.7 46.5 55.1 50.1
Change in ARR (%) 37.7 % 20% (16%) 10% 51%
Average ARR 0.65 0.57 0.56 0.66 0.65
CAC 0.1 0.3 0.5 0.8 0.5
Months to recover CAC 3 8
12 18 11
Share perfomance (listed 22 March 2018)
Oustanding shares end of period ('000) 10,260.9 10,187.8 9,435.5 8,286.9 8,286.9
Share price end of period (DKK) 23.7 25.8 19.6 30.5 24.5
Market cap (million) 243 2 6 3 185 253 203
ARR multiple (times) 5.7x 4.7x 4.0x 4.6x 4.1x
* See key definitions on page 46
Key figures and ratios
Agillic launched ‘Centre of Excellence’ unit in 2022
We have launched a ‘Centre of Excellence’ to embody our
core best-in-class solution advisory with best-in-class
team members. The new unit will collaborate with all our
internal functions as well as our clients, partners, and
prospects. The strategy is to strengthen our international
go-to-market approach, gather powerful insights, and
help enable Sales, Customer Success, Marketing, product
teams, and our partners for growth. While our partners
are still driving the professional services around Agillic’s
technology, the Centre of Excellence will lead knowledge
sharing and inspiration via the Agillic Academy, where we
build the next generation Agillic users.
Agillic publishes its first ESG report covering 2022
Agillic’s ESG Report concerns the financial year 2022
and constitutes a baseline for future progress and target
setting.
Our purpose is to help companies build and reinforce
sustainable relationships based on unique customer
experiences. The Agillic Manifesto express our vision
to use the power of data, content, and our platform’s
personalisation capabilities to eliminate communication
pollution and thereby optimise the experience for the
individual.
With this first ESG Report, we aim to be transparent and
explicit about our commitment to a more sustainable
development of our society.
We support the UN Sustainable Development Goals and
UN Global Compacts Ten Principles, and although we
are a small company, we take our role and responsibility
very seriously.
We have commenced our ESG journey, and over the
next couple of years, we will steadily progress in terms
of assessing and improving our impact on society.
On behalf of Agillic, I am very pleased to announce our
first ESG report, which you will find at agillic.com/esg.
Thank you!
Emre Gürsoy
CEO
Financial outlook for 2023
Financial outlook is described on page 19
* Subscription part of ARR DKK 66-70 million
Transaction part of ARR DKK 23-25 million
Revenue
79-83
DKK million
EBITDA
1-4
DKK million
ARR*
89-95
DKK million
Our business
Annual Report 2022
The Agillic Manifesto
We see a world where the idea of communicating to the masses is seen as alien.
Where unwanted or inaccurate communication is actually regarded as pollution. Wasteful and unsustainable.
Where less will be something everyone wants more of.
Where the data with which we are entrusted by customers will be treasured as if it were a set of fingerprints or a photograph.
So we can build realistic, familiar, first-hand knowledge of more and more people.
And create millions and millions of individual, personalised messages.
Messages that will seem like a welcome whisper in an ear, rather than a shout from afar.
Communication that motivates. Or creates a smile in the mind.
Sometimes momentous.
Sometimes frivolous or fun.
Always respectful. Always personal.
We can already see a world where there is the ingenuity to begin doing all of this.
The more we innovate, the more quickly this will become a reality.
And we will be empowered to eliminate communication pollution altogether.
Personalised communication to millions
99
Annual Report 2022
1010
Agillic is a Danish software company offering brands a
platform through which they can work with data-driven
insights and content to create, automate and send person-
alised communication to millions, offering advantages
such as:
• Higher conversion rates
• Enhanced customer satisfaction
• Better retention and win-backs
• Increased customer lifetime value
Designed for an ecosystem of strategic partnerships
across CDP, CMS, CRM, Customer Service, eCommerce,
and Business Intelligence, the platform continuously
integrates best-of-breed technologies to accelerate the
implementation process and deliver fast time to value.
Agillic holds a leading position in the Nordics and is
increasing its international presence. Agillic is scaling up
its business through strategic partnerships and direct
sales from Denmark, Norway, Germany, and Sweden.
Business model
Agillic is a subscription business. Clients pay a yearly
license for access to the Agillic platform and pay an
additional fee for transactions sent, such as email and SMS.
The Agillic stock
Agillic was listed on Nasdaq First North Growth Market
Denmark in March 2018. Agillic’s market value amounted
to DKK 243 million at the end of 2022, compared to DKK
263 million at the end of 2021. Ticker: AGILC
Delivering impactful, meaningful, and profitable customer experiences.
Agillic partner strategy
Our partner strategy contains three different types of
partnerships:
Business development partners: We find new business in
collaboration with sales partners on our target markets.
Solution partners: We start collaborations with global
partners, and build relationships through our Solution
Partner Program.
Technology partners: We integrate with leading tech
companies within their fields to form dynamic, compatible
strategic partnerships.
We work closely with partners in a number of international
markets (in alphabetical order): Czech Republic, Germany,
Lithuania, Norway, Poland, Sweden, Switzerland, the UK,
and the USA.
ESG Report 2022
We are please to announce that we have published our
first ESG report covering the year 2022. The report is
available here: agillic.com/esg.
2022 financial performance
Proven business cases
* Subscription part of ARR DKK 54.1 million
Transaction part of ARR DKK 22.6 million
Equity story
Revenue
67
DKK million
EBITDA
1.1
DKK million
ARR*
76.7
DKK million
Retail
Finance
Technology
& software
Public &
Goverment
Memberships
assocations
Pharma &
healthcare
Charities
& NGOs
Subscription driven
business models
across industries
Travel, hospitality
& leisure
Media &
publishing
Energy
& utility
Entertainment
& gaming
In 2021, Agillic was certified as a ‘Nasdaq ESG Transparency Partner’, highlighting our
engagement in market transparency and in raising environmental standards.
68% of consumers say
personalisation increases brand
satisfaction significantly
Source: ‘Embrace meaningful personalisation to maximise growth’, Deloitte Digital
Annual Report 2022
Agillic commissions independent research
study by Forrester
In Spring 2022, Agillic commissioned Forrester Consulting
to survey senior people in commercial leadership and
marketing technology roles in 306 European companies.
These businesses had revenues ranging from $50M to
$1B and customer databases, the majority of which had
between 50,000 and 50,000,000 entries. Only 20% of
the sample qualified as Leaders. Meaning that 80% of
the market has the opportunity to make improvements.
Four key findings
The more mature, the greater the returns
1. Good intentions. Disappointing delivery.
Although faith in omnichannel marketing automa-
tion is widespread, very few businesses in the Be-
ginner or Intermediate sectors deliver great user
experiences for customers.
2. Greater maturity. Exponential growth.
The cure of success between. Beginner and Leader
s not consistent. There’s a tipping point after which
there is a demonstrable surge in growth.
3. Spend on tech. Invest in people.
Beginners focus more on technology. The greater
the maturity, the more emphasis is placed on hiring
technical experts who can take full advantage of it.
4. Win, win. Business, consumer.
Omnichannel marketing automation is more than a
sales generation technique. It increases loyalty and
revenue by improving the experience the customer
has with your brand
Five habits of successful
omnichannel leaders
Behaviours captured clearly by the Forrester study
1. They build on the platform.
They look for sophisticated capabilities from platform
ecosystem partners.
2. They don’t go it alone.
They invest in both in-house talent and implemen-
tation partners to maximise utilisation of the
technology.
3. They get personal, then scale.
They magnify what they know about their customer
by using the technology to speak meaningfully to
millions of them.
4. They have long term relationships. Not flings.
They focus on the value of long-term customer
relationships.
5. They relate ROI to customer KPIS, too…
They measure success through the eyes of their
customers, not just their colleagues in sales.
Making superficial, disconnected efforts
whilst struggling with strategic and
technology needs. Attracted by short
term conversion wins.
Making good progress towards embedding
omnichannel marketing automation into
business-wide strategy. In the process of
orchestrating the customer experience for
the longer term.
Proactively pursuing connected, multifaceted
strategies that maximise investment in
technology, people and customer experience
for the long haul
Download the full study
agillic.com/forrester-study
12
Benchmarking market maturity in Europe
Six assessments
40% Beginners 40% Intermediates 20% Leaders
Source: A commissioned study conducted by Forrester Consulting on behalf of Agillic, February 2022
Benefits
Maturity
Beginner
Leader
Intermediate
The tipping point:
Leaders use their omnichannel marketing
technology more effectively, constantly
optimizing it to drive business impact.
Personalisation leaders saw a
1.5x greater increase in revenue
per customer and loyalty metrics
compared to brands with low
personalisation maturity
Source: ‘Embrace meaningful personalisation to maximise growth’, Deloitte Digital
“We opted for Agillic as it aligned with our business growth and operational
service strategy. Our growth trajectory is rapid, and we needed a platform
that can scale from thousands to hundreds of thousands. Agillic also neatly
integrates with Zendesk and our web and mobile applications, so we can
centralise, manage and automate rich, triggered communications workflows
behind a single pane of glass.”
Chris Maynard, Founder & CEO
“As the largest union in Norway for engineers and technologists, we have
members with various needs and we would like to provide the best possible
solution & services for them, via personalised data-informed marketing
communication for each in an automated way for our internal efficiency.
After a thorough investigation, Agillic is our Omnichannel Marketing
Automation Platform choice to fulfil our needs.”
Beate Bortne, Head of CRM
“With Exerp already managing our subscriptions and collecting data on
our customers’ training habits, we knew it was time to take our customer
communication to the next level. We are thrilled to have Agillic’s help taking
all this data to help our customers build better habits.”
Martine Sanne-Skaget, Marketing Manager
“With the technology we have today, we wouldn’t be able to achieve the full
potential that we know we have. Putting the customer first is important for
us – and it has to be easy to personalise customer dialogs in a user-friendly
user interface. With Agillic, we get a solution that meets our needs to create
customer dialogs”
Pia Nørland, Head of CX
“We are on a growth journey and adding Tealium and Agillic to our tech
stack is key to improving customer experience and boosting revenue. With
Knowit Experience and Web2Media as our implementation partners, we are
already well on our way towards harnessing the power of these great tools.”
Birgitte Kold Ingwersen, CMO
“Making sure that our clients can build and scale a customised digital
experience with a CMS at the core – that connects all their tools without
friction – is a core focus for Umbraco. The partnership with Agillic is a
perfect example of this, giving our joint and future clients a powerful recipe
to win.”
Jonas Thykjær Poulsen, Tech Partner Manager
Annual Report 2022
14
Select 2022 news
Financial review
Annual Report 2022
-10
-15
-20
-5
0
5
DKK million
16
Income statement
The impact of the increasing number of new clients in 2022
and a net retention rate of 106% has led to a growth in
revenue of 26.9% amounting to DKK 67 million compared
to DKK 52.8 million in 2021. The subscription part of
Agillic’s revenue increased by 10.8% to DKK 49.9 million
(DKK 45.0 million), and gross profit increased by 10% to
DKK 49.6 million (DKK 45.1 million), compared to 2021.
Both revenue from subscriptions and gross profit were
at an all-time high in 2022.
Gross margin decreased to 74% in 2022 from 85% in 2021
due to the increase in transactions which are associated
with a lower margin than subscriptions.
The organisation remains streamlined and yet focused on
delivering on the product strategy as well as on sales and
marketing efforts. As a consequence, the average number
of employees increased from 47 in 2021 to 48 in 2022.
Adjusted for employee costs transferred to capitalised
development costs, staff costs increased from DKK 29.1
million in 2021 to DKK 32.2 million in 2022.
Other external costs increased from DKK 15.3 million in
2021 to DKK 16.3 million in 2022, mainly due to increased
cost related to external service, increased cost prices due
to higher inflation rates and to other external costs.
Total operating costs amounted to DKK 48.5 million
compared to DKK 44.4 million in 2021.
EBITDA
For the third year in a row, Agillic obtained a positive
EBITDA. EBITDA for 2022 amounted to DKK 1.1 million,
an increase of 0.4 million compared to the EBITDA of DKK
0.7 million in 2021.
This positive EBITDA comes from a combination of a
streamlined organisation and cost-conscious behaviour
balanced with investments in the organization focused
on internationalisation and future growth .
Profit/loss for the year
As a consequence of the continued investment in
developing the Agillic Omnichannel Marketing Automation
Platform, depreciation on software increased to DKK 10.8
million compared to 10.3 million in 2021. Total depreciation
increased to DKK 12.2 million compared to DKK 11.8
million in 2021. Consequently, EBIT amounted to DKK
-11.1 million on par with 2021.
Profit before tax was DKK -13.9 million versus DKK -13.3
million in 2021. The positive tax income in 2022 was DKK
3.2 million (2021: DKK 2.7 million) as the expected tax
credit related to IT development costs.
Assets
Investment in the development of the Agillic Omnichannel
Marketing Automation Platform continued in 2022. The
development costs included capitalised salary costs and
costs from external consultants. Development costs during
2022 amounted to DKK 13.5 million capitalised (2021:
DKK 10.9 million).
Cash position
As of 31 December 2022, cash at bank amounted to DKK
7.4 million compared to DKK 20.6 million in 2021.
The decrease in cash is mainly driven by the investment
in intangible assets of DKK 13.5 million, interest of DKK
2.8 million and repayments of loans for DKK 2.9 million.
Cash flow from operations was DKK 3.1 million compared
to DKK 6.1 million in 2021 in line with our financial goal
of generating positive cash flow from operations. The
decrease in cash flow from operations is explained by the
postponed payment from tax credit in 2022 regarding
2021 according to note 2.
With reference to note 2 on tax credit payment, the cash
balance as 31 December 2022 was DKK 7.4 million and
cash flow from operations was DKK 3.1. These amounts
included a tax credit of DKK 0.0 million (2021: DKK 2.8
million).
On 7 April 2022, according to Agillic’s Articles of Asso-
ciation appendix 3.3B, two current leading employees
exercised 73,130 warrants and acquired the same number
of shares of nominally DKK 0.10 in Agillic, as stated in
Company Announcement no. 5 2022. Agillic’s liquidity
increased with DKK 151,379.10 due to the transaction.
Equity
As of 31 December 2022, total equity amounted to DKK
-15 million.
Before the exercise of warrants into shares, the share
capital amounted to DKK 1,018,781.70 consisting of
10,187,817 shares of nominally DKK 0.1 each. After
the capital increase, Agillic’s share capital amounted to,
consisting of 10,260,470 shares of nominally DKK 0.10
each.
Agillic achieved a positive EBITDA for the third year in a row, an increase in Total ARR of DKK 19.9 million leading to an increase in Revenue of 26.9%
to DKK 67 million and an increase in number of clients with 22% ending 2022 with 118 clients.
2020
0.3
2021 2022
0.7
1.1
2018
-19.1
2019
-15 .4
EBITDA 2018-2022
Financial review
DKK million
Annual Report 2022
ARR transactions ARR total
Factors impacting the ARR-development
• Upselling to existing clients:
ɕ Clients increase the number of communication transactions
ɕ Clients deploy additional communication channels and/or AI
• When clients churn and when less transactions take place temporarily, ARR decreases
• Sales of subscriptions to new clients increases the ARR
• As long as the value of upselling to existing clients and the sales to new clients exceeds
the value of the churning clients, the ARR will increase
17
Liabilities and deferred income
The total borrowings to The Danish Growth Fund
amounted to DKK 24.3 million (2021: DKK 27.3 million).
According to International Financial Reporting Standards
(IFRS), Agillic recognises revenue over the subscription
period starting from when the client commences using
the Agillic Omnichannel Marketing Automation Platform.
Clients typically subscribe for one year and are invoiced
the full amount when signing the agreement. The invoiced
amount is recognised as deferred income when paid and
then released proportionally over the subscription period.
On 31 December 2022, deferred income amounted to
DKK 22.3 million (2021: DKK 19.6 million).
Cash flow
During 2022, cash flow from operations amounted to
DKK 3.1 million (2021: DKK 6.1 million), and cash
flow from investments amounted to DKK -13.5 million
(2021: DKK -11.4 million). Cash flow from investments
mainly consisted of investments in developing the Agillic
Omnichannel Marketing Automation Platform. The cash
deficit from operating and investment activities were
financed by Agillic’s own cash funds.
Net change in cash amounted to DKK -13.3 million (2021:
DKK 4.3 million), and as of 31 December 2022, cash at
bank amounted to DKK 7.4 million (2021: DKK 20.6 million).
SaaS metrics
The general key performance figure for Software-as-a
Service (SaaS) companies, annual recurring revenue (ARR),
illustrates the annualised value of a client’s subscription
agreement and transactions processed by the clients via
the platform.
As of 31 December 2022, total ARR was DKK 76.7 million,
compared to 55.7 million as of 31 December 2021, an
increase of DKK 19.9 million corresponding to an increase
of 37.7%. The increase in Total ARR is associated with
the increase in number of clients, bringing the number of
clients to an all-time high of 118 clients.
Agillic expects a further increase in Total ARR from DKK
76.7 million in 2022 to a range of DKK 89-95 million in
2023.
Months to recover CAC decreased for the third year in a
row, from 8 months in 2021 to 3 months in 2022.
Expected development in annual recurring revenue (ARR)
2022 Net uplift
55
60
65
70
75
80
85
90
95
2023Existing New clients
ARR development 2018-2022
Subscriptions & transactions (DKK million)
2018
10.5
50.1
2019
9.6
55.1
2020
5.8
46.5
2021 2022
76.7
22.6
2021
10
55.7
Personalisation leaders saw a
nearly 2x increase in customer
engagement compared to brands
with low personalisation maturity
Source: ‘Embrace meaningful personalisation to maximise growth’, Deloitte Digital
Annual Report 2022
ARR transactions ARR total
Financial guidance
1919
Based on the current pipeline, new international
partner ships and market trends, Agillic expects to increase
the number of clients from the all-time high number of
clients of 118 end of 2022 and thereby increase both the
subscription and transaction part of the annual recurring
revenue (ARR).
Agillic focuses on organisational development with the
objective of becoming the most Danish tech company for all
employees and future talent, and also to retain good talent
and attract more international talent. Agillic will continue to
invest in marketing and sales to win new clients and deliver
growth in ARR. Agillic will continue to invest in developing
the Agillic Omnichannel Marketing Automation Platform
to improve the clients’ user experience and enhance ROI.
Financial guidance
The financial outlook is based on several assumptions,
including that macroeconomic trends will not signifi-
cantly change the business conditions for Agillic, nor the
company’s clients, during 2023.
2023
• Revenue: DKK 79-83 million
• EBITDA: DKK 1-4 million
• Total ARR: DKK 89-95 million
ɕ ARR subscriptions DKK 66-70 million
ɕ ARR transactions DKK 23-25 million
The Agillic Reboot 2.1 strategy introduced in January 2021 continues in 2023 with the aim
of winning new clients, retaining and growing existing clients, and growing together with an
international partner network. In 2023, Agillic expects double-digit growth in Total ARR
amounting to DKK 89-95 million building on a 2022 that has shown 37.7% growth in Total ARR.
ARR development 2021-2023
Actual and 2023 guidance
Subscriptions and transactions (DKK million)
2021 2022 2023
76.7
89-95
55.7
Financial outlook and guidance
Governance
Annual Report 2022
21
Currency risk
Currency risk is the risk that arises from changes in
exchange rates, affecting Agillic’s results. The general
objective of Agillic’s currency risk management is to limit
and delay any adverse impact of exchange rate fluctuations
on earnings and cash flows, thus increasing the predict-
ability of the financial results. Agillic also aims to balance
incoming and outgoing payments in local currency and
monitors the development in exchange rates and adjusts
price lists when required. The most significant currency
exposure in Agillic is to NOK.
Handling of personal data
To ensure compliance with GDPR and other relevant
regulation Agillic applies a strict Information Security
Management System (ISMS). Improvements to the ISMS
are considered and reviewed regularly by Agillic’s Infor-
mation Security Committee and presented to Executive
Leadership and the Board of Directors for approval. Oper-
ational procedures and guidelines are regularly reviewed
from a risk perspective and aligned with the ISMS. Agillic’s
handling of personal data is audited in accordance with
the ISAE 3000 standard on an annual basis.
Cyber security
As for all SaaS companies, cyberattacks and viruses
present serious potential threats to Agillic. To reduce any
risk Agillic maintains a very secure IT infrastructure and
strong anti-virus protection. Our security protocols and
vulnerability tests are reviewed on a monthly basis. All
employees are trained in our strict IT-policies both upon
employment and on an annual basis.
Data security
Agillic has established an industry-standard security
programme, dedicated to providing a high level of
documented data security and allowing clients to have
confidence in our custodianship of their data. The security
programme is aligned with the ISO 27001 standard to
ensure that Agillic operates in compliance with relevant
legal requirements and agreements and is audited by
an external auditing company according to ISAE 3000.
Agillic does not allow for sub-processors outside of the
EU/EEA to handle any client data, but we do use Amazon
Web Services (AWS), an American owned company, with
its data centre located in Ireland. To mitigate any potential
legal concern in this regard all data is fully encrypted
and the decryption key is kept secure outside AWS in
accordance with the guidance on the use of cloud services
from the Danish Data Protection Authority.
Business continuity
If an incident occurs, Agillic has processes in place to
handle the situation effectively. As part of the process,
Agillic’s client data is backed up every day to prevent
data-loss scenarios. All back-ups are encrypted, both
in transit and at rest, using strong industry encryption
techniques. All backups are geographically distributed
to maintain redundancy in the event of a natural disaster
or a location-specific failure.
Agillic is subject to a number of risks and uncertainties, with
potential short-term and long-term implications for our
business. The purpose of our risk management approach
is to address these in an effective and timely manner. It
is essential to ensure that Agillic stays competitive and
compliant with data legislations and maintains a solid cash
position to support the internationalisation and expected
two-digit growth in ARR, as described in the Agillic Reboot
2.1 growth strategy.
Risk management organisation
The Board of Directors is ultimately responsible for risk
management. It has appointed the Audit Committee and
Information Security Committee to act on its behalf in
monitoring the effectiveness of Agillic’s risk management.
While recurring risks are evaluated on a running basis,
monitoring is mainly performed in connection with board
meetings. The responsibility of the Audit Committee and
Information Security Committee is to adopt guidelines for
critical areas of risk, monitor developments, and ensure
that plans are in place to manage individual risks, including
strategic, operational, financial and compliance risks.
Competition
The martech market is characterised by large international
vendors investing heavily in winning market share and
allocating significant resources in sales and marketing.
Our competitors also include emerging fast-growing
vendors with innovative solutions. To mitigate the risk of
increased competition impacting the business negatively,
Agillic has a constant focus on developing an innovative
and unique marketing automation platform and investing
in customer success, sales and marketing.
Product development
Agillic depends on innovation and must continually
dedicate resources to development. Should Agillic not
be able to maintain its capacity to innovate, the company
and its offering are at risk of becoming obsolete in regard
to clients’ requests for functionality. Agillic is in the process
of applying for a patent on the Agillic platform’s method for
computer-implemented large-scale data communication.
Attracting and keeping new talent
As a growing company continuous recruitment of
additional competencies is necessary. Skilled backend
and frontend programmers are in high demand and it
can be challenging to attract and retain these profiles. If
Agillic cannot attract highly qualified employees, it may
have consequences for Agillic’s innovation capability and
growth rate. The risk is mitigated by working actively
with recruitment as well as developing and maintaining
an attractive working environment for all employees.
Internationalisation
International operations and the liquidity required to
build the new international partner network structure
are monitored by centralised financial controlling systems
and guidelines.
Liquidity risk
On 31 December 2022, cash amounted to DKK 7.4 million.
In accordance with the Reboot 2.1 strategy, Agillic is
investing in resources to grow the business. This is
financed by a positive net rentention rate on existing
clients and new business. Based on the forecast for 2023
additional financing is not needed in the next period.
In the highly competitive and rapidly changing tech market where Agillic operates risks are plenty. Our risk management focus is on data security,
investment in innovation and internationalisation to keep ahead of competition, as well as on attracting and keeping talent.
Risk management
Annual Report 2022
22
Corporate governance structure
Shareholders
Board of Directors
Organisation
Executive Leadership
and Management
Audit Committee
Chair
Information Security Committee
Good corporate governance is an important focus area at Agillic. We continuously develop
our practices with the objective of supporting and securing processes and procedures.
The ultimate authority over Agillic sits with the share-
holders. At the annual general meetings, shareholders
approve the annual report and any amendments proposed
to Agillic’s Articles of Association. Shareholders also elect
board members and the independent auditor.
The Board of Directors, the Executive Leadership and
Management
The management of Agillic is distributed between the
Board of Directors and the Executive Leadership and
Management. The Board of Directors supervises the
Executive Leadership’s work and is responsible for
Agillic’s overall management and strategic direction,
while the Executive Leadership is in charge of day-to-day
management. The Executive Leadership and Management
consists of the Chief Executive Officer, the Chief Financial
Officer, the Chief Solution Officer, the Chief Experience
Officer, the VP, People & Culture, and the VP, Service
Operations. As per 31 December 2022 Agillic’s Board of
Directors consisted of five shareholder-elected members.
5 of 6 members are shareholders. One of the board
members has a background in marketing, one has a
background in finance and three have extensive experience
as investors.
Board members are elected by the shareholders at the
Annual General Meeting, serve for a one-year term and
are eligible for re-election.
The Chairman of the Board
The shareholders elect the Chairman of the Board at
the annual general meeting. The Chairman performs
administrative tasks, such as planning board meetings
to ensure a balance between overall strategy setting and
the financial and managerial supervision of the company.
Audit Committee
The Audit Committee consists of Mikael Konnerup and
Johnny Henriksen. It is responsible for assisting the
Board in overseeing the financial reporting process, the
effectiveness of the internal control and risk management
systems, as well as security and quality issues in relation
to client audits.
Information Security Committee
The Information Security Committee holds the overall
responsibility for Agillic’s Information Security Management
System (ISMS). The Information Security Committee must
ensure that Agillic’s ISMS is compliant and inspection-ready
for annual audits.
Agillic is not covered by the Danish Financial Statement
of Act, section 107B.
Corporate Governance
We aspire to follow the recommendations on corporate
governance from the Danish Committee on Corporate
Governance. As a starting point, we have published a
compliance report leveraging the framework provided
by The Association of Listed Growth Companies – see
Governance structure
Annual Report 2022
23
As a software provider we handle our clients’ and our clients’ customers’ data. This is why our services
are developed based on a “security by design” principle. We have implemented a series of industry
standards, best practices, and processes, and made security issues a top priority for all of our employees.
At the core of our data security is an industry-standard
security program, dedicated to providing a high level of
documented data security. This allows our clients to have
confidence in our custodianship of their data. The security
programme is aligned with the ISO 27001 standard to
ensure that Agillic operates in compliance with relevant
legal requirements and agreements. Agillic’s Information
Security Management System (ISMS) was last audited
by Deloitte in December 2022. The audit is conducted
according to the ISAE 3000 and reflects how Agillic’s ISMS
relates to the ISO 27001 requirements. All key control
areas from the ISO 27001 standard are audited, including:
• Risk Management
• Information Security Policies
• Organisation of Information Security
• Human Resource Security
• Asset Management
• Access Control
• Operations Security
• Communications Security
• Supplier Relationships
• Information Security Incident Management
• Information Security Aspects of Business
• Continuity Management
• Compliance
A dynamic security approach
The security landscape is constantly changing as
cybercriminals discover new ways to compromise
data. Therefore, Agillic’s security approach is dynamic
and constant optimisation is a main objective. Agillic’s
security team works across the organisation and takes
exhaustive steps to identify and mitigate risks, implement
best practices, and constantly evaluate ways to enhance
security.
We have taken precautions in terms of technology and
processes to safeguard the Agillic platform and our clients’
data. We monitor the technology and the security-related
developments in the market and optimise our employees’
skill sets on an ongoing basis.
EU GDPR
Agillic is a data processor and is, as such, subject to the
General Data Protection Regulation (GDPR). Agillic’s
Omnichannel Marketing Automation Platform supports our
clients’ GDPR compliance, and we meet all data processor
requirements and have implemented adequate processes
to keep data safe.
GDPR guarantees consumers a series of basic funda-
mental rights concerning data privacy. When addressing
consumers’ fundamental rights, we aim to make it easy
for our clients to comply with consumers’ requests for
data privacy.
Security and IT compliance
76% of consumers get frustrated
when they don’t receive personalised
communication
Source: ‘Next in personalisation 2021’, McKinsey
Annual Report 2022
2525
Share capital and warrants
At the end of 2022, the share capital in Agillic comprised
10,260,947 shares of DKK 0.1 each, corresponding to a
nominal share capital of DKK 1,026,094.70.
Each share carries one vote. The shares must be named
and noted in Agillic’s share register in order to give holders
access to voting. At the end of 2022, Agillic A/S has 747
(808) registered shareholders.
Agillic has issued warrants by the end of 2022 with the
right to sign 661,345 (2021: 592,975) new shares of
DKK 66,134.50 (2021: DKK 59,297.50) nominal value.
Ownership
At the end of 2022, 63.5% (2021: 66.1%) of the share
capital was ultimately owned by five (six) shareholders,
each of whom owned over 5% of the share capital or
the votes.
At the end of 2022, members of Agillic’s Board of Directors,
and Executive Leadership and Management owned a total
of 32.1% (2021: 29.9%) of the share capital.
Share price and trading activities
At the end of 2022, the price of the Agillic share was DKK
23.70, compared to 25.80 at the end of 2021.
In 2022, a total of 1,157,268 (2021: 1,065,243) shares
were traded, corresponding to 11,3% (2021: 10.5%) of
the total number of shares.
Agillic’s market value amounted to DKK 243 million at
the end of 2022, compared to DKK 263 million at the
end of 2021.
Dividends
Agillic has not paid any dividend and, until further notice,
it is Agillic’s dividend policy to invest any profit in the
further growth of the company.
Communication with Agillic’s shareholders
According to the Nasdaq First North Growth Market Nordic
Rulebook on 1 September 2019, Agillic is only liable for
issuing half-year and year-end reports. In addition, Agillic
has decided to issue a “trading statement” following Q1
and Q3. The year-end report is issued in connection with
the release of the annual report.
Investors are encouraged to sign up for Agillic Investor
News. Sign up at: www.agillic.com/investor
For further information, investors, analysts and the
media are encouraged to contact:
Emre Gürsoy, CEO, Agillic A/S
+45 30 78 42 00
emre.gursoy@agillic.com
Claus Boysen, CFO, Agillic A/S
+45 28 49 18 46
claus.boysen@agillic.com
Certified Adviser
John Norden, Norden CEF
jn@nordencef.dk
Agillic A/S’ shares have been listed on Nasdaq First North Growth Market Copenhagen
since 22 March 2018 with ID-code DK0060955854 and the ticker AGILC.
Q4 results and Annual Report 2022
23 February 2023
Annual General Meeting
29 March 2023
Q1 results 2023
4 May 2023
Q2 results and Half-year Report 2023
24 August 2023
Q3 results 2023
12 October 2023
Shareholder information Financial calendar 2023
Annual Report 2022
2626
Johnny Emil Søbæk
Henriksen
Chairman of the Board
Johnny Henriksen is an investor and
has been Chair of the board since
September 2013. Previously, Johnny
was CEO of DDB Group Denmark
(2002-2013), CEO of Tribal DDB
Europe, and a board member of Tribal
DDB Worldwide Board of Directors
(1999-2002). Johnny has had
several directorships, including with
Omnicom Mediagroup Nordic (2006-
2012) and The Danish Association
of Creativity and Communication
(2006-2012). Independent.
Holdings in Agillic through
Ad.Anco ApS: 1,258,473 shares
Warrants: 18,500
Mikael Konnerup
Board member
Mikael Konnerup is an investor and
has been a member of the board
since September 2013. Mikael holds
an MSc in Economics and Business
Administration. He co-founded Dico
in 1994 of which he is a Director. Prior
to co-founding Dico, Mikael worked
for IBM, Superfos and Olicom among
others. Mikael has more than 30 years
of experience as a board member
in both small and large companies,
including DIBS Payment Services.
Mikael has been involved in more than
50 executed transactions with Dico
portfolio companies. He currently
also serves on the board of Aqoola,
Consortio and Omni. Independent.
Holdings in Agillic through Dico
ApS: 1,522,542 shares
Jesper Genter Lohmann
Board member
Jesper Lohman is an investor and has
been a member of the board since
September 2013. Jesper holds an
MSc in Economics and Business
Administration. In 2009, Jesper
co-founded the Investment company,
Dico, of which he is a director. Prior
to co-founding Dico, Jesper held
management positions at Carlsberg,
JP/Politiken, Thorn EMI, Vacasol
International and DIBS Payment
Services. Jesper has been involved in
more than 30 executed transactions
with Dico portfolio companies. He
currently also serves on the board of
HelloRetail, Junkbusters, Pronestor,
Logpoint, Reepay, SimpleSite, Vita
Media Group, Copus and Telefaction.
Independent.
Holdings in Agillic through Lohmann
Holding ApS: 135,081 shares
Warrants: 18,500
Michael Moesgaard
Andersen
Board member
Michael Andersen is an investor
and became a board member on 3
February 2021. Before establishing
his management consulting company,
Michael was a civil servant (the
Ministry of Finance), and subse-
quently a partner at Deloitte. He has
more than 20 years of experience
with startups and scaleups and
was instrumental in the IPO of
Konsolidator, Valuer and Penneo. He
holds several executive and board
member positions. Finally, Michael is
an adjunct professor at Copenhagen
Business School in innovation and
strategy. Independent.
Holdings in Agillic through
Andersen Advisory Group A/S:
100,000 shares.
Thorsten Köhler
Board member
Thorsten Köhler is a former strategic
advisor for the office of the CEO, Marc
Benioff, Salesforce. He is tech-savvy
entrepreneur, digital transformation
expert and recognized as an effective
and energetic leader; passionate
about culture, emerging tech-
nologies, and the relentless pursuit
of innovation. He has over 30 years
of market knowledge and extensive
management and sales experience to
inspire and enable CEOs to activate
a more personalized customer
experience and to build cutting edge,
user-centric platforms, products, and
services. Independent.
Warrants: 50,000
Jan Juul
Board member
Jan Juul is Vice President, Head of the
EMEA Solution Consulting organi-
zation at ServiceNow. Jan brings
more than 30 years of experience
in the IT and software industry,
including extensive experience in
SaaS based hyper growth markets.
Jan has served in a number of Sales,
Presales and Professional Services
leadership roles at European and
International level, including a 4-year
relocation to London for NetIQ. Jan
have successfully helped establish
a number of US based Software
companies into both Nordic and
European markets, including creation
of market strategy and the devel-
opment of people, processes and
technology to become successful in
a diverse cultural and multi-language
market. Independent.
Warrants: 25,000
Shares: 25,000
Board of Directors
Annual Report 2022
2727
Executive Leadership Management
Emre Gürsoy
Chief Executive Officer
Emre Gürsoy is a strategic, hands-on
and growth focused international
leader with a strong track-record.
Emre has been the CEO of Agillic
since March 2020 and brings 30
years of experience, operating at
the intersection of technology, data,
and creativity to scale and grow
high-performing technology driven
companies across Europe, the US
and Asia while delivering strong P&L
results in various C-level roles. Emre
holds several Board and Advisory
Board memberships, and MBA and
Mechanical Engineer degrees.
Holdings in Agillic: 21,257
(partly owned by Emre Gürsoy
Holding ApS)
Warrants: 414,345
Claus Boysen
Chief Financial Officer
Claus joined Agillic in March 2022
and brings vast experience across
global strategy, financial planning
and operations, M&A, post-merger
integration, capital raising, and
listings on First North Stockholm.
Claus holds an Executive MBA in
Business Adminstration and a Higher
Diploma Degree in Accounting and
has many years of experience in
the technology industry. Previous
assignments include the role as
Group CFO at WorldTicket and Group
CFO at Lauritz.com – the latter of
which he led to an IPO.
Warrants: 90,000
Bo Sannung
Chief Solution Officer
Holdings in Agillic: 111,293
(owned via Sannung Aps).
Warrents: 10,000
Petra Aagaard
VP, People & Culture
Warrents: 5,000
Rasmus Houlind
Chief Experience Officer
Holdings in Agillic: 111,293
(partly owned via Omnichannel
Institute ApS). Warrents: 10,000
Allan Sørensen
VP, Service Operations
Mirza Agic
VP, Sales & Partnerships
Financial statements
Annual Report 2022
2929
Executive Leadership
Board of Directors
Statement by the management
Annual Report 2022
3030
Independent auditor’s report
Business Registration No 33 96 35 56
MNE no 33747
MNE no 32127
Annual Report 2022
31
(DKK '000) 2022 2021
Profit/(loss) for the year (10,636 ) (10,541 )
Other comprehensive income - -
Total comprehensive income (10,634 ) (10,541 )
Note (DKK '000) 2022 2021
3 Revenue 67,008 52,758
4 Direct costs (17,371 ) (7,698 )
Gross profit 49,637 45,060
Other operating income - -
5 Other external costs (16,313 ) (15,304 )
6,7 Staff costs (32,210 ) (29,074 )
EBITDA 1,114 682
8 Depreciation and amortisation of intangible and tangible assets (12,232 ) (11,824 )
Operating profit (EBIT) (11,118 ) (11,143 )
9 Financial income 489 505
10 Financial expenses (3,247 ) (2,642 )
Profit before tax (13,876 ) (13,280 )
10 Tax on profit for the year 3,240 2,739
Profit/(loss) for the year (10,636 ) (10,541 )
16 Earnings per share (EPS) (1.04 ) (1.04 )
16 Earnings per share, diluted (DEPS) (1.04 ) (1.04 )
Income statement Statement of comprehensive income
Annual Report 2022
32
Note (DKK '000) 31 Dec 2022 31 Dec 2021
EQUITY AND LIABILITIES
Equity
16 Share capital 1,026 1,019
Reserve development costs 25,879 28,368
Retained earnings (41,945 ) (33,910 )
Total equity (15,040 ) (4,523 )
Liabilities
17 Borrowings, long-term 21,518 23,084
18 Leasing obligations, long-term 1,100 2,257
19 Other payables 2,885 2,885
Non-current liabilities 25,503 28,226
17 Borrowings, short-term 2,795 4,173
18 Leasing obligations, short-term 1,157 1,080
Prepayments from customers - 199
Trade payables 8,145 4,848
19 Other payables 7,924 7,979
20 Deferred income 22,291 19,616
Current liabilities 42,312 37,895
Total liabilities 67,815 66,120
Note (DKK '000) 31 Dec 2022 31 Dec 2021
ASSETS
Non-current assets
Client contracts - -
Patent 500 500
Software developed 31,120 28,438
12 Intangible assets 31,620 28,938
Fixtures and equipment 241 468
Right of use assets 2,005 3,052
Leasehold improvements 134 264
13 Tangible assets 2,380 3,784
Deposits 586 583
Other non-current assets 586 583
Total non-current assets 34,586 33,305
Current assets
14 Trade receivables 4,425 3,714
Other receivables 115 10
2 Tax receivables 5,976 2,739
Prepayments 304 1,207
Cash 7,369 20,623
Total current assets 18,189 28,293
TOTAL ASSETS 52,775 61,598
Statement of financial position
TOTAL EQUITY AND LIABILITIES 52,775 61,598
Annual Report 2022
33
Note (DKK '000) 2022 2021
Profit/(loss) for the year (10,636 ) (10,541 )
Adjustments for non-cash items:
Tax on profit for the year (3,240 ) (2,739 )
Financial income and expenses 2,756 2,137
Share-based payments (32 ) 450
IFRS 16 (1,155 ) (1,282 )
Depreciation, amortisation and impairment 12,232 11,824
11 Changes in working capital 5,802 5,092
Total 5,775 4,942
Net financials, paid (2,680 ) (1,704 )
Income taxes, received - 2,833
Cash flow from operating activities 3,050 6,071
12 Purchase of intangible assets (13,511 ) (11,394 )
13 Purchase of tangible assets - (46 )
Cash flow from investing activities (13,511 ) (11,440 )
Issuance of shares, net of costs 151 11,387
11 Borrowings/repayment (-) long-term (2,036 ) (3,067 )
11 Borrowings/repayment (-) short-term (908 ) 1,378
Cash flow from financing activities (2,793 ) 9,698
Change in cash and cash equivalents (13,254 ) 4,329
Cash and cash equivalents at 1 January 20,623 16,294
Cash and cash equivalents at 31 December 7,369 20,623
(DKK '000)
Share
capital
Reserve for
development
costs
Retained
earnings Total
Equity at 1 January 2021 944 26,865 (33,628 ) (5,819 )
Profit for the year - 1,503 (12,043 ) (10,540 )
Other comprehensive income for the year - - - -
Total comprehensive income for the year - 1,503 (12,043 ) (10,540 )
Transactions with owners
Issue of share capital 75 - 11,926 12,001
Costs related to issuance of new shares (615 ) (615 )
Share-based payments - - 450 450
Equity at 31 December 2021 1,019 28,368 (33,910 ) (4,523 )
Profit for the year - (2,489 ) (8,147 ) (10,636 )
Other comprehensive income for the year - - - -
Total comprehensive income for the year - (2,489 ) (8,147 ) (10,636 )
Transactions with owners
Issue of share capital 7 - 144 151
Share-based payments - - (32 ) (32 )
Equity at 31 December 2022 1,026 25,879 (41,945 ) (15,040 )
For further details of Share capital, refer to note 15 Share Capital and Earnings per share.
Cash flow statement Statement of changes in equity
Annual Report 2022
34
Note
1 Accounting policies .................................................................................................................................................................. 34
2 Critical accounting estimates and judgements ............................................................................................................. 37
3 Revenue ........................................................................................................................................................................................ 37
4 Direct costs .................................................................................................................................................................................. 37
5 Other external costs ................................................................................................................................................................. 37
6 Staff costs .................................................................................................................................................................................... 38
7 Share-based payments ........................................................................................................................................................... 38
8 Depreciation and amortisation of intangible and tangible assets ........................................................................... 40
9 Financial income and expenses ............................................................................................................................................ 40
10 Tax ................................................................................................................................................................................................... 40
11 Notes to cash flow statement ................................................................................................................................................41
12 Intangible assets .........................................................................................................................................................................41
13 Tangible assets ............................................................................................................................................................................42
14 Trade receivables ........................................................................................................................................................................42
15 Share capital and Earnings per share ................................................................................................................................. 43
16 Borrowings ................................................................................................................................................................................... 43
17 Lease obligations ....................................................................................................................................................................... 43
18 Other payables ........................................................................................................................................................................... 43
19 Deferred income ........................................................................................................................................................................ 44
20 Contingent liabilities and commitments ............................................................................................................................ 44
21 Related parties ........................................................................................................................................................................... 44
22 Financial risks .............................................................................................................................................................................. 45
GENERAL
Statement of compliance
The financial statements of Agillic A/S for 2022
have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by
the EU and additional Danish requirements for the
presentation of financial statements according to the
Danish Financial Statement Act for enterprises in
reporting class B and certain provisions applying to
reporting class C. On 23 February 2023, the Board
of Directors and the Executive Leadership considered
and approved the annual report for 2022 of Agillic A/S.
The annual report will be presented to the shareholders
for approval at the Annual General Meeting to be held
on 29 March 2023.
Basis of preparation
The financial statements are presented in Danish kroner
(DKK), which is the functional currency of Agillic A/S. All
amounts have been rounded to nearest DKK thousand,
unless otherwise indicated. The financial statements
have been prepared on a going concern basis and in
accordance with the historical cost convention, except
where IFRS explicitly requires use of other values. For
the purpose of clarity, the financial statements and
the notes to the financial statements are prepared
using the concepts of materiality and relevance. This
means that line items not considered material in terms
of quantitative and qualitative measures or relevant to
financial statement users are aggregated and presented
together with other items in the financial statements.
Similarly, information not considered material is not
presented in the notes. The accounting policies, except
as described below, have been applied consistently
during the financial year and for the comparative figures.
Operating segments
At this point Agillic only operates in one segment and
segments are not a part of the internal management
reporting, hence operating segments are not presented
in the financial statements.
Foreign currency translation
Transactions denominated in currencies other than
the functional currency are considered transactions
in foreign currency. On initial recognition, transactions
denominated in foreign currencies are translated to
the functional currency at the exchange rates at the
transaction date. Foreign exchange adjustments arising
between the exchange rates at the transaction date and
at the date of payment are recognised in the income
statement under financial income or financial expenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reporting date. The difference between the exchange
rates at the reporting date and at the date of transaction
or the exchange rate in the latest financial statements
is recognised in the income statement under financial
income or financial expenses.
Non-IFRS financial measures
Agillic uses certain financial measures that are not defined
in IFRS to describe Agillic’s financial performance.
These financial measures may therefore be defined
and calculated differently form similar measures in
other companies, and thus not be comparable. The
definitions of non-IFRS financial measures are included
in Definitions of key figures and ratios on page 46.
INCOME STATEMENT
Revenue recognition
Agillic recognises revenue from the following major
sources:
• Subscriptions
• Transactions
• Professional services and other
Revenue is mainly derived from subscription fees
charged for Agillic software licenses, transaction
fees and professional service and training fees. For
software contracts, which are comprised of several
components, the total contract sum is allocated to the
separate performance obligations for the purpose of
revenue recognition.
Revenue recognition requires an agreement with the
client, which creates enforceable rights and obligations
between the parties, has commercial substance, and
identifies payment terms. In addition, it must be
probable that the consideration determined in the
contract will be collected. Revenue is measured based
on the consideration to which Agillic expects to be
entitled in a contract with a client and exclude amounts
collected on behalf of third parties. Agillic recognises
revenue when it transfers control of the license or
service to a client. All revenue is derived from contracts
with clients.
Note 1 – Accounting policies
Notes to the financial statements
Annual Report 2022
35
Subscription fees
Subscription fees covers license, hosting and main-
tenance. Fixed term subscription agreements give the
right to use the software for a determined period of
time, which can be extended at the end of the initial
term. Standard perpetual software licenses provide
clients with the right to use the software whilst the
contract remains in force. New subscription fees are
comprised of income derived from new clients and
additional subscription income originating from supple
-
mentary sales (uplifts) to existing clients. The main
possible performance obligation related to subscription
agreements has been identified as the right to use
the software. The right to use software license is
considered a separate performance obligation when
it satisfies the following conditions: can be delivered
separately from other services, can be installed by
a third party, can be used without upgrades, and is
functional without upgrades or technical support.
Agillic has assessed that the client obtains control of
the license when a contract is agreed, the license is
delivered, and the client has the right to use it. Revenue
relating to subscription fees are recognised over time.
The transaction price allocated to these subscriptions
is recognised as a contract liability (deferred income) at
the time of the initial sales transaction and is released
on a straight-line basis over the subscription agreement
period.
Transaction fees
Transaction fees relate to outbound transactions, i.e.
email, SMS, etc. Transactions are sold on price per units
for the relevant transaction and revenue is calculated
based on transactions send and recognised when
control of the goods has been transferred, being at
the point the client purchases the goods by sending
out transactions.
Professional services and other fees
Agillic provides professional services and training
related to on-boarding and setup of infrastructure,
template design and implementation and training of
new and existing clients. These services are sold on
hourly billing rates for the relevant service and revenue
is as a performance obligation satisfied over time.
Revenue is recognised for these installation services
based on the stage of completion.
Direct costs
Direct costs comprise costs incurred to achieve the
year’s revenue including hosting and transaction costs.
Other operating income
Other operating income and other operating expenses
comprise income and expenses of a secondary nature
relative to the primary activities of Agillic.
Other external costs
Other external costs comprise sales and marketing
costs, external consultancy costs, other employee
related costs, IT and software costs, investor relations
costs, rent costs, allowances for doubtful trade
receivables and other administrative expenses.
Staff costs
Staff costs consist of salaries, sales commissions,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits. Salaries,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits are
recognised in the year in which the associated services
are rendered by the employees. Agillic has entered into
retirement benefits schemes and similar agreements
with employees. Contributions to defined contribution
plans are recognised in the income statement in the
period to which they relate and any contributions
outstanding are recognised in the statement of financial
position as other liabilities.
Share-based payments
The Board of Directors, the Executive Leadership and
other employees have been granted warrants. The
warrants are measured at fair value at the grant date
and are recognised as an expense in staff costs over the
vesting period. Expenses are set off against equity. The
fair value of the warrants is measured using the Black-
Scholes valuation method or other generally accepted
valuation techniques. The calculation takes into account
the terms and conditions under which the warrants
are granted. Subsequent fair value adjustments are
not recognised in the income statement. If subsequent
modifications to a warrant program increase the value
of the warrants granted, measured before and after the
modification, the increase is recognised as an expense.
If the modification occurs before the vesting period the
increase in value is recognised as an expense over the
period for services to be received. If the modification
occurs after the vesting date, the increase in value is
recognised as an expense immediately. Consideration
received for warrants sold are recognised directly in
equity.
Financial income and financial expenses
Financial income and expenses include interest income,
interest expense, amortisation of borrowing issue costs
and realised and unrealised exchange gains and losses.
Tax
Tax on the profit/loss for the year comprises the year’s
current tax and changes in deferred tax. The tax expense
relating to the profit/loss for the year is recognised in
the income statement, and the tax expense relating to
items recognised in other comprehensive income and
directly in equity, respectively, is recognised in other
comprehensive income or directly in equity.
Current tax payable and receivable is recognised in
the balance sheet as the expected tax on the taxable
income for the year, adjusted for tax paid on account.
The current tax charge for the year is calculated based
on the tax rates and rules enacted at the balance sheet
date.
Deferred tax is calculated using the liability method
on all temporary differences between the accounting
and taxable values of assets and liabilities. Deferred
tax assets are assessed yearly and only recognised
to the extent that it is more likely than not that they
can be utilised. Deferred tax assets, including the tax
value of tax losses carried forward, are recognised as
other non-current assets and measured at the amount
at which they are expected to be realised, either by
setting off deferred tax liabilities or by setting off tax on
future earnings within the same legal entity or a jointly
taxed entity. Deferred tax is measured based on the
tax legislation and statutory tax rates in the respective
countries that will apply under the legislation in force
on the balance sheet date when the deferred tax asset
is expected to crystallize as current tax. Changes in
deferred tax resulting from changes in tax rates are
recognised in the income statement. Agillic recognises
deferred tax assets relating to losses carried forward
when Executive Leadership finds that these can be
offset against taxable income in the foreseeable future.
An assessment is made taking into consideration the
effect of restrictions in utilisation in local tax legislation.
Future taxable income is assessed based on budgets as
well as Executive Leadership’s expectations regarding
growth and operating margin in the coming years.
STATEMENT OF FINANCIAL POSITION
Intangible assets
Intangible assets with determinable useful lives are
measured at cost less accumulated amortisation and
impairment losses. Intangible assets include developed
software and client contracts. Amortisation is provided
on a straight-line basis over the expected useful lives
of the finite-lived assets, which are as follows:
Client contracts 3 years
Software developed 5 years
Expected useful lives are reassessed regularly. Agillic
regularly reviews the carrying amounts of its finite-lived
intangible assets to determine whether there is an
indication of an impairment loss.
Patents
Agillic is in the process of applying for a patent on
the Agillic platform. Patents acquired are initially
recognised at fair value at the acquisition date and
subsequently carried at cost less any accumulated
impairment losses. The carrying values of patent assets
are reviewed annually for impairment to assess if there
is an indication of impairment.
Client contracts
Client contracts acquired are initially recognised at
fair value at the acquisition date and subsequently
carried at cost less accumulated amortisation and any
accumulated impairment losses. The value of client
contracts is amortised on a straight-line basis, based
on the estimated duration of the acquired contract
or other relevant period if deemed appropriate. The
carrying values of other intangible assets are reviewed
annually for impairment to assess if there is an indi-
cation of impairment beyond what is expressed through
normal amortisation. If the carrying amount exceeds
its recoverable amount, the carrying amount of the
asset is written down to the recoverable amount. All
intangible assets are considered to have limited useful
economic lives.
Software developed
Software developed by Agillic is recognised as an
asset if the cost of development is reliably measurable
and an analysis shows that future economic benefits
from using the software exceed the cost. Cost is
defined as development costs incurred to make the
software ready for use. Once a software application
has been developed the cost is amortised over the
expected useful life. The cost of development consists
primarily of direct salaries and other directly attributable
development costs. Amortisation and impairment
charges are recognised in the income statement. For
Agillic, the measurement of intangible assets, could
be affected by significant changes in judgment and
assumptions underlying their calculation. The estimated
useful life reflects the period over which Agillic expects
to derive economic benefit from intangible assets. As
active markets for the majority of acquired assets and
liabilities do not exist, management has made estimates
of their fair values. Fair values were estimated as the
present value of future cash flows calculated based
on churn rates or other expected cash flows related
to each asset. Estimates of fair value are associated
with uncertainty and may be subsequently adjusted.
Annual Report 2022
36
Tangible assets
Property, plant, and equipment are measured at cost
less accumulated depreciation and accumulated
impairment. Property, plant, and equipment are depre
-
ciated on a straight-line basis over the expected useful
lives of the finite-lived assets, which are as follows:
Leasehold improvements over the lease
(IFRS 16) term up to 10
years
Fixtures and equipment 3-5 years
Tangible assets are tested for impairment if indications
of impairment exist. Tangible assets are written down to
its recoverable amount, if the carrying amount exceeds
the higher of the fair value less costs to sell and the
value in use. Depreciation and impairment charges are
recognised in the income statement.
Impairment of tangible and intangible assets
The carrying amounts of tangible assets and intangible
assets with determinable useful lives are reviewed
regularly to determine whether there are any indications
of impairment. If such indications are found, the recov-
erable amount of the asset is calculated to determine
any need for an impairment write-down and, if so, the
amount of the write-down. For intangible assets with
indeterminable useful lives the recoverable amount is
calculated annually, regardless of whether any indi-
cations of impairment have been found. If the asset does
not generate any cash flows independently of other
assets, the recoverable amount is calculated for the
smallest cash-generating unit that includes the asset.
The recoverable amount is calculated as the higher of
the fair value less costs to sell and the value in use of
the asset or the cash-generating unit, respectively.
In determining the value in use, the estimated future
cash flows are discounted to their present value, using
a discount rate reflecting current market assessments
of the time value of money as well as risks that are
specific to the asset or the cash-generating unit and
which have not been taken into account in the estimated
future cash flows. If the recoverable amount of the asset
or the cash-generating unit is lower than the carrying
amount, the carrying amount is written down to the
recoverable amount. For cash-generating units, the
write-down is allocated in such a way that goodwill
amounts are written down first, and any remaining
need for write-down is allocated to other assets in the
unit, although no individual assets are written down
to a value lower than their fair value less costs to sell.
Impairment write-downs are recognised in the income
statement. If write-downs are subsequently reversed
as a result of changes in the assumptions on which
the calculation of the recoverable amount is based, the
carrying amount of the asset or the cash-generating
unit is increased to the adjusted recoverable amount,
not, however, exceeding the carrying amount that the
asset or cash-generating unit would have had, had the
write-down not been made.
Deposits
Deposits are primarily related to leasing of offices.
Deposits which will not be returned within one year of
the balance sheet date are recognised as non-current
assets.
Trade receivables
Trade receivables are measured at amortised cost
less allowance for lifetime expected credit losses. To
measure the expected credit losses, credit risk for
trade receivables have been based on an individual
assessment. Trade receivables are written off when
all possible options have been exhausted and there
is no reasonable expectation of recovery. The cost of
allowances for expected credit losses and write-offs
for trade receivables are recognised in the income
statement under other administrative expenses.
Prepayments
Prepayments are recognised as an asset and comprise
incurred costs relating to subsequent financial years.
Prepayments are measured at cost.
Right of use assets/leases (IFRS 16)
Agillic must recognise all leasing agreements, including
operational leasing agreements, in the balance sheet.
This means that a leasing obligation must be recognised
measured at the present value of the future leasing
payments, as described below, and a corresponding
leasing asset adjusted for payments made to the lessor
prior to the start of the leasing agreement, and incentive
payments received from the lessor.
Agillic has chosen not to recognise directly related costs
to the leasing asset. In accordance with the transitional
provisions and possible exceptions in IFRS 16, Agillic
has chosen to implement the standard:
•
Not to recognise leasing agreements with a term
of less than 12 months or with low value, which
means the only recognised lease is the rent of the
facilities at Masnedøgade 22, 2100 Copenhagen.
• Not to reassess whether an ongoing contract is or
contains a lease.
The expected lease period for the rent of the facilities
is 42 months.
In assessing future leasing payments, Agillic has
reviewed its operational leasing agreements and
identified those leasing payments that relate to a leasing
component and that are fixed or variable, but which
change in line with fluctuations in an index or an interest
rate. Agillic has chosen not to recognise payments
related to service components as part of the leasing
obligation. When assessing the expected lease period,
Agillic has identified the non-cancellable lease period
in the agreement. The leasing assets are depreciated
on a straight-line basis over the expected lease period,
which is 42 months. The average alternative borrowing
rate used when discounting future lease payments in
connection with measuring the leasing obligation is
set at Agillic’s marginal borrowing rate of 2.63% p.a.
Borrowings
Borrowings are measured at amortised cost.
Trade payables and other payables
Other payables include bonus and commission
accruals, vacation pay obligations, payroll taxes and
VAT. Payables are measured at cost.
Deferred income
Deferred income comprises income received relating
to subsequent financial years. Deferred income is
measured at cost. When a client pays consideration
in advance, or an amount of consideration is due
contractually before transferring of the license or
service, then the amount received in advance presented
as a liability. Deferred income represents contractual
prepayments from clients for unsatisfied or partially
satisfied performance obligations in relation to licenses,
maintenance, and services. License billing generally
occurs at periodic intervals (e.g. quarterly or yearly)
prior to revenue recognition, resulting in liabilities.
CASH FLOW STATEMENT
The cash flow statement is presented according to the
indirect method commencing with the results for the
year. The cash flow statement shows Agillic’s cash flows
divided into operating, investing and financing activities
as well as cash and cash equivalents at the beginning
and end of the year. Cash flows from operating activities
are calculated using the indirect method as the profit
for the year adjusted for non-cash items, changes in
working capital, changes in contract assets, financial
income received, financial expenses paid and income
tax paid. Cash flows from investing activities consist of
receipts and payments in connection with acquisitions
and disposals of companies and operations, intangible
assets and property, plant, and equipment, as well as
other non-current assets and liabilities. Cash flows from
financing activities are comprised of changes in share
capital and related costs, purchase of treasury shares,
proceeds from loans and distributions of dividends
to shareholders. Cash and cash equivalents consist
of cash at bank and in hand less current bank loans
due on demand.
New and revised IFRS standards in issue but not
yet effective
New standards and interpretations not yet adopted
IASB has issued new or amended accounting standards
and interpretations that have not yet become effective
and have consequently not been implemented in the
financial statements for 2022. Agillic expects to adopt
the accounting standards and interpretations when
they become mandatory. None of the new or amended
standards or interpretations are expected to have a
significant impact on the financial statements.
Adoption of new or amended IFRSs
Management has assessed the impact of new or
amended and revised accounting standards and
interpretations (IFRSs) issued by the IASB and IFRSs
endorsed by the European Union effective on or after
1 January 2021. It is assessed that application of
amendments effective from 1 January 2021 has not had
a material impact on the financial statements for 2022.
Furthermore, Management does not anticipate any
significant impact on future periods from the adoption
of these amendments.
Note 2 - Critical accounting
estimates and judgements
In the application of Agillic’s accounting policies,
which are described in note 1, Executive Leadership
is required to make judgements (other than those
involving estimations) that have a significant impact
on the amounts recognised and to make estimates and
assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are
based on historical experience and other factors that
are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision
and future periods if the revision affects both current
Annual Report 2022
37
and future periods. Critical judgements that have the
most significant effect on the amounts recognised in
financial statements, key assumptions concerning the
future and other key sources of estimation uncertainty
at the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year,
are described below.
Performance obligation
Agillic is contractually obligated to deliver online access
through the portal (subscription), hosting of the portal
and access as well as maintenance of the platform
within the subscription period. These three services
are not sold separately.
It is Agillic’s judgement, that the three services do not
have a separate value from a customer perspective,
as subscriptions do not comprise any value without
hosting, and maintenance service do not comprise value
without the customer also subscribing to the platform.
It is not technically possible to choose hosting by a third
party, and the maintenance service only concerns the
Agillic platform and therefore has no value towards
other online platforms.
Based on the above factors, Agillic considers its
delivery of subscription, hosting and maintenance as
one complete performance obligation.
Tax
Danish Tax Authorities (DTA) has requested docu-
mentation for refunds paid out under the Danish Tax
Credit Scheme for 2020 equal to a tax amount of DKK
2.8 million. DTA has in connection to submitting their
request for 2020 held back a refund for 2021 in the
amount of DKK 2.7 million.
Agillic has together with our tax advisors provided the
requested documentation. In the dialogue with DTA
in January 2023, Agillic shall provide some further
information, among others what innovative projects
that Agillic did in 2019 and 2021. The amount Agillic
received in tax credit for 2019 was DKK 3.5 million.
There has so far been no other feedback and Agillic
has with consultants from our advisor maintained the
amount for 2021 of DKK 2.7 as a receivable and has
for the tax calculation for 2022 calculated an expected
tax credit amount receivable of DKK 3.2 million. Due
to the latest public focus on tax credits, there could
be a significant risk related to the outcome of DTA’s
review. As of the date of the financial report, we have
no additional data to quantify and assess the risk.
Software developed
The measurement of developed software could be
affected by significant changes in judgement and
assumptions underlying their calculation. The expected
useful life of 5 years reflects the period over which
Agillic expects to derive economic benefit from software
developed. Estimation of useful life are associated with
uncertainty and may be subsequently adjusted.
Trade receivables
Allowances have been recognised according to the
lifetime expected credit loss method as introduced
under IFRS 9. We refer to note 14 for a specification
of the loss.
Note 3 – Revenue
Note 4 – Direct costs
Note 5 – Other external costs
All revenue is derived from contracts with clients. Revenue from subscription fees is recognised
over time and for transaction fees and other professional services at a point in time.
Contract liabilities are presented as deferred income, see note 19 Deferred income.
(DKK '000) 2022 2021
Subscription fees 48,358 40,704
Transaction fees on subscription 1,384 4,281
Transaction fees by consumption 16,783 6,763
Professional services and other fees 483 1,009
Total revenue 67,00 8 52,758
(DKK '000) 2022 2021
Hosting costs 5,362 4,068
Transaction costs 12,009 3,631
Total direct costs 17, 371 7,6 98
(DKK '000) 2022 2021
Sales and marketing costs 5,049 5,209
External consultancy costs 11,420 8,381
External consultancy costs transferred to capitalised development costs (6,152) (4,176)
Other employee related costs 2,170 2,043
Other administrative expenses 3,826 3,847
Total other external costs 16,313 15,304
Annual Report 2022
38
Note 6 – Staff costs
(DKK ‘000)
Board
of Directors
Executive Leadership
and Management
2022 2021 2022 2021
Remuneration
Salaries, Board fees and bonus 610 250 8,917 7,094
Share-based payments 399 255 662 195
Defined contribution pension plans 0 0 590 287
Total remuneration 1,009 505 10,169 7,576
(DKK '000)
2021 2020
Costs of share-based payments (32) 450
Total costs of share-based payments (32) 450
Note 7 – Share-based payments
Warrant program September 2017
The Board of Directors have used the authorisation in the
Articles of Association article 3.3 to allocate warrants
to the members of the Board of Management where
the participants acquire the right to subscribe of in total
292,527 shares at a nominal value of DKK 0.10 each.
Shares can be subscribed for at DKK 2.70 per share at
a nominal value of DKK 0.10.
All warrants have been granted.
199,096 warrants will be vesting in the period 1 January
2018 to 1 October 2020 and exercise of the warrants
must happen in the period 1 January 2021 to 31 March
2021. 93,431 warrants will be vesting in the period
1 October 2020 to 1 October 2021 and exercise of the
warrants must happen in the period 1 January 2022 to
31 March 2022.
There are no performance conditions for the granting
of the warrants but each participant must remain an
employee during the vesting period.
The issue of all shares will have a dilutive effect of 4.04%.
Warrant program April 2018
The Board of Directors have used the authorisation in
the Articles of Association article 3.2 to allocate 20,717
warrants to the members of the Execiutive Leadership
where the participants acquire the right to subscribe of
in total 20,717 shares at a nominal value of DKK 0.10
each. Shares can be subscribed for at DKK 38.00 per
share at a nominal value of DKK 0.10.
All warrants have been granted.
15,534 warrants will be vested in the period 1 January
2018 to 1 October 2020 and exercise of the warrants
must happen in the period 1 January 2021 to 31 March
2021. 5,183 warrants will be vested in the period 1
October 200 to 1 October 2021 and exercise of the
warrants must happen in the period 1 January 2022
to 31 March 2022.
There are no performance conditions for the granting of
warrants but each participant must remain an employee
during the vesting period.
The issue of all shares will have a dilutive effect of 0.25%.
The conditional warrant program has been terminated
due to a warrant holder has left Agillic.
Warrant program October 2020
The Board of Directors have used the authorisation in the
Articles of Association article 3.3 to allocate warrants
to the Execiutive Leadership where the participants
acquire the right to subscribe of in total 414,345 shares
at a nominal value of DKK 0.10 each. Shares can be
subscribed for at DKK 23,10 per share at a nominal
value of DKK 0.10.
All warrants have been granted.
414,345 warrants will be vesting in the period 1 October
2020 to 30 april 2025 and exercise of the warrants must
happen in the period 1 October 2020 to 30 April 2025.
There are no performance conditions for the granting
of the warrants but each participant must remain an
employee during the vesting period.
The issue of all shares will have a dilutive effect of 4.39%.
Warrant program April 2021
The Board of Directors have used the authorisation in
the Articles of Association article 3.2 to allocate 105,500
warrants to the members of the Board of Directors
where the participants acquire the right to subscribe
of in total 582,500 shares at a nominal value of DKK
0.10 each. 50,000 of the shares can be sunscribed to
at DKK 20,00 per share, at a nominle value of DKK 0.10
and 55,500 of the shares can be subscribed to at DKK
25.00 per share at a nominel value of DKK 0.10.
All warrants have been granted.
50,000 warrants will be vested in the period 1 April 2021
to 30 September 2022 and exercise of the warrants
must happen in the period 1 April 2022 to 30 September
2022. 18,500 warrants will be vested in the period 1
April 2021 to 30 April 2024. and exercise of the warrants
must happen in the period 1 May 2024 to 31 May 2024.
37,000 warrants will be vested in the period 1 April
2021 to 30 April 2022. and exercise of the warrants
must happen in the period 1 May 2023 to 31 May 2023.
There are no performance conditions for the granting of
warrants but each participant must remain an employee
during the vesting period.
The issue of all shares will have a dilutive effect of 1.02%.
The conditional warrant program has been terminated
due to a warrant holder has left Agillic.
(DKK '000) 2022 2021
Salaries 37,143 33,462
Share-based payments (32) 450
Pension plans (defined contribution) 2,210 1,631
Social security and other costs 248 249
Staff costs transferred to capitalised development costs (7,35 9) (6,717)
Total staff costs 32,210 29,074
Employees
Average number of employees (FTE) 47 47
Number of employees year end (FTE) 48 53
With reference to Danish Financial Statements Act article 98B, subsection 3 that the remuneration for the
executive board is included in the Executive Leadership and Management category.
Annual Report 2022
39
Warrant program March 2022
The Board of Directors have used the authorisation in the
Articles of Association article 3.11 to allocate 155,000
warrants to the members of the Board of Management
where the participants acquire the right to subscribe of
in total 155,000 shares at a nominal value of DKK 0.10
each. The 75,000 shares can be subscribed for at DKK
24.80 per share at a nominal value of DKK 0.10. The
80,000 shares can be subscribed for at DKK 25.54 per
share at a nominal value of DKK 0.10.
All warrants have been granted.
The exercise price of 75,000 warrants is fixed at 24.80
DKK per share corresponding to the average share price
on 1 December 2021. The warrants vest with 7,500
warrants on 1 December 2022, 15,000 warrants on 1
December 2023, 22,500 warrants 1 December 2024,
and 30,000 warrants on 1 December 2025.
The exercise price of 80,000 warrants is fixed at 25.54
DKK per share corresponding to the average share
price on 1 March 2022. The warrants vest with 8,000
warrants on 1 March 2023, 16,000 warrants on 1 March
2024, 24,000 warrants on 1 March 2025, and 32,000
warrants on 1 March 2026.
The warrants can be exercised in periods of 14 days
starting the day after the publication of Agillic’s financial
reports. The warrants shall be exercised no later than
12 months after the final vesting.
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
The issue of all shares will have a dilutive effect of 0,78%.
The conditional warrant program of 75,000 has been
terminated due to warrant holder has left Agillic.
Warrant program June 2022
The Board of Directors have used the authorisation
in the Articles of Association article 3.10 to allocate
105,000 warrants to the members of the management
where the participants acquire the right to subscribe of
in total 105,000 shares at a nominal value of DKK 0.10
each. 105,000 of the shares can be subscribed to at
DKK 20,0392 per share, at a nominle value of DKK 0.10.
All warrants have been granted.
The vesting of the first 50,000 warrants
issue to Management, is subject to Agillic’s
achievement of the financial performance targets:
The performance target was not meet.
The vesting of 55,000 warrants issued to Management
and the six other employees of Agillic is subject to a
cliff of twelve (12) months and further conditional
upon Agillic’s achievement of the following financial
performance targets for the financial year 2022:
The financial performance targets were meet.
Subject to Agillic’s achievement of the performance
targets above and expiration of the cliff respectively,
the warrants issued to Management and the six other
employees of Agillic vest in eight (8) equal installments
with 1/8 each quarter on the dates of disclosure of
Agillic’s annual report, interim report or quarterly financial
statement, as the case may be.
Subject to vesting, the warrants can be exercised in
periods of 14 days starting the day after publication
of Agillic’s annual report, half-year reports and or
interim reports, respectively. The warrants issued to
Management and the six employees shall be exercised
no later than 12 months after the final vesting. The
warrants issued to Management shall be exercised no
later than 36 months after the vesting date (the date
of the annual general meeting in 2023).
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
The issue of all shares will have a dilutive effect of 1.02%.
Warrant program July 2022
The Board of Directors have used the authorisation
in the Articles of Association article 3.2 to allocate
75,000 warrants to two new members of the Board
of Management where the participants acquire the
right to subscribe of in total 75,000 shares at a nominal
value of DKK 0.10 each. Shares can be subscribed for at
DKK 16.9555 per share at a nominal value of DKK 0.10.
All warrants have been granted.
Warrants can be exercised in periods of 14 days
starting the day after the publication of Agillic’s annual
report, half-year report or quarterly financial statement,
respectively. The Warrants shall be exercised no later
than 12 months after the vesting of the last installment
The issue of all shares will have a dilutive effect of 0.73%.
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
73,130 warrants were exercised during 2022.
Number of warrants
Weighted
average
exercise
price DKK
Board of
Management
Other key
management
personnel Management
Board of
Directors
Outstanding at 1 January 2022 - 414,345 - 148,130 180,500
Granted - 80,000 - 105,000 -
Exercised 2.07 - (73,130) -
Cancelled - - (75,000) (68,500)
Outstanding at 31 December 2022 - 494,345 - 105,000 112,000
Warrants outstanding
Weighted
average
exercise price
DKK
Vesting
period
Exercise
period 2022 2021
Warrant program September 2017 2,07 18 Jan - 21 Oct 21 Jan - 22 Mar - 70,130
Warrant program April 2018 38,00 18 Jan - 20 Oct 21 Jan - 22 Mar - -
Warrant Program October 2020 23,10 20 Oct - 25 Apr 20 Oct - 25 Apr 414,345 414,345
Warrant Program April 2021 21,75 21 Apr - 24 Apr 22 Oct - 24 May 105,500 105,500
Warrant Program April 2022 25,17 22 Apr - 26 Mar 22 Apr - 26 Mar 80,000 -
Warrant Program June 2022 20,04 22 Jun - 25 Mar 22 Jun - 25 Aug 105,000 -
Warrant Program July 2022 16,96 22 Jul - 24 Mar 22 Jul - 25 Mar 75,000 -
Outstanding at 31 December - - - 779,845 592,975
Outstanding warrants have the following characteristics:
Specification of outstanding warrants:
2022 2021
Average remaining life of outstanding warrants at 31 December (years) 3.09 3.9
Exercise price for outstanding warrants at 31 December (DKK) 16.96 to 25.17 20.00 to 25.00
Annual Report 2022
40
Note 8 – Depreciation and amortisation
of intangible and tangible assets
Note 9 – Financial income and expenses
(DKK '000) 2022 2021
Client contracts - 88
Software developed 10,841 10,336
Fixtures and equipment 214 227
Right of use asset 1,047 1,047
Leasehold improvements 130 126
Total depreciation and amortisation of intangible and tangible assets 12,232 11,824
(DKK '000) 2022 2021
Financial income
Other interest income 489 505
Total financial income 489 505
Financial expenses
Interest expense, cash etc. 57 140
Interest expense financial liabilities carried at amortised cost 2,687 2,173
Other interest expense 122 36
Foreign exchange rate adjustments (net) 381 293
Total financial expenses 3,247 2,642
Note 10 – Tax
(DKK '000) 2022 2021
Current income tax (3,240) (2,736)
Adjustment for current tax of prior periods - (3)
Adjustment deferred tax - -
Total (3,240) (2,739)
Unrecognised deferred tax - -
Total (3,240) (2,739)
-
Profit/(loss) before tax (13 ,874) (13,279)
Income tax, tax rate of 22% (3,052) (2,921)
Tax effect from:
Non-deductible expenses 87 107
Income from subsidiaries and joint ventures - -
Adjustment of temporary differences, deferred tax - (797)
Tax losses carried forward - 872
Tax on profit for the year (2,965) (2,739)
Effective tax rate 21% 21%
(DKK '000) 2022 2021
Intangible assets 6,843 6,162
Tangible assets 25 140
Tax losses carried forward (26,787) (26,230)
(19,919) (19,928)
Unrecognised tax asset 19,919 19,928
Total deferred tax - -
Agillic’s tax losses is not expected to be used in the foreseeable future. The tax assets recongnised reflect the share that is
expected to be used as a result of the company’s use og the Danish tax credit scheme. No deferred tax assets have been
recognised in respect of the DKK 19.9 million (2021: DKK 19.9 million) as it is not considered probable that there will be taxable
profits awailable in the foreseeable future. All recognised tax losses may be carried forward indefinitely.
With reference to note 2 on tax credit, Agillic has with consultancy from our advisor maintained the use of the tax credit scheme
and has incorporated a tax credit for 2022 in the amount of DKK 3.2 million.
Warrant program
July 2022
Warrant program
June 2022
Warrant program
April 2022
Warrant program
April 2021
Warrant program
October 2020
Warrant program
April 2018
Warrant program
September 2017
Average share price (DKK) 17. 35 18.20 27. 9 0 24 19.70 34.70 11.28
Expected volatility rate (% p.a.) 42 45 44 40 40 40 40
Risk-free interest rate (% p.a.) 0.65 1.23 (0.25) 0.64 (0.64) (0.23) to (0.40) (0.32) to (0.45)
Expected warrant life (no. years) 2.67 3.17 4 1.5-3.00 4.5 3.00 - 4.00 3.58 - 4.58
Exercise price (DKK) 16.96 20.04 25.17 20.00-25.00 23.10 38.00 2.07
Fair value all warrants, after dilution (DKK '000) 366 552 811 610 2,092 176 2,587
Expected volatility rate is applied based on the annualised volatility on relevant peer groups derived from the standard
deviation of daily observations over 12 months ending 2022.
The fair value of the warrants issued is measured at calculated market price at the grant date based on the Black & Scholes option pricing model. The calculation is based on the following assumptions at the grant date:
Annual Report 2022
41
Note 11 – Notes to cash flow statement
(DKK '000) 2022 2021
Changes in working capital
Changes in trade receivables, other receivables, prepayments etc. 383 (855)
Changes in trade payables, other payables, deferred income etc. 5,719 5,947
Total changes in working capital 5,802 5,092
Borrowings/repayment (-) long-term
Borrowings at 1 January, net 23,553 26,151
Borrowing of loans and debt to credit institutions - -
Repayment of loans and debt to credit institutions (1,869) (2,534)
Amortised borrowing costs (166) (64)
Borrowings/repayment (-) long-term at 31 December 21,518 23,553
Borrowings/repayment (-) short-term
Borrowings at 1 January, net 3,704 2,795
Borrowing of loans and debt to credit institutions - 3,815
Repayment of loans and debt to credit institutions (809) (2,795)
Amortised borrowing costs (100) (111)
Borrowings/repayment (-) short-term at 31 December 2,795 3,704
Note 12 – Intangible assets
(DKK '000)
Patent
Client
contracts
Software
developed Total
2022
Cost beginning of year 500 2,254 57, 8 01 28.938
Additions - - -
Additions from internal development - - 13,511 13.511
Disposals - - - -
Cost end of year 500 2,254 71,312 42.448
Amortisation beginning of year - - 29,363 29.363
Amortisation - - 10,829 10.829
Disposals - - - -
Amortisation end of year - - 40,192 40.192
Carrying amount end of year 500 2,254 31,120 2.257
2021
Cost beginning of year - 2,254 46,907 49,161
Additions 500 - - 500
Additions from internal development - - 10,894 10,894
Disposals - - - -
Cost end of year 500 2,254 57,801 60,055
Amortisation beginning of year - 2,165 19,027 21,192
Amortisation - 89 10,336 10,425
Disposals - - - -
Amortisation end of year - 2,254 29,363 31,617
Carrying amount end of year 500 - 28,438 28,438
Capitalised software development costs relates to development of the existing proprietary marketing automation software platform.
The software is under continuous development for the use of clients and partners and is sold as a license to use the software for a given
period. The user has acces to upgrades and new functionalities during the contract period.
Development costs for the year covers both development of front-end and back-end part of the software solution. Both parts to increase
the user experience and functionalities within the software in order to increase Agillic’s revenue by maintaining existing clients and
acquire new clients.
It is management assessment that the expected useful lives of the finite-lived assets, as well as the expected future revenue streams
from the assets is sufficient to cover the value of recognised developed software at the reporting date.
Agillic expensed DKK 0 million for development projects, primarily planning, administrative and other general overhead expenditures not
meeting the recognition criteria applicable to internally generated intangible assets.
Annual Report 2022
42
Note 13 – Tangible assets
Fixtures and
equipment
Right of
use asset
Leasehold
improvements
Total
2022
Cost beginning of year 1,151 4,186 390 5,727
Additions Merger subsidairy - - - -
Additions - - - -
Disposals - - - -
Cost end of year 1,151 4,186 390 5,727
Depreciation beginning of year 683 1,134 126 1,943
Depreciation 227 1,047 130 1,391
Disposals - - - -
Depreciation end of year 910 2,181 256 3,334
Carrying amount end of year 241 2,005 134 2,393
2021
Cost beginning of year 1,151 4,186 344 5,681
Additions Merger subsidairy - - - -
Additions - - 46 46
Disposals - - - -
Cost end of year 1,151 4,186 390 5,727
Depreciation beginning of year 456 87 - 543
Depreciation 227 1,047 126 1,400
Disposals - - - -
Depreciation end of year 683 1,134 126 1,943
Carrying amount end of year 468 3,052 264 3,784
Agillic implemented the new leasing standard IFRS 16 in 2020
using the modified retrospective transitional method and has
therefore not adjusted comparative figures before 2021, which
are still presented in accordance with the rules in IAS 17 and
IFRIC 4.
This means that a leasing obligation must be recognized
measured at the present value of the future leasing payments,
as described below, and a corresponding leasing asset adjusted
for payments made to the lessor prior to the start of the leasing
agreement, and incentive payments received from the lessor.
Agillic has chosen not to recognize directly related costs to the
leasing asset. In accordance with the transitional provisions in
IFRS 16, Agillic has chosen to implement the standard:
• Not to recognise leasing agreements with a term of less than
12 months or with low value, which means the only recognized
lease is the rent of the new facilities at Masnedøgade 22, 2100
Copenhagen
•
Not to reassess whether an ongoing contract is or contains
a lease
The expected lease period for the rent of the new facilities is
42 months.
In assessing future leasing payments, Agillic has reviewed its
operational leasing agreements and identified those leasing
payments that relate to a leasing component and that are fixed
or variable, but which change in line with fluctuations in an index
or an interest rate.
Agillic has chosen not to recognise payments related to service
components as part of the leasing obligation.
When assessing the expected lease period, Agillic has identified
the non-cancellable lease period in the agreement. The leasing
assets are depreciated on a straight-line basis over the expected
lease period, which is 42 months.
(DKK '000) 31 Dec 2022 31 Dec 2021
Trade receivables
Trade receivables, gross 4,597 4,164
Allowances for doubtful trade receivables:
Balance beginning of year 450 875
Change in allowance during the year - (425)
Realised losses during the year - -
Allowances for doubtful trade receivables year end 450 450
Trade receivables, net 4,425 3,714
Trade receivables (net) can be specified as follows:
Not past due 3,198 1,080
Past due, but not impaired:
Not more than 30 days 1,074 2,292
Between 31 and 60 days - -
Between 61 and 90 days 153 342
More than 90 days - -
Trade receivables, net 4,425 3,714
The carrying amount is equivalent to the fair value of the assets.
Note 14 – Trade receivables
Allowances have been recognised according to the lifetime expected credit loss method as introduced under IFRS 9.
The expected loss on trade receivables is DKK 0.45 million according to IFRS 9.
Annual Report 2022
43
Note 15 – Share capital and Earnings per share
Share capital
As at 31 December 2022, the share capital consisted of 10,260,950 (2021: 10,187,820) shares with a nominal value of
DKK 0.10. The shares are not divided into classes and carry no right to fixed income.
(DKK ‘000) 2022 2021
Issued and fully paid shares:
At 1 January 2022, 10,187,820 shares of DKK 0.10 each 1,019 944
Capital increase, registered 14 January 2021 - 58
Capital increase, registered 30 March 2021 - 17
Capital increase, registered 7 April 2022 7 -
Share capital at 31 December 2021 1,026 1,019
Earnings per share
The calculation of earnings per share is based on the following:
Profit/(loss) for the year (10,634) (10,541)
Weighted average number of shares used for calculation of earnings per share 10,241,515 10,124,074
Average dilutive effect of outstanding share options 627,160 463,972
Weighted average number of shares used for calculation of
diluted earnings per share
1
10,868,675 10,588,046
Earnings per share (EPS) (1,04) (1.04)
Earnings per share, diluted (DEPS) (1,04) (1.04)
Note 16 – Borrowings
The funding package consist of:
Existing credit line is DKK 3.0 million (2021: DKK 3.0 million). At 31 December 2022, the credit line was not utilised. The credit
facility is renegotiated on a yearly basis. The credit line bears an annual variable interest rate subject to DANBOR +3.0%.
Existing loans from Vækstfonden amounts to DKK 31.0 million (2021: DKK 31.0 millon). The loans mature in between 2025-
2026. No covenants apply. The variable interest rate is subject to adjustment quarterly based upon the 3-month CIBOR plus a
premium.
Booked value is assessed to be represented the fair value of borrowings at end year
(DKK '000) 31 Dec 2022 31 Dec 2021
Borrowings are due as follows:
Within 1 year 2,795 4,173
From 1-5 years 21,518 23,084
After 5 years - -
Total borrowings 24,313 27,257
Borrowings are recognised accordingly:
Borrowings, long-term 21,518 23,084
Borrowings, short-term 2,795 4,173
Note 17 – Lease obligations
The average alternative borrowing rate used when discounting future lease payments in connection with measuring the leasing
obligation is set at Agillic’s marginal borrowing rate of 2.63% p.a.
(DKK '000) 31 Dec 2022 31 Dec 2021
Leasing obligations are due as follows:
Within 1 year 1,157 1,080
From 1-5 years 1,100 2,257
After 5 years - -
Total leasing obligations 2,257 3,337
Leasing obligations are recognised accordingly:
Leasing obligations, long-term 1,100 2,257
Leasing obligations, short-term 1,157 1,080
Annual Report 2022
44
Note 20 – Contingent liabilities and commitments
Contingent liabilities
The Executive Leadership assesses that the outcome of pending claims and other disputes will have no material
impact on the Agillic’s financial position.
A mortgage of DKK 18 million is registered as collateral for Agillic’s debt to Vækstfonden of DKK 24.3 million as
per 31 December 2022.
A mortage of DKK 3 million is registered as collateral for Agillic’s credit facility at Danske Bank.
A guarantee of NOK 60,000 has been provided to the Norwegian Tax Authorities.
Note 21 – Related parties
Agillic’s related parties exercising a significant influence comprise Agillic’s Board of Directors and Executive Leadership as well as
relatives of these persons.
Related parties also comprise companies in which the individuals mentioned above have material interests.
Agillic did not enter into any agreements, deals, or other transactions in 2022 in which Agillic’s Board of Directors or Executive Leader-
ship had a financial interest, except for transactions following from the employment relationship. See note 6 Staff costs.
All agreements relating to these transactions are based on market price (arm’s length). Agillic has had the following transactions with
related parties:
There has not been any transactions with related parties. There has been a normal remuneration to one of the Board of Directors. Board
of Management and other Key Management Personnel, there has not been any transactions other than presented in Note 6 Staff costs.
Key Management Personnel consists of parties with significant influence not already disclosed as part of the Board of Directors and the
Board of Management.
Members of the Board of Directors are elected by the shareholders at the Annual General Meeting for terms of one year. Refer to page
26 for additional information on members of the Board of Directors.
Note 19 – Deferred income
Revenue relating to subscriptions is recognised over time although the customer pays up-front in full for these subscriptions. A
contract liability is recognised for revenue at the time of the initial sales transaction and is released over the contract period.
(DKK '000) 31 Dec 2022 31 Dec 2021
Arising from contracts with customers 22,291 19,616
Total deferred income 22,291 19,616
Current 22,291 19,616
Non-current - -
Total deferred income 22,291 19,616
(DKK ‘000) 2022 2021
Shareholder
Transactions
Sale and Purchase of shares - major shareholders - 3,875
Note 18 – Other payables
(DKK '000) 31 Dec 2022 31 Dec 2021
Accrued vacation payables, long-term 2,885 2,885
Accrued vacation payables, short-term 1,620 2,335
Bonus and commission payables 1,665 600
Payroll taxes, VAT etc. 3,272 4,335
Other accrued costs 1,366 709
Total other payables 10,808 10,864
Current 7,923 7,979
Non-current 2,885 2,885
Total other payables 10,808 10,864
Annual Report 2022
45
Due to the nature of its operations, investments, and financing, Agillic is exposed to a number of financial risks. It is Agillic’s policy to
operate with a low risk profile, so that currency risk, interest rate risk and credit risk only occur in commercial relations.
The scope and nature of Agillic’s financial instruments appear from the income statement and statement of financial position in
accordance with the accounting policies applied. Provided below is information about factors that may influence amounts, time of
payment, or reliability of future payments, where such information is not provided directly in the financial statements.
This note addresses only financial risks directly related to Agillic’s financial instruments.
Currency risk
Currency risk is the risk that arises from changes in exchange rates and affects Agillic’s result.
The general objective of Agillic’s currency risk management is to limit and delay any adverse impact of exchange rate fluctuations on
earnings and cash flows and thus increase the predictability of the financial results. Agillic also aim to balance incoming and outgoing
payments in local currency as much as possible as well as monitoring the development in exchange rates and adjust price lists when
required.
The most significant financial risk in Agillic relates to exchange rate fluctuations. The greatest exposure in foreign currency is to NOK and
in 2022 10.5% (2021: 18.0%) of Agillic’s revenue was denominated in NOK. Furthermore, Agillic generally seek to ensure that contracts
with clients are entered into in DKK, NOK or EUR.
Based on the net exposure of Agillic, the hypothetical impact of exchange rate fluctuations on revenue and EBITDA, is as follows:
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities.
Agillic’s interest-bearing borrowings of DKK 24,3 million as per 31 December 2022 is subject to a variable rate of interest based on a
3-month CIBOR plus a premium.
If market interest rates increased by one percentage point, the interest rate sensitivity as calculated based on the loan balance to credit
institutions as per end of 2022, would lead to a yearly increase in interest expenses of DKK 24.3 million (2021: DKK 27.2).
A corresponding decrease in market interest rates would have the opposite impact.
Liquidity risk
Agillic ensures sufficient liquidity resources by liquidity management. In order to limit the company’s counterparty risk, deposits are only
made in well-reputed banks. The cash reserve and expected cash flow for 2023 are considered to be adequate to meet the obligations of
the company as they fall due.
A request from the Danish Tax Authorities, as further described under significant risks in note 2, could result in an outcome which
could potentially impact the company’s liquidity in 2023.
Credit risk
The main credit risk in the company is related to trade receivables. Agillic does not have material risks related to a single client or partner.
Agillic’s business model leads to a very limited credit risk as the majority of the subscription based revenue derived from contracts with
clients are subject upfront annual invoicing and payment.
Agillic has not historically had any siginficant loss on trade receivables and the risk of significant losses on the total receivables as per
31 December 2022 is estimated to be limited.
Also refer to note 14 Trade receivables.
Capital structure
Agillic manages its capital to ensure that the company will be able to continue as going concern while maximising the return to
shareholders through the optimisation of the debt and equity balances. The capital structure of the Agillic consists of net debt and equity.
Board reviews the capital structure continually to consider if the current capital structure is in accordance with Agillic’s and shareholders
interests.
Note 22 – Financial risks
(DKK '000) 31 Dec 2022 31 Dec 2021
Specification of financial assets and liabilities:
Trade receivables 4,425 3,714
Other receivables 118 10
Tax receivables 5,976 2,739
Cash 7, 369 20,623
Total financial assets 17, 885 27,0 86
Debt to credit institutions 24,313 27, 257
Prepayments from clients - 199
Trade payables 8,145 4,848
Other payables 7, 92 3 7, 979
Total financial liabilities 40,381 40,283
Sensitivity to a 10% increase in NOK exchange rate 2022 2021
Revenue 700 764
EBITDA 874 764
Annual Report 2022
46
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the value of
subscriptions at a given date, including transaction-
based use, entered into with Agillic and converted
to a monthly value multiplied by 12.
New subscriptions are included in ARR at the time
of entering into the binding agreement, which would
typically occur at the time of signing the agreement.
For changes to existing subscriptions, ARR is
included at the time that the change enters into
force.
Subscriptions that are terminated or not renewed
are reduced on ARR at the time that the agreement
ceases to exist.
Subscriptions are typically entered into with an
irrevocable period of 12-36 months. Inclusion of
ARR is conducted in the following manner:
For 12 month subscriptions, ARR is included as
1 times the value of the agreement. For 24 month
subscriptions, ARR is included as ½ times the value
of the agreement. For 36 month subscriptions, ARR
is included as ½ times the value of the agreement.
Monthly subscriptions are included in ARR as 12
times the actual monthly value of the subscription
(MRR).
In addition to the value of subscriptions, the clients’
transaction-based subscription use, including e-mail
and SMS transactions, are also included in ARR.
The value of ARR from transaction-based use is
calculated as the latest quarter’s actual transaction-
based use multiplied by 4.
From quarter to quarter, ARR is calculated as the
value from the last day of the most recent quarter’s
ARR adjusted for changes until the last day of the
current quarter.
The following elements are included in the
calculation of the changes in ARR:
+ Additional sales to existing clients (subscription -
-based upgrades/additional services)
+ Agreed upon price adjustments to existing
subscriptions
+ New sales of subscriptions
+ The change (+/-) in transaction use derived from
the subscriptions
- Termination or downgrading of subscription
= Change in ARR
ARR is calculated in Danish Kroner. When entering
into a agreement in a foreign currency, a currency
conversion is conducted at the time of entering into
the agreement.
ARR multiple
Cash adjusted EBITDA
Churn rate (%)
Customer Acquisition
Costs (CAC)
Customer lifetime
Earnings per share (EPS)
Earnings per share,
diluted (DEPS)
EBITDA
EBIT
Gross profit margin (%)
NRR
Number of employees year
end (FTE)
Years to recover CAC
Market cap / ARR.
EBITDA added back for R&D capitalisation plus the change
in deferred revenue
The value of terminated ARR for a 12-month period as a percentage of
total ARR end of reporting period.
The sales and marketing cost (inclusive direct related cost, like travel
costs, personal IT costs, costs of office etc.) of acquiring one new
customer.
Average number of years from customers acquisition to customer churn
calculated as 1 divided by gross value churn rate.
Net profit divided by the weighted average number of shares.
Net profit divided by the weighted average number of shares, inlcuding
the dilutive effect of stock options.
Net profit before interests, tax, depreciation, amortisation and result from
joint ventures.
Earnings before interest and tax.
Gross profit as a percentage of Revenue.
Net retention rate is a key customer success metric. It is an important
metric that indicates the profitability of a SaaS business generated solely
from your existing customers.
Number of full-time equivalent employees (part-time employees
translated into full-time employees) at the end of the year.
Average number of years to recover the costs of acquiring one new
customer (CAC) calculated as CAC divided by Average ARR*Gross profit
margin %.
Definitions of key figures and ratios
Board of Directors
Johnny Henriksen, Chairman
Jesper Lohmann
Mikael Konnerup
Michael Moesgaard
Jan Juul
Thorsten Köhler
Executive Leadership
Emre Gürsoy, CEO
Claus Boysen, CFO
Date of establishment
2 December 1999
Financial year
1 January - 31 December
Auditor
Deloitte Statsautoriseret Revisionspartnerselskab
CVR no. 33963556
Company information
Agillic A/S
Masnedøgade 22, 2
nd
floor
2100 Copenhagen
Denmark
contact@agillic.com
agillic.com
Business Reg. no. 25063864