Siteimprove A/S
Havneholmen 33, 6.
DK-1561 Copenhagen, Denmark
CVR No. 25 53 70 17
Annual Report 2024
The Annual Report was presented and adopted at the Annual General Meeting of
the Company on July 11, 2025
__________________________________
Chairman
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Letter from the CEO
Dear reader,
As we reflect on 2024, I’m struck by how much has changed. The pace of digital transformation
is accelerating. AI is reshaping how we work, and consumer expectations are more dynamic
than ever. In this ever-evolving landscape, where do we stand?
Now in our twenty-second year, Siteimprove continues to build on a legacy that began in 2003:
making the digital world more accessible and inclusive. What started as a mission to improve
digital accessibility has grown into a broader commitment—to empower brands with a unified
platform that delivers compliant performance.
We’ve long recognized that digital challenges are interconnected. You can’t fix broken SEO
without considering content. You can’t improve conversions without addressing accessibility.
That’s why we’re focused on helping our customers optimize their digital presence holistically,
from visibility and experience to compliance and performance.
2024 was a pivotal year laying the foundation for Siteimprove’s strategy in this ever-evolving
technology landscape. In October, we acquired MarketMuse bringing us a complementary
piece—Content Strategy. Our end-to-end platform now completes the content lifecycle.
We continue to reach a new high in customer satisfaction, with our Net Promoter Score (NPS)
holding strong. Forrester again recognized us as a leader in digital accessibility solutions. We
expanded our AI-powered capabilities beyond SEO, making advanced insights more accessible
across our platform. And, most importantly, we deepened our commitment to the people
behind the screen, our customers and their audiences.
Looking ahead to 2025, our mission is clear: together we can transform access for the world.
Thank you to everyone—our team, customers, and partners—who has been part of our journey
so far.
Warm Regards,
Nayaki Nayyar
Siteimprove, CEO
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Executive Board
Board of Directors
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CVR No 33 77 12 31
mne28705
mne16675
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Company Details
Company
Cvr. No.:
CVR No. 25 53 70 17
Fiscal year
January 1 – December 31
Municipality of
registration office
Board of directors:
John Damgaard, Chairman
Morten Ebbesen
Erik Jonas Fredrik Naslund
Philipp Krispin
Nayaki Nayyar
Executive Board:
Nayaki Nayyar, CEO
Auditor
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Management’s Review
Welcome
Siteimprove is a global provider of digital performance technology, amplifying the digital marketing
efforts of leading brands. Siteimprove democratizes access to the web and empowers digital marketers
with insights to increase marketing reach, supercharge performance, and deliver maximum ROI across
digital channels.
Siteimprove’s performance-with-a-purpose optimization allows marketers to spend more time on
efficient, effective content creation that truly impacts revenue and validates our core mission: helping
marketing teams consistently deliver the most accessible, inclusive, relevant, discoverable, and usable
content.
Siteimprove has more than 400 employees across offices in 15 countries, helping customers achieve
their digital potential from a single solution.
Financial review
Income statement
Revenue totaled USD 106.5 million in 2024 compared to USD 103.2 million in 2023, which is an increase
of 3.2%. Revenue increased across all reported markets, with North America continuing to be the most
noteworthy driver of growth measured in absolute numbers.
Revenue growth was realized through the acquisition of new customers as well as an increase in
supplementary sales to existing customers.
EBITDA totaled USD 22.6 million (2023: 2.0 million) corresponding to an EBITDA margin of 21.2% (2023:
2.0%). Increase in EBITDA margin is directly attributed to cost cutting measures employed during 2023.
Net loss: The current loss after taxation of USD 0.2 million (2023: loss of USD 16.6 million) resulted from
our continued investments in the business in accordance with the strategy following Siteimprove’s
change of ownership in 2020. The year-over-year improvement in net loss reflects the cost savings
measures the company has employed during 2023.
Balance sheet
The balance sheet totaled USD 71.2 million as of December 31,
2024 compared to USD 80.5 million as of
December 31, 2023. The decrease of USD 9.3 million was primarily due to reduced receivable balances
based on enhanced collection processes as well as reduced contract assets reflecting changing
commission plans. Total equity as of December 31, 2024 totaled USD -51.8 million, compared to USD -
61.8 million as of December 31, 2023. The decrease in negative equity is mainly due to the equity
investments received from the ultimate parent, and offset by current period net loss.
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Net interest-bearing debt was USD 14.7 million as of December 31, 2024 compared to USD 17.4 million
as of December 31, 2023. Net interest-bearing debt decreased primarily due to impact from effective
cost-control strategies implemented in 2023 and 2024.
Cash Flow
Cash flows from operating activities in 2024 was an inflow of USD 7.5 million compared to an outflow of
USD 8.0 million in 2023. The increase in cash flows from operating activities was driven by cost cutting
measures employed during 2023 and 2024, resulting in improved net loss year over year.
Cash outflow from investing activities totaled USD 7.4 million in 2024 compared to USD 1.5 million in
2023. The increased use of cash is driven by incremental investment in internally developed software.
Cash flows from financing activities in 2024 was a use of cash of USD 2.4 million compared to an inflow
of cash of USD 15.9 million in 2023; the use of cash in 2024 is driven by paying down borrowings on the
revolver, and a smaller cash influx from the Ultimate Parent in 2024 than in 2023.
As a combination of the above, net cash flow for the year 2024 was a use of USD 2.3 million compared
to an inflow of USD 6.4 million in 2023.
2024 results compared to Outlook
In the 2023 financial statement, Siteimprove indicated an expectation of continued growth in total
customer revenue of 4%-8%. During 2024, the Company saw revenue growth of 3%, slightly behind
expectations. Siteimprove also estimated an approximate net loss for 2024 of USD 5 to 15 million; actual
2024 net loss was USD 0.2 million, which exceeds the stated expectations, and is a result of cost-cutting
measures employed during 2023 and 2024.
Outlook for 2025
In 2025, Siteimprove expects to see a continued growth in total customer revenue based on increased
demand for Siteimprove’s platform and enhanced product offerings including the addition of
MarketMuse, acquired by Siteimprove in 2024. Expected revenue growth rate for 2025 is 4%-8%. The
revenue growth is expected as a result of a refreshed vision for growth strategy from the incoming CEO
as well as new product releases launched in 2025.
Estimated net loss for 2025 is expected to range from USD 5 million to USD 10 million, as the business
continues to redeploy cash flow into growth.
USD '000 2024 2023 2022
Cash and cash equivalents 10.2 12.6 6.2
Interest-bearing borrowings -25.0 -30.0 -21.5
NIBD (Net Interest-Bearing Debt) -14.7 -17.4 -15.3
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Diversity
At Siteimprove, we are committed to universal human rights. It is Siteimprove’s policy to not
discriminate, which entails offering equal opportunities for all employees and candidates. Siteimprove
employs more than 45 different nationalities, and the company benefits hugely from the variety of
backgrounds, experiences, and knowledge that our employees bring to the company. Similarly,
Siteimprove benefits from the unique accessibility expertise that our employees with disabilities
provide. While we take great pride in being an inclusive workplace, we know we can do even better.
The Siteimprove Diversity Policy and our goals
Siteimprove’s commitment to offering equal opportunities is stated in our Code of Conduct, as well as in
our Diversity Policy, adopted in 2019 and refreshed in 2023. The Diversity Policy sets out the elements of
Siteimprove’s approach to diversity, including our overall aim and the company’s focus areas. Our
specific goals for gender diversity, approved by the Executive Management Team, are also included in
the policy.
While the policy covers multiple diversity groups, the goals described in the policy are gender specific as
per legal requirements and it being one of our main focus areas currently. The policy states to achieve
this goal, Siteimprove focuses on activities, initiatives, and goals within the following five categories:
attraction, recruitment, retainment/retention, development, and the inclusion of women in top
management.
In addition to the goals stated, we also aim to increase the general diversity of our workforce, including
minorities, people with disabilities, and veterans.
2024 results
Operating in the historically male-dominated IT industry, Siteimprove has a policy that is committed to
working toward increasing the share of the underrepresented gender, women, in the company, and
specifically in executive and managerial positions.
By the end of 2024, our overall gender ratio for the whole company was 38-62 (female-male) which is a
decrease compared to 2023 where the ratio was 41-59.
In our Board of Directors at the end of 2024, we had 1 woman and 5 men. On the Other Management
levels, per the table below, the gender ratio is 43%/57% (female-male) compared to 2023's ratio of
35%/65%. For the Executive Leadership Team (ELT) alone, the gender ratio was 20%/80% in 2024
compared to 14%/86% in 2023. Our goal for Other Management levels is to be more equitable in gender
distribution by 2026 or sooner. Although we have made significant strides, we remain committed to this
goal now and in the future. We continue our endeavors to increase gender diversity at the Other
Management levels of the company by embracing inclusion and the initiatives highlighted in the
following section.
We continue to be committed to achieving a 40-60 gender ratio among management positions across
the Group.
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The table below shows the composition of female-male ratio at Board level and other Management
Levels from the Executive Leadership team to people managers 2 levels below.
2024
Top Level Management: Board of Directors
Women
1
Men
5
Total
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Women as a percent of total population 2024
17%
Other Management Levels: ELT and people managers 2 levels below
Women
27
Men
49
Total
76
Women as a percent of total population 2024
36%
2024 initiatives for Other Management levels
The progress we’ve seen on our gender ratios across all levels of the business can be attributed to
several factors. We continue to utilize our Diversity & Inclusion Toolkit for Managers, which provides all
Siteimprove managers with useful tools for creating and maintaining a diverse and inclusive workplace.
While our diversity and inclusion efforts at Siteimprove focus on increasing the diversity of our
workforce in general, this toolkit was designed with a specific focus in mind: gender diversity. However,
many of the tools are applicable to all employees and are not specific to gender. The toolkit is divided
into 5 topics:
1. Understanding unconscious bias
2. Hiring a diverse team
3. Creating a dialogue about career development
4. Managing employees going on parental leave
5. Creating an inclusive culture
We continue to use our Gender Diversity Data Report, which we created in 2020 and update annually,
where we track gender diversity within our organizational levels as well as within recruitment,
promotions, and employee turnover. This data report helps us keep everyone in the organization
accountable and it enables us to identify areas that need more of our attention.
In 2024, we continued positive strides in recognizing global celebrations where we believe we have
authority to engage, share thought leadership and have real impact. These include Women's History
Month, a global webinar with a fireside chat on Global Accessibility Awareness Day (GAAD), Pride, and
Movember. We have also continued our focus on supporting attracting more women to tech , building
the many ideas from our eye-opening conversation on 'The Evolution of Women in Tech' fireside chat in
2023 in connection with our 20-year celebration.
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Siteimprove continuously looks for valuable partnerships that can help us drive the diversity and
inclusion agenda. We’ve revitalized our Global Volunteering Program which enables Siteimprove
employees to engage with organizations in the spaces of Tech & Education, Climate and Human
Connection through group and individual volunteering opportunities.
In 2025 we have implemented a Women in Leadership mentoring program, our new initiative to invest
in the growth and potential of women at Siteimprove and in the MarTech community.
Corporate Social Responsibility
Sustainability and corporate social responsibility
Since 2010, Siteimprove has remained a proud member of the United Nations Global Compact initiative,
which sets standards and universally accepted principles within human rights, labor rights, environment,
and anti-corruption. Siteimprove continues to follow the requirements of the Global Compact and its 10
principles, which includes reporting on our progress in our Sustainability Report each year.
Since 2018, Siteimprove has committed to the Sustainable Development Goals (SDGs), the 17 global
goals that are part of United Nations’ ambitious 2030 agenda, taking the company’s sustainability efforts
a step further. The overall objective of the SDGs is to leave no one behind and ensure a better and more
sustainable future for all. Siteimprove is a strong supporter of the SDGs and encourages others to take
part and join us on the path toward a sustainable future.
Siteimprove is uniquely positioned to contribute to the SDGs within digital human rights. Our primary
focus is on three specific goals where we can make the biggest impact. The three goals align with
Siteimprove’s core business and areas of expertise, and we view them as great shared value
opportunities.
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Siteimprove’s business model
Siteimprove’s Sustainable Development Goals
Main Contribution
Goal 4: Quality Education
• The Siteimprove’s rebranded education platform, Frontier (formerly known as Academy) has a
long list of accessibility courses, both practical and theoretical. Frontier hosts courses for
customers, partners, and employees.
• Siteimprove educates customers, partners, employees, and more through trainings, events, blog
posts, social media campaigns, and webinars.
Goal 10: Reduced Inequalities
• Siteimprove’s Accessibility product, the free toolkit on the Accessibility World Map website, and
the Siteimprove Accessibility Checker for Google Chrome and other internet browsers enable
organizations to eliminate barriers that prevent people with disabilities or limited internet
access from utilizing their websites.
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• Siteimprove creates awareness and provides education about accessibility and inclusion by
sharing our resources and knowledge through multiple channels.
Goal 17: Partnerships for the goals
• Siteimprove focuses on public and private partnerships through which we can leverage our
expertise and solutions within digital accessibility.
2024 Highlights
Goal 4: Quality Education
We remain deeply committed to ensuring equal access to education and learning resources
through technology. In 2024, Siteimprove continued to expand its footprint across higher education
and K–12 institutions standing at 1,206; helping schools and universities improve digital
accessibility and meet compliance standards.
• Our Siteimprove Accessibility platform remains actively used by educational institutions
seeking to make their digital experiences more inclusive for people with disabilities.
• Through Siteimprove Frontier, we continue to offer a broad curriculum of Accessibility-
focused courses, supporting professionals and educators alike in advancing their
knowledge.
• Learner engagement with accessibility training remains strong, with thousands of course
completions and learning hours recorded in 2024.
Looking ahead to 2025 and 2026, we aim to:
• Expand our education partnerships globally, particularly in underserved regions
• Develop new course modules on inclusive design and assistive technology
• Increase engagement through micro-certifications and institutional integrations
Goal 10: Reduced Inequalities
• Siteimprove continues to democratize access to digital accessibility tools by offering free,
user-friendly solutions that empower individuals, developers, and small organizations.
• In 2024, usage of our Accessibility Checker for Google Chrome and other major browsers
remained high, underscoring the importance of frictionless tools for all users.
• Tools like the Accessibility Statement Generator and Color-Contrast Checker continue to
support accessibility compliance and awareness across a diverse user base.
• We have observed sustained global usage, even as individual tool metrics fluctuate -
demonstrating the continued relevance and value of our offerings.
Looking forward, our focus will be on:
• Enhancing UX and automation within our tools
• Expanding multilingual and regionally tailored versions
• Supporting small businesses and nonprofits through tailored accessibility resources
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Goal 17: Partnerships for the Goals
• Collaboration remains key to scaling our impact. In 2024, we continued to invest in
partnerships that foster inclusive innovation:
• We have built upon the outcomes of the WAI-Tools project, a Horizon 2020 initiative co-
funded by the European Commission, to refine and extend the capabilities of Siteimprove
Accessibility NextGen.
• For the third consecutive year, we proudly co-funded the W3C’s Diversity Fund, enabling
individuals from underrepresented and resource-limited backgrounds to participate in
global standards development forums.
In 2025–2026, we intend to:
• Deepen our engagement with public-sector and civil society stakeholders
• Contribute to cross-border initiatives that shape global accessibility standards
• Extend our funding and mentorship to grassroots accessibility advocates
• At Siteimprove, we are responsible. We are committed to creating tools and partnerships
that make digital access a right, not a privilege
Human Rights
Policies
Siteimprove follows principle 1 and 2 of the Global Compact regarding human rights:
1. Businesses should support and respect the protection of internationally proclaimed human rights.
2. Businesses should make sure that they are not complicit in human rights abuses.
Siteimprove’s commitment to human rights is stated in our Code of Conduct. The section “Contributing
to the Global Community” contains two clauses which all Siteimprove employees must respect and
adhere to:
• We Oppose Exploitive, Inhumane Labor Practices
• We Are Committed to Universal Human Rights
As stated in Siteimprove’s Supplier Code of Conduct, Siteimprove Suppliers must support and respect
the protection of internationally declared human rights. Moreover, Siteimprove’s suppliers shall ensure
that they do not contribute to the violation of human rights.
As a reporting measure, we have a whistleblower policy in place that encourages and enables all our
employees and third parties to report if they witness any violations such as unethical business practices
and serious health and safety concerns. These reports can be made anonymously.
2024 Activities
Siteimprove’s business model poses little risk to universal human rights. The area where we see a
potential risk of violating human rights is in our choice of providers and suppliers. To mitigate this risk,
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Siteimprove seeks to work with business partners that promote and follow set standards within human
rights, including offering equal rights, providing safe and healthy work conditions, respecting lawful
freedoms, and paying a respectable wage. These standards are explained in detail in Siteimprove’s
Supplier Code of Conduct.
As Siteimprove acts as a data processor for our customers and users, we also have a big responsibility to
make sure their personal data remains secure and is used in line with their instructions. Siteimprove
takes data privacy very seriously and strongly believes in the right to own your own personal data, which
is why it’s Siteimprove policy not to sell or otherwise share our clients’ data to third parties, in addition
to complying with data privacy regulations such as the General Data Protection Regulation (GDPR). We
are strongly committed to compliance in both our own internal processing of personal data as well as
customer use of the Siteimprove Intelligence Platform.
Our GDPR compliance efforts have direct executive-team oversight and are implemented by the
Siteimprove Legal, Information Security, and IT departments. We ensure compliance with GDPR by
providing transparency for our customers and users, completing audits, and enhancing security
measures on an ongoing basis. Every year, Siteimprove employees complete a GDPR training course,
obtaining a GDPR certification. The course equips our employees with the necessary knowledge about
what personal data is, how to safeguard it, and how to be GDPR compliant.
Siteimprove’s contribution to human rights is focused on improving digital accessibility across the world
wide web. Our goal is to enable everyone, regardless of disabilities and impairments, to access the
internet on equal terms. We work toward this goal by increasing awareness for digital inclusion and
educating other organizations about how they can become digitally accessible, while also providing the
tools needed to achieve it. As the entire world was working from home during the pandemic, and most
interaction happened through technology, it has never been more important that all online information,
services, and tools are accessible.
While the Siteimprove Accessibility product is our most comprehensive accessibility tool, we have
created a range of other free-to-use accessibility tools. That includes our Accessibility Checker for
Google Chrome, our Accessibility Statement Generator, and our Color-Contrast Checker, all of which are
available on accessibilityworldmap.org. All tools saw an increase in the number of users in 2024 and we
are proud to continue to offer the free toolkit that allows everyone to make a targeted effort to remove
the accessibility barriers that exist on their websites.
For our annual Global Accessibility Awareness Day (GAAD) celebration we organized a substantial list of
local initiatives, including an inspirational speech from Nic Hamilton, the first disabled driver to compete
in the British Touring Car Championship, on what accessibility means to him; two technical accessibility
webinars for digital marketers; a lunch and learn for customers on manual testing; and five external
speaking sessions from our in-house experts, with partners including the University of Chicago. As a
global inclusion advocate, Siteimprove has marked GAAD every year since its inception in 2012.
Internally, our accessibility pledge continues to guide our employees, stressing the importance of
accessibility within the company. The mandatory accessibility awareness training that we introduced in
2019 also continues to be an integral part of our onboarding of new employees. We have even started
developing department-specific accessibility training to onboard new colleagues and help them be
inclusive from day one.
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2024 Results
• The vast majority of Siteimprove’s revenue comes from customers with Siteimprove
Accessibility as part of their Siteimprove suite, which shows how central inclusivity is to
Siteimprove’s business model.
• The Siteimprove Accessibility product is being used by a wide range of organizations to enhance
their digital accessibility and promote inclusivity across digital platforms.
With no exception for the years ahead, for 2025 and beyond, it is our goal to continue running a
business that only has a positive impact on human rights around the world. We will continue our efforts
to promote digital inclusion and act as a best-in-class data processor for our clients.
Labor rights
Policies
Siteimprove follows principles 3, 4, 5, and 6 of the Global Compact regarding labor rights:
3. Businesses should uphold the freedom of association and the effective recognition of the right to
collective bargaining;
4. the elimination of all forms of forced and compulsory labor;
5. the effective abolition of child labor; and
6. the elimination of discrimination in respect of employment and occupation.
Siteimprove’s commitment to proper labor practices and being socially responsible is also described in
the section “Working Together” of our Code of Conduct. The company and all employees are committed
to the following clauses:
• Open and Honest Communication
• People Are Our Greatest Resource
Siteimprove’s Supplier Code of Conduct requires Siteimprove’s suppliers to have proper working
conditions, to ensure that no forced labor or child labor is used in their own operations or by their
partners and suppliers, and to commit to complying with all local laws and regulations.
As Siteimprove strives to create and maintain a safe, mutually respectful working environment free of all
forms of harassment, we have a zero-tolerance policy toward harassment. It is considered a collective
problem and responsibility to intervene, should it take place. A safe and respectful working environment
contributes to employee retention and is a precondition for productive and happy employees.
Siteimprove’s Whistleblower Policy enables employees, and other stakeholders, to make good faith
reports pertaining to serious violations such as suspected fraud, unethical business practices, bribery,
corruption, or other improper or unlawful activity, or serious health and safety concerns within
Siteimprove.
Siteimprove’s Diversity Policy promotes equality and inclusion and describes Siteimprove’s commitment
to offering equal opportunities. Being an Equal Opportunity Employer means that no one will be
discriminated against because of their race, gender, marital status, ideology, veteran status, political
opinions, nationality, religion or any other personal, physical, or social condition. We preach inclusion
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externally in our efforts to make the web better for all, and we find it only natural not to discriminate in
our hiring process or in the way we treat employees. We are very focused on fostering a workplace
culture where everyone is included and treated fairly and equally, and we take pride in being a
workplace for people of all abilities.
2024 Activities
At Siteimprove, our employees are our greatest resource. Without them, there would be no innovative
top-of-the-line software, no happy customers, no Siteimprove. That means one of the biggest risks for
Siteimprove is dissatisfied employees and not doing our due diligence in regard to employee health,
safety, and well-being. This risk is mitigated through a variety of activities and procedures that are in line
with the policies stated above.
To monitor the well-being and satisfaction of employees, Siteimprove runs annual employee
engagement surveys. The results are shared with the Executive Management Team, and each manager
receives the results for their team and develops an action plan together with the team to improve
within selected areas.
To ensure that we maintain a safe and healthy work environment for all employees, Siteimprove has a
work environment organization in place, which consists of employee representatives elected by their
colleagues. The organization arranges, among other things, first aid courses for employees.
It goes without saying that Siteimprove does not use child or any form of forced labor. In the 15
countries in which we have employees, we adhere to all local labor laws.
If employees see any violations of our Code of Conduct, including harassment, discrimination, or unsafe
or unhealthy working conditions, they must reach out to their manager, Human Resources, the Legal
department, or higher levels of management, or make an anonymous report through the process
described in our Whistleblower Policy.
2024 Results
In 2024, our goal was to continue running a business that respects universal labor rights and only do
business with organizations that share that sentiment. Our vendor onboarding program safeguards that
our vendor population adheres to our Supplier Code of Conduct. We continued our efforts to promote
diversity and inclusion and have remained focused on creating a great working environment for our
employees. We continue to strive for gender diversity and have achieved 36% of women in other
management roles across the distribution, and approaching our goal of 40%. Other management roles
are defined as the top 3 levels of management in the operating company and excluding the Board of
Directors and the Executive Leadership Team.
We increased internal communication through quarterly company all-hands meetings and coffee-corner
chats, which has increased well-being for the employee population.
For 2025, it is our goal to continue running a business that respects universal labor rights and only do
business with organizations that share that sentiment. We will continue our efforts to promote diversity
and inclusion and remain focused on creating a great working environment for our employees.
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Environment
Policies
At Siteimprove, we continue to integrate environmental stewardship into every facet of our operations.
Our commitment aligns with the United Nations Global Compact principles 7, 8, and 9, which encourage
businesses to:
7. Support a precautionary approach to environmental challenges
8. Undertake initiatives to promote greater environmental responsibility
9. Encourage the development and diffusion of environmentally friendly technologies
Our internal Environmental Policy builds on these principles and remains central to our sustainability
strategy. It rests on three guiding tenets:
• Exercising caution in relation to environmental risks
• Promoting environmental responsibility across all operations
• Enabling and supporting environmentally friendly innovation
We expect the same from our suppliers. Through our Supplier Code of Conduct, we encourage all
partners to comply with relevant environmental laws and to demonstrate active efforts to reduce their
environmental impact. This includes sustainable sourcing, waste reduction, and energy-conscious
manufacturing practices.
2024 Environmental Highlights and Progress
Optimising Our Energy Footprint
As a technology-driven business, our largest environmental impact continues to stem from energy use
related to data processing. In 2024, we made further progress in reducing this impact:
• We continued to optimize our data infrastructure, becoming less reliant on Interxion and
increasing our use of Amazon Web Services (AWS). This strategic shift strengthens our alignment
with renewable energy ambitions.
• AWS, now our primary cloud infrastructure provider, has maintained its trajectory toward 100%
renewable energy by 2025. As of 2024, many AWS regions have already surpassed 95%
renewable energy usage. This move ensures that our core data operations are becoming more
sustainable and future-fit.
• While we continue to use Interxion Denmark—a facility that runs on 100% renewable power, its
role in our data strategy is now more targeted and less central.
Sustainable Sourcing and Circular Practices
• All hardware used across our global offices continues to be supplied by Atea, an ISO 14001-
certified provider. Atea screens its upstream partners against stringent environmental criteria,
ensuring our IT procurement remains responsible and low-impact.
• In line with circular economy principles:
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o We continue to donate used office equipment through The Waste to Wonder Trust,
supporting education and reuse initiatives globally.
o We refurbished existing furniture where feasible and extended the lifespan of office
materials, reducing the need for new resource consumption.
Environmental Engagement and Community Impact
• To end the year, we continued our commitment to giving back by donating one tree per
Siteimprover via the Arbor Day Foundation, whose focus on community-led reforestation and
climate equity aligns closely with our values.
2025 and Beyond: Our Environmental Roadmap
In 2025, we will build on our momentum by expanding our environmental initiatives and increasing
transparency. Our forward-looking commitments include:
• Publishing expanded environmental metrics, including Scope 3 emissions
• Performing a feasibility of ESG assessments focused on climate risk and energy intensity
• Advancing zero-waste office operations and sustainable design practices
• Exploring partnerships in carbon removal and biodiversity restoration
• Continuing our shift toward cloud-native, energy-efficient digital infrastructure
At Siteimprove, environmental performance is not an annual target it’s an evolving discipline. Our long-
term ambition is to future-proof our operations, reduce systemic risk, and create tangible value for both
our business and the planet.
Anti-corruption
Policies
Siteimprove follows principle 10 of the Global Compact in regard to anti-corruption:
10. Businesses should work against corruption in all its forms, including extortion and bribery.
Siteimprove’s Code of Conduct includes a section called “Building Business Relationships” that states:
“Honest dealing with customers and suppliers is essential to Siteimprove’s relationships. Giving or
receiving any kickbacks, bribes, or similar payments of any sort is prohibited.” The company and all
employees are committed to the following rule:
• We do not give or accept inappropriate gifts.
Employees must contact the Legal Department or Human Resources if they witness any breaches or
suspect violations of the company-wide Code of Conduct or make an anonymous report through the
process described in our Whistleblower Policy.
Siteimprove expects that all Siteimprove suppliers conduct business according to the highest ethical
standards of conduct and in compliance with all applicable laws and regulations, as stated in our
Supplier Code of Conduct.
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2024 Activities
While Siteimprove operates in low-risk countries in terms of corruption, we still take the risk of bribery
and corruption very seriously. The primary risks associated with corruption and bribery exist in our
business relationships with customers and vendors, and to mitigate this risk Siteimprove has
implemented policies and training measures to empower employees to do business free of corruption.
Siteimprove’s Code of Conduct informs employees that they cannot keep gifts from customers,
providers, vendors, or partners, and they are not allowed to offer anything of value to government
employees without explicit approval from the Legal Department. The consequence of violating the Code
of Conduct can be a warning or termination.
All Siteimprove employees undergo training in how to avoid corruption and bribery, which will continue
in the year to come. To further mitigate the risk of unethical business practices, selected Siteimprove
employees undergo anti-trust training.
All Siteimprove suppliers are also required to conduct business according to the highest ethical
standards and all applicable laws and regulations. As stated in our Supplier Code of Conduct,
Siteimprove’s suppliers must not offer, promise, give, accept, or solicit any bribe, gift, loan, fee, or other
advantage to any government official or employee, any customer, any Siteimprove employee, or any
other person to obtain any business or improperly influence any action or decision.
If employees or external stakeholders witness any doubtful or directly illegal business practices, they
must reach out to the Legal department or follow the steps described in our Whistleblower policy,
where they can make an anonymous report.
2024 Results
• Siteimprove had no cases or allegations related to bribery or corruption in 2024.
For 2025, it is our goal to continue running a business free of bribery and corruption.
Data Privacy and Security
At Siteimprove, we believe people have the right to privacy online and that your data is yours.
Siteimprove takes privacy very seriously and has a reputation for safeguarding our customers’ data.
Siteimprove processes data for all our clients through the Siteimprove Intelligence Platform. In addition
to complying with data privacy regulations, it’s Siteimprove policy not to sell or otherwise share our
clients’ data to third parties. Our clients own their data and we ensure that their data is kept safe and
not shared with other entities, commercial or otherwise.
In addition to our own measures, we encourage our suppliers to make data privacy a priority in all their
operations through our Supplier Code of Conduct. Protect your personal data with Siteimprove’s Share
Widget: The Siteimprove Share Widget offers social engagement while protecting personal data. The
Share Widget does not collect data from users or visitors and does not sell visitor data to third parties.
This distinguishes us from other content-sharing widget services that add cookies to collect data to re-
sell to advertisers. In the past, alarms have been raised, particularly in the public sector, that content-
sharing services sell data to or share data with third parties. With our product, customers can safely
implement a share widget that respects privacy.
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GDPR Compliance and Training: Siteimprove is committed to General Data Protection Regulation (GDPR)
compliance in both its own internal processing of personal data as well as customer use of the
Siteimprove Intelligence Platform. These compliance efforts have direct executive-team oversight and
are implemented by the Siteimprove Legal, Information Security, and IT departments.
Siteimprove’s approach to GDPR compliance includes, but is not limited to, the technical and
organizational measures below:
• Transparency in the processing of data and the sub-processors used
• Offering customers a Data Processing Agreement to assist them in meeting their GDPR obligations
• Implementing principles of privacy by default and privacy by design into the development process
• Enhancing our infrastructure to implement encryption of data-at-rest and increased access controls
• Conducting awareness sessions on what personal data is and how it should be treated
• Regularly auditing individual departments to verify adherence to personal data business processes and
identify any new procedures or personal data flows
• Increasing vendor security requirements in both vetting processes and contracts
• Annual ISAE3400 audits performed by external auditor (PwC)
Every year, Siteimprove employees complete a GDPR training course, obtaining a GDPR certification. The
course equips our employees with the necessary knowledge about what personal data is, how to
safeguard it, and how to be GDPR compliant.
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Consolidated Financial Statements
Key Figures and Financial Ratios
USD '000 2024 2023 2022 2021 2020
INCOME STATEMENT
Revenue 106,455 103,188 99,254 97,214 85,350
Gross profit 80,319 73,379 67,882 76,234 69,813
EBITDA* 22,604 2,057 (13,781) 5,067 11,239
EBIT 7,862 (15,574) (31,641) (8,276) (568)
Net financial items (7,310) (1,617) (4,853) (5,393) 557
Income tax credit/(charge) (751) 608 (4,802) (1,025) (949)
Net loss (199) (16,583) (41,296) (14,693) (22,160)
BALANCE SHEET
Total assets 71,184 80,458 78,741 77,421 64,619
Equity (51,843) (61,835) (85,307) (47,315) (37,009)
Investment in property, plant and equipment (2,816) (566) (4,176) (1,237) (754)
CASH FLOW STATEMENT
Cash provided by (used in) operating activities 7,494 (8,021) (15,122) 8,692 8,869
Cash (used in) investing activities (7,392) (1,485) (15,835) (12,394) (10,430)
Cash provided by financing activities (2,385) 15,864 25,863 8,303 4,198
Change in cash and cash equivalents for the year (2,283) 6,358 (5,094) 4,601 2,637
KEY RATIOS
Annual recurring revenue 107,792 102,630 101,717 102,266 93,485
Revenue growth 3.2% 4.0% 2.1% 13.9% 16.7%
Gross margin 75.4% 71.1% 68.4% 78.4% 81.8%
Solvency ratio -72.8% -76.9% -108.3% -61.1% -57.3%
EBITDA margin 21.2% 2.0% -13.9% 5.2% 13.2%
* EBITDA is calculated as EBIT cf. Income Statement adjusted for depreciations, amortizations and impairment.
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Consolidated Income statement 1
st
January – 31
st
December
USD '000 Note 2024 2023
Subscriptions 105,167 101,867
Professional services 1,288 1,322
Revenue 2.1 106,455 103,188
Cost of revenue 2.2 / / 2.5 (26,137 ) (29,809 )
Gross profit 80,319 73,379
Sales & marketing costs 2.2 / / 2.5 (35,848 ) (46,076 )
Research & development costs 2.2 / / 2.4 / 2.5 (19,882 ) (23,558 )
General & administrative costs 2.2 / / 2.5 (16,741 ) (19,254 )
Other income 14 (65 )
Operating loss 7,862 (15,574 )
Financial income 4.4 5,755 6,328
Financial costs 4.4 (13,065 ) (7,944 )
Net loss before tax 552 (17,190 )
Income tax credit/(charges) 2.6 (751 ) 608
Net loss (199 ) (16,583 )
Other comprehensive Income 1
st
January – 31
st
December
Net loss (199 ) (16,583 )
Items that will be reclassified to income statement
Exchange differences on translation of foreign operations 770 (1,119 )
Other comprehensive income (loss) for the period, net of tax 770 (1,119 )
Total comprehensive income (loss) for the period 571 (17,702 )
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Consolidated Balance Sheet at December 31
ASSETS
USD '000 Note 2024 2023
Development projects 9,239 6,455
Development projects in progress 2,021 1,006
Patents 410 522
Goodwill 1,100 -
Total intangible assets 3.1 12,770 7,983
Leasehold improvements 579 615
Other fixtures, furniture and fittings 852 1,541
Right-of-use assets 3,713 11,375
Total property, plant and equipment 3.2 5,144 13,531
Contract assets 3.3 18,707 21,072
Deferred tax assets 2.6 469 291
Other financial fixed assets 4.3 4,490 1,066
Total other non-current assets 23,666 22,429
Total non-current assets 41,580 43,943
Trade receivables 3.4 / 4.2 14,155 18,508
Other receivables 4.2 600 1,207
Income tax receivables 2.6 2,316 1,183
Prepayments 3.5 2,244 3,045
Cash and cash equivalents 4.2 10,289 12,572
Total current assets 29,604 36,515
Total assets 71,184 80,458
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Consolidated Balance Sheet at December 31
EQUITY AND LIABILITIES
USD '000 Note 2024 2023
Share capital 4.5 96 96
Reserve for currency translation 4,383 3,613
Retained earnings (56,322 ) (65,544 )
Total equity (51,843 ) (61,835 )
Deferred tax liabilities 2.6 153 2,166
Other provisions 3.6 2,784 2,931
Lease liabilities 4.2 5,751 10,542
Borrowings 4.1 / 4.2 - 30,000
Total non-current liabilities 8,688 45,639
Trade payables 4.2 1,960 4,285
Income tax liabilities 2.6 1,141 1,651
Other liabilities 4.2 8,380 13,669
Liabilities to parent companies 4.2 / 5.3 12,844 12,508
Lease liabilities 4.2 2,633 2,216
Contract liabilities 3.7 62,381 62,325
Borrowings, current portion 4.1 / 4.2 25,000 -
Total current liabilities 114,339 96,654
Total liabilities 123,027 142,293
Total equity and liabilities 71,184 80,458
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Consolidated Statement of Changes in Equity
Share capital
Reserve for
currency
translation
Retained
earnings
Total
2024
Equity at January 1, 2024 96 3,613 (65,544 ) (61,835 )
COMPREHENSIVE INCOME
Income/loss after tax (199 ) (199 )
OTHER COMPREHENSIVE INCOME
Exchange rate adjustments 770 770
Total other comprehensive income - 770 - 770
TRANSACTIONS WITH SHAREHOLDERS
Cash contribution from parent 5,000 5,000
Share based payments (1,309 ) (1,309 )
Acquisition of subsidiary 5,730 5,730
Total transactions with shareholders - - 9,421 9,421
Equity at December 31,2024 96 4,383 (56,322 ) (51,843 )
Share capital
Reserve for
currency
translation
Retained
earnings
Total
2023
Equity at January 1, 2023 96 4,732 (90,135 ) (85,307 )
COMPREHENSIVE INCOME
Income/loss after tax (16,583 ) (16,583 )
OTHER COMPREHENSIVE INCOME
Exchange rate adjustments (1,119 ) (1,119 )
Total other comprehensive income - (1,119 ) - (1,119 )
TRANSACTIONS WITH SHAREHOLDERS
Cash capital increase - 10,000 10,000
Conversion of loan to equity 30,000 30,000
Share based payments 1,173 1,173
Total transactions with shareholders - - 41,173 41,173
Equity at December 31,2023 96 3,613 (65,544 ) (61,835 )
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Consolidated Cash Flow Statement 1
st
January – 31
st
December
USD '000 Note 2024 2023
Cash flows from operating activities
Net loss (199 ) (16,583 )
Non-cash items 5.1 19,758 19,580
Changes in net working capital 4.6 (1,664 ) (1,285 )
Payments for contract assets 3.3 (5,191 ) (8,609 )
Changes in contract liabilities 56 3,722
Financial income 4.4 197 (997 )
Financial costs 4.4 (3,860 ) (3,677 )
Income tax reimbursements/(payments) (1,603 ) (172 )
Cash provided by (used in) operating activities 7,494 (8,021 )
Cash flows from investing activities
Payments for intangible assets 3.1 (4,947 ) (1,877 )
Payments for property, plant and equipment 3.2 (2,816 ) (566 )
Payments for other financial fixed assets 4.3 - (34 )
Proceeds from other financial fixed assets 4.3 371 992
Cash (used in) investing activities (7,392 ) (1,485 )
Cash flows from financing activities
Cash capital increase 4.5 5,000 10,000
Proceeds from borrowings (5,000 ) 8,443
Principal elements of lease payments (2,385 ) (2,579 )
Cash (used in) provided by financing activities (2,385 ) 15,864
Net change in cash and cash equivalents (2,283 ) 6,358
Cash and cash equivalents at January 1 12,572 6,214
Cash and cash equivalents at December 31 10,289 12,572
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Consolidated Notes Overview
BASIS OF PREPARATION
1.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.2 OTHER ACCOUNTING POLICIES
1.3 OTHER GENERAL ACCOUNTING POLICIES
RESULTS FOR THE YEAR
2.1 REVENUE
2.2 STAFF COSTS
2.3 SHARE-BASED PAYMENTS
2.4 RESEARCH & DEVELOPMENT COSTS
2.5 DEPRECIATIONS, AMORTIZATIONS AND INPAIRMENT
2.6 INCOME TAXES AND DEFERRED TAXES
OPERATING ASSETS AND LIABILITIES
3.1 INTANGIBLE ASSETS
3.2 PROPERTY, PLANT & EQUIPMENT
3.3 CONTRACT ASSETS
3.4 TRADE RECEIVABLES
3.5 PREPAYMENTS
3.6 OTHER PROVISIONS
3.7 CONTRACT LIABILITIES
CAPITAL STRUCTURE AND FINANCING ITEMS
4.1 FINANCIAL INSTITUTIONS
4.2 FINANCIAL RISKS AND INSTRUMENTS
4.3 OTHER FINANCIAL FIXED ASSETS
4.4 FINANCIAL INCOME & FINANCIAL COSTS
4.5 SHARE CAPITAL
4.6 CHANGES IN NET WORKING CAPITAL (CASH FLOW STATEMENT)
OTHER DISCLOSURES
5.1 CASH FLOW ADJUSTMENTS
5.2 CONTINGENT ASSETS, LIABILITIES AND OTHER FINANCIAL OBLIGATIONS
5.3 RELATED PARTY TRANSACTIONS
5.4 OWNERSHIP AND CONSOLIDATED FINANCIAL STATEMENTS
5.5 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
5.6 FEE TO STATUTORY AUDITOR
5.7 ENTITIES IN THE SITEIMPROVE GROUP
5.8 ACQUISITION OF SUBSIDIARY
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Notes
1.1 Summary of significant accounting policies
The Consolidated Financial Statements of the Siteimprove Group have been prepared in accordance with the
International Financial Reporting Standards (IFRS), as adopted by the European Union (EU) and further
requirements in the Danish Financial Statements Act.
Recognition and Measurement
The Consolidated Financial Statements have been prepared under the historical cost basis except when IFRS
explicitly requires the use of fair value. The principal accounting policies set out below have been applied
consistently in the preparation of the Consolidated Financial Statements for all the years presented.
The Consolidated Financial Statements are presented in USD thousands.
Principal accounting policies
The Group’s accounting policies are described in relation to the individual notes to the Consolidated Financial
Statements. Considering all the accounting policies applied in the preparation of the Consolidated Financial
Statements, Management regards the following as the most significant accounting policies for the recognition and
measurement of reported amounts as well as relevant to an understanding of the Consolidated Financial
Statements:
• Revenue (note 2.1)
• Research & development costs including intangible assets (notes 2.4 and 3.1)
• Income taxes and deferred taxes (note 2.6)
• Trade receivables (note 3.4)
• Contract liabilities (note 3.7)
• Right-of-use assets and lease liabilities (notes 3.2 and 4.2)
Critical accounting estimates and judgments
In preparing the Group’s Consolidated Financial Statements, Management makes various accounting estimates,
judgments and assumptions which form the basis of presentation, recognition and measurement of the Group’s
assets and liabilities. Accounting estimates and underlying assumptions are reviewed on an ongoing basis. In some
circumstances a change in the estimates may be necessary because of changes in the underlying assumptions.
Estimation uncertainty
Determining the carrying amount of some assets and liabilities requires estimates and assumptions concerning
future events.
The judgments, estimates, and assumptions made are based on historical experience and other factors which
Management assesses to be reliable, but which by their very nature are associated with uncertainty and
unpredictability. These assumptions may prove incomplete or incorrect, and unexpected events or circumstances
may arise.
Management regards the following areas to include the key accounting estimates and assumptions used in the
preparation of the Consolidated Financial Statements:
• Income taxes and deferred taxes (note 2.6)
• Intangible assets (note 3.1)
• Contract assets (note 3.3)
• Trade receivables (note 3.4)
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Please refer to the specific notes for further information on the key accounting estimates and assumptions applied.
Defining materiality
The Consolidated Financial Statements are a result of processing large numbers of transactions and aggregating
those transactions into classes according to their nature or function. When aggregated, the transactions are
presented in classes of similar items in the Consolidated Financial Statements.
If a line item is not individually material, it is aggregated with other items of a similar nature in the Consolidated
Financial Statements or in the notes. There are substantial disclosure requirements throughout IFRS. Management
provides specific disclosures required by IFRS unless the information is considered immaterial to the economic
decision-making of the users of these financial statements or not applicable.
1.2 Other accounting policies
New or amended IFRS that have come into effect in 2024
The following amendments came into effective for financial years beginning on or after 1 January 2024:
● IAS 1, Presentation of Financial Statements: Clarify that the definition of current liabilities must be based
on the rights existing on the balance sheet date. The requirement for an unconditional right to postpone
payment for 12 months from the balance sheet date is therefore changed to a right to defer payment for
12 months from the balance sheet date. This pronouncement has been adopted for the fiscal year
beginning January 1, 2024.
● IAS 7 Cash Flow Statement and IFRS 7 Financial Instruments: Disclosures: The amendment introduces
disclosure requirements for supplier finance arrangements (reverse factoring), regarding terms and
conditions in the arrangements, including payment terms for both the liabilities comprised by the
agreements and similar for those not covered by the arrangements. Significant variances must be
explained. The amendment also requires disclosure of recognised values at both the beginning and the
end of the year for the liabilities comprised by the arrangements. As the Group does not have any
supplier financed arrangements, this pronouncement is not relevant to the Group and has not been
implemented.
● IFRS 16, Leasing: The amendment to IFRS 16 clarifies that the leased share in a sale and leaseback
transaction should be measured in such a way that no gain or loss arises from recognition of the lease
asset. Furthermore, it is clarified that the lease liability should be measured to reflect the present value of
the expected future lease payments. The illustrative examples in IFRS 16 have been updated to reflect
these changes. Early adoption of the amendment is permitted. If the amendment is applied for an earlier
period, this fact shall be disclosed. As the Group does not have any sales-leaseback arrangements, this
pronouncement is not relevant to the Group and has not been implemented.
New or amended IFRS that have been issued but have not yet come into effect and have not been early adopted
The following new standards, amendments, and interpretations of relevance to the Group have been adopted by
the IASB and adopted by the EU. The standards are not yet effective and will therefore not be implemented in the
Annual Reports until they take effect.
33
● IAS 21, Foreign exchange rates: The amendment clarifies the procedures relating to the assessment of
whether a currency is exchangeable into another currency, and when it is not, how to determine the
exchange rate to use and which disclosures to provide.
The amendment will be effective for financial years beginning on or after 1 January 2025. Early adoption
of the amendment is permitted.
The IASB has issued the following new standards, amendments and new interpretations which could be relevant to
Siteimprove, but which have not yet been adopted by the EU:
● IFRS 7 and IFRS 9, Classification and measurement of financial instruments: The amendment clarifies the
requirements for the timing of derecognition of some financial asset and financial liability. The
amendment clarifies it is the date of settlement which determines the derecognition of a financial asset or
a financial liability, although financial liabilities settled by electronic transfer under certain circumstance
may be derecognized earlier. Furthermore, the amendment contains an assessment of how to determine
whether a payment for financial assets satisfies the SPPI test, when the instrument is linked to the
achievement of sustainability targets.
The amendment will be effective for financial years beginning on or after 1 January 2026. Early adoption
of the amendment is permitted, when approved by the EU.
● Annual improvements volume 11, IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7: Minor amendments and
clarifications to IFRS 1 and IFRS 7, and guidance to implementation of IFRS 7, IFRS 9, IFRS 10 and IAS 7 to
clarify wording or correct minor unintended consequences, oversights or conflicts between the listed
standards.
The amendment will be effective for financial years beginning on or after 1 January 2026. Early adoption
of the amendment is permitted, when approved by the EU.
● IFRS 7 and IFRS 9, Contracts referencing nature-dependent electricity: The amendments introduce
application guidance on when the ‘own use’ requirements have been complied for contracts referring to
nature-dependent electricity. The amendments also introduce guidance for the application of hedge
accounting for such contracts when the actual production differs from the expected production. The
amendments also introduce additional disclosure requirements for entities using such contracts.
The amendment will be effective for financial years beginning on or after 1 January 2026. Early adoption
of the amendment is permitted, when approved by the EU.
● IFRS 18, Presentation and Disclosure in Financial Statements: This new standard replaces IAS 1 and it
implements a set of new requirements for presentation and disclosures in the financial statements. The
new standard requires the income statement to be structured into five categories, while also introducing
two new subtotals. Furthermore, the new term “Management Performance Measures (MPM)” is
introduced, which must be disclosed in the notes of the financial statements. The new requirements for
presentation and disclosures are applicable for all financial statements, including consolidated financial
statements, separate financial statements and interim financial statements.
34
The amendment will be effective for financial years beginning on or after 1 January 2027. Early adoption
of the amendment is permitted, when approved by the EU.
● IFRS 19, Subsidiaries without Public Accountability: Disclosures: This new standard is voluntary and allows
subsidiaries which form part of a group and do not have listed instruments, in certain circumstances, to
prepare their financial statements with a reduced number of disclosures. The subsidiaries will apply the
recognition, measurement, and presentation requirements from the other active IFRS accounting
standards, but must apply the reduced disclosure requirement as listed in IFRS 19. IFRS 19 is a voluntary
standard for eligible subsidiaries.
The amendment will be effective for financial years beginning on or after 1 January 2027. Early adoption
of the amendment is permitted, when approved by the EU.
To the extent that these pronouncements are relevant to the Group’s activities, the Group expects to implement
these new standards, amendments, and interpretations when they take effect. The Group does not expect material
financial statement impacts at the time of implementation.
1.3 Other general accounting policies
Basis of consolidation
The Consolidated Financial Statements comprise the Parent Company, Siteimprove A/S, and subsidiaries in which
the Parent Company directly or indirectly holds more than 50% of the votes or in which the Parent Company,
through share ownership or otherwise, exercises control. Enterprises in which the Group holds between 20% and
50% of the votes and exercises significant influence but not control are classified as associates.
On consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and
expenses, shareholdings, dividends and accounts as well as of realized and unrealized profits and losses on
transactions between the consolidated enterprises.
The Parent Company’s investments in the consolidated subsidiaries are set off against the Parent Company’s share
of the net asset value of subsidiaries stated at the time of consolidation.
Business Combinations
Newly acquired or newly established subsidiaries are recognized from the time control is established over the
acquired enterprise (acquisition date). The purchase method is applied to acquisition of subsidiaries.
The cost of acquisitions is calculated as the fair value of the acquired assets and liabilities and shares issued. The
cost incorporates the fair value of any contingent considerations (earn-outs). Expenses in connection with the
acquisition are charged to the income statement in the period in which they are incurred.
Identifiable assets, liabilities, and contingent liabilities (net assets) relating to the acquired enterprise are
recognized at fair value on the acquisition date.
In connection with each acquisition, goodwill and non-controlling interests are recognized in accordance with one
of the following methods:
- Goodwill related to the acquired enterprise is made up of any positive difference between the total fair value of
the acquired enterprise and the fair value of the total net assets for accounting purposes. Non-controlling interests
are recognized at the share of the acquired enterprise’s total fair value (full goodwill).
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- Goodwill related to the acquired enterprise is made up of any positive difference between the purchase price and
the fair value of the Group’s share of the acquired enterprise’s total net assets for accounting purposes at the
acquisition date. Non-controlling interests are recognized at the proportionate share of the acquired net assets
(proportionate goodwill).
Goodwill is recognized under intangible assets. Goodwill is not amortized but is assessed on an annual basis, or
where there are indications of a decrease in value, to determine whether it has been subject to a decrease in
value. If this is the case, it is written down to the asset’s lower recoverable value.
Enterprises that are sold or wound up are recognized until the date of disposal. Any gain or loss relative to the
carrying amount at the disposal date is taken to income at the time of sale where control of the subsidiary is also
being relinquished.
The difference between cost and carrying amount of acquired non-controlling interest is recognized in the equity.
Profit or loss on sale of non-controlling interests is also recognized in equity.
Translation policies
Functional and presentation currency
Items are measured using the currency of the primary economic environment in which the entity operates
(functional currency). Given that most of the Group’s transactions are in USD the Consolidated Financial
Statements are presented in USD.
Translation of transactions and balances
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange
differences arising due to differences between the transaction date rates and the rates at the dates of payment are
recognized in financial income and expenses in the income statement. Where foreign exchange transactions are
considered hedging of future cash flows, the value adjustments are recognized directly in equity.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance
sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange
rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognized in
financial income and costs in the income statement.
Translation of Group companies
Income statements of foreign subsidiaries are translated at transaction date rates or approximated average
exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange
adjustments arising on the translation of the opening equity and exchange adjustments arising from the
translation of the income statements at the exchange rates at the balance sheet date are recognized directly in
equity.
Cost of revenue
Cost of revenue includes hosting, compensation and benefits, commissions and bonuses, share-based
compensation costs, depreciation and amortization, as well as allocated overhead costs for cost of revenue
departments, such as Customer Success and Technical Support.
Sales & marketing costs
Sales & marketing costs include costs associated with sales, marketing, and product marketing personnel and
consist of compensation and benefits, commissions and bonuses, share-based compensation costs, depreciation
and amortization, allocated overhead costs, and promotional and advertising expenses, travel, and entertainment
expenses related to these personnel.
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Research & development costs
Research & development expenses include personnel-related costs for the Group’s development team, including
compensation and benefits, bonuses, stock-based compensation expenses and allocated overhead costs. Research
and development expenses also include contractor or professional services fees, third-party cloud infrastructure
expenses incurred in developing the Group’s solution and software services dedicated for use by the Company’s
research and development organization.
General & administrative costs
General & administrative costs include costs for executive, finance, human resources, information technology,
legal and administrative support functions. This includes compensation and benefits, share-based compensation,
professional services, depreciations and amortizations and allocated overhead costs.
Other income
Other income and other costs comprise items of a secondary nature to the main activities of the Group.
Government grants are recognized in the income statement on a straight-line basis and is presented as other
income. Government grants not fully recognized in the income statement are presented as part of other liabilities.
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Equity
Proposed dividend is recognized as a liability at the time of approval by the general meeting. Dividend which is
expected to be distributed for the year is disclosed in the statement of changes in Group equity.
The reserve for currency translation in the Consolidated Financial Statements comprises foreign exchange
differences arising from translation of financial statements of foreign enterprises from their functional currencies
to the presentation currency of the Group (USD). On full or partial disposal of the net investment, the foreign
exchange adjustments are recognized in the income statement.
Cash flow statement
The cash flow statement shows the Group’s cash flows for the year broken down by operating, investing and
financing activities, changes for the year in cash and cash equivalents, and the Group’s cash and cash equivalents
at the beginning and end of the year.
Cash flows from operating activities are calculated as the income/loss after tax adjusted for changes in working
capital and non-cash operating items such as depreciation, amortization and impairment losses, and provisions.
Working capital includes current assets less short-term debt excluding items included in cash and cash equivalents
or financing activities.
Cash flows from investing activities includes cash flows from internally-developed software, purchase and
disposals of intangible assets, property, plant and equipment as well as fixed asset investments.
Cash flows from financing activities includes cash flows from the raising and repayment of long-term debt as well
as payments to and from shareholders.
Cash and cash equivalents are comprised of “Cash and cash equivalents”.
The cash flow statement cannot be immediately derived from the published financial statements.
Consolidated five-year summary
The key figures and financial ratios have been prepared on a consolidated basis. Except for ‘Annual recurring
revenue’, the Key Ratios have been prepared in accordance with the recommendations and guidelines issued by
the Danish Society of Financial Analysis.
• Annual recurring revenue: Equals the annual contract value of all customers at the balance sheet end date
• Revenue growth: (Change in revenue compared to previous period / Revenue previous period)
• Gross margin: (Gross profit / Revenue)
• Solvency ratio: (Equity at year end / Total assets at year-end)
• EBITDA margin: (EBITDA / Revenue)
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2.1 REVENUE
ACCOUNTING POLICIES
Revenue is mainly derived from subscription fees charged for the Siteimprove Intelligence
Platform, support fees and professional services. 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 recognized when the client has obtained control of the subscription or service and
has the ability to use and obtain substantially all the benefits from the subscription or service.
For multi-element contracts, the basis for revenue recognition is an assessment of the
standalone selling prices for the identified performance obligations, including rebates,
discounts, allowances, and inherent interest.
No element of financing is deemed present as the sales are generally made with a credit term of
30 days, which is consistent with market practice.
SUBSCRIPTION FEES
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. Clients obtain control of the
subscription in a cloud-based infrastructure.
The main possible performance obligation related to subscription agreements has been
identified as the right to use the software. The right to use software subscription is considered a
separate performance obligation when it satisfies the following conditions: it can be delivered
separately from other services, can be accessed by a third party, and is functional with access to
technical support.
Siteimprove has assessed that the client obtains control of the subscription when all of the
following criteria are met: a binding contract is entered into; the subscription period is initiated;
and the client has the right to use it. Subscription revenue is therefore recognized over the
course of the subscription period. The consideration attributable to subscription-based
agreements are discounted to net present value when the value of the financing element is
deemed significant.
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2.1 REVENUE (continued)
ACCOUNTING POLICIES (CONTINUED)
Professional services fees and technical support
Professional services agreements can include multiple performance obligations including
technical support. The main possible performance obligations are implementation services
related to the implementation of new and existing contracts irrespective of the terms of the
contract. Time and material implementation contracts are recognized based on work
performed. Fixed fee agreements are recognized based on percentage of completion.
40
2.1 REVENUE (continued)
The Group derives the following types of revenue:
USD '000
2024 2023
Subscriptions 105,167 101,867
Professional services 1,288 1,322
Total revenue 106,455 103,188
In the table below, sales to external customers are attributable to the country of the customers’
domicile as follows:
USD '000
2024 2023
Revenue
North America 73,780 69,658
Europe 29,556 30,454
Asia Pacific 3,119 3,076
Total revenue 106,455 103,188
2.2 STAFF COSTS
ACCOUNTING POLICIES
Staff costs comprise wages and salaries as well as other payroll related expenses. Staff costs are
included in sales & marketing costs, research & development costs, and general &
administrative costs.
41
2.2 STAFF COSTS, continued
USD '000 2024 2023
Wages and salaries 58,085 66,411
Pensions (defined contribution plans) 2,518 2,984
Social security costs 6,257 7,199
Share-based payments (1,293) 1,153
Total 65,567 77,747
(7,582) (3,966)
(5,062) (9,229)
52,923 64,552
Average number of employees 429 507
USD '000 2024 2023
Cost of revenue 15,046 15,834
Sales & marketing costs 19,193 23,125
Research & development costs 9,342 10,885
General & admin costs 9,343 14,707
Total 52,923 64,552
Staff costs included in development projects
Commissions included in contract assets
Staff costs expensed to the income statement
Total staff costs have been recognized in the income statement as follows:
Remuneration to key management can be specified as follows:
USD '000 2024 2023
Salary and bonus 1,862 2,956
Pension 42 97
Share-based compensation (1,293) 1,153
Total 611 4,206
Remuneration to the Executive Board & Board of Directors
USD '000 2024 2023
Executive Board
Salary and bonus 1,348 1,425
Pension - -
Share-based compensation (1,270) 392
Total
78 1,817
Board of Directors
Salary and bonus 419 343
Pension - -
Share-based compensation 161 -
Total
580 343
42
2.3 SHARE-BASED PAYMENTS
Accounting policies
The value of services received in exchange for equity-settled share-based payment
arrangements is measured at fair value at the grant date and recognized in the income
statement as a staff cost over the vesting period with a corresponding entry in equity.
On initial recognition, an estimate is made of the grant date fair value of the awards,
incorporating market and non-vesting conditions, and the number of awards expected to vest,
incorporating service and non-market performance conditions. Subsequently, the cumulative
amount recognized as a cost over the service period is adjusted to reflect updated expectations
of the number of awards for which the service and non-market performance conditions shall be
met.
For cash-settled share-based payment arrangements, the awards are measured at the fair value
as at the reporting date and recognized in the income statement as a staff cost over the vesting
period with the balancing entry being recognized as a liability.
The liability is remeasured at each reporting date and at the settlement date based on the fair
value of the share-based payment arrangement. Any changes in the liability are recognized in
profit or loss.
In a group share-based payment arrangement, where the award is granted by a parent to the
employees of a subsidiary, the cost of the award is recorded as an expense on the books of the
subsidiary to whom the recipient of the award renders the service, while the parent instead
recognizes an increase in its investment in subsidiary in its separate financial statements. The
subsidiary accounts for this amount as a capital contribution from the parent.
Siteimprove allocates the share-based payment staff cost by function, amongst cost of revenue,
sales & marketing costs, research & development costs, and general & administrative costs
based on the department of the employee to whom the award is granted.
At 31 December 2024, the Siteimprove Holding A/S Group, Siteimprove A/S Group, Siteimprove
Holding A/S (the Ultimate Parent) and Siteimprove A/S had the following share-based payment
arrangements.
Management Incentive Program (equity-settled)
Awards granted in prior years
In December 2021, equity share awards were granted to the CEO which give the award-holder a
right to a specific number of shares subject to vesting conditions. The equity awards are Class B
shares in a vehicle, which is a company that solely holds shares of Siteimprove Holding A/S, and
whose existence is to provide these grants. The shares in the vehicle are subject to a waterfall
structure, whereby the Class B shareholders only receive a return once a specified level of
return has been received by the entity. The Class B awards granted from this vehicle are valued
based on the value of the shares the vehicle holds in Siteimprove Holding A/S and this waterfall
structure.
43
2.3 SHARE-BASED PAYMENTS (continued)
The granted shares were split between a time-vesting condition and a performance-vesting
condition.
However, any recipient that leaves prior to the date a listing or divestment is achieved forfeits
all unvested awards, and vested awards are subject to repurchase at the Group’s discretion,
unless the employee leaves employment as a result of death or permanent disability. As such,
this exit condition extends the implicit service condition to the listing/divestment date.
According to the performance-vesting condition, shares vest upon a listing or divestment and
the number of share awards vesting depends on the achievement of targets in respect of
Multiple on Invested Capital (“MOIC”). In addition, the award-holder must remain employed by
the Group until the vesting date.
The payout to the Management Incentive Plan participants is computed on a waterfall schedule,
that allows for the original investors to retrieve their original investment, with amounts in
excess of that investment, and to a maximum of amount of participation, then accruing to the
Management Incentive Plan participants. Any amounts in excess of the amount paid to the
participants then reverts to the original investors.
Awards granted in the current financial year
In 2024, an additional 18,027,478 awards were granted to management-level employees under
the Management Incentive Program with 6,300,000 of these awards granted to the CEO and
11,727,478 granted to other management personnel. These awards also have both time-based
and performance-based vesting conditions, with performance-based awards vesting upon an
exit event, based on target MOIC.
Shadow Incentive Program (cash-settled)
Awards granted in prior years
In December 2021, Siteimprove A/S granted equity share awards to the CEO which follows the
same terms and conditions as the Management Incentive Program but is predetermined to be
settled in cash by Siteimprove A/S and requires a listing or divestment to vest. If such an event is
not achieved within 6 years from the grant date, the Shadow Incentive Program Unit expires
unsettled. The grant comprised of 274,950 shadow awards.
Awards granted in the current financial year
In 2024, an additional 700,000 awards were granted to the CEO under the Shadow Incentive
Program, with the same terms and conditions as prior awards except for differences in the time-
based vesting condition and the performance-based vesting condition based on a target MOIC.
44
2.3 SHARE-BASED PAYMENTS (continued)
Global Equity Program (equity-settled)
Awards granted in prior years
In December 2022, Siteimprove Holding A/S (the Ultimate Parent) initiated the Global Equity
Program, in which it grants restricted stock unit ("RSU") awards to selected employees which
give the recipient a right to a specific number of shares subject to vesting conditions. No
exercise price is attached to acquisition of the shares.
All awards may be settled, at the Board of Directors' discretion, wholly or partly, in cash equal to
the market value of the shares. The program is classified as equity-settled as it is Management's
stated intention to settle all awards in shares; however, Management has the option to settle in
cash if desired.
The key terms and conditions related to vesting of the grant under this program are as follows:
the granted shares are split between a time-vesting condition and a performance-vesting
condition. The majority of grants comprise 40% time-vesting awards and 60% performance-
vesting awards.
However, as with the Incentive Programs, no awards are converted to shares upon
achievement of time vesting; no shares are issued until such date as a listing or divestment is
achieved. Furthermore, any employee that leaves prior to the date a listing or divestment is
achieved forfeits all awards – both vested and unvested – unless they qualify or are designated
at Siteimprove’s discretion. Qualification is only applicable to employees that leave employment
as a result of death, permanent disability, or termination without cause. As such, this exit
condition extends the implicit service condition to the listing/divestment date.
Performance vesting awards also vest upon a listing or divestment. The number of awards
vesting depends on the achieved quotient of investor returns divided by investor investments.
Units granted under this program were predominantly 50% Preferred A shares and 50%
Ordinary B shares; all shares, regardless of class, are subject to the vesting outlined above.
Awards granted in the current financial year
In 2024, 4,402,307 new awards were granted under the Global Equity Program, with 1,479,000
granted under the same terms as previous grants, and 2,923,307 granted with slightly amended
terms, including a new performance target and a modified split between ordinary and preferred
shares.
45
2.3 SHARE-BASED PAYMENTS (continued)
Measurement of fair values
Equity-settled share-based payment arrangements
The fair value of granted equity-settled share-based payment awards is measured using the fair
market value at date of grant, based on a third-party valuation. This calculation incorporates
assumptions including the risk-free rate, volatility, expected time to vesting and an illiquidity
premium. The valuation is prepared on the assumption that all performance-based thresholds
are met (these are treated as market conditions), and a dividend yield of 0%. The grant date fair
value of the awards granted under the Management Incentive Program also incorporates the
subordination of the class of shares granted via the waterfall structure that governs the
allocation of returns between the vehicle’s classes of shares.
Grant date fair values were as follows:
Management Incentive Program
Global Equity Program
Date of grant
2021
Oct 2024
Dec 2024
2022-Q1
2023
Q2-Q4 2023
2024
Fair market
value (USD)
0.00
0.04
0.03
0.64
0.185
0.18
As at 31 December 2024, the total carrying amount of the amount recognized in equity arising
from the equity-settled share-based payment programs amounted to USD 690 thousand (2023:
USD 1,966 thousand).
Cash-settled share-based payment arrangements
The liability associated with the Shadow Incentive Program is measured using the fair market
value, as determined by a third-party valuation report, at the report date to reflect the actual
liability payable at that date and according to awards vested. The fair value of the liability also
incorporates the subordination of the class of shares granted via the waterfall structure that
governs the allocation of returns between the vehicle’s classes of shares. As at 31 December
2024, a fair value of 0.04 USD per award was used to measure the liability, based on the same
valuation as used for the equity-settled grants awarded in 2024.
As at 31 December 2024, the total carrying amount of the liability arising from the Shadow
Incentive Program amounted to USD 6 thousand (2023: USD 23 thousand).
Expense recognized in Income Statement
The total income recognized in 2024 from share-based payment transactions in the income
statement amounted to USD 1,293 thousand (2023: expense of USD 1,153 thousand), of which
USD 1,275 thousand (2023: expense of USD 1,202 thousand) arose from equity-settled share-
based payment transactions. The income recognized in 2024 from share-based payment
transactions is affected by USD 1,276 thousand in prior years being revised due to a change in
management assessment of grant date fair value. Management has assessed the adjustment to
prior years as not material and have included the consequences in the 2024 income statement
without restatement of prior years.
46
2.3 SHARE-BASED PAYMENTS (continued)
Reconciliation of outstanding equity-settled awards
The number of share awards under the management incentive program and global equity
program were as follows:
Executive
Board
Other
Management
Personnel
Other Employees Total
Weighted average
grant date fair value
per award
Grant date fair
value total
Outstanding at 1 January 2023 2,474,550 - 5,533,000 8,007,550 0.44* 3,513*
Granted in 2023 - - 1,112,000 1,112,000 0.39 438
Forfeited in 2023 - - (2,654,000) (2,654,000) 0.64 (1,685)
Outstanding at 31 December 2023
2,474,550 - 3,991,000 6,465,550 0.35* 2,267*
Granted in 2024 6,300,000 11,727,478 4,402,307 22,429,785 0.06 1,428
Forfeited in 2024 - - (1,319,000) (1,319,000) 0.46 (611)
Outstanding at 31 December 2024
8,774,550 11,727,478 7,074,307 27,576,335 0.11 3,084
*Amended to reflect a grant date fair value of USD 0 per share.
47
2.4 RESEARCH & DEVELOPMENT COSTS
ACCOUNTING POLICIES
Siteimprove's research & development costs focus on the development of the Siteimprove
platform.
Research & development costs include costs associated with the development of new products,
enhancements of existing products for which technological feasibility has not been achieved and
quality assurance activities. This includes compensation and benefits, share-based
compensation costs, consulting costs, depreciation and amortization costs, the cost of software
development equipment, and allocated overhead.
Research & development costs that are not eligible for capitalization have been expensed in the
period and they are recognized in research & development costs in the income statement.
USD '000 2024 2023
This years incurred research & development costs 22,369 21,580
Amortization of intangible assets 4,231 5,613
Depreciation of property, plant & equipment 444 (34)
Depreciation of right-of-use assets 420 364
Development costs capitalized in development projects (7,582) (3,966)
Total research & development costs 19,882 23,558
48
2.5 DEPRECIATION, AMORTIZATION AND IMPAIRMENT
USD '000 2024 2023
Amortizations and impairment of intangible assets 12,279 12,684
Depreciations and impairment on property, plant & equipment 816 1,584
Depreciations and impairment on right-of-use assets 1,665 3,464
Total
14,761 17,632
Amortizations, impairment and (gains)/losses on intangible assets and contract assets have been
recognized in the income statement as follows:
2024 2023
Cost of revenue - -
Sales & marketing costs 7,106 7,070
Research & development costs 4,231 5,613
General & admin costs - 0
Total 11,337 12,684
Depreciations, impairment and (gains)/losses on property, plant & equipment have been
recognized in the income statement as follows:
2024 2023
Cost of revenue 992 1,866
Sales & marketing costs 857 2,020
Research & development costs 864 330
General & admin costs 712 732
Total 3,424 4,948
No impairment on intangible assets, contract assets, and property, plant & equipment has been
recognized.
49
2.6 INCOME TAXES AND DEFERRED TAXES
ACCOUNTING POLICIES
Income taxes
The tax expense for the period comprises current and deferred tax including adjustments to
previous years. Tax is recognized in the income statement, except to the extent that it relates to
items recognized in other comprehensive income. Any changes in deferred tax due to changes in
tax rates are recognized in the income statement or in other comprehensive income depending
on the original recognition. Income tax credit / (charges) in the income statement reflects tax
refunds from prior years and also includes interest income earned on those refunds.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognized in the balance sheet at the amount
calculated on the basis of the expected taxable income for the year and prior year adjustments.
Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an
intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognized in respect of all temporary differences between the carrying amount
and the tax base of assets and liabilities. Deferred tax is measured on the basis of the tax rules
and tax rates that will be effective under the legislation at the balance sheet date when the
deferred tax is expected to materialize as current tax. In cases where the computation of the tax
base may be made according to alternative tax rules, deferred tax is measured on the basis of
the intended use of the asset and settlement of the liability, respectively. Deferred tax assets,
including the tax base of tax loss carry-forwards, are measured at the value at which the asset is
expected to be realized, either by elimination in tax on future earnings or by set-off against
deferred tax liabilities.
KEY ACCOUNTING ESTIMATES
The Group is subject to income taxes around the world. Significant judgment and estimates are
required in determining the worldwide accrual for income taxes, deferred income tax assets and
liabilities, and provision for uncertain tax positions.
The Group has a deferred tax asset of USD 0.5 million (2023: USD 0.3 million).
The Group recognizes only deferred income tax assets if it is probable that sufficient taxable
income will be available in the future against which the temporary differences and unused tax
losses can be utilized. Management has considered future taxable income and used judgment in
assessing whether deferred income tax assets should be recognized.
50
2.6 INCOME TAXES AND DEFERRED TAXES (continued)
USD '000 2024 2023
INCOME TAXES
Current income tax (256) 165
Deferred income tax 162 143
Adjustments concerning previous years (657) 300
Total (751) 608
Deferred tax on other comprehensive income - -
INCOME TAX RECONCILIATION
Breakdown of tax charge on profit for the year:
Net profit/(loss) before tax from continuing operations 552 (17,190)
Tax calculated using the Danish corporation tax rate (22%) (121) 3,782
Tax effect of:
Other tax percentages in foreign jurisdictions (1) 38
Non-deductable costs 43 (1)
Non-taxable income - -
Prior-year adjustments 657 -
Unrecognized tax asset 474 -
Others, including adjustment of prior years (1,802) (3,211)
Tax charge in the income statement (751) 608
51
2.6 INCOME TAXES AND DEFERRED TAXES (continued)
USD '000 2024 2023
DEFERRED INCOME TAXES
Deferred income tax at January 1 (1,875) (2,449)
Exchange rate adjustments (178) 431
PTR 88
Movement for the year (680) 143
Goodwill 2,961
Deferred income tax at December 31 316 (1,875)
Recognized in the balance sheet as follows:
Deferred tax assets 469 291
Deferred tax liabilities (153) (2,166)
Deferred tax, net 316 (1,875)
DEFERRED TAX BREAKDOWN
Property, plant & equipment (1,095) 918
Intangible assets 1,806 (1,606)
Receivables 339 27
Other assets (2,773) (2,565)
Other liabilities (618) 690
Tax losses to be carried forward 2,603 291
Other 54 370
Total 316 (1,875)
Siteimprove performs an assessment to reduce deferred tax assets to reflect the net amount
that is more likely than not to be realized. Realization of the deferred tax assets is dependent
upon the generation of future taxable income, the amount and timing of which are uncertain.
The assessment takes into account both positive and negative evidence when determining
whether it is more likely than not that deferred tax assets are recoverable; such assessment is
required on a jurisdiction-by-jurisdiction basis. The key assumptions are ARR growth and
stability in churn-rate, historically ARR has grown and churn has been stable.
At December 31, 2024, the Group has no unrecognized tax liabilities.
At December 31, 2024, the Group has a total of USD 34.7 million as unrecognized deferred tax
assets (2023: USD 35.5 million). There is no expiry date on the deferred tax assets.
52
3.1 INTANGIBLE ASSETS
ACCOUNTING POLICIES
Development projects
Costs of development projects comprise salaries and other expenses directly or indirectly
attributable to the Group’s development activities. The costs for development projects are all
internally generated.
Development projects that are clearly defined and identifiable, in respect of which technical
feasibility, sufficient resources and a potential future market or development opportunity in the
enterprise can be demonstrated, and where it is the intention to market or use the project, are
recognized as intangible assets. This applies if sufficient certainty exists that the value in use of
future earnings can cover cost of sales activities and administrative expenses involved as well as
the development costs. Development projects that do not meet the criteria for recognition in
the balance sheet are recognized as expenses in the income statement as incurred.
Capitalized development costs are measured at cost less accumulated amortization and
impairment losses or a lower recoverable amount.
Amortizations and impairment losses are recognized in the consolidated income statement as
elaborated in note 2.5.
Development costs that do not meet the criteria above are recognized as an expense in the
income statement as incurred. Development costs previously recognized as an expense are not
recognized as an asset in a subsequent period.
As of the date of completion, capitalized development costs are amortized between 3-5 years
based on the expected economic benefit from the development work.
53
3.1 INTANGIBLE ASSETS (continued)
ACCOUNTING POLICIES
KEY ACCOUNTING ESTIMATES
The carrying amounts of development projects, development projects in progress and patents
are reviewed on an annual basis to assess whether there is any indication of impairment other
than that expressed by amortization. Annually, an impairment test is carried out to assess
whether the recoverable amount is lower than the carrying amount, and the asset is written
down to its lower recoverable amount. Development projects, development projects in progress
and goodwill are tested for impairment annually and whenever there is an indication of
impairment.
The impairment test includes significant judgments, such as assumption of projected future cash
flows used in the valuation of the intangible assets. Future events could cause Management to
conclude that impairment indicators exist and that intangible assets are impaired. Any resulting
impairment loss could have a material impact on the financial condition and result of
operations.
When carrying out the impairment test for development projects and development projects in
progress, the Group is seen as one cash generating unit according to the internal segment
reporting. The carrying value of the cash generating unit is compared to the value in use. If the
carrying values are higher, the difference is charged to the income statement.
The values in use are calculated using a valuation model based on discounted expected future
cash flows (DCF-model covering a 10-year budget period) based on Management’s projections.
The terminal growth is based on adjusted historical development taking into account the
general level of inflation. Discount rates are based on the risk-free rate adjusted for the inherent
risk and industry comparisons for each individual cash generating unit.
The discount rates are based on the risk inherent in the related activity’s current
business model and industry comparisons.
54
3.1 INTANGIBLE ASSETS (continued)
2024
2023 `
USD '000
Development
projects
Development
projects in
progress
Patents Total
Accumulated cost at January 1, 2023 20,724 673 553 21,951
Exchange rate adjustments 758 - 20 778
Additions 2,461 54 2,515
Additions (internally generated) - 3,966 3,966
Disposals (4,193) - - (4,193)
Transfers 3,633 (3,633) - -
Accumulated cost at December 31, 2023 23,384 1,006 627 25,017
Accumulated amortizations and impairment at
January 1, 2023
(14,239) - (16) (14,255)
Exchange rate adjustments (1,355) - (3) (1,358)
Amortizations (5,527) - (86) (5,613)
Impairment - - - -
Disposals 4,193 - - 4,193
Accumulated amortizations and impairment at
December 31, 2023
(16,928) - (106) (17,034)
Carrying amount at December 31, 2023 6,455 1,006 522 7,983
USD '000
Development
projects
Development
projects in
progress
Patents Goodwill Total
Accumulated cost at January 1, 2024 23,383 1,006 628 - 25,017
Exchange rate adjustments (1,520) - (35) - (1,555)
Additions 1,698 - - 1,101 2,799
Additions (internally generated) - 7,582 7,582
Disposals - - - - -
Transfers 6,567 (6,567) - - -
Accumulated cost at December 31, 2024 30,128 2,021 593 1,101 33,843
Accumulated amortizations and impairment at
January 1, 2024
(16,928) - (106) - (17,034)
Exchange rate adjustments 183 - 9 - 192
Amortizations (4,144) - (86) - (4,231)
Impairment - - - - -
Disposals - - - - -
Accumulated amortizations and impairment at
December 31, 2024
(20,890) - (183) - (21,073)
Carrying amount at December 31, 2024 9,239 2,021 410 1,101 12,771
55
3.1 INTANGIBLE ASSETS (continued)
Development projects relates to the continuous development of new tools and features for the
Group’s software platform. The projects are expected to be finalized over the course of 2024,
whereafter the marketing of the new software services can begin.
The developed tools and features relate to Quality Assurance, Accessibility, Analytics, SEO, Ads,
Performance, Policy Management, CMS plugins, Response and Data Privacy. As of December 31,
2024 the carrying amount of development projects primarily relates to Quality Assurance,
Accessibility, Analytics, CMS plugins and Performance.
The projects are progressing as planned and it is expected that the software will be sold in
current and new markets. The continued product development of the platform is expected to
result in a considerable competitive advantage and, hence, a significant further increase in the
level of activity and results of operations.
In October 2024, Siteimprove, Inc., a US subsidiary of the Group, acquired 100% of the issued
shares of MarketMuse, Inc, a US company incorporated in Delaware, and its 100% owned
subsidiary, Laboratoire MarketMuse Canada, located in Canada. MarketMuse is a company
providing advanced technology in the SEO and Digital Experience space, complementing the
Siteimprove product suite.
As a result of the acquisition, the Group recognized $1.7 million in Development Projects and
$1.1 million in additional Goodwill. Please see note 5.8 Acquisition of Subsidiary for further
information.
56
3.2 PROPERTY, PLANT AND EQUIPMENT
ACCOUNTING POLICIES
Leasehold improvements, other fixtures, furniture and fittings are measured at cost less
accumulated depreciation and less any accumulated impairment losses.
Costs include the cost of acquisition and expenses directly related to the acquisition up until the
time when the asset is ready for use.
Depreciation is based on cost reduced by any residual value and is calculated on a straight-line
basis over the expected useful lives of the assets, which are:
Leasehold improvements 3-8 years
Other fixtures furniture and fittings 3-5 years
Assessment of residual value and useful life is performed annually for assets under property,
plant and equipment.
Gains and losses arising from disposal of property, plant & equipment are calculated as the
difference between the sales price less sales costs and the carrying amount at the time of sale.
Gains and losses are recognized in the income statement.
The carrying amounts of property, plant and equipment are reviewed on an annual basis to
determine whether there is any indication of impairment other than that expressed by
depreciation. If so, an impairment test is carried out to determine whether the recoverable
amount is lower than the carrying amount and the asset is written down to its lower
recoverable amount.
Depreciations and impairment losses are recognized in the consolidated income statement as
elaborated in note 2.5.
Right-of-use assets
For contracts which are, or contain, a lease, Siteimprove recognizes a right-of-use asset and a
lease liability. The right-of-use asset is initially measured at cost, being the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date.
The right-of-use asset is subsequently depreciated using the straight-line method over the lease
term. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments outstanding at
the commencement date, discounted using Siteimprove’s incremental borrowing rate.
57
3.2 PROPERTY, PLANT AND EQUIPMENT (continued)
ACCOUNTING POLICIES, continued
The lease liability is measured using the effective interest method. It is remeasured when there
is a change in future lease payments, typically due to a change in index or rate (e.g. inflation) on
property leases, or if there is a reassessment of whether an extension or termination option will
be exercised. A corresponding adjustment is made to the right-of-use asset, or in the income
statement when the right-of-use asset has been fully depreciated.
The right-of-use asset is presented in Property, Plant and Equipment and the lease liabilities are
presented in non-current liabilities or current liabilities.
Lease contracts that have a lease term of 12 months or less and low value assets are not
recognized on the balance sheet. These lease payments are expensed on a straight-line basis
over the lease term.
If circumstances or changes in Siteimprove’s operations indicate that the carrying amount of
non-current assets in a cash-generating unit may not be recoverable, management reviews the
asset for impairment.
The basis for the review is the recoverable amount of the assets, determined as the greater of
the fair value less cost to sell or its value in use. Value in use is calculated as the net present
value of future cash inflow generated from the asset. If the carrying amount of an asset is
greater than the recoverable amount, the asset is written down to the recoverable amount. An
impairment loss is recognized in the income statement when the impairment is identified.
58
3.2 PROPERTY, PLANT AND EQUIPMENT, continued
2024
USD '000
2023
USD '000
Leasehold
improvements
Other fixtures,
furniture and
fittings
Right-of-use
assets
Total
Accumulated cost at January 1, 2023 2,225 8,111 20,791 31,127
Exchange rate adjustments 101 121 447 669
Additions - - 4,495 4,495
Disposals (356) (3,456) (7,766) (11,578)
Accumulated cost at December 31, 2023 1,970 4,776 17,967 24,713
Accumulated depreciations and impairment at January 1, 2023 (1,106) (4,439) (10,517) (16,062)
Exchange rate adjustments (47) (83) 453 323
Depreciations (202) (452) (4,294) (4,948)
Disposals - 1,737 7,767 9,504
Accumulated depreciations and impairment at December 31, 2023 (1,355) (3,237) (6,591) (11,183)
Carrying amount at December 31, 2023 615 1,541 11,375 13,531
Leasehold
improvements
Other fixtures,
furniture and
fittings
Right-of-use
assets
Total
Accumulated cost at January 1, 2024 1,970 4,776 17,967 24,713
Exchange rate adjustments (33) (161) (175) (369)
Additions - - (1,979) (1,979)
Disposals (795) (2,892) (7,407) (11,094)
Accumulated cost at December 31, 2024 1,142 1,723 8,406 11,272
Accumulated depreciations and impairment at January 1, 2024 (1,355) (3,237) (6,591) (11,183)
Exchange rate adjustments 29 136 890 1,055
Depreciations (261) (603) (2,560) (3,424)
Disposals 1,024 2,831 3,570 7,426
Accumulated depreciations and impairment at December 31, 2024 (563) (873) (4,691) (6,127)
Carrying amount at December 31, 2024 579 852 3,713 5,144
59
3.2 PROPERTY, PLANT AND EQUIPMENT (continued)
The carrying amount of right-of-use assets as of December 31st can be specified into below
categories:
USD '000 2024 2023
Buildings 3,713 11,361
Others - 14
Total 3,713 11,375
Besides what is shown in notes 2.5 and 4.4, the Consolidated Income Statement shows the
following amounts relating to leases:
USD '000 2024 2023
Expense relating to short-term leases included under:
Cost of revenue 3 19
Sales & marketing costs 4 23
Research & development costs 3 16
General & administrative costs 57 312
Total 68 370
Total cash outflow for leases 2,930 3,584
60
3.3 CONTRACT ASSETS
ACCOUNTING POLICIES
Contract assets stem from subscription agreements with payments in the future. Contract assets
consist of sales commissions directly associated with obtaining a contract with a new client and
deemed realizable through the future revenue streams under the contract.
Contract assets are recognized at cost, as part of sales & marketing costs, when control over
goods or services is transferred to a client. Subsequently contract assets are measured at cost
less accumulated amortization and any accumulated impairment losses.
Contract assets are amortized on a straight-line basis, based on the expected lifetime (historical
churn rate) of the contract, but not exceeding 5 years. Amortizations, impairment and
(gains)/losses on contract assets are recognized in the income statement under 'Sales &
Marketing costs'.
Contract assets are within the scope of impairment requirements in IFRS 9. For contract assets
the simplified approach is used, and the expected loss provision is measured at the estimate of
the lifetime expected credit losses.
KEY ACCOUNTING ESTIMATES
The expected lifetime of contract assets is based upon assumptions on churn rates. When
evaluating the expected churn rates for contracts, historical performance on specific markets
and verticals is considered in the estimation process. The analysis is furthermore based upon
current economic trends in the specific market and vertical.
USD '000 2024 2023
Accumulated cost at January 1 60,414 51,050
Exchange rate adjustments (1,255) 754
Additions 5,191 8,609
Disposals (27,431) -
Accumulated cost at December 31 36,919 60,414
Accumulated amortizations and impairment at January 1 (39,342) (31,995)
Exchange rate adjustments 804 (276)
Amortizations (7,106) (7,070)
Impairment - -
Disposals 27,432 -
Accumulated amortizations and impairment at December 31 (18,212) (39,342)
Carrying amount at December 31 18,707 21,072
61
3.4 TRADE RECEIVABLES
ACCOUNTING POLICIES
Trade receivables are measured in the balance sheet at the lower of amortized cost and net
realizable value, which corresponds to nominal value less provisions for bad debts.
Provisions for bad debts are determined by using the simplified expected credit loss model
(ECL). The ECLs on trade receivables are estimated by using a matrix by reference to geography,
past default experience, analysis of the debtor’s current financial position, adjusted for factors
that are specific to the debtors, general economic conditions in which the debtors operate and
an assessment of the forecast direction of developments at the reporting date.
62
3.4 TRADE RECEIVABLES (continued)
KEY ACCOUNTING ESTIMATES
Management makes allowance for doubtful trade receivables in anticipation of estimated losses
resulting from customers not being able to make required payments. When evaluating the
adequacy of the allowance for doubtful trade receivables, Management analyzes trade
receivables and examines historical bad debt, customer creditworthiness and payment history,
current economic trends and changes in customer payment terms.
USD '000 2024 2023
Trade receivables (gross) 14,340 19,389
Allowance for doubtful trade receivables (185) (881)
Total 14,155 18,508
Age analysis of trade receivables:
- Not yet due 10,670 11,754
- Overdue by up to 30 days 2,756 4,378
- Overdue by up to 31 days and 60 days 336 964
- Overdue by between 61 days and 90 days 143 439
- Overdue by more than 90 days 249 973
Trade receivables with credit risk exposure 14,155 18,508
Movement in allowance for doubtful trade receivables
Balance at January 1 (881) (675)
Reversal of allowance on realized losses - -
Provision made during the year 712 (189)
Exchange rate adjustments (17) (17)
Balance at December 31 (185) (881)
Allowance for doubtful trade receivables split by age analysis:
- Not yet due - -
- Overdue by up to 30 days (10) (9)
- Overdue by up to 31 days and 60 days (7) (9)
- Overdue by between 61 days and 90 days (5) (2)
- Overdue by more than 90 days (164) (861)
Balance at December 31 (185) (881)
63
3.5 PREPAYMENTS
ACCOUNTING POLICIES
Prepayments are measured at cost and comprise prepaid costs concerning rent, licenses,
insurance premiums, and subscriptions, etc.
3.6 OTHER PROVISIONS
ACCOUNTING POLICIES
Provisions are recognized when – in consequence of an event occurring before or on the
balance sheet date – the Group has a legal or constructive obligation and it is probable that
economic benefits must be given up to settle the obligation.
Provisions are measured at the present value of the anticipated expenditure for settlement of
the legal or constructive obligation based on Management’s best estimate.
Other provisions cover obligation to re-establish the Group’s leased premises and long-term
vacation accruals.
USD '000 2024 2023
Balance at January 1 2,931 3,595
Exchange rate adjustments (18) (20)
Additions (129) (644)
Balance at December 31 2,784 2,931
64
3.7 CONTRACT LIABILITIES
ACCOUNTING POLICIES
Contract liabilities represent prepayments from clients for unsatisfied or partially satisfied
performance obligations in relation to subscriptions, services and technical support.
Management expects that the majority of the transaction price allocated to the unsatisfied
contracts at December 31, 2024 will be recognized as revenue during 2025. The remaining
amounts will be recognized in the 2026-2027 financial years.
USD '000 2024 2023
Balance at January 1 62,325 58,604
Exchange rate adjustments (364) (440)
Revenue recognized in the period (106,455) (103,188)
Total bookings 106,875 107,349
Balance at December 31 62,381 62,325
65
4.1 FINANCIAL INSTITUTIONS
ACCOUNTING POLICIES
Borrowings are recognized initially at fair value. Borrowings are subsequently measured at
amortized cost. Borrowing costs are expensed in the income statement in the period they are
incurred.
USD '000 2024 2023
Current liabilities 25,000 -
Non-current liabilities - 30,000
Total 25,000 30,000
The Group has entered into a borrowing agreement with Financial Institutions under which USD
35 million was provided as a revolving credit facility bearing interest of Compounded SOFR and a
fixed element of 4%.
The undrawn amount of the credit facility at December 31, 2024 was USD 10 million (2023: USD
5 million).
In March 2025, this facility was renegotiated with the lender. The facility terms remained
unchanged, but the due date for this facility was extended to November 3, 2027.
Under IAS 1, Presentation of Financial Statements, effective for the fiscal year beginning January
1, 2024, the Group must disclose the balance on the revolver as a current liability, as the
revolver was renegotiated in March 2025, subsequent to year-end, to extend the term of the
facility. The actual due date of the amount outstanding on the facility is November 3, 2027.
4.2 FINANCIAL RISKS AND INSTRUMENTS
ACCOUNTING POLICIES
The Group manages financial risks based on directions from the Board of Directors.
As a general direction, the Group does not engage in financial transactions or manage risk
exposures that are not related to the underlying business-driven risks. This means that the
Group does not enter into any speculative transactions.
The Group’s financial risks must be managed with the aim of protecting the value and financial
stability of the Group, taking into consideration the cost and accounting consequences of such
transactions.
The risk management activities of the Group are managed centrally by Group Finance and
primarily involve the following different financial risks.
66
4.2 FINANCIAL RISKS AND INSTRUMENTS (continued)
Foreign Exchange Risk
The Group's reporting currency is USD, while the most significant currencies for revenue and
cost are the USD, DKK and EUR. Fluctuating currency rates influence the reported net
income/loss, assets and liabilities, as well as the value of future cash flows. A significant part of
the Group's operations are in DKK and EUR, where translation risk is present.
The Group does not hedge its exposure to foreign currency fluctuations. A hedging strategy
might not be possible to execute as hedging instruments may not be available for all currencies,
or may not always offset losses resulting from currency exchange rate fluctuations. Moreover,
the use of hedging instruments can itself result in losses if the Group is unable to structure
effective hedges with such instruments.
A 5% increase/decrease in the USD rate versus local currencies would impact EBIT
positively/negatively by USD 2.3 million (2023: USD 0.8 million).
Interest Rate Risk
The Group's total borrowings amounts to USD 37.8 million as of December 31, 2024 (2023: USD
42.5 million).
The Group's borrowings are subject to interest of Compounded SOFR and a fixed element of 4%.
Fluctuating interest rates influence the Group’s income statement, balance sheet and the
present value of future cash flows resulting from changes in interest rates.
The objective of actively managing the Group’s interest rate exposure is to maintain the interest
rate risk at a known and acceptable level and to minimize the Group’s cost of borrowing
requirements.
The Group does not hedge against the interest rate risk as it is assessed to be insignificant,
although the development in interest rates are closely monitored in order to react in a timely
fashion and taking required measures.
A 1% increase/decrease in the interest rate would impact net financial items
positively/negatively by USD 0.4 million (2023: USD 0.4 million).
Credit Risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Group is exposed to credit risks
from its operating activities (primarily trade receivables), including deposits with banks and
other financial instruments.
67
4.2 FINANCIAL RISKS AND INSTRUMENTS (continued)
Operational Credit Risk
The Group’s balance sheet at December 31, 2024 included trade receivables with a net book
value of USD 14.2 million (2023: USD 18.5 million).
The allowance for doubtful trade receivables is estimated by analyzing trade receivables and
examining historical bad debt, customer creditworthiness and payment history, current
economic trends and changes in customer payment terms. Refer to note 3.4.
If the Group is unable to collect receivables from customers, the Group could incur write-offs for
bad debt, which could have a material adverse effect on the Group’s results of operations for
the periods in which the write-offs occur. In the future, bad debt may exceed reserves for such
contingencies and its bad debt exposure may increase over time. An increase in write-offs for
bad debt could have a materially negative effect on the Group’s business, financial condition
and operating results.
The Group’s revenue primarily comprises the sale of subscriptions to the Group’s Intelligence
Platform to different companies and institutions within the private and public sector. The Group
has historically experienced limited risk with regard to the solvency of its customers and
therefore limited losses. As part of the Group’s internal procedures regarding risk management,
the operational credit risk relating to customers is monitored on a monthly basis. The Group has
no significant concentration of credit exposure as the exposure has been spread among
different sectors.
In addition, total other receivables including deposits totals USD 5.1 million (2023: USD 2.3
million). Management deems no significant risk in relation to these amounts. For further details
please refer to note 4.3.
Financial Credit Risk
Financial credit risk management has the objective of minimizing financial loss through a
financial distress or the default of a financial counterparty whether due to the financial
insolvency of the counterparty, the inability of the counterparty to perform due to changed
national legislation or any other circumstance.
The Group’s exposure to counterparty risk is managed by establishing approved counterparty
limits detailing the maximum exposure that the Group is prepared to accept with respect to the
individual counterparty.
Financial credit risk from balances with banks and financial institutions is managed by
Management on a regular basis. Based on external credit ratings, no material risk has been
identified in respect to the Group’s cash balances.
LIQUIDITY RISK
The Group ensures the availability of the required liquidity through a combination of cash
management and committed credit facilities. To centralize and optimize liquidity the Group
utilizes cash pooling in addition to intercompany lending and borrowing.
68
4.2 FINANCIAL RISKS AND INSTRUMENTS (continued)
The Group has entered into a borrowing agreement with Financial Institutions under which USD
35 million was provided as a revolving credit facility bearing interest of Compounded SOFR and a
fixed element of 4%.
Under the terms of the borrowing facility, the Group is required to comply with several
covenants. The Group has complied with these covenants throughout the reporting period.
To reduce refinancing risk the Group ensures that maturity dates for committed credit facilities
are diversified.
In May 2024, the Company has received a $5 million shareholder contribution from the Ultimate
Parent. This contribution will ensure that the company has sufficient funds to execute the
planned strategy and continue its operations.
The table below summarizes the maturity profile of the Group's financial liabilities and assets
based on contractual undiscounted payments:
USD '000
Maturity at December 31, 2024
Carrying
amount
Total 0-1 year 1-5 years >5 years
Measured at amortized cost
Cash and cash equivalents
10,289 10,289
Trade receivables
14,155 14,155
Other receivables
600 600
Total financial assets
25,044 25,044 - - -
Measured at amortized cost
Borrowings 25,000 25,000 25,000
Trade payables 1,960 1,960 1,960
Liabilities to parent companies
12,844 12,844 12,844
Other liabilities 8,380 8,380 8,380
Lease liabilities 8,384 9,309 2,942 6,366
Total financial liabilities 56,568 57,493 51,126 6,366 -
Contractual maturity incl. interest
69
4.2 FINANCIAL RISKS AND INSTRUMENTS (continued)
4.3 OTHER FINANCIAL FIXED ASSETS
ACCOUNTING POLICIES
Other financial fixed assets primarily consists of deposits paid for the Group's leased premises.
Other financial fixed assets are measured at cost less accumulated impairment losses in the
balance sheet. Where cost exceeds the recoverable amount, an impairment charge is
recognized.
Additions in the current year include sublease rental receivables associated with an office lease
in the US.
USD '000
Maturity at December 31, 2023
Carrying
amount
Total 0-1 year 1-5 years >5 years
Measured at amortized cost
Cash and cash equivalents
12,572 12,572
Trade receivables
18,508 18,508
Other receivables
1,207 1,207
Total financial assets
32,287 32,287 - - -
Measured at amortized cost
Borrowings 30,000 31,005 31,005
Trade payables 4,285 4,285 4,285
Liabilities to parent companies
12,508 12,508 12,508
Other liabilities 13,669 13,669 13,669
Lease liabilities 12,758 13,991 2,216 11,775
Total financial liabilities 73,220 75,458 32,678 42,780 -
Contractual maturity incl. interest
USD '000 2024 2023
Accumulated cost at January 1 1,066 2,024
Additions 3,768 34
Disposals (344) (992)
Accumulated cost at December 31 4,490 1,066
Accumulated revaluation and impairment at January 1 - -
Accumulated revaluation and impairment at December 31 - -
Carrying amount at December 31 4,490 1,066
70
4.4 FINANCIAL INCOME & FINANCIAL COSTS
ACCOUNTING POLICIES
Financial income and costs comprise interests, realized and unrealized exchange adjustments
and other financial income and costs.
USD '000 2024 2023
FINANCIAL INCOME
Interests received from affiliated companies (0) (0)
Other financial income 197 (997)
Exchange rate gains 5,558 7,325
Total 5,755 6,328
FINANCIAL COSTS
Interests paid to affiliated companies 740 1,143
Other financial costs 2,643 1,899
Interests paid for lease liabilities 477 635
Exchange rate losses 9,205 4,267
Total
13,065 7,944
4.5 SHARE CAPITAL
The Group’s objectives when managing capital are to safeguard its ability to continue as a going
concern, so that it can continue to provide returns for shareholders and benefits for other
stakeholders, and maintain an optimal capital structure to reduce the cost of capital.
The share capital consists of 579,486,126 shares of nominal value of DKK 1. The share capital has
been paid in full and comprise 1 share class.
The share capital has developed as follows:
USD 2024 2023 2022 2021 2020
Share capital at January 1 96,493 96,493 96,493 92,627 92,627
Capital increases 3,866
Capital decreases - - - - -
Share capital at December 31 96,493 96,493 96,493 96,493 92,627
71
4.6 CHANGES IN NET WORKING CAPITAL (CASH FLOW STATEMENT)
ACCOUNTING POLICIES
Working capital is defined as current assets less current liabilities. It measures how much in
liquid assets the Group has available for its operations.
USD '000 2024 2023
Change in receivables 5,761 2,074
Change in liabilities (7,425) (3,531)
Total (1,664) (1,457)
5.1 CASH FLOW ADJUSTMENTS
For the purpose of presenting the cash flow statement, non-cash items with effect on the
income statement must be reversed to identify the actual cash flow effect from the income
statement. The adjustments are specified as follows:
USD '000 2024 2023
Financial income
(5,755) (6,328)
Financial costs
13,065 7,944
Depreciations, amortizations and impairment
losses
14,761 17,632
Provision movement
(3,198) (1,547)
Allowance for doubtful trade receivables
(465) 189
Share-based payments
(1,295) 1,153
Income taxes
751 (608)
Acquisition of subsidiary
2,798 -
Exchange rate adjustments (904) 1,145
Total
19,758 19,580
5.2 CONTINGENT ASSETS, LIABILITIES AND OTHER FINANCIAL OBLIGATIONS
ACCOUNTING POLICIES
All leases are classified as operating leases. Payments made under operating leases are
recognized in the income statement on a straight-line basis over the lease term.
72
5.2 CONTINGENT ASSETS, LIABILITIES AND OTHER FINANCIAL OBLIGATIONS
(continued)
LEASE OBLIGATIONS
The Group has entered into operating lease agreements for offices. The lease terms are
between 1 and 8 years, and the majority of the lease agreements are renewable at the end of
the lease period at market rate.
Future minimum lease payments under operating lease contracts and rent commitments totals:
GUARANTEE OBLIGATIONS
The Group has provided corporate pledges to banks totaling USD 24.4 million (2023: USD 31.1
million). The corporate pledge includes current and non-current tangible and intangible assets.
No limitations in the use of assets apply.
The Group has issued letter of comfort to all its subsidiaries.
CONTINGENT LIABILITIES
Through participation in joint Danish taxation schemes, the Group is jointly and severally liable
for the tax payables for Danish entities.
5.3 RELATED PARTY TRANSACTIONS
Related parties comprise companies controlled by Cidron Vega X, SCSp and Key Management.
Key Management are Siteimprove A/S’ Board of Directors and Executive Board as well as
management in the controlling companies.
The Group has had the following arm's length transactions with related parties:
Loan from parent company amounting to USD 12.9 million (2023: 12.5 million) and related
interest of USD 1.1 million (2023: USD 1.2 million)
5.4 OWNERSHIP AND CONSOLIDATED FINANCIAL STATEMENTS
CONTROLLING INTEREST
Cidron Vega X, SCSp, Luxembourg Parent Company
Siteimprove Holding A/S, Copenhagen Parent Company
SI I A/S, Copenhagen Parent Company
SI II A/S, Copenhagen Parent Company
73
5.4 OWNERSHIP AND CONSOLIDATED FINANCIAL STATEMENTS (continued)
OWNERSHIP
The following shareholders are recorded in the Company's register of shareholders as holding at
least 5% of the votes or at least 5% of the share capital:
SI II A/S, Copenhagen
CONSOLIDATED FINANCIAL STATEMENTS
Cidron Vega X, SCSp is Parent Company to Siteimprove Holding A/S. The ultimate owner of
Cidron Vega X, SCSp are funds managed by Nordic Capital.
Siteimprove A/S is included in the Consolidated Financial Statements of Siteimprove Holding
A/S, Copenhagen, Denmark.
5.5 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In January 2025, the previous CEO, Shane Paladin, exited the company. In February 2025, Nayaki
Nayyar was appointed CEO.
5.6 FEE TO STATUTORY AUDITOR
The total fee for the statutory auditor which is included in general & administrative costs can be
specified as follows:
USD '000 2024 2023
Statutory audit 140 464
Tax advisory services 188 56
Other services - -
Total 328 520
74
5.7 ENTITIES IN THE SITEIMPROVE GROUP
5.7 ENTITIES IN THE SITEIMPROVE GROUP
Name
Country Currency
Share
capital
Ownership
Siteimprove A/S Denmark, Copenhagen DKK 579,486 Parent
Siteimprove AS Norway, Oslo NOK 50,000 100%
Siteimprove GmbH Germany, Berlin EUR 25,000 100%
Siteimprove GmbH Switzerland, Zürich CHF 20,000 100%
Siteimprove GmbH Austria, Vienna EUR 35,000 100%
Siteimprove i Sverige AB Sweden, Malmo SEK 100,000 100%
Siteimprove Inc. USA, Minneapolis USD 1,000 100%
Siteimprove Inc. Canada, Toronto CAD 100 100%
Siteimprove K.K. Japan, Tokyo JPY 50,000 100%
Siteimprove Pte. Ltd. Singapore SGD 100,000 100%
Siteimprove Føroyar Sp/f Faroe Islands, Tórshavn DKK 50,000 100%
Siteimprove Ltd. United Kingdom, London GBP 1 100%
Siteimprove Ltd. Australia, Sydney AUD 1 100%
Siteimprove B.V. Netherlands, Amsterdam EUR 1 100%
Siteimprove Oy Finland, Helsinki EUR 2,500 100%
Siteimprove S.L.U. Spain, Madrid EUR 3,000 100%
Siteimprove S.R.L. Italy, Milan EUR 10,000 100%
Siteimprove SAS France, Paris EUR 1 100%
Siteimprove SPRL Belgium, Brussels EUR 6,200 100%
MarketMuse Inc. USA, Delaware USD 1.000 100%
Laboratoire MarketMuse Canada Canada, Quebec CAD 100.000 100%
5.8 ACQUISITION OF SUBSIDIARY
In October 2024, Siteimprove, Inc., a US subsidiary of the Group, acquired 100% of the issued
shares of MarketMuse, Inc, a US company incorporated in Delaware, and its 100% owned
subsidiary, Laboratoire MarketMuse Canada, located in Canada. MarketMuse is a company
providing advanced technology in the SEO and Digital Experience space, complementing the
Siteimprove product suite. Total consideration was comprised of the following:
Consideration paid in stock of Siteimprove Holdings A/S (Ultimate Parent) $2.7M
Consideration paid or to be paid in cash by Siteimprove, Inc. $0.6M
Total consideration paid or to be paid $3.3M
The acquisition calls for a holdback liability of $540K to be paid to MarketMuse legacy
shareholders on October 1, 2025 pending one year of operations and the discovery of any
unrecorded liabilities.
75
5.8 ACQUISITION OF SUBSIDIARY (continued)
As a result of the acquisition, the Group recognized the following assets and liabilities at the
acquisition date:
Developed technology (intangible) 1.7M
Deferred tax asset 2.9M
Net liabilities acquired (2.4M)
Total identifiable net assets 2.2M
Goodwill recognized 1.1M
Total consideration 3.3M
Goodwill is not deductible for tax purposes under US tax law.
The Group is in the process of finalizing the fair value assessment of the assets and liabilities
acquired, including tax assets and liabilities. Therefore, the values presented above are
provisional and may be adjusted within the measurement period in accordance with IFRS 3.
76
Financial Statements for the Parent Company
77
Parent Income statement January 1 – December 31
DKK '000 Note 2024 2023
Subscriptions 319,137 251,524
Professional services - -
Revenue 319,137 251,524
Cost of revenue 2 / 3 (74,062) (87,319)
Gross profit 2 / 3 245,074 164,205
Sales & marketing costs 2 / 3 (85,870) (121,686)
Research & development costs 2 / 3 (83,361) (118,811)
General & admin costs 2 / 3 (40,196) (48,111)
Other income - -
EBIT 35,647 (124,403)
Financial income 4 39,735 54,468
Financial costs 5 (118,636) (84,998)
Net profit/(loss) before tax (43,254) (154,933)
Income taxes 6 5,632 14,097
Net profit/(loss) (37,622) (140,836)
78
Parent Balance Sheet at December 31
DKK '000 Note 2024 2023
Contract assets 4,743 5,174
Development projects 44,631 43,365
Development projects in progress 9,954 6,920
Patents 2,926 3,520
Total intangible fixed assets 7 62,254 58,980
Leasehold improvements - -
Other fixtures, furniture and fittings 2,116 4,016
Right-of-use assets 5,984 10,264
Total tangible fixed assets 8 8,100 14,280
Investments in subsidiaries 9 6,090 6,090
Other financial fixed assets 10 2,377 2,451
Total other non-current assets 8,467 8,541
Total non-current assets 78,821 81,802
Trade receivables 2,768 2,631
Receivables from subsidiaries 14,004 6,112
Deferred tax assets 6 - -
Income tax receivables 11,000 13,621
Prepayments 11 11,355 14,887
Total receivables 39,141 37,266
Cash and cash equivalents 6,081 38,100
Total current assets 45,223 75,365
Total assets 124,044 157,167
79
Parent Balance Sheet at December 31
EQUITY AND LIABILITIES
DKK '000 Note 2024 2023
Share capital 12 579 579
Reserve for development projects 42,386 36,299
Retained earnings (589,319) (576,774)
Total equity (546,353) (539,896)
Other provisions 13 19,191 17,005
Lease liabilities 14 1,635 6,361
Borrowings 178,500 202,200
Total non-current liabilities 199,325 225,565
Prepayments received from customers - -
Trade payables 11,470 21,325
Payables to subsidiaries 339,520 326,966
Payables to associated companies 91,703 84,302
Income tax liabilities 431 -
Deferred tax assets liability 6 1,090 1,653
Other liabilities 7,115 16,161
Lease liabilities 14 4,726 3,903
Contract liabilities 15,016 17,188
Total current liabilities 471,072 471,498
Total liabilities 670,397 697,063
Total equity and liabilities 124,044 157,167
Contingent assets, liabilities and other
financial obligations
15
Related parties, transactions, ownership
and consolidated financial statements
16
Distribution of result 17
Significant events after the reporting period 18
80
Parent Statement of Changes in Equity
DKK '000
Share capital
Reserve for
development
projects
Retained
earnings
Total
Equity at 1st January, 2024 579 36,299 (576,774) (539,896)
Development costs for the year 37,594 (37,594) -
Amortizations and impairment for the year (29,790) 29,790 -
Tax of development projects (1,717) 1,717 -
Cash capital increase 34,359 34,359
Conversion of loan from Parent to equity -
Share-based payments (3,195) (3,195)
Net profit/loss (37,622) (37,622)
Equity at 31st December, 2024 579 42,386 (589,319) (546,353)
81
Notes
1 Accounting policies
Basis of Preparation
The Financial Statements of Siteimprove A/S for 2024 have been prepared in accordance with the provisions of the Danish
Financial Statements Act applying medium-sized enterprises of reporting class C.
The Financial Statements are presented in DKK thousands.
The Consolidated Financial Statements have been prepared in accordance with IFRS. The accounting policies applied for the
Financial Statements regarding recognition and measurement have also been applied for the Parent Company with the below
exceptions.
With reference to §86, para. 4 of the Danish Financial Statements Act no Cash Flow Statement for the Parent Company is
disclosed. Please refer to the Consolidated cash flow statement for the Group.
With reference to §101, para. 4 of the Danish Financial Statements Act no separate 5-year summary for the Parent Company is
disclosed. Please refer to the Consolidated 5-year summary for the Group.
With reference to §96, para. 3 of the Danish Financial Statements Act no separate disclosure of auditor’s fee for the Parent
Company is disclosed. Please refer to the Consolidated Financial Statements.
Changes in accounting policies
The accounting policies applied are unchanged from last year.
Investments in subsidiaries
Investments in subsidiaries are measured at cost less accumulated impairment losses and amortizations on positive differences
on initial recognition in the balance sheet. Where cost exceeds the recoverable amount, write-down is made to this lower
value.
On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amounts of the
investments is taken to the income statement.
Share-based payments
In relation to share-based payments, the provisions in IFRS 2 have been adopted as the Danish Financial Statements Act does
not regulate share-based payments settled via equity instruments, but only cash-settled share-based payments.
Derogation from the Danish Financial Statements Act for share-based payments means that the year’s cost for share-based
payments are not recognized as a liability in the balance sheet, but directly in the statement of equity. For the monetary
impact, please refer to the statement of changes in equity and note 4 ‘Staff costs’.
Right-of-use assets and lease liabilities
In relation to right-of-use assets, the provisions in IFRS 16 have been adopted as the Danish Financial Statements Act does not
regulate the recognition of assets that are not owned by the Company (“operating leases”) as part of the balance sheet.
Derogation from the Danish Financial Statements Act for right-of-use assets means that the discounted value of future lease
payments is recognized as an asset and liability as part of the balance sheet. For the monetary impact, please refer to the
balance sheet and note 15 ‘Short-term and long-term liabilities’.
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2
STAFF COSTS
DKK '000
Wages and salaries 100,295 125,561
Pensions 6,285 8,807
Social security costs 1,247 1,627
Share based payments (3,087) (2,066)
Total 104,740 133,929
(37,594) (27,296)
(1,484) (1,379)
65,662 105,254
Above includes remuneration to the Executive Board & Board of Directors
DKK '000 2024 2023
Executive Board
Salary and bonus 2,448 3,188
Pension
Share-based compensation (8,758) 2,703
Total
(6,310) 5,891
Board of Directors
Salary and bonus 2,894 2,367
Pension
Share-based compensation 1,110 -
Total
4,004 2,367
Average number of employees 132 180
Commissions included in deferred commissions
Staff costs included in development projects
Staff costs expensed to the income statement
The income recognized in 2024 from share-based payment transactions is affected by DKK 8,804
million in prior years being revised due to a change in management assessment of grant date
fair value. Management has assessed the adjustment to prior years as not material and have
included the consequences in the 2024 income statement without restatement of prior years.
83
DKK '000 2024 2023
3
DEPRECIATIONS, AMORTIZATIONS AND
IMPAIRMENT
Amortizations of intangible assets 28,731 30,755
Depreciations on tangible assets 13,159 24,930
Gains/losses on disposals 95 (695)
Total 41,985 54,991
4
FINANCIAL INCOME
Interests received from affiliated companies 660 3,095
Exchange rate gains 38,092 50,575
Total 39,735 54,468
5
FINANCIAL COSTS
Interests paid to affiliated companies 35,588 33,396
Other financial costs 19,222 22,042
Exchange rate losses 63,826 29,559
Total 118,636 84,998
6
INCOME AND DEFERRED INCOME
TAXES
INCOME TAXES
Current income tax 5,500 5,500
Deferred income tax current year 673 2,017
Deferred income tax previous years - (1,542)
Adjustments concerning previous years (541) 8,121
Total 5,632 14,097
DEFERRED INCOME TAXES
Deferred income tax 1st January (1,653) 3,588
Adjustment of deferred tax concerning previous
years
(110) (5,716)
Movement for the year 673 475
Deferred income tax 31st December (1,090) (1,653)
The deferred tax liability primarily consists of timing differences on intangible assets and other assets that
will be utilized within 5 years. When assessing the utilization of the tax asset, an emphasis is put on the
Company’s significant growth rates on existing markets as well as entry into new markets. At December
31, 2024, the Company has a total of DKK 246,496k (2023: DKK 169,808k) as unrecognized deferred tax
assets. The net operating losses remain available for offset to future taxable income for tax purposes.
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7 INTANGIBLE ASSETS
DKK '000
Development Projects relates to the continuous development of new tools and features for the Company’s
Intelligence Platform. The Development Projects in Progress are expected to be finalized over the course of 2024,
after which the marketing of the new software services can begin. The projects are progressing as planned and it is
expected that the software will be sold in current and new markets.
The developed tools and features relate to Quality Assurance, Accessibility, Analytics, SEO, Ads, Performance,
Policy Management, CMS plugins, and Response and Data Privacy. As of December 31, 2024 the carrying amount
of development projects primarily relates to Quality Assurance, Accessibility, Analytics, CMS plugins and
Performance.
The continued product development of the Intelligence Platform is expected to result in a considerable
competitive advantage and, hence, a significant further increase in the level of activity and results of operations.
85
8 TANGIBLE ASSETS
DKK '000
86
9 INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are specified as follows:
DKK '000 2024 2023
Accumulated cost at 1st January
9,030 8,918
Additions 112
Disposals - -
Accumulated cost at 31st December
9,030 9,030
Accumulated amortizations and impairment at 1st January (2,940) (2,940)
Accumulated amortizations and impairment at 31st December (2,940) (2,940)
Carrying amount at 31st December 6,090 6,090
Name
Country Currency
Share
capital
Owner-
ship
Siteimprove A/S Denmark, Copenhagen DKK 579.486 Parent
Siteimprove AS Norway, Oslo NOK 50.000 100%
Siteimprove GmbH Germany, Berlin EUR 25.000 100%
Siteimprove GmbH Switzerland, Zürich CHF 20.000 100%
Siteimprove GmbH Austria, Vienna EUR 35.000 100%
Siteimprove i Sverige AB Sweden, Malmo SEK 100.000 100%
Siteimprove Inc. USA, Minneapolis USD 1.000 100%
Siteimprove Inc. Canada, Toronto CAD 100 100%
Siteimprove K.K. Japan, Tokyo JPY 50.000 100%
Siteimprove Pte. Ltd. Singapore SGD 100.000 100%
Siteimprove Føroyar Sp/f Faroe Islands, Tórshavn DKK 50.000 100%
Siteimprove Ltd. United Kingdom, London GBP 1 100%
Siteimprove Ltd. Australia, Sydney AUD 1 100%
Siteimprove B.V. Netherlands, Amsterdam EUR 1 100%
Siteimprove Oy Finland, Helsinki EUR 2.500 100%
Siteimprove S.L.U. Spain, Madrid EUR 3.000 100%
Siteimprove S.R.L. Italy, Milan EUR 10.000 100%
Siteimprove SAS France, Paris EUR 1 100%
Siteimprove SPRL Belgium, Brussels EUR 6.200 100%
MarketMuse Inc. USA, Delaware USD 1.000 100%
Laboratoire MarketMuse Canada Canada, Quebec CAD 100.000 100%
87
10 OTHER FINANCIAL FIXED ASSETS
DKK '000 2024 2023
Accumulated cost at 1st January 2,451 9,443
Additions 612
Disposals (74) (7,605)
Accumulated cost at 31st December 2,377 2,451
Accumulated revaluation and impairment 1st January - -
Accumulated revaluation and impairment 31st December - -
Carrying amount at 31st December 2,377 2,451
11 PREPAYMENTS
Prepayments comprise prepaid expenses concerning rent, insurance premiums and
subscriptions.
12 SHARE CAPITAL
The share capital consists of 579,486 shares of nominal value of DKK 1. The share capital is not
divided into share classes.
The share capital has developed as follows:
13 PROVISIONS
Provision for financial assets covers write-downs on the Company's subsidiaries. Other
provisions cover obligation to re-establish the Company’s leased premises.
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14 SHORT-TERM AND LONG-TERM LIABILITIES
Repayments that fall due within 1 year are recognized under current liabilities. Repayments that
fall due after 1 year are recognized under non-current liabilities.
Liabilities are due according to the following order:
DKK '000 2024 2023
Within 1 year 4,726 3,903
Between 1 and 5 years 180,135 208,561
After 5 years - -
Total 184,861 212,464
The underlying revolver facility was renegotiated in March 2025 to extend the due date to
November 2027. The outstanding amount is classified as due between 1 and 5 years in
accordance with the renegotiation subsequent to year end.
15 CONTINGENT ASSETS, LIABILITIES AND OTHER FINANCIAL OBLIGATIONS
CONTINGENT LIABILITIES
The Company has provided corporate pledges to banks totaling DKK 63.4 million (2023: DKK
91.0 million). The corporate pledge includes current and non-current tangible and intangible
assets. No limitations in the use of assets apply.
Through participation in joint taxation schemes, the Company is jointly and severally liable for
the tax payables.
The Company has issued letter of comfort to subsidiaries.
16 RELATED PARTIES, TRANSACTIONS, OWNERSHIP AND CONSOLIDATED
FINANCIAL STATEMENTS
CONTROLLING INTEREST
Cidron Vega X, SCSp, Luxembourg
Siteimprove Holding A/S, Copenhagen
Si I A/S, Copenhagen
Si II A/S, Copenhagen
TRANSACTIONS WITH RELATED PARTIES
With reference to §98c, para. 7 of the Danish Financial Statements Act no transactions are
disclosed.
OWNERSHIP
The following shareholders are recorded in the Company's register of shareholders as holding at
least 5% of the votes or at least 5% of the share capital:
SI II A/S, Copenhagen
89
16 RELATED PARTIES, TRANSACTIONS, OWNERSHIP AND CONSOLIDATED
FINANCIAL STATEMENTS (continued)
In May 2024, the Company received a shareholder contribution of USD 5 million from the
ultimate parent company. This contribution will ensure that the company has sufficient funds to
execute the planned strategy and continue its operations.
CONSOLIDATED FINANCIAL STATEMENTS
Cidron Vega X, SCSp is Parent Company to Siteimprove Holding A/S. The ultimate owner of
Cidron Vega X, SCSp is funds managed by Nordic Capital.
Siteimprove A/S is included in the Consolidated Financial Statements of Siteimprove Holding
A/S, Copenhagen, Denmark.
DKK '000 2024 2023
Extraordinary dividend paid - -
Proposed dividends - -
Retained earnings (37,622) (140,836)
Total (37,622) (140,836)
17 DISTRIBUTION OF RESULT
DKK '000 2024 2023
Extraordinary dividend paid - -
Proposed dividends - -
Retained earnings (37,622) (140,836)
Total (37,622) (140,836)
18 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In January 2025, the previous CEO, Shane Paladin, exited the company. In February 2025, Nayaki
Nayyar was appointed CEO.