to its ARR growth and provides insights into whether the

company is generating enough cash to sustain its growth.

number of groups/companies with whom Relesys has

subscription agreements.

to subscription agreements and ARR. Consultancy revenue

Relesys continued its double-digit growth trajectory

the growth in ARR comes from enterprise clients in line

with our increased focus on that particular segment.

In June, the board of directors was strengthened

with the appointment of Annette Blou Pryce as board

member. Annette has a solid ability to shape and

cultivate brands, and drive growth through developing

and implementing positioning strategies, and thus brings

very relevant competencies to Relesys as we continue

After years of strengthening the operational platform,

Despite geopolitical uncertainty we enter 2024 with great

customers around the world grow and optimise their

businesses by delivering market-leading solutions that

engage and unite their people across multiple functions

and locations.

our employees for their efforts and hard work in 2023.

Chairman

2023 was another great year for Relesys. The value of our

employee communication and engagement platform was

prestigious brands with many non-desk employees as an

invaluable digital tool to increase productivity, employee

retention and engagement whilst at the same time reduce

costs. I can strongly recommend reading the client case

stories later in this Annual Report for more details on this.

Among the new enterprise clients is the leading Norwe-

gian retail grocery group, NorgesGruppen, with around

40,000 users across five different retail brands. The con-

tract with NorgesGruppen reinforced our strong position in

the Nordic retail grocery market where more than 150,000

employees across strong brands like COOP, Dagrofa,

Salling and NorgesGruppen are using a Relesys app.

As part of our increased focus on large enterprise clients

both in terms of sales and product development, we also

strengthened the management team during the year with

Balance sheet total 45.9 53.8 72.6 20.2 10.4

Intangible assets 6.7 5.9 5.0 4.5 3.1

Right-of-use assets 4.4 4.8 1.7 1.8 1.6

Cash 23.1 31.3 59.3 3.3 0.6

Total equity 14.0 30.8 57.0 1.6 0.6

Annual recurring revenue (DKKm) 61.9 45.2 31.3 22.4 16.9

Annual recurring revenue year-on-year growth 37% 44% 40% 32% -

Client retention 92% 93% 94% 95% 92%

Client expected lifetime (years) 12 15 17 20 13

SaaS share of revenue 91% 87% 78% 80% 76%

marketing and sales effort in North America in 2024.

guidance range as the precise timing of these agreements is

Annual recurring revenue 83-88 61.9 34% - 42%

Revenue 72-76 57.1 26% - 33%

Annual recurring revenue and revenue assumptions:

• Continued high market growth for engagement and connectivity software solutions

• Continued low ARR churn rate

This Annual Report includes forward-looking statements on various matters such as

uncertain and involve various risks, because many factors, some of which are beyond

our control, may result in the actual developments differing considerably from the

Such factors include, but are not limited to, general economic and business

conditions, the demand for our solution and competition.

EBITDA margin (23%) (52%)

Depreciation, amortization and impairment losses 4.0 3.3

Net financial expenses 0.1 1.2

Tax on loss for the year (0.5) 1.3

based on clients in foreign markets.

Relesys’ choice of increasing its focus on larger clients. By the end of 2023,

Interest income 501 -

Interest expenses - 389

decrease was mainly driven by bank interest rates relating to the cash

balance changing from being negative to positive during the year.

offering.

The value of the capitalized development activities is evaluated

Group’s continued growth and earnings.

Consultancy revenue 5.1 1.7 1.0 1.1 1.3

ARR churn

(1.6) (1.0) (0.3) (0.4) -

ARR net uplift

6.9 4.5 1.9 1.6 1.7

ARR from new sales

Average clients ARR (DKKk) 316 316 274 266 263

26.8 7.5 7.5 6.0 5.9

-0.6 -0.2 -0.2 -0.1 -0.1

In accordance with Relesys’ Articles of Association, the Board of Directors

elected for a term of one year, and new directors are elected in accordance

with the Danish Companies Act.

including the Chairman. The Board of Directors’ primary objective is to

strategy, change management, business development, and finance.

In 2023, the Board of Directors held four ordinary board meetings. The agenda

of each meeting is determined in accordance with the annual cycle of the

Board to ensure that the strategic and operational policy framework of the

Relesys recognizes its social responsibility as a corporation and employer.

As part of this responsibility, Relesys has adopted a Corporate Social

Cost of sales (5,146) (4,946)

Staff costs

Other operating income 134 163

Depreciation, amortization, and impairment

Net loss for the period - - (26,228) - (26,228)

Other comprehensive income - - - (11) (11)

Share-based payments - - 440 - 440

thousand, unless otherwise indicated.

concern basis and in accordance with the historical cost

Similarly, information not considered material is not

presented in the notes.

The accounting policies have been applied consistently

The Group uses certain financial measures that are not defined in IFRS to describe the Group’s financial performance. These financial measures may

therefore be defined and calculated differently from similar measures in other companies, and thus not be comparable.

at the time when the change enters into force.

time when the agreement is terminated. Subscriptions are typically entered

into with an irrevocable period of 12–36 months.

The value of client customization and integrations is included in ARR

calculated as a prorated value over the subscription period.

currency, a currency translation is conducted at the time of entering into the

currency rate at the date of invoicing.

cash and cash equivalents at the beginning and end of

of non-cash operating items, working capital changes,

in connection with the acquisition and sale of non-current

A functional currency is determined for each Group

entity. The functional currency is the currency used in

Group entity operates. The Group’s presentation currency

distribution, sales, advertising, administration, premises,

loss on receivables, etc.

Staff costs include salaries and wages, including holiday

allowances, pensions, share-based payments, and other

social security costs, etc. for staff members.

other key management personnel and other employees.

recognized over the vesting period, which is the period

revises its estimates of the number of warrants that

and service conditions. It recognizes the impact of the

information about the share-based payment program is

disclosed in note 7.

impairment losses. Completed development projects by the

Group are recognized as an asset if the cost of development

is reliably measurable and an analysis future shows that the

products and processes, for which the technical feasibility,

adequate resources and a potential future market

or development opportunity in the enterprise can be

established, and where the intention is to manufacture,

market or apply the product or process in question, are

Development costs that does not meet the criteria for

capitalization are recognized as costs in the income

statement as incurred.

development of projects and consists of direct salaries

and other directly attributable costs.

Completed

development

Development

projects in

Cost at January 1 233 233

Additions 65 65

Disposals (41) (41)

Depreciation at January 1 (56) (56)

Depreciation during the year (69) (69)

Adjustments and revaluations 4,165

- 69 4,234

Disposals (1,265) (170) (428) (1,864)

Depreciation at January 1 (1,662) (301) (408) (2,371)

Adjustments to opening balance (83) - - (83)

Depreciation during the year (1,517) (93) (239) (1,849)

Disposals 933 170 428 1,531

Cost at January 1 599 249

Additions 5 350

DIsposals (231) -

Trade receivables are amounts due from clients for subscriptions as well as from integration, customization, and

consultancy services carried out in the ordinary course of business. They are generally due for settlement within

due

31-60 days

Loss for the year (17,571) (26,228)

Average number shares (thousands) 51,040 51,040

capital structure is in accordance with the Group’s and

shareholders’ interests.

Due to the nature of its operations, investments, and

in order for currency risk, interest rate risk, and credit risk

only to occur in commercial relationships. The scope and

Effect on profit before tax 133 69

Effect on pre-tax equity 133 69

because of changes in market interest rates. The Group’s interest rate risk is limited to cash deposits

and to a minor degree the amount payable to the Holiday allowance fund which is subject to an annual

The maturity analysis is based on the following assumptions:

• The amounts disclosed in the table are the contractual undiscounted cash flows (including interest

Change in inventory and prepayments (101) (1,026)

Change in receivables (3,765) (992)

Change in trade payables and other liabilities 12,940 4,384

remuneration, as described in note 6. All transactions with related parties are conducted on market terms.