Personalised communication to millions
Annual Report 2023
A
nnual General Meeting
Date: 3 April 2024
Chair: Søren Elmann Ingerslev
Business Reg. no. 2 5 06 3 8 6 4
22
Executive summary
2023 highlights ..................................................................................................................................................................... 3
Letter from the Chair ........................................................................................................................................................... 4
Letter from the CEO ............................................................................................................................................................ 5
Key figures and ratios ......................................................................................................................................................... 7
Our business
The Agillic Manifesto ........................................................................................................................................................... 9
Equity story ..........................................................................................................................................................................10
Select 2023 news ..............................................................................................................................................................11
Financial review
Financial review ..................................................................................................................................................................13
Financial outlook and guidance .....................................................................................................................................15
Financial calendar 2024 ...................................................................................................................................................15
Governance
Risk management ..............................................................................................................................................................17
Governance structure .......................................................................................................................................................18
Security and IT compliance ............................................................................................................................................19
Shareholder information ..................................................................................................................................................19
Board of Directors ..............................................................................................................................................................20
Exceutive Leadership and Management ...................................................................................................................21
Financial statement
Statement by the management ....................................................................................................................................23
Independent auditor’s report .........................................................................................................................................24
Income statement ..............................................................................................................................................................25
Statement of comprehensive income .........................................................................................................................25
Statement of financial position ......................................................................................................................................26
Cash flow statement .........................................................................................................................................................27
Statement of changes in equity ....................................................................................................................................27
Notes ......................................................................................................................................................................................28
Definition of key figures and ratios ............................................................................................................................. 40
Contents
Annual Report 2023
* Guidance is latest confirmed on 12 October 2023 (company announcement no. 13)
** For definition of EBITDA and ARR, please see definitions on page 40
3
EBITDA
**
DKK 1.9M
Guidance of 1-4M*
Total ARR
**
DKK 70.1M
Guidance of 70-77*
Change in Total ARR
-9.4%
Year-over-year
Revenue
DKK 64.7M
Guidance of 67-70M*
2023 highlights
Annual Report 2023
4
2023 was a tough year for many B2B SaaS companies, including Agillic.
Businesses became more stringent in their spending due to market uncertainty,
leading to a shift towards profitability. Agillic experienced the impact of this
on its top-line growth, particularly in ARR from transactions. Nonetheless,
Agillic managed to grow ARR from subscriptions through the acquisition of
many new impressive customers.
The theme of 2023 was clear – focus. We refined our go-to-market strategy
to target specific geographies and verticals more effectively. Leveraging
our strong presence in the Nordics, we are poised to expand into Germany
with a defined focus on particular industries. Additionally, significant time
and investment were dedicated to completing our management team with
the addition of a new CTO.
Looking ahead, Agillic anticipates continued challenges in the market.
However, with the strategic adjustments made and the strengthened
management team, we are confident in our ability to drive growth.
Joar Welde
Chair of the Board of Directors
Navigating challenges
and focusing for growth:
Agillic’s journey in 2023
Letter from the Chair
Annual Report 2023
5
Given the current macroeconomic context, I am pleased
that we have shown our ability to adapt to rapidly changing
market conditions and increased our EBITDA to DKK 1.9
million. The total ARR decreased to DKK 70.1 million due to
a decrease in ARR from transactions. Our clients, especially
in certain segments, have been directly impacted by the
turbulent conditions, geopolitical conflicts, inflation, and
fluctuating interest rates, causing 46% YoY decline in
our ARR from transactions. Even so, we have achieved
our target of delivering increased EBITDA for the 4th
consecutive year.
As we look forward to another year, and back on 2023, I
am confident in our ongoing dedication to comprehending
the needs of our clients, understanding their customers,
and utilising our platform to enhance enduring, meaningful
and lucrative connections. Our mission involves advancing
our customer experience and personalisation technology,
employing a pertinent, timely, and channel-agnostic
methodology to eradicate communication clutter.
2023 highlights
International recognition and investor welcome
Viking Venture’s investment in Agillic, becoming our
new largest shareholder, was a proud recognition of our
financial performance, technology, and market positioning,
as well as our future international growth potential. Viking
Venture are well-known SaaS experts in the Nordics
with extensive experience in driving both organic and
acquisitive international growth in tech companies, and
we highly appreciate their strategic partnership on our
growth journey – both operationally and at board level.
In March, Joar Welde, Partner at Viking Venture, was
elected Chair of the Bord of Directors alongside new
board member Martin Eriksen, Investment Manager at
Viking Venture.
Client triumphs
2023 was not short of such exciting opportunities, even
amidst a challenging macroeconomic environment.
The accolades earned by our esteemed clients Imerco,
Matas, and Bog & idé resonate profoundly. Their triumph
in securing the ‘Best Omnichannel Company’ category
at Dansk Erhverv’s ‘E-commerce Award 2023’ not only
underscores the real-world impact of Agillic’s solutions
but also exemplifies the profound difference in creating
exceptional omnichannel customer experiences.
Recognition and expansion
As we strive to develop the world’s top best-of-breed
customer experience platform, dedicated to enduring
relationships and delivering tangible business results,
such success stories from our clients’ achievements serve
as a testament to Agillic’s continued commitment and
effectiveness in the industry.
Elevating our status in the industry, Agillic’s recognition as
a leader in Forrester’s ‘Cross-Channel Marketing Hubs’ Q1
2023 report speaks volumes about our enduring influence
and unwavering commitment to providing cutting-edge
solutions. This acknowledgement reinforces our position
at the forefront of the industry, validating our dedication
International market volatility limits
ARR growth, but Agillic still delivers
71% increase in EBITDA
Letter from the CEO
Annual Report 2023
6
As we continue to expand our footprint across priority
industries and markets, our partnerships exemplify the
tangible impact and value that our solutions bring to a
diverse array of clients.
Market conditions
The longer sales cycles across the SaaS industry in
2023 slowed the commitment level of our new clients
to technology investments. Slower inbound and pipeline
degradation continues to be a major focus area quarter
after quarter, caused by the macroeconomic circumstances.
In 2023, the business landscape witnessed a surge in
merger and acquisition (M&A) activities, driving significant
consolidations across various industries. We have expe-
rienced such business takeovers directly impacting our
clients. In addition, some companies prioritised internal
technology consolidation to streamline operations and
improve efficiency. During this process, we have seen
strategic changes effecting our client engagements.
Agillic’s efficiency and effectiveness – and the impact
on C-level conversations
C-level management in the Nordics indicate that the
economic unease, and a declining consumer buying
sentiment is one of their main concerns. Similar signals
are also present in the DACH market. Increased cost
consciousness, interest on ROI and faster time to value are
increasing demand factors towards technology companies
during client conversations.
One of our most beneficial investments in 2023 has
been the establishment of our ‘Centre of Excellence’
department with the task of advising and inspiring our
clients and partners to maximise the business value they
can generate from Agillic platform. The team embodies
our core best-in-class solution advisory with best-in-class
team members. The success of our initiative extended
beyond our clients and to our prospects. In a year such
as 2023, where prospect decision-making processes are
more laboured, we have seen the importance of providing
clients with extra care and inspiration, and most impor-
tantly, showing them the way to improve efficiency and
effectiveness in their business.
Agillic’s growth strategy and international expansion
Continuing to expand influence in the DACH region, we
recently solidified a significant partnership with nexum
AG – our largest partnership to date – and ventured into
new territories through our partnership Merkle Northern
Europe.
These strategic alliances mark a pivotal step in broadening
our global footprint and catering to diverse markets,
ensuring that our solutions reach new heights of impact
and relevance.
Our commitment to building an international presence is
exemplified by our partners, where we engage in collabo-
rative efforts encompassing co-marketing, co-innovation,
co-solutioning, co-selling, and co-growing. Pledging to be
a “growth engine” for both our partners and clients, we
actively pursue the establishment of a robust win-win-win
model. In this model, our clients, partners, and Agillic all
derive mutual benefits from our collective commercial
engagements, with our clients’ business results standing
as the cornerstone of our shared success.
AI + Agillic
Artificial Intelligence (AI) has been a topic of 2023, more
than ever, and the impact of AI + Agillic is profound,
revolutionising the way our clients interact with their
customers. By leveraging AI technologies, Agillic
clients can offer hyper-personalised and enhanced user
engagement. Automation of routine tasks through AI
improves efficiency, allowing our clients to focus on more
complex customer needs.
Operating at the centre of the AI movement, fuelled with
data and content, Agillic clients explored the transformative
power of AI that has yielded impactful success stories,
showcasing the true potential of Agillic in amplifying
business outcomes.
Through compelling use cases and tangible results, these
stories not only demonstrate the practical applications
of AI within our platform but also set the stage for more
inspiring narratives in the coming year. This reaffirms our
commitment to innovation and underscores our determi-
nation to deliver tangible value to our clients through the
integration of advanced technologies.
Sustainability
Continuing our commitment to impactful initiatives, Agillic
embarked on a significant journey with the release of our
inaugural ESG report, marking a pivotal moment in our
dedication to sustainability and responsible business
practices. As demonstrated through our community
engagement efforts, such as the successful ‘Agillic Annual
Fundraiser’, our commitment to societal well-being extends
beyond business operations.
The ESG report signifies a strategic alignment of our
efforts with broader goals, aiming to contribute to positive
societal impacts. By focusing on environmental, social,
and governance considerations, we are not only setting
a standard for responsible corporate conduct but also
reinforcing our commitment to making a meaningful
difference in the world around us.
This year’s report serves as a testament to our ongoing
efforts to integrate ethical practices and sustainability
into the fabric of Agillic’s operations, ensuring a positive
legacy for future generations.
The modern Agillic platform – fast time to value
Driving innovation and setting the stage for a trans-
formative year, Agillic has achieved a milestone with the
completion of our largest technology platform update to
date. Scheduled for launch in Q1-2024. This update is the
The impact of
AI + Agillic is profound,
revolutionising the way
our clients interact with
their customers”
“One of our most beneficial investments in 2023 has been the
establishment of our ‘Centre of Excellence’ department with the
task of advising and inspiring our clients and partners to maximise
the business value they can generate from Agillic platform”
6
Annual Report 2023
77
DKK million 2023 2022 2021 2020 2019
Income statement
Revenue 64.7 67.0 52.8 50.5 53.8
Gross profit 52.2 49.6 45.1 44.2 41.7
Operational costs 50.4 48.5 44.4 43.9 57.1
EBITDA 1.9 1.1 0.7 0.3 (15.4)
Net financials (2.7) (2.8) (2.1) (2.3) (1.6)
Net profit (loss) for the year (27. 5 ) (10.6) (10.5) (8.0) (25.1)
Balance sheet
Total assets 47.1 52.8 61.6 63.8 37. 8
Equity (20.3) (15.0) (4.5) (5.8) (20.6)
Cash 9.8 7.4 20.6 16.3 1.2
Cash flow
Cash flow from operations (6.5) 3.1 6.1 3.1 (10.3)
Investments in tangible assets - - - 0.9 0.4
Key ratios
Gross margin 80% 74% 85% 88% 78%
Clients end of period 122 118 97 82 81
Average number of employees 48
SaaS metrics*
ARR subscriptions 57. 8 54.1 45.7 40.7 45.5
ARR transactions 12.3 22.6 10 5.8 9.6
Total ARR 70.1 76.7 55.7 46.5 55.1
Change in ARR (%) (9%) 38% 20% (16%) 10%
Average ARR 0.6 0.65 0.57 0.56 0.66
CAC 0.2 0.1 0.3 0.5 0.8
Months to recover CAC 6 3
8 12 18
Share perfomance (listed 22 March 2018)
Oustanding shares end of period ('000) 11,062.0 10,260.9 10,187.8 9,435.5 8,286.9
Share price end of period (DKK) 19.0 23.7 25.8 19.6 30.5
Market cap (million) 210 243 263 185 253
ARR multiple (times) 3.0x 5.7x 4.7x 4.0x 4.6x
* See key definitions on page 40
Key figures and ratios
most revolutionising UI-design update of Agillic to date
with high impact results, overall, a platform performance
with 3x faster than previous versions and 50% faster
onboarding of any new user. Such efficiency parameters
drive the importance of our promise of value creation for
all our clients.
By providing our clients with state-of-the-art solutions,
we affirm our commitment to delivering cutting-edge
capabilities that meet and exceed their evolving needs.
Welcoming Martin Lindboe as our new
Chief Technology Officer
Another important milestone for our organisation’s journey
was the appointment of Martin Lindboe as Chief Tech-
nology Officer in October. Martin is a highly accomplished
and capable leader, and will be pivotal in driving our
technology strategy, innovation capabilities, and ongoing
readiness of our platform.
Net result
Agillic has applied for tax credit in 2019-2022 based on
the actual interpretation at the point in time based on
consultancy with our advisors. However, due to a change in
practice by the Danish Tax Authorities on how they assess
and interpret the Tax Credit Scheme, a provision for the
full amount of tax credits since 2019 has been made in
2023. This significant amount negatively impacts our net
profit for 2023 by DKK 14.3 million in tax. The outcome of
an appeal for 2019 is still pending. No decision from the
Danish Tax Authorities has been made for the following
years. This may impact cash and thereby the timing of
our investments in growth in 2024.
Strategic outlook
As I reflect on Agillic’s journey throughout the past year,
it’s evident that our strategic partnerships, technological
advancements, community engagement, and market
recognition have positioned us as a formidable force in
the industry. In 2024, we will continue our strategy of
investing in sustainable growth with an increased focus on
international markets. We expect 2024 to continue to be
affected by geopolitical uncertainties, but we also expect
our future customers to truly recognise the pain points
we address in their business through Agillic’s Customer
Experience Platform, delivering top and bottom-line
growth. The business solutions we deliver are similar
across borders. This supports our belief that we are poised
for future international growth with a best-of-breed,
ready-to-integrate technology product.
As we navigate the dynamic landscape ahead, our
commitment to innovation, sustainability, and delivering
unparalleled value to our clients remains unwavering.
Together, we look forward to seizing the myriad oppor-
tunities that the future holds, propelled by our collective
dedication and the strong foundation we have built.
I would also like to express my sincere gratitude to our
clients, partners and the entire Agillic team for their
commitment for success.
Emre Gürsoy
CEO
Our business
Annual Report 2023
The Agillic Manifesto
We see a world where the idea of communicating to the masses is seen as alien.
Where unwanted or inaccurate communication is actually regarded as pollution. Wasteful and unsustainable.
Where less will be something everyone wants more of.
Where the data with which we are entrusted by customers will be treasured as if it were a set of fingerprints or a photograph.
So we can build realistic, familiar, first-hand knowledge of more and more people.
And create millions and millions of individual, personalised messages.
Messages that will seem like a welcome whisper in an ear, rather than a shout from afar.
Communication that motivates. Or creates a smile in the mind.
Sometimes momentous.
Sometimes frivolous or fun.
Always respectful. Always personal.
We can already see a world where there is the ingenuity to begin doing all of this.
The more we innovate, the more quickly this will become a reality.
And we will be empowered to eliminate communication pollution altogether.
Personalised communication to millions
99
Annual Report 2023
1010
such as:
• Higher conversion rates
• Enhanced customer satisfaction
• Operational efficiency
• Increased customer lifetime value
Designed for an ecosystem of strategic partnerships
across CDP, CMS, CRM, Customer Service, eCommerce,
and Business Intelligence, the platform continuously
integrates best-of-breed technologies to accelerate the
implementation process and deliver fast time to value.
Agillic holds a leading position in the Nordics and is
increasing its international presence. Agillic is scaling
its business through strategic partnerships and direct
sales from Denmark, Norway and Germany.
Business model
Agillic is a subscription business. Clients pay a yearly
license for access to the Agillic platform and pay an
additional fee for transactions sent, such as email and SMS.
Delivering impactful, meaningful, and profitable customer experiences
The Agillic stock
Agillic was listed on Nasdaq First North Growth Market
Denmark in March 2018. Agillic’s market value amounted
to DKK 210 million at the end of 2023, compared to DKK
243 million at the end of 2022. Ticker: AGILC
Agillic partner strategy
Agillic is a 100% technology company with no
professional services and has therefore established a
mutual bond with partners across all priority markets.
We are a best of breed technology, enforcing our position
with strong ecosystem tech partnerships to eliminate all
frictions from our clients’ business process and time to
value.
ESG Report 2023
The ESG report serves as a testament to our ongoing
efforts to integrate ethical practices and sustainability
into the fabric of Agillic’s operations, ensuring a positive
legacy for future generations. The report is available at
agillic.com/esg.
2023 financial performance
Equity story
Total Revenue
64.7
DKK million
EBITDA
1.9
DKK million
Total ARR
70.1
DKK million
In 2021, Agillic was certified as a ‘Nasdaq ESG Transparency Partner’, highlighting our
engagement in market transparency and in raising environmental standards.
Watch our client stories
agillic.com/client-stories
“In particular, our mid-sized clients are showing a growing interest in
digital, AI-driven solutions for personalised customer engagement and
automated marketing campaigns. With our partner Agillic, we complement
our technical and creative portfolio and create real alternatives for these
businesses.”
Sven Ehrmann, Account Director
“The ability to target specific customer segments and personalise our
communication is of great importance to us. We’re looking very much
forward to collaborating with Agillic and feel confident that it will help
us reach potential customers more effectively. We’re convinced that this
partnership will allow us to provide our existing customers with more
relevant and tailored information about properties and services.”
Morten Würgler, Senior Digital Marketing Manager
“What makes our new partnership with Agillic special is the fact that we
can empower businesses to reap the benefits of personalised marketing
automation much faster. We know that many CMOs are hesitant due
to time constraints and resource limitations. Hopefully, this makes their
decision a bit easier.”
Bobby Hollingsworth, President Northern Europe
“Choosing Agillic as our new marketing automation tool was an easy
decision. After evaluating several systems, Agillic stood out because it
provides the personalisation and automation functionalities we need to
communicate with our members and course customers. With Agillic, we can
continue our work while also exploring new opportunities and developing
our communication even further.”
Helene Johnsen, Marketing Director
“With an estimated 45,000 new cancer cases and more than 15,000 cancer
deaths in Denmark per year, it is crucial to raise awareness of the matter. We
must therefore ensure that our fundraising and communication efforts work
effectively. Agillic will provide us with the necessary tools and functionalities
to improve our existing channels and target our communications.”
Ken H. Andersen, CMO/CCO, Head of Fundraising, Members & Commercial
We chose Agilic to level up the experience that we give our customers,
including a better way to connect with specific individuals based on purchase
history, preferences and behaviour. Doing all of that while staying 100%
GDPR compliant was a major factor in our decision to select Agillic.”
David Bencun, Head of eCommerce
Annual Report 2023
11
Select 2023 news
Financial review
Annual Report 2023
-10
-15
-20
-5
0
5
DKK million
13
Income statement
The revenue from subscriptions increased by 5% to DKK
52.4 million (2022: DKK 49.8 million) with a total revenue
of DKK 64.7 million (2022: DKK 67.0 million). Although
total revenue decreased by 3% due to the decrease in
revenue from transactions the gross profit increased by
5% to DKK 52.2 million (2022: DKK 49.6 million).
Gross margin increased to 80% from 74% in 2022 due to
higher revenue from subscriptions which are associated
with higher margins than transactions but also due to
increased margins on transactions.
Despite cost pressure related to the high(er) inflation rate,
operational costs only increased from DKK 48.5 million
to DKK 50.4 million in 2023. The number of employees
ended in 2023 at 50 compared to 48 by the end of 2022.
EBITDA
EBITDA increased to DKK 1.9 million, an increase of DKK
0.8 million compared to 2022.
The positive development in EBITDA is a result of long-term
focus on sustainable growth and operational excellence.
Profit/loss for the year
Due to the continued investment in developing the Agillic
customer exeperience platform, total depreciation slightly
increased to DKK 13.3 million compared to DKK 12.2
million in 2022. EBIT amounted to DKK -11.4 million
compared to DKK -11.1 million in 2022.
Profit before tax was DKK -15.2 million vs. DKK -13.9
million in 2022.
Due to a submitted appeal related to tax credit in 2019
and ongoing request on submitted tax credit for 2020 and
2021, a reversal for the received tax credit from 2019 and
2020 (DKK 6.4 million) as well as a reversal for the applied
tax credits from 2021 and 2022 (DKK 6.0 million) has
been made. The reversal is made due to the latest change
in how the Danish Tax Authorities assess and interpret
the Tax Credit Scheme. The company has applied for tax
credit each year based on the actual interpretation at the
point in time in consultancy with our advisors. However,
the change in assessment and interpretation from the
Danish Tax Authorities increases the uncertainty of any
outcome wherefore a full reversal for 2019-2022 has been
made in 2023. In total the reversal is DKK 12.4 million in
tax and DKK 1.9 million in interest.
Assets
Investment in the development of the Agillic Customer
Experience Platform continued in 2023. The development
costs included capitalised salary costs and costs from
external consultants. Development costs during 2023
amounted to DKK 11.7 million capitalised (2022: DKK
13.5 million).
Cash position
As of 31 December 2023, cash at bank amounted
to DKK 9.8 million compared to DKK 7.4 million as of
31 December 2022.
The increase in cash is mainly driven by the net capital
increase of DKK 21.2 million (2022: DKK 0.0 million) less
the decrease from investment in intangible assets of DKK
11.7 million (2022: DKK 13.5 million).
Equity
As of 31 December 2023, total equity amounted to DKK
-20.2 million (31 December 2022: DKK -15.0 million). The
equity was positively impacted by the issue of new shares
in the net amount of DKK 21.2 million but negatively impact
by the provision for tax and interest of DKK 14.3 milllion.
Liabilities and deferred income
The total borrowings to The Danish Growth Fund
amounted to DKK 23.8 million (31 December 2022: DKK
24.3 million). According to IFRS Accounting Standards,
Agillic recognises revenue over the subscription period
starting from when the client commences using the
platform. Clients typically subscribe for one year and
are invoiced the full amount when signing the agreement.
The invoiced amount is recognised as deferred income
when paid and then released proportionally over the
subscription period. On 31 December 2023, deferred
income amounted to DKK 19.1 million (31 December
2022: DKK 22.3 million).
Cash flow
In 2023, cash flow from operations amounted to DKK
-6.5 million (2022: DKK 3.1 million), and cash flow from
investments amounted to DKK -11.7 million (2022:
DKK -13.5 million). Cash flow from investments mainly
consisted of investments in developing the Agillic platform.
Viking Venture acquired 20.48% of the shares in Agillic
as a combination of existing shares and issuing of new
shares. Agillic issued 801,058 new shares of DKK 0.1 each
at a market price per share of DKK 28.08 equivalent to
aggregate gross proceeds of DKK 22,493,709. The new
shares will represent a nominal value of DKK 80,105.80
and an increase of Agillic’s share capital by 7.81%. The
Agillic increased EBITDA to DKK 1.9 million and increased ARR from subscriptions to DKK 55.8 million, whilst Total ARR was DKK 70.1 million due to
ARR from transactions declining, leading to a Revenue of DKK 64.7 million
2020
0.3
2021 2022 2023
0.7
1.1
1.9
2019
-15 .4
EBITDA 2019-2023
Financial review
Annual Report 2023
ARR subscriptions ARR transactions ARR total
14
net proceeds of the transaction were DKK 21.2 million
and the amount was added to the cash at bank.
Net change in cash amounted to DKK 2.4 million (2022:
DKK -13.3 million), and as of 31 December 2023, cash at
bank amounted to DKK 9.8 million (2022: DKK 7.4 million).
SaaS metrics
The general key performance figure for Software-as-a
Service (SaaS) companies, annual recurring revenue
(ARR), illustrates the annualised value of a client’s
subscription agreement and transactions processed by
the client via the platform.
As of 2023 ARR from subscriptions was DKK 57.8 million
compared to DKK 54.1 million as of 2022, an increase
of DKK 3.7 million corresponding to an increase of 7%
with a decline in ARR from transactions from DKK 22.6
million to DKK 12.3 million 31 December 2023. As of
2023, Total ARR was DKK 70.1 million, compared to DKK
76.7 million as of 2022, a decrease of DKK 6.6 million due
the decrease in ARR from transactions. The increase in
ARR from subscriptions is associated with the increase
in number of clients, bringing the number of clients to an
all-time high of 122 clients (2022: 118 clients).
Factors impacting the ARR-development
• Upselling to existing clients: Clients increase Unique
Active Recipients (UAR) size, and/or deploy additional
communication channels, and/or increase the number
of transactions
• When clients churn and when less transactions take
place temporarily, ARR decreases
•
Sales of subscriptions to new clients increases the ARR
•
As long as the value of upselling to existing clients
and the sales to new clients exceeds the value of
the churning clients, the ARR from subscriptions will
increase
ARR development 2019-2023
Subscriptions & transactions (DKK million)
2019
9.6
45.5
55.1
2020
5.8
40.7
46.5
2021
10
45.7
55.7
2022 2023
57. 8
70.1
12.3
22.6
54.1
76.7
Annual Report 2023
Financial guidance
ARR subscriptions ARR transactions ARR total
1515
In 2023, companies have generally become more cautious
and are taking longer to make decisions, leading to slower
growth than previously expected.
Due to the change in assessment and interpretation of
Tax Credit from the Danish Tax Authorities, the risk of a
repayment of the tax credit received for 2019 and 2020 plus
interest has increased. As of 31 December 2023, the total
potential liability equals DKK 8.3 million. This may impact
cash, and thereby the timing of investments in growth in
2024. Secondly, the general market conditions are leading
to an increase in both business and technology consol-
idations. This may lead to a reduction in ARR which we
have reserved for in the 2024 guidance. Lastly, we have in
2023 seen a significant reduction in ARR from transactions
in certain segment mainly related to geopolitical factors.
Based on the aforementioned factors we expect Total
ARR for 2024 to be in line with 2023 primarily with a
decline in ARR from subscription in Q1 2024 followed
by growth in the following quarters.
Despite the challenging conditions, we expect a positive
EBITDA as a result of our continued focus on operational
excellence.
Agillic focuses on organisational development with the
objective of becoming the most desirable Danish tech
company to retain existing employees and attract future
– and more international – talent. Agillic will invest in
marketing and sales to win new clients and deliver growth
in ARR towards second half 2024 primarily with a focus
on our existing priority markets. Agillic will also continue
to invest in developing the Agillic Customer Experience
Platform to improve the clients’ user experience and
enhance ROI.
Financial guidance
The financial outlook is based on several assumptions,
including that macroeconomic trends will not signifi-
cantly change the business conditions for Agillic, nor the
company’s clients other than previously stated, during
2024.
2024
Agillic has on 22 February 2024 published its guidance
for 2024.
• Revenue: DKK 62 to 66 million
• EBITDA: DKK 0 to 2 million
• ARR from subscriptions: DKK 56 to 60 million
• ARR from transactions: DKK 10 to 14 million
• Total ARR: DKK 66 to 74 million
Agillic’s proven sustainable growth strategy continues in 2024 with the aim of winning new clients,
retaining and growing existing clients, and growing together with an international partner network.
In 2024, Agillic will make a sustainable investment to further strengthening its internal sales
organisation for growth.
ARR development 2022-2024
Actual and 2024 guidance
Subscriptions and transactions (DKK million)
2022 2023 2024
70.1
66 -74
76.7
Financial outlook and guidance
Annual General Meeting
3 April 2024
Q1 results 2024
7 May 2024
Q2 results and half-year
report 2024
27 August 2024
Q3 results 2024
22 October 2024
Q4 results and annual
report 2024
25 February 2025
Financial calendar
2024
Governance
Annual Report 2023
17
Currency risk
Currency risk is the risk that arises from changes in
exchange rates, affecting Agillic’s results. The general
objective of Agillic’s currency risk management is to limit
and delay any adverse impact of exchange rate fluctuations
on earnings and cash flows, thus increasing the predict-
ability of the financial results. Agillic also aims to balance
incoming and outgoing payments in local currency and
monitors the development in exchange rates and adjusts
price lists when required. The most significant currency
exposure in Agillic is to NOK.
Handling of personal data
To ensure compliance with GDPR and other relevant
regulation Agillic applies a strict Information Security
Management System (ISMS). Improvements to the ISMS
are considered and reviewed regularly by Agillic’s Infor-
mation Security Committee and presented to Executive
Leadership and the Board of Directors for approval. Oper-
ational procedures and guidelines are regularly reviewed
from a risk perspective and aligned with the ISMS. Agillic’s
handling of personal data is audited in accordance with
the ISAE 3000 standard on an annual basis.
Cyber security
As for all SaaS companies, cyberattacks and viruses
present serious potential threats to Agillic. To reduce any
risk Agillic maintains a very secure IT infrastructure and
strong anti-virus protection. Our security protocols and
vulnerability tests are reviewed on a monthly basis. All
employees are trained in our strict IT-policies both upon
employment and on an annual basis.
Data security
Agillic has established an industry-standard security
programme, dedicated to providing a high level of
documented data security and allowing clients to have
confidence in our custodianship of their data. The security
programme is aligned with the ISO 27001 standard to
ensure that Agillic operates in compliance with relevant
legal requirements and agreements and is audited by
an external auditing company according to ISAE 3000.
Agillic does not allow for sub-processors outside of the
EU/EEA to handle any client data, but we do use Amazon
Web Services (AWS), an American owned company, with
its data centre located in Ireland. To mitigate any potential
legal concern in this regard all data is fully encrypted
and the decryption key is kept secure outside AWS in
accordance with the guidance on the use of cloud services
from the Danish Data Protection Authority.
Business continuity
If an incident occurs, Agillic has processes in place to
handle the situation effectively. As part of the process,
Agillic’s client data is backed up every day to prevent
data-loss scenarios. All back-ups are encrypted, both
in transit and at rest, using strong industry encryption
techniques. All backups are geographically distributed
to maintain redundancy in the event of a natural disaster
or a location-specific failure.
Agillic is subject to a number of risks and uncertainties, with
potential short-term and long-term implications for our
business. The purpose of our risk management approach
is to address these in an effective and timely manner. It
is essential to ensure that Agillic stays competitive and
compliant with data legislations and maintains a solid cash
position to support the internationalisation and expected
two-digit growth in ARR, as described in the Agillic Reboot
2.1 growth strategy.
Risk management organisation
The Board of Directors is ultimately responsible for risk
management. It has appointed the Audit Committee and
Information Security Committee to act on its behalf in
monitoring the effectiveness of Agillic’s risk management.
While recurring risks are evaluated on a running basis,
monitoring is mainly performed in connection with board
meetings. The responsibility of the Audit Committee and
Information Security Committee is to adopt guidelines for
critical areas of risk, monitor developments, and ensure
that plans are in place to manage individual risks, including
strategic, operational, financial, and compliance risks.
Competition
The martech market is characterised by large international
vendors investing heavily in winning market share and
allocating significant resources in sales and marketing.
Our competitors also include emerging fast-growing
vendors with innovative solutions. To mitigate the risk of
increased competition impacting the business negatively,
Agillic has a constant focus on developing an innovative
and unique customer experience platform and investing
in customer success, sales and marketing.
Product development
Agillic depends on innovation and must continually
dedicate resources to development. Should Agillic not
be able to maintain its capacity to innovate, the company
and its offering are at risk of becoming obsolete in regard
to clients’ requests for functionality. Agillic is in the process
of applying for a patent on the Agillic platform’s method for
computer-implemented large-scale data communication.
Attracting and keeping new talent
As a growing company continuous recruitment of
additional competencies is necessary. Skilled backend
and frontend programmers are in high demand and it
can be challenging to attract and retain these profiles. If
Agillic cannot attract highly qualified employees, it may
have consequences for Agillic’s innovation capability and
growth rate. The risk is mitigated by working actively
with recruitment as well as developing and maintaining
an attractive working environment for all employees.
Internationalisation
International operations and the liquidity required to
build the new international partner network structure
are monitored by centralised financial controlling systems
and guidelines.
Liquidity risk
On 31 December 2023, cash amounted to DKK 9.8
million. In accordance with the Reboot 2.1 strategy, Agillic
is investing in resources to grow the business. This is
financed by operational excellence and new business.
Based on the forecast for 2024 additional financing is
not needed in the next period, although there is a risk
for a required repayment related to tax credit of DKK 6.4
million plus interest as described under financial review
and financial outlook and guidance.
In the highly competitive and rapidly changing tech market where Agillic operates risks are plenty. Our risk management focus is on data security,
investment in innovation and internationalisation to keep ahead of competition, as well as on attracting and keeping talent.
Risk management
Annual Report 2023
18
Corporate governance structure
Shareholders
Board of Directors
Organisation
Executive Leadership
and Management
Audit Committee
Chair
Information Security Committee
Good corporate governance is an important focus area at Agillic. We continuously develop
our practices with the objective of supporting and securing processes and procedures.
The ultimate authority over Agillic sits with the share-
holders. At the annual general meetings, shareholders
approve the annual report and any amendments proposed
to Agillic’s Articles of Association. Shareholders also elect
board members and the independent auditor.
The Board of Directors, the Executive Leadership and
Management
The management of Agillic is distributed between the Board
of Directors and the Executive Leadership and Management.
The Board of Directors supervises the Executive Lead-
ership’s work and is responsible for Agillic’s overall
management and strategic direction, while the Executive
Leadership is in charge of day-to-day management.
The Executive Leadership and Management consists of
the Chief Executive Officer, the Chief Financial Officer,
the Chief Solution Officer, the Chief Experience Officer,
the Chief Technology Officer, the VP, Customer Success
& Support, the VP, People & Culture, and the VP, Service
Operations. As per 31 December 2023 Agillic’s Board of
Directors consisted of five shareholder-elected members.
Two of the five members are shareholders.
Board members are elected by the shareholders at the
Annual General Meeting, serve for a one-year term and
are eligible for re-election.
The Chair of the Board
The shareholders elect the Chair of the Board at the annual
general meeting. The Chair performs administrative tasks,
such as planning board meetings to ensure a balance
between overall strategy setting and the financial and
managerial supervision of the company.
Audit Committee
The Audit Committee consists of Martin Eriksen and
Jesper Lohmann. It is responsible for assisting the Board
in overseeing the financial reporting process, the effec-
tiveness of the internal control and risk management
systems, as well as security and quality issues in relation
to client audits.
Information Security Committee
The Information Security Committee holds the overall
responsibility for Agillic’s Information Security Management
System (ISMS). The Information Security Committee must
ensure that Agillic’s ISMS is compliant and inspection-ready
for annual audits.
Agillic is not covered by the Danish Financial Statement
of Act, section 107B.
Corporate Governance
We aspire to follow the recommendations on corporate
governance from the Danish Committee on Corporate
Governance. As a starting point, we have published a
compliance report leveraging the framework provided
by The Association of Listed Growth Companies – see
Governance structure
Annual Report 2023
19
As a software provider we handle our clients’ and our clients’ customers’ data. This is why our services
are developed based on a “security by design” principle. We have implemented a series of industry
standards, best practices, and processes, and made security issues a top priority for all of our employees.
At the core of our data security is an industry-standard
security program, dedicated to providing a high level
of documented data security. This allows our clients
to have confidence in our custodianship of their data.
The security programme is aligned with the ISO 27001
standard to ensure that Agillic operates in compliance
with relevant legal requirements and agreements. Agillic’s
GDPR compliance and security level was last audited
by Deloitte in January 2024 according to the ISAE 3000
type II standard. All key control areas from the ISO 27001
standard are audited, including:
• Risk Management
• Information Security Policies
• Organisation of Information Security
• Human Resource Security
• Asset Management
• Access Control
• Operations Security
• Communications Security
• Supplier Relationships
• Information Security Incident Management
• Information Security Aspects of Business
• Continuity Management
• Compliance
A dynamic security approach
The security landscape is constantly changing as
cybercriminals discover new ways to compromise
data. Therefore, Agillic’s security approach is dynamic
and constant optimisation is a main objective. Agillic’s
security team works across the organisation and takes
exhaustive steps to identify and mitigate risks, implement
best practices, and constantly evaluate ways to enhance
security.
We have taken precautions in terms of technology and
processes to safeguard the Agillic platform and our clients’
data. We monitor the technology and the security-related
developments in the market and optimise our employees’
skill sets on an ongoing basis.
EU GDPR
Agillic is a data processor and is, as such, subject to the
General Data Protection Regulation (GDPR). Agillic’s
Customer Experience Platform supports our clients’ GDPR
compliance, and we meet all data processor requirements
and have implemented adequate processes to keep data
safe.
GDPR guarantees consumers a series of basic funda-
mental rights concerning data privacy. When addressing
consumers’ fundamental rights, we aim to make it easy
for our clients to comply with consumers’ requests for
data privacy.
Security and IT compliance
Share capital and warrants
At the end of 2023, the share capital in Agillic comprised
11,062,005 shares of DKK 0.1 each, corresponding to a
nominal share capital of DKK 1,106,200.50.
Each share carries one vote. The shares must be named
and noted in Agillic’s share register in order to give holders
access to voting. At the end of 2023, Agillic A/S has 678
(2022: 747) registered shareholders.
Agillic has issued warrants by the end of 2023 with the
right to sign 699,345 (2022: 661,345) new shares of
DKK 66,993.45 (2022: DKK 66,134.50) nominal value.
Ownership
At the end of 2023, 64% (2022: 63.5%) of the share capital
was ultimately owned by six (2021: five) shareholders,
each of whom owned over 5% of the share capital or
the votes.
At the end of 2023, members of Agillic’s Board of Directors,
and Executive Leadership and Management owned a total
of 3.7% (2022: 32.1%) of the share capital.
Share price and trading activities
At the end of 2023, the price of the Agillic share was DKK
19.00, compared to 23.70 at the end of 2022.
In 2023, a total of 3,059,316 (2022: 1,157,268) shares
were traded, corresponding to 27.7% (2022: 11.3%) of
the total number of shares.
Agillic’s market value amounted to DKK 210 million at
the end of 2023, compared to DKK 243 million at the
end of 2022.
Dividends
Agillic has not paid any dividend and, until further notice,
it is Agillic’s dividend policy to invest any profit in the
further growth of the company.
Communication with Agillic’s shareholders
According to the Nasdaq First North Growth Market
Nordic Rulebook on 21 March 2023, Agillic is only liable
for issuing half-year and year-end reports. In addition,
Agillic has decided to issue a “trading statement” following
Q1 and Q3. The year-end report is issued in connection
with the release of the annual report.
Investors are encouraged to sign up for Agillic Investor
News. Sign up at: www.agillic.com/investor
For further information, investors, analysts and the
media are encouraged to contact:
Emre Gürsoy, CEO, Agillic A/S
+45 30 78 42 00
emre.gursoy@agillic.com
Claus Boysen, CFO, Agillic A/S
+45 28 49 18 46
claus.boysen@agillic.com
Certified Adviser
John Norden, Norden CEF
jn@nordencef.dk
Agillic A/S’ shares have been listed on Nasdaq First North Growth Market Copenhagen
since 22 March 2018 with ID-code DK0060955854 and the ticker AGILC.
Shareholder information
Annual Report 2023
2020
Joar Welde
Chair of the Board
Joar Welde has been Chair of the
Board since 29 March 2023. Joar is a
Partner and Owner at Viking Venture.
He is an experienced Private Equity
investor with 15 years of experience
in building leading European SaaS
growth companies. He has served
as Chair of the Board of listed SaaS
companies such as Mercell and Ørn
Software. Before joining Viking,
Joar worked in M&A at EY and as a
consultant at DNB. Joar has a BBA
from the Norwegian Business School
and a MBA from the University of
Warwick, UK.
Shares: 0
Warrants: 0
Martin S. Eriksen
Board member
Martin is Senior Investment Manager
at Viking Venture. He is working
in Viking’s Operational Excellence
team supporting portfolio companies
on their growth journey through
strategy, business models, pricing
and commercial scalability projects
among other things. Prior to this Martin
lead Viking’s efforts towards the
Danish market and was responsible
for deal sourcing and execution,
resulting in six platform investments.
Prior to joining Viking Venture, Martin
worked as an Associate at Grant
Thornton’s London office. During
this time he worked in the firms
Restructuring & Debt Advisory as
well as Business Consulting teams
primarily engaged in due diligence
and business reviews. In addition to
being ACA qualified with the Institute
of Chartered Accountants in England
and Wales, Martin holds a BSc in
Business Administration and MSc in
Finance and Strategic Management.
Shares: 0
Warrants: 0
Jesper Genter Lohmann
Board member
Jesper Lohman is an investor and has
been a member of the board since
September 2013. Jesper holds an
MSc in Economics and Business
Administration. In 2009, Jesper
co-founded the Investment company,
Dico, of which he is a director. Prior
to co-founding Dico, Jesper held
management positions at Carlsberg,
JP/Politiken, Thorn EMI, Vacasol
International and DIBS Payment
Services. Jesper has been involved in
more than 30 executed transactions
with Dico portfolio companies. He
currently also serves on the board of
Freetrailer, HelloRetail, Junkbusters,
Weply, Vita Media Group, Dental
Media, Copyright Agent, and Axcess
Nordic Independent.
Holdings in Agillic through Lohmann
Holding ApS: 105,761 shares
Warrants: 0
Thorsten Köhler
Board member
Thorsten Köhler is a former strategic
advisor for the office of the CEO, Marc
Benioff, Salesforce. He is tech-savvy
entrepreneur, digital transformation
expert and recognised as an effective
and energetic leader; passionate
about culture, emerging tech-
nologies, and the relentless pursuit
of innovation. He has over 30 years
of market knowledge and extensive
management and sales experience to
inspire and enable CEOs to activate
a more personalised customer
experience and to build cutting edge,
user-centric platforms, products, and
services. Independent.
Shares: 0
Warrants: 50,000
Jan Juul
Board member
Jan Juul is Vice President, Head of the
EMEA Solution Consulting organi-
sation at ServiceNow. Jan brings
more than 30 years of experience
in the IT and software industry,
including extensive experience in
SaaS based hyper growth markets.
Jan has served in a number of Sales,
Presales and Professional Services
leadership roles at European and
International level, including a 4-year
relocation to London for NetIQ. Jan
have successfully helped establish
a number of US based Software
companies into both Nordic and
European markets, including creation
of market strategy and the devel-
opment of people, processes and
technology to become successful in
a diverse cultural and multi-language
market. Independent.
Shares: 25,000
Warrants: 25,000
Board of Directors
Annual Report 2023
2121
Executive Leadership Management
Emre Gürsoy
Chief Executive Officer
Emre Gürsoy is a strategic, hands-on
and growth focused international
leader with a strong track-record.
Emre has been the CEO of Agillic
since March 2020 and brings 30
years of experience, operating at
the intersection of technology, data,
and creativity to scale and grow
high-performing technology driven
companies across Europe, the US
and Asia while delivering strong P&L
results in various C-level roles. Emre
holds several Board and Advisory
Board memberships, and MBA and
Mechanical Engineer degrees.
Holdings in Agillic: 21,257
(partly owned by Emre Gürsoy
Holding ApS)
Warrants: 414,345
Claus Boysen
Chief Financial Officer
Claus joined Agillic in March 2022
and brings vast experience across
global strategy, financial planning
and operations, M&A, post-merger
integration, capital raising, and
listings on First North Stockholm.
Claus holds an Executive MBA in
Business Adminstration and a Higher
Diploma Degree in Accounting and
has many years of experience in
the technology industry. Previous
assignments include the role as
Group CFO at WorldTicket and Group
CFO at Lauritz.com – the latter of
which he led to an IPO.
Shares: 0
Warrants: 90,000
Bo Sannung
Chief Solution Officer
Holdings in Agillic: 111,293
(owned via Sannung Aps).
Warrants: 10,000
Petra Aagaard
VP, People & Culture
Shares: 0
Warrants: 5,000
Rasmus Houlind
Chief Experience Officer
Holdings in Agillic: 150,340
(partly owned via Omnichannel
Institute ApS). Warrants: 10,000
Martin Lindboe
Chief Technology Officer
Shares: 0
Warrants: 75,000
Allan Sørensen
VP, Service Operations
Shares: 0
Warrants: 0
Luis González
VP, Customer Success & Support
Shares: 0
Warrants: 0
Financial statements
Annual Report 2023
2323
Executive Leadership
Board of Directors
Statement by the management
Annual Report 2023
2424
Independent auditor’s report
Business Registration No 33 96 35 56
MNE no mne 337 47
MNE no mne 3 2127
Annual Report 2023
2424
Opinion
We have audited the financial statements of Agillic A/S
for the financial year 01.01.2023 - 31.12.2023, which
comprise the income statement, statement of compre-
hensive income, balance sheet, statement of changes in
equity, cash flow statement and notes, including material
accounting policy information. The financial statements are
prepared in accordance with IFRS Accounting Standards
as adopted by the EU and additional requirements of the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair
view of the Entity’s financial position at 31.12.2023 and of
the results of its operations and cash flows for the financial
year 01.01.2023 - 31.12.2023 in accordance with IFRS
Accounting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs) and additional requirements
applicable in Denmark. Our responsibilities under those
standards and requirements are further described in the
“Auditor’s responsibilities for the audit of the financial
statements” section of this auditor’s report. We are inde-
pendent of the Entity in accordance with the International
Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (IESBA Code)
and the additional ethical requirements applicable in
Denmark, and we have fulfilled our other ethical respon-
sibilities in accordance with these requirements and the
IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
Statement on the management commentary
Management is responsible for the management
commentary.
Our opinion on the financial statements does not cover
the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the management commentary
and, in doing so, consider whether the management
commentary is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether
the management commentary provides the information
required by relevant laws and regulations.
Based on the work we have performed, we conclude
that the management commentary is in accordance
with the financial statements and has been prepared
in accordance with the information required by relevant
laws and regulations. We did not identify any material
misstatement of the management commentary.
Management’s responsibilities for the financial
statements
Management is responsible for the preparation of
financial statements that give a true and fair view in
accordance with IFRS Accounting Standards as adopted
by the EU and additional requirements of the Danish
Financial Statements Act, and for such internal control
as Management determines is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
To the shareholders of Agillic A/S
In preparing the financial statements, Management is
responsible for assessing the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters
related to going concern, and for using the going concern
basis of accounting in preparing the financial statements
unless Management either intends to liquidate the Entity
or to cease operations, or has no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs and the additional requirements applicable
in Denmark will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of
these financial statements.
As part of an audit conducted in accordance with ISAs and
the additional requirements applicable in Denmark, we
exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is suffcient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
•
Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the Entity’s internal control.
•
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by Management.
•
Conclude on the appropriateness of Management’s use
of the going concern basis of accounting in preparing the
financial statements, and, based on the audit evidence
obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt
on the Entity’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Entity to cease to
continue as a going concern.
•
Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures
in the notes, and whether the financial statements
represent the underlying transactions and events in a
manner that gives a true and fair view.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
Independent auditor’s report
Copenhagen, 22.02.2024
Deloitte
Statsautoriseret Revisionspartnerselskab
Business Registration No 33 96 35 56
Henrik Wolff Mikkelsen
State Authorised Public Accountant
MNE no 33747
Bjørn Winkler Jakobsen
State Authorised Public Accountant
MNE no 32127
Annual Report 2023
25
(DKK '000) 2023 2022
Profit/(loss) for the year (27,501 ) (10,636 )
Other comprehensive income - -
Total comprehensive income (27,501 ) (10,636 )
Note (DKK '000) 2023 2022
3 Revenue 64,679 67,008
4 Direct costs (12,458 ) (17,371 )
Gross profit 52,221 49,637
Other operating income 583 334
5 Other external costs (14,098 ) (16,313 )
6,7 Staff costs (36,800 ) (32,544 )
EBITDA 1,906 1,114
8 Depreciation and amortisation of intangible and tangible assets (13,263 ) (12,232 )
Operating profit (EBIT) (11,357 ) (11,118 )
9 Financial income 297 489
9 Financial expenses (4,096 ) (3,247 )
Profit before tax (15,156 ) (13,876 )
10 Tax on profit for the year (12,345 ) 3,240
Profit/(loss) for the year (27,501 ) (10,636 )
15 Earnings per share (EPS) (2.52 ) (1.04 )
15 Earnings per share, diluted (DEPS) (2.52 ) (1.04 )
Income statement Statement of comprehensive income
Annual Report 2023
26
Note (DKK '000) 31 Dec 2023 31 Dec 2022
EQUITY AND LIABILITIES
Equity
15 Share capital 1,106 1,026
Reserve development costs 25,945 25,879
Retained earnings (47,297 ) (41,945 )
Total equity (20,246 ) (15,040 )
Liabilities
16 Borrowings, long-term 17,189 21,518
17 Leasing obligations, long-term - 1,100
18 Other payables 2,885 2,885
Non-current liabilities 20,074 25,503
16 Borrowings, short-term 6,574 2,795
17 Leasing obligations, short-term 1,146 1,157
Trade payables 4,848 8,145
Tax payables 8,235 -
18 Other payables 7,402 7,924
19 Deferred income 19,138 22,291
Current liabilities 47,343 42,312
Total liabilities 67,417 67,815
TOTAL EQUITY AND LIABILITIES 47,171 52,775
Note (DKK '000) 31 Dec 2023 31 Dec 2022
ASSETS
Non-current assets
Patent 500 500
Software developed 31,035 31,120
12 Intangible assets 31,535 31,620
Fixtures and equipment 15 241
Right of use assets 958 2,005
Leasehold improvements 4 134
13 Tangible assets 977 2,380
Deposits 586 586
Other non-current assets 586 586
Total non-current assets 33,098 34,586
Current assets
14 Trade receivables 3,489 4,425
Other receivables 35 115
Tax receivables 0 5,976
Prepayments 741 304
Cash 9,808 7,369
Total current assets 14,073 18,189
TOTAL ASSETS 47,171 52,775
Statement of financial position
Annual Report 2023
27
Note (DKK '000) 2023 2022
Profit/(loss) for the year (27,501 ) (10,636 )
Adjustments for non-cash items:
Tax on profit for the year 12,345 (3,240 )
Financial income and expenses 3,798 2,756
Share-based payments 1,093 (32 )
IFRS 16 (1,111 ) (1,155 )
Depreciation, amortisation and impairment 13,263 12,232
11 Changes in working capital (6,392 ) 5,802
Total (4,505 ) 5,775
Net financials, paid (1,993 ) (2,680 )
Income taxes, received - -
Cash flow from operating activities (6,498 ) 3,050
Investment in subsidiaries and joint ventures - -
12 Purchase of intangible assets (11,715 ) (13,511 )
13 Purchase of tangible assets - -
Cash flow from investing activities (11,715 ) (13,511 )
Issuance of shares, net of costs 21,202 151
11 Borrowings/repayment (-) long-term 358 (2,036 )
11 Borrowings/repayment (-) short-term (908 ) (908 )
Cash flow from financing activities 20,652 (2,793 )
Change in cash and cash equivalents 2,439 (13,254 )
Cash and cash equivalents at 1 January 7,369 20,623
Cash and cash equivalents at 31 December 9,808 7,369
(DKK '000)
Share
capital
Reserve for
development
costs
Retained
earnings Total
Equity at 1 January 2022 1,019 28,368 (33,910 ) (4,523 )
Profit for the year - (2,489 ) (8,147 ) (10,636 )
Other comprehensive income for the year - - - -
Total comprehensive income for the year - (2,489 ) (8,147 ) (10,636 )
Transactions with owners
Issue of share capital 7 - 144 151
Costs related to issuance of new shares - - - -
Share-based payments - - (32 ) (32 )
Equity at 31 December 2022 1,026 25,879 (41,945 ) (15,040 )
Profit for the year - 66 (27,567 ) (27,501 )
Other comprehensive income for the year - - - -
Total comprehensive income for the year - 66 (27,567 ) (27,501 )
Transactions with owners
Issue of share capital 80 - 22,416 22,496
Costs related to issuance of new shares - - (1,294 ) (1,294 )
Share-based payments - - 1,093 1,093
Equity at 31 December 2023 1,106 25,945 (47,297 ) (20,246 )
For further details of Share capital, refer to note 15 Share Capital and Earnings per share.
Cash flow statement Statement of changes in equity
Annual Report 2023
28
GENERAL
Statement of compliance
The financial statements of Agillic A/S for 2023 have
been prepared in accordance with IFRS Accounting
Standards as adopted by the EU and additional Danish
requirements for the presentation of financial statements
according to the Danish Financial Statement Act for
enterprises in reporting class B and certain provisions
applying to reporting class C. On 22 February 2024,
the Board of Directors and the Executive Leadership
considered and approved the annual report for 2023
of Agillic A/S. The annual report will be presented to
the shareholders for approval at the Annual General
Meeting to be held on 3 April 2024.
Basis of preparation
The financial statements are presented in Danish kroner
(DKK), which is the functional currency of Agillic A/S. All
amounts have been rounded to nearest DKK thousand,
unless otherwise indicated. The financial statements
have been prepared on a going concern basis and in
accordance with the historical cost convention, except
where IFRS explicitly requires use of other values. For
the purpose of clarity, the financial statements and
the notes to the financial statements are prepared
using the concepts of materiality and relevance. This
means that line items not considered material in terms
of quantitative and qualitative measures or relevant to
financial statement users are aggregated and presented
together with other items in the financial statements.
Similarly, information not considered material is not
presented in the notes. The accounting policies, except
as described below, have been applied consistently
during the financial year and for the comparative figures.
Operating segments
At this point Agillic only operates in one segment and
segments are not a part of the internal management
reporting, hence operating segments are not presented
in the financial statements.
Foreign currency translation
Transactions denominated in currencies other than
the functional currency are considered transactions
in foreign currency. On initial recognition, transactions
denominated in foreign currencies are translated to
the functional currency at the exchange rates at the
transaction date. Foreign exchange adjustments arising
between the exchange rates at the transaction date and
at the date of payment are recognised in the income
statement under financial income or financial expenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reporting date. The difference between the exchange
rates at the reporting date and at the date of transaction
or the exchange rate in the latest financial statements
is recognised in the income statement under financial
income or financial expenses.
Non-IFRS financial measures
Agillic uses certain financial measures that are not defined
in IFRS to describe Agillic’s financial performance.
These financial measures may therefore be defined
and calculated differently form similar measures in
other companies, and thus not be comparable. The
definitions of non-IFRS financial measures are included
in Definitions of key figures and ratios on page 40.
INCOME STATEMENT
Revenue recognition
Agillic recognises revenue from the following major
sources:
• Subscriptions
• Transactions
• Professional services and other
Revenue is mainly derived from subscription fees
charged for Agillic software licenses, transaction
fees and professional service and training fees. For
software contracts, which are comprised of several
components, the total contract sum is allocated to the
separate performance obligations for the purpose of
revenue recognition.
Revenue recognition requires an agreement with the
client, which creates enforceable rights and obligations
between the parties, has commercial substance, and
identifies payment terms. In addition, it must be
probable that the consideration determined in the
contract will be collected. Revenue is measured based
on the consideration to which Agillic expects to be
entitled in a contract with a client and exclude amounts
collected on behalf of third parties. Agillic recognises
revenue when it transfers control of the license or
service to a client. All revenue is derived from contracts
with clients.
Note 1 – Accounting policies
Notes to the financial statements
Note
1 Accounting policies 28
2 Critical accounting estimates and judgements 30
3 Revenue 31
4 Direct costs 31
5 Other external costs 31
6 Staff costs 32
7 Share-based payments 32
8 Depreciation and amortisation of intangible and tangible assets 34
9 Financial income and expenses 34
10 Tax 34
11 Notes to cash flow statement 35
12 Intangible assets 35
13 Tangible assets 36
14 Trade receivables 36
15 Share capital and earnings per share 37
16 Borrowings 37
17 Leasing obligations 37
18 Other payables 38
19 Deferred income 38
20 Contingent liabilities and commitments 38
21 Related parties 38
22 Financial risks 39
Annual Report 2023
29
Subscription fees
Subscription fees covers license, hosting and main-
tenance. Fixed term subscription agreements give the
right to use the software for a determined period of
time, which can be extended at the end of the initial
term. Standard perpetual software licenses provide
clients with the right to use the software whilst the
contract remains in force. New subscription fees are
comprised of income derived from new clients and
additional subscription income originating from supple
-
mentary sales (uplifts) to existing clients. The main
possible performance obligation related to subscription
agreements has been identified as the right to use
the software. The right to use software license is
considered a separate performance obligation when
it satisfies the following conditions: can be delivered
separately from other services, can be installed by
a third party, can be used without upgrades, and is
functional without upgrades or technical support.
Agillic has assessed that the client obtains control of
the license when a contract is agreed, the license is
delivered, and the client has the right to use it. Revenue
relating to subscription fees are recognised over time.
The transaction price allocated to these subscriptions
is recognised as a contract liability (deferred income) at
the time of the initial sales transaction and is released
on a straight-line basis over the subscription agreement
period.
Transaction fees
Transaction fees relate to outbound transactions, i.e.
email, SMS, etc. Transactions are sold on price per units
for the relevant transaction and revenue is calculated
based on transactions send and recognised when
control of the goods has been transferred, being at
the point the client purchases the goods by sending
out transactions.
Direct costs
Direct costs comprise costs incurred to achieve the
year’s revenue including hosting and transaction costs.
Other operating income
Other operating income and other operating expenses
comprise income and expenses of a secondary nature
relative to the primary activities of Agillic.
Other external costs
Other external costs comprise sales and marketing
costs, external consultancy costs, other employee
related costs, IT and software costs, investor relations
costs, rent costs, allowances for doubtful trade
receivables and other administrative expenses.
Staff costs
Staff costs consist of salaries, sales commissions,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits. Salaries,
bonuses, pensions and social costs, share-based
payments, vacation pay, and other benefits are
recognised in the year in which the associated services
are rendered by the employees. Agillic has entered into
retirement benefits schemes and similar agreements
with employees. Contributions to defined contribution
plans are recognised in the income statement in the
period to which they relate and any contributions
outstanding are recognised in the statement of financial
position as other liabilities.
Share-based payments
The Board of Directors, the Executive Leadership and
other employees have been granted warrants. The
warrants are measured at fair value at the grant date
and are recognised as an expense in staff costs over the
vesting period. Expenses are set off against equity. The
fair value of the warrants is measured using the Black-
Scholes valuation method or other generally accepted
valuation techniques. The calculation takes into account
the terms and conditions under which the warrants
are granted. Subsequent fair value adjustments are
not recognised in the income statement. If subsequent
modifications to a warrant program increase the value
of the warrants granted, measured before and after the
modification, the increase is recognised as an expense.
If the modification occurs before the vesting period the
increase in value is recognised as an expense over the
period for services to be received. If the modification
occurs after the vesting date, the increase in value is
recognised as an expense immediately. Consideration
received for warrants sold are recognised directly in
equity.
Financial income and financial expenses
Financial income and expenses include interest income,
interest expense, amortisation of borrowing issue costs
and realised and unrealised exchange gains and losses.
Tax
Tax on the profit /loss for the year comprises the year’s
current tax and changes in deferred tax. The tax expense
relating to the profit/loss for the year is recognised in
the income statement, and the tax expense relating to
items recognised in other comprehensive income and
directly in equity, respectively, is recognised in other
comprehensive income or directly in equity.
Current tax payable and receivable is recognised in
the balance sheet as the expected tax on the taxable
income for the year, adjusted for tax paid on account.
The current tax charge for the year is calculated based
on the tax rates and rules enac ted at the balance sheet
date.
Deferred tax is calculated using the liability method
on all temporary differences between the accounting
and taxable values of assets and liabilities. Deferred
tax assets are assessed yearly and only recognised
to the extent that it is more likely than not that they
can be utilised. Deferred tax assets, including the tax
value of tax losses carried forward, are recognised as
other non-current assets and measured at the amount
at which they are expected to be realised, either by
setting off deferred tax liabilities or by setting off tax on
future earnings within the same legal entity or a jointly
taxed entity. Deferred tax is measured based on the
tax legislation and statutory tax rates in the respective
countries that will apply under the legislation in force
on the balance sheet date when the deferred tax asset
is expected to crystallise as current tax. Changes in
deferred tax resulting from changes in tax rates are
recognised in the income statement. Agillic recognises
deferred tax assets relating to losses carried forward
when Executive Leadership finds that these can be
offset against taxable income in the foreseeable future.
An assessment is made taking into consideration the
effect of restrictions in utilisation in local tax legislation.
Future taxable income is assessed based on budgets as
well as Executive Leadership’s expectations regarding
growth and operating margin in the coming years.
STATEMENT OF FINANCIAL POSITION
Intangible assets
Intangible assets with determinable useful lives are
measured at cost less accumulated amortisation and
impairment losses. Intangible assets include developed
software and client contracts. Amortisation is provided
on a straight-line basis over the expected useful lives
of the finite-lived assets, which are as follows:
Software developed 5 years
Expected useful lives are reassessed regularly. Agillic
regularly reviews the carrying amounts of its finite-lived
intangible assets to determine whether there is an
indication of an impairment loss.
Patents
Agillic is in the process of applying for a patent on
the Agillic platform. Patents acquired are initially
recognised at fair value at the acquisition date and
subsequently carried at cost less any accumulated
impairment losses. The carrying values of patent assets
are reviewed annually for impairment to assess if there
is an indication of impairment.
Software developed
Software developed by Agillic is recognised as an
asset if the cost of development is reliably measurable
and an analysis shows that future economic benefits
from using the software exceed the cost. Cost is
defined as development costs incurred to make the
software ready for use. Once a software application
has been developed the cost is amortised over the
expected useful life. The cost of development consists
primarily of direct salaries and other directly attributable
development costs. Amortisation and impairment
charges are recognised in the income statement. For
Agillic, the measurement of intangible assets, could
be affected by significant changes in judgment and
assumptions underlying their calculation. The estimated
useful life reflects the period over which Agillic expects
to derive economic benefit from intangible assets. As
active markets for the majority of acquired assets and
liabilities do not exist, management has made estimates
of their fair values. Fair values were estimated as the
present value of future cash flows calculated based
on churn rates or other expected cash flows related
to each asset. Estimates of fair value are associated
with uncertainty and may be subsequently adjusted.
Tangible assets
Property, plant, and equipment are measured at cost
less accumulated depreciation and accumulated
impairment. Property, plant, and equipment are depre-
ciated on a straight-line basis over the expected useful
lives of the finite-lived assets, which are as follows:
Leasehold improvements over the lease
(IFRS 16) term up to 10
years
Fixtures and equipment 3-5 years
Tangible assets are tested for impairment if indications
of impairment exist. Tangible assets are written down to
its recoverable amount, if the carrying amount exceeds
the higher of the fair value less costs to sell and the
value in use. Depreciation and impairment charges are
recognised in the income statement.
Impairment of tangible and intangible assets
The carrying amounts of tangible assets and intangible
assets with determinable useful lives are reviewed
regularly to determine whether there are any indications
of impairment. If such indications are found, the recov-
Annual Report 2023
30
erable amount of the asset is calculated to determine
any need for an impairment write-down and, if so, the
amount of the write-down. For intangible assets with
indeterminable useful lives the recoverable amount is
calculated annually, regardless of whether any indi-
cations of impairment have been found. If the asset does
not generate any cash flows independently of other
assets, the recoverable amount is calculated for the
smallest cash-generating unit that includes the asset.
The recoverable amount is calculated as the higher of
the fair value less costs to sell and the value in use of
the asset or the cash-generating unit, respectively.
In determining the value in use, the estimated future
cash flows are discounted to their present value, using
a discount rate reflecting current market assessments
of the time value of money as well as risks that are
specific to the asset or the cash-generating unit and
which have not been taken into account in the estimated
future cash flows. If the recoverable amount of the asset
or the cash-generating unit is lower than the carrying
amount, the carrying amount is written down to the
recoverable amount. For cash-generating units, the
write-down is allocated in such a way that goodwill
amounts are written down first, and any remaining
need for write-down is allocated to other assets in the
unit, although no individual assets are written down
to a value lower than their fair value less costs to sell.
Impairment write-downs are recognised in the income
statement. If write-downs are subsequently reversed
as a result of changes in the assumptions on which
the calculation of the recoverable amount is based, the
carrying amount of the asset or the cash-generating
unit is increased to the adjusted recoverable amount,
not, however, exceeding the carrying amount that the
asset or cash-generating unit would have had, had the
write-down not been made.
Deposits
Deposits are primarily related to leasing of offices.
Deposits which will not be returned within one year of
the balance sheet date are recognised as non-current
assets.
Trade receivables
Trade receivables are measured at amortised cost
less allowance for lifetime expected credit losses. To
measure the expected credit losses, credit risk for
trade receivables have been based on an individual
assessment. Trade receivables are written off when
all possible options have been exhausted and there
is no reasonable expectation of recovery. The cost of
allowances for expected credit losses and write-offs
for trade receivables are recognised in the income
statement under other administrative expenses.
Prepayments
Prepayments are recognised as an asset and comprise
incurred costs relating to subsequent financial years.
Prepayments are measured at cost.
Right of use assets/leases (IFRS 16)
Agillic must recognise all leasing agreements, including
operational leasing agreements, in the balance sheet.
This means that a leasing obligation must be recognised
measured at the present value of the future leasing
payments, as described below, and a corresponding
leasing asset adjusted for payments made to the lessor
prior to the start of the leasing agreement, and incentive
payments received from the lessor.
Agillic has chosen not to recognise directly related costs
to the leasing asset. In accordance with the transitional
provisions and possible exceptions in IFRS 16, Agillic
has chosen to implement the standard:
•
Not to recognise leasing agreements with a term
of less than 12 months or with low value, which
means the only recognised lease is the rent of the
facilities at Masnedøgade 22, 2100 Copenhagen.
• Not to reassess whether an ongoing contract is or
contains a lease.
The expected lease period for the rent of the facilities
is 42 months.
In assessing future leasing payments, Agillic has
reviewed its operational leasing agreements and
identified those leasing payments that relate to a leasing
component and that are fixed or variable, but which
change in line with fluctuations in an index or an interest
rate. Agillic has chosen not to recognise payments
related to service components as part of the leasing
obligation. When assessing the expected lease period,
Agillic has identified the non-cancellable lease period
in the agreement. The leasing assets are depreciated
on a straight-line basis over the expected lease period,
which is 42 months. The average alternative borrowing
rate used when discounting future lease payments in
connection with measuring the leasing obligation is
set at Agillic’s marginal borrowing rate of 2.63% p.a.
Borrowings
Borrowings are measured at amortised cost.
Trade payables and other payables
Other payables include bonus and commission
accruals, vacation pay obligations, payroll taxes and
VAT. Payables are measured at cost.
Deferred income
Deferred income comprises income received relating
to subsequent financial years. Deferred income is
measured at cost. When a client pays consideration
in advance, or an amount of consideration is due
contractually before transferring of the license or
service, then the amount received in advance presented
as a liability. Deferred income represents contractual
prepayments from clients for unsatisfied or partially
satisfied performance obligations in relation to licenses,
maintenance, and services. License billing generally
occurs at periodic intervals (e.g. quarterly or yearly)
prior to revenue recognition, resulting in liabilities.
CASH FLOW STATEMENT
The cash flow statement is presented according to the
indirect method commencing with the results for the
year. The cash flow statement shows Agillic’s cash flows
divided into operating, investing and financing activities
as well as cash and cash equivalents at the beginning
and end of the year. Cash flows from operating activities
are calculated using the indirect method as the profit
for the year adjusted for non-cash items, changes in
working capital, changes in contract assets, financial
income received, financial expenses paid and income
tax paid. Cash flows from investing activities consist of
receipts and payments in connection with acquisitions
and disposals of companies and operations, intangible
assets and property, plant, and equipment, as well as
other non-current assets and liabilities. Cash flows from
financing activities are comprised of changes in share
capital and related costs, purchase of treasury shares,
proceeds from loans and distributions of dividends
to shareholders. Cash and cash equivalents consist
of cash at bank and in hand less current bank loans
due on demand.
New and revised IFRS standards in issue but not
yet effective
New standards and interpretations not yet adopted
IASB has issued new or amended accounting standards
and interpretations that have not yet become effective
and have consequently not been implemented in the
financial statements for 2023. Agillic expects to adopt
the accounting standards and interpretations when
they become mandatory. None of the new or amended
standards or interpretations are expected to have a
significant impact on the financial statements.
Adoption of new or amended IFRSs Management has
assessed the impact of new or amended and revised
accounting standards and interpretations (IFRSs) issued
by the IASB and IFRSs endorsed by the European Union
effective on or after 1 January 2021. It is assessed that
application of amendments effective from 1 January
2021 has not had a material impact on the financial
statements for 2023. Furthermore, Management does
not anticipate any significant impact on future periods
from the adoption of these amendments.
Note 2 - Critical accounting
estimates and judgements
In the application of Agillic’s accounting policies,
which are described in note 1, Executive Leadership
is required to make judgements (other than those
involving estimations) that have a significant impact
on the amounts recognised and to make estimates and
assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are
based on historical experience and other factors that
are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision
and future periods if the revision affects both current
and future periods. Critical judgements that have the
most significant effect on the amounts recognised in
financial statements, key assumptions concerning the
future and other key sources of estimation uncertainty
at the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year,
are described below.
Performance obligation
Agillic is contractually obligated to deliver online access
through the platform (subscription), hosting of the
platform and access as well as maintenance of the
platform within the subscription period. These three
services are not sold separately.
It is Agillic’s judgement, that the three services do not
have a separate value from a customer perspective,
as subscriptions do not comprise any value without
hosting, and maintenance service do not comprise value
without the customer also subscribing to the platform.
It is not technically possible to choose hosting by a third
party, and the maintenance service only concerns the
Agillic platform and therefore has no value towards
other online platforms.
Annual Report 2023
31
Based on the above factors, Agillic considers its
delivery of subscription, hosting and maintenance as
one complete performance obligation.
Tax
The company has applied for tax credit each year
based on the actual interpretation at the point in time
in consultancy with our advisors. However, the change
in assessment and interpretation from the Danish Tax
Authorities increases the uncertainty of any outcome.
Due to the ongoing request on submitted tax credit for
2020 and 2021 as well as a submitted appeal related
to tax credit in 2019, a reversal of for the received tax
credit from 2019 and 2020 (DKK 6.4 million) as well as
a provision for the applied tax credits from 2021 and
2022 (DKK 6.0 million) has been made. The reversal
is made due to the latest change in how the Danish
Tax Authorities assesses and interpret the Tax Credit
Scheme. A full reversal for 2019-2022 has been made
in the 2023. In total the reversal is DKK 12.4 million in
tax and DKK 1.9 million in interest.
Software developed
The measurement of developed software could be
affected by significant changes in judgement and
assumptions underlying their calculation. The expected
useful life of 5 years reflects the period over which
Agillic expects to derive economic benefit from software
developed. Estimation of useful life are associated with
uncertainty and may be subsequently adjusted.
Trade receivables
Allowances have been recognised according to the
lifetime expected credit loss method as introduced
under IFRS 9. We refer to note 14 for a specification
of the loss.
Note 3 – Revenue
Note 4 – Direct costs
Note 5 – Other external costs
All revenue is derived from contracts with clients. Revenue from subscription fees is recognised
over time and for transaction fees and other professional services at a point in time.
Contract liabilities are presented as deferred income, see note 19 Deferred income.
(DKK '000) 2023 2022
Subscription fees 48,278 48,358
Transaction fees on subscription 4,118 1,384
Transaction fees by consumption 12,018 16,783
Professional services and other fees 265 483
Total revenue 64,679 67,0 0 8
(DKK '000) 2023 2022
Hosting costs 5,462 5,362
Transaction costs 6,996 12,009
Total direct costs 12,458 17,371
(DKK '000) 2023 2022
Sales and marketing costs 5,006 5,049
External consultancy costs 9,265 11,420
External consultancy costs transferred to capitalised development costs (6,246) (6,152)
Other employee related costs 2,041 2,170
Other administrative expenses 4,032 3,826
Total other external costs 14,098 16,313
Annual Report 2023
32
Note 6 – Staff costs
(DKK ‘000)
Board
of Directors
Executive Leadership
and Management
2023 2022 2023 2022
Remuneration
Salaries, Board fees and bonus 250 610 10,136 8,917
Share-based payments 234 399 954 662
Defined contribution pension plans 0 0 761 590
Total remuneration 484 1,009 11,851 10,169
(DKK '000) 2023 2022
Costs of share-based payments 1,093 (32)
Total costs of share-based payments 1,093 (32)
Note 7 – Share-based payments
Warrant program September 2017
The Board of Directors have used the authorisation in the
Articles of Association article 3.3 to allocate warrants
to the members of the Board of Management where
the participants acquire the right to subscribe of in total
292,527 shares at a nominal value of DKK 0.10 each.
Shares can be subscribed for at DKK 2.70 per share at
a nominal value of DKK 0.10.
All warrants have been granted.
199,096 warrants will be vesting in the period 1 January
2018 to 1 October 2020 and exercise of the warrants
must happen in the period 1 January 2021 to 31 March
2021. 93,431 warrants will be vesting in the period 1
October 2020 to 1 October 2021 and exercise of the
warrants must happen in the period 1 January 2022 to
31 March 2022.
There are no performance conditions for the granting
of the warrants but each participant must remain an
employee during the vesting period.
The issue of all shares will have a dilutive effect of 4.04%.
Warrant program April 2018
The Board of Directors have used the authorisation in
the Articles of Association article 3.2 to allocate 20,717
warrants to the members of the Board of Management
where the participants acquire the right to subscribe of
in total 20,717 shares at a nominal value of DKK 0.10
each. Shares can be subscribed for at DKK 38.00 per
share at a nominal value of DKK 0.10.
All warrants have been granted.
15,534 warrants will be vested in the period 1 January
2018 to 1 October 2020 and exercise of the warrants
must happen in the period 1 January 2021 to 31 March
2021. 5,183 warrants will be vested in the period 1
October 2020 to 1 October 2021 and exercise of the
warrants must happen in the period 1 January 2022 to
31 March 2022.
There are no performance conditions for the granting of
warrants but each participant must remain an employee
during the vesting period.
The issue of all shares will have a dilutive effect of 0.2.
The conditional warrant program has been terminated
due to a warrant holder has left Agillic.
Warrant program October 2020
The Board of Directors have used the authorisation in the
Articles of Association article 3.3 to allocate warrants
to the Management where the participants acquire the
right to subscribe of in total 414,345 shares at a nominal
value of DKK 0.10 each. Shares can be subscribed for
at DKK 23.10 per share at a nominal value of DKK 0.10.
All warrants have been granted.
414,345 warrants will be vesting in the period 1 October
2020 to 30 April 2025 and exercise of the warrants must
happen in the period 1 October 2020 to 30 April 2025.
There are no performance conditions for the granting
of the warrants but each participant must remain an
employee during the vesting period.
The issue of all shares will have a dilutive effect of 4.39%.
Warrant program April 2021
The Board of Directors have used the authorisation in
the Articles of Association article 3.2 to allocate 105,500
warrants to the members of the Board of Directors
where the participants acquire the right to subscribe
of in total 582,500 shares at a nominal value of DKK
0.10 each. 50,000 of the shares can be subscribed to
at DKK 20.00 per share, at a nominal value of DKK 0.10
and 55,500 of the shares can be subscribed to at DKK
25.00 per share at a nominal value of DKK 0.10.
All warrants have been granted.
50,000 warrants will be vested in the period 1 April 2021
to 30 September 2022 and exercise of the warrants
must happen in the period 1 April 2022 to 30 September
2022. 18,500 warrants will be vested in the period 1
April 2021 to 30 April 2024. and exercise of the warrants
must happen in the period 1 May 2024 to 31 May 2024.
37,000 warrants will be vested in the period 1 April
2021 to 30 April 2022 and exercise of the warrants
must happen in the period 1 May 2023 to 31 May 2023.
There are no performance conditions for the granting of
warrants but each participant must remain an employee
during the vesting period.
The issue of all shares will have a dilutive effect of 1.02%.
68,500 warrants were not vested within the designated
timeframe and therefore terminated.
Warrant program March 2022
The Board of Directors have used the authorisation in the
Articles of Association article 3.11 to allocate 155,000
(DKK '000) 2023 2022
Salaries 36,363 37, 47 7
Share-based payments 1,093 (32)
Pension plans (defined contribution) 4,512 2,210
Social security and other costs 301 248
Staff costs transferred to capitalised development costs (5,469) ( 7, 35 9)
Total staff costs 36,800 32,544
Employees
Average number of employees (FTE) 47 47
Number of employees year end (FTE) 50 48
Annual Report 2023
33
warrants to the members of the Board of Management
where the participants acquire the right to subscribe of
in total 155,000 shares at a nominal value of DKK 0.10
each. The 75,000 shares can be subscribed for at DKK
24.80 per share at a nominal value of DKK 0.10. The
80,000 shares can be subscribed for at DKK 25.54 per
share at a nominal value of DKK 0.10.
All warrants have been granted.
The exercise price of 75,000 warrants is fixed at DKK
24.80 per share corresponding to the average share price
on 1 December 2021. The warrants vest with 7,500
warrants on 1 December 2022, 15,000 warrants on 1
December 2023, 22,500 warrants 1 December 2024,
and 30,000 warrants on 1 December 2025.
The exercise price of 80,000 warrants is fixed at DKK
25.54 per share corresponding to the average share
price on 1 March 2022. The warrants vest with 8,000
warrants on 1 March 2023, 16,000 warrants on 1 March
2024, 24,000 warrants on 1 March 2025, and 32,000
warrants on 1 March 2026.
The warrants can be exercised in periods of 14 days
starting the day after the publication of Agillic’s financial
reports. The warrants shall be exercised no later than
12 months after the final vesting.
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
The issue of all shares will have a dilutive effect of 0.78%.
The conditional warrant program of 75,000 has been
terminated due to warrant holder has left Agillic.
Warrant program June 2022
The Board of Directors have used the authorisation
in the Articles of Association article 3.10 to allocate
105,000 warrants to the members of the Management
where the participants acquire the right to subscribe of
in total 105,000 shares at a nominal value of DKK 0.10
each. 105,000 of the shares can be subscribed to at
DKK 20.0392 per share, at a nominal value of DKK 0.10.
All warrants have been granted.
The vesting of the first 50,000 warrants issue to
Management, is subject to Agillic’s achievement of the
financial performance targets: The performance target
was not met.
The vesting of 55,000 warrants issued to Management
and the six other employee of Agillic is subject to a
cliff of twelve (12) months and further conditional
upon Agillic’s achievement of the following financial
performance targets for the financial year 2022: The
financial performance targets were met.
Subject to Agillic’s achievement of the performance
targets above and expiration of the cliff respectively,
the warrants issued to Management and the six other
employees of Agillic vest in eight (8) equal instalments
with 1/8 each quarter on the dates of disclosure of
Agillic’s annual report, interim report or quarterly financial
statement, as the case may be.
Subject to vesting, the warrants can be exercised in
periods of 14 days starting the day after publication
of Agillic’s annual report, half-year reports and or
interim reports, respectively. The warrants issued to
Management and the six employees shall be exercised
no later than 12 months after the final vesting. The
warrants issued to Management shall be exercised no
later than 36 months after the vesting date (the date
of the annual general meeting in 2023).
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
T h e i s s u e o f a l l s h a r e s w i l l h a v e a d i l u t i v e e f f e c t o f 1 . 0 2 % .
Warrant program July 2022
The Board of Directors have used the authorisation
in the Articles of Association article 3.2 to allocate
75,000 warrants to two new members of the Board
of Management where the participants acquire the
right to subscribe of in total 75,000 shares at a nominal
value of DKK 0.10 each. Shares can be subscribed for at
DKK 16.9555 per share at a nominal value of DKK 0.10.
All warrants have been granted.
Warrants can be exercised in periods of 14 days
starting the day after the publication of Agillic’s annual
report, half-year report or quarterly financial statement,
respectively. The warrants shall be exercised no later
than 12 months after the vesting of the last instalment.
The issue of all shares will have a dilutive effect of 0.73%.
The warrants include conditions on accelerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
Warrants programme September 2023
The Board of Directors have used the authorisation
in the Articles of Association article 3.1 to allocate
75,000 warrants to Management where the participants
acquire the right to subscribe of in total 75,000 shares
at a nominal value of DKK 0.10 each. Shares can be
subscribed for at DKK 19.00 per share at a nominal
value of DKK 0.10.
All warrants have been granted.
The warrants vest with 7,500 warrants on 1 October
2024, 15,000 warrants on 1 October 2025, 22,500
warrants on 1 October 2026 and 30,000 warrants on
1 October 2027.
Warrants can be exercised in periods of 14 days starting
the day after the publication of Agillic’s annual report.
The warrants shall be exercised no later than 12 months
after the final vesting.
The issue of all shares will have a dilutive effect of 0.68%.
The warrants include conditions on acceerated vesting
in case of change of control, e.g. a takeover bid, merger
or delisting.
73,130 warrants were exercised during 2022.
Number of warrants
Executive Leadership
and Management Board of Directors
Outstanding at 1 January 2023 599,345 112,000
Granted 75,000 -
Re-allocation - -
Exercised - -
Cancelled - (37,000)
Outstanding at 31 December 2023 674,345 75,000
Warrants outstanding
Weighted
average
exercise price
DKK
Vesting
period
Exercise
period 2023 2022
Warrant programme October 2020 23.10 Oct 2020 - Apr 2025 Oct 2020 - Apr 2025 414,345 414,345
Warrant programme April 2021 21.75 Apr 2021 - Apr 2024 Oct 2022 - May 2024 - 105,500
Warrant programme April 2022 25.54 Apr 2022 - Mar 2026 Apr 2022 - Mar 2026 80,000 80,000
Warrant programme June 2022 20.04 Jun 2022 - Mar 2025 Jun 2022 - Aug 2025 105,000 105,000
Warrant programme July 2022 16.96 Jul 2022 - Mar 2024 Jul 2022 - Mar 2025 75,000 75,000
Warrant programme September 2023 19.00 Oct 2024 - Oct 2027 Oct 2024 - Oct 2028 75,000 -
Outstanding at 31 December 749,345 779,845
Outstanding warrants have the following characteristics:
Specification of outstanding warrants:
2023 2022
Average remaining life of outstanding warrants at 31 December (years) 3.75 3.09
Exercise price for outstanding warrants at 31 December (DKK) 16.96 - 25.54 16.96 - 25.17
Annual Report 2023
34
Note 8 – Depreciation and amortisation
of intangible and tangible assets
Note 9 – Financial income and expenses
(DKK '000) 2023 2022
Software developed 11,860 10,841
Fixtures and equipment 226 214
Right of use asset 1,047 1,047
Leasehold improvements 130 130
Total depreciation and amortisation of intangible and tangible assets 13,263 12,232
(DKK '000) 2023 2022
Financial income
Other interest income - 489
Foreign exchange rate adjustments (net) 297 -
Total financial income 297 489
Financial expenses
Interest expense, cash etc. - 57
Interest expense financial liabilities carried at amortised cost 2,083 2,687
Other interest expense 2,013 122
Foreign exchange rate adjustments (net) - 381
Total financial expenses 4,096 3,247
Note 10 – Tax
(DKK '000) 2023 2022
Current income tax - (3,240)
Adjustment for current tax of prior periods 12,345 -
Adjustment deferred tax - -
Total 12,345 (3,240)
Unrecognised deferred tax - -
Total 12,345 (3,240)
-
Profit/(loss) before tax (15,156) (13 , 874)
Income tax, tax rate of 22% - (3,052)
Tax effect from:
Non-deductible expenses 1,990 87
Tax on profit for the year - (2,965)
Effective tax rate 0% 21%
(DKK '000) 2023 2022
Intangible assets 6,846 6,843
Tangible assets 290 25
Tax losses carried forward (42,043) (26,787)
(34,907) (19,919)
Unrecognised tax asset 34,907 19,919
Total deferred tax - -
Agillic’s tax losses are not expected to be used in full. No deferred tax assets have been recognised in respect of the DKK 34.9
million (2022: DKK 19.9 million) as it is not considered probable that there will be taxable profits available in the foreseeable future.
All recognised tax losses may be carried forward indefinitely.
Warrant programme
September 2023
Warrant programme
July 2022
Warrant programme
June 2022
Warrant programme
April 2022
Warrant programme
April 2021
Warrant programme
October 2020
Average share price (DKK) 19.10 17. 3 5 18.20 27. 9 0 24 19.70
Expected volatility rate (% p.a.) 49 42 45 44 40 40
Risk-free interest rate (% p.a.) 3.02 0.65 1.23 (0.25) 0.64 (0.64)
Expected warrant life (no. years) 4 2.67 3.17 4 1.50-3.00 4.50
Exercise price (DKK) 19.00 16.96 20.04 25.17 20.00-25.00 23.10
Fair value all warrants, after dilution (DKK '000) 595 366 552 811 610 2,092
Expected volatility rate is applied based on the annualised volatility on relevant peer groups derived from the standard
deviation of daily observations over 12 months ending 2023.
The fair value of the warrants issued is measured at calculated market price at the grant date based on the Black & Scholes option pricing model. The calculation is based on the following assumptions at the grant date:
Annual Report 2023
35
Note 11 – Notes to cash flow statement
(DKK '000) 2023 2022
Changes in working capital
Changes in trade receivables, other receivables, prepayments etc. 580 383
Changes in trade payables, other payables, deferred income etc. (6,972) 5,719
Total changes in working capital (6,392) 5,802
Borrowings/repayment (-) long-term
Borrowings at 1 January, net 21,518 23,553
Borrowing of loans and debt to credit institutions - -
Repayment of loans and debt to credit institutions 443 (1,869)
Amortised borrowing costs (85) (166)
Borrowings/repayment (-) long-term at 31 December 21,876 21,518
Borrowings/repayment (-) short-term
Borrowings at 1 January, net 2,796 3,704
Borrowing of loans and debt to credit institutions - -
Repayment of loans and debt to credit institutions (799) (809)
Amortised borrowing costs (109) (100)
Borrowings/repayment (-) short-term at 31 December 1,888 2,796
Note 12 – Intangible assets
(DKK '000)
Patent
Client
contracts
Software
developed Total
2023
Cost beginning of year 500 2,254 71,312 74,066
Additions - - -
Additions from internal development - - 11,715 11,715
Disposals - - - -
Cost end of year 500 2,254 83,027 85,781
Amortisation beginning of year - 2,254 40,192 42,446
Amortisation - - 11,800 11,800
Disposals - - - -
Amortisation end of year - 2,254 51,992 54,246
Carrying amount end of year 500 - 31,035 31,535
2022
Cost beginning of year - 2,254 5 7, 801 60,555
Additions 500 - - -
Additions from internal development - - 13,511 13,511
Disposals - - - -
Cost end of year 500 2,254 71,312 74,066
Amortisation beginning of year - 2,165 29,363 31,617
Amortisation - 89 10,829 10,829
Disposals - - - -
Amortisation end of year - 2,254 40,192 42,446
Carrying amount end of year 500 - 31,120 31,620
Capitalised software development costs relate to development of the existing proprietary customer experience software platform. The
software is under continuous development for the use of clients and partners and is sold as a license to use the software for a given
period. The user has acces to upgrades and new functionalities during the contract period.
Development costs for the year cover both development of front-end and back-end part of the software solution. Both parts to increase
the user experience and functionalities within the software in order to increase the Agillic’s revenue by maintaining existing clients and
acquire new clients.
It is Management’s assessment that the expected useful lives of the finite-lived assets, as well as the expected future revenue streams
from the assets is sufficient to cover the value of recognised developed software at the reporting date.
In 2023, the company expensed DKK 0 million (2022: DKK 0 million) for development projects, primarily planning, administrative and
other general overhead expenditures not meeting the recognition criteria applicable to internally generated intangible assets.
Annual Report 2023
36
Note 13 – Tangible assets
Fixtures and
equipment
Right of
use asset
Leasehold
improvements
Total
2023
Cost beginning of year 1,151 4,186 390 5,727
Additions Merger subsidairy - - - -
Additions - - - -
Disposals - - - -
Cost end of year 1,151 4,186 390 5,727
Depreciation beginning of year 910 2,181 256 3,347
Depreciation 226 1,047 130 1,403
Disposals - - - -
Depreciation end of year 1,136 3,228 386 4,750
Carrying amount end of year 15 958 4 977
2022
Cost beginning of year 1,151 4,186 390 5,727
Additions Merger subsidairy - - - -
Additions - - - -
Disposals - - - -
Cost end of year 1,151 4,186 390 5,727
Depreciation beginning of year 683 1,134 126 1,943
Depreciation 227 1,047 130 1,404
Disposals - - - -
Depreciation end of year 910 2,181 256 3,347
Carrying amount end of year 241 2,005 134 2,380
Agillic implemented the new leasing standard IFRS 16 in 2020
using the modified retrospective transitional method and has
therefore not adjusted comparative figures before 2021, which
are still presented in accordance with the rules in IAS 17 and
IFRIC 4.
This means that a leasing obligation must be recognised
measured at the present value of the future leasing payments,
as described below, and a corresponding leasing asset adjusted
for payments made to the lessor prior to the start of the leasing
agreement, and incentive payments received from the lessor.
Agillic has chosen not to recognise directly related costs to the
leasing asset. In accordance with the transitional provisions in
IFRS 16, Agillic has chosen to implement the standard:
• Not to recognise leasing agreements with a term of less than
12 months or with low value, which means the only recognised
lease is the rent of the new facilities at Masnedøgade 22, 2nd
floor, 2100 Copenhagen.
• Not to reassess whether an ongoing contract is or contains a
lease
The expected lease period for the rent of the new facilities is
42 months.
In assessing future leasing payments, Agillic has reviewed its
operational leasing agreements and identified those leasing
payments that relate to a leasing component and that are fixed
or variable, but which change in line with fluctuations in an index
or an interest rate.
Agillic has chosen not to recognise payments related to service
components as part of the leasing obligation.
When assessing the expected lease period, Agillic has identified
the non-cancellable lease period in the agreement. The leasing
assets are depreciated on a straight-line basis over the expected
lease period, which is 42 months.
(DKK '000) 31 Dec 2023 31 Dec 2022
Trade receivables
Trade receivables, gross 3,939 4,875
Allowances for doubtful trade receivables:
Balance beginning of year 450 450
Change in allowance during the year - -
Realised losses during the year - -
Allowances for doubtful trade receivables year end 450 450
Trade receivables, net 3,489 4,425
Trade receivables (net) can be specified as follows:
Not past due 2,894 3,198
Past due, but not impaired:
Not more than 30 days 313 1,074
Between 31 and 60 days - -
Between 61 and 90 days 282 153
More than 90 days - -
Trade receivables, net 3,489 4,425
The carrying amount is equivalent to the fair value of the assets.
Note 14 – Trade receivables
In 2023, allowances have been recognised according to the lifetime expected credit loss method as introduced under IFRS 9.
The expected loss on trade receivables is DKK 0.45 mio. according to IFRS 9.
Annual Report 2023
37
Note 15 – Share capital and earnings per share
Share capital
As at 31 December 2023, the share capital consisted of 11,062,005 (2022: 10,260,947) shares with a nominal value of
DKK 0.10. The shares are not divided into classes and carry no right to fixed income.
(DKK ‘000) 2023 2022
Issued and fully paid shares:
At 1 January 2023, 10,260,947 shares of DKK 0.10 each 1,026 1,019
Capital increase, registered 14 January 2021 - -
Capital increase, registered 30 March 2021 - -
Capital increase, registered 07 April 2022 - 7
Capital increase, registered 24 March 2023 80 -
Share capital at 31 December 2023 1,106 1,026
Earnings per share
The calculation of earnings per share is based on the following:
Profit/(loss) for the year (25,501) (10,634)
Weighted average number of shares used for
calculation of earnings per share
10,901,793 10,241,515
Average dilutive effect of outstanding share options 651,222 627,160
Weighted average number of shares used for calculation of
diluted earnings per share 11,553,015 10,868,675
Earnings per share (EPS) (2.52) (1.04)
Earnings per share, diluted (DEPS) (2.52) (1.04)
Note 16 – Borrowings
The funding package consist of:
Existing credit line is DKK 3.0 million (2022: DKK 3.0 million). At 31 December 2023, the credit line was not utilised. The credit
facility is renegotiated on a yearly basis. The credit line bears an annual variable interest rate subject to DANBOR +3.0%.
Existing loans from Vækstfonden amounts to DKK 31.0 million (2022: DKK 31.0 millon). The loans mature in between
2025-2026. No covenants apply. The variable interest rate is subject to adjustment quarterly based upon the 3-month
CIBOR plus a premium.
Booked value is assessed to be represented the fair value of borrowings at end year.
(DKK '000) 31 Dec 2023 31 Dec 2022
Borrowings are due as follows:
Within 1 year 6,574 2,795
From 1-5 years 17,18 9 21,518
After 5 years - -
Total borrowings 23,763 24,313
Borrowings are recognised accordingly:
Borrowings, long-term 17,18 9 21,518
Borrowings, short-term 6,574 2,795
Note 17 – Leasing obligations
The average alternative borrowing rate used when discounting future lease payments in connection with measuring the leasing
obligation is set at Agillic’s marginal borrowing rate of 2.63% p.a.
(DKK '000) 31 Dec 2023 31 Dec 2022
Leasing obligations are due as follows:
Within 1 year 1,146 1,157
From 1-5 years - 1,100
After 5 years - -
Total leasing obligations 1,146 2,257
Leasing obligations are recognised accordingly:
Leasing obligations, long-term - 1,100
Leasing obligations, short-term 1,146 1,157
Annual Report 2023
38
Note 20 – Contingent liabilities and commitments
Contingent liabilities
The Executive Leadership assesses that the outcome of pending claims and other disputes will have no material impact on the
Agillic’s financial position.
A mortage of DKK 18 million registered as collateral for Agillic’s debt to Vækstfonden of DKK 23.5 million as per 31 December 2023.
A mortage of DKK 3 million is registered as collateral for Agillic’s credit facility at Danske Bank.
A guarantee of NOK 60,000 has been provided to the Norwegian Tax Authorities.
Note 21 – Related parties
Agillic’s related parties exercising a significant influence comprise Agillic’s Board of Directors and Executive Leadership as well as
relatives of these persons.
Related parties also comprise companies in which the individuals mentioned above have material interests.
Agillic did not enter into any agreements, deals, or other transactions in 2023 in which Agillic’s Board of Directors or Executive Leader-
ship had a financial interest, except for transactions following from the employment relationship. See note 6 Staff costs.
All agreements relating to these transactions are based on market price (arm’s length). Agillic has had the following transactions with
related parties:
There has not been any transactions with related parties. There has been a normal remuneration to one of the Board of Directors. Board
of Management and other Key Management Personnel, there has not been any transactions other than presented in note 6 Staff costs.
Key Management Personnel consists of parties with significant influence not already disclosed as part of the Board of Directors and the
Board of Management.
Members of the Board of Directors are elected by the shareholders at the Annual General Meeting for terms of one year. Refer to page
20 for additional information on members of the Board of Directors.
Note 19 – Deferred income
Revenue relating to subscriptions is recognised over time although the customer pays up-front in full for these subscriptions.
A contract liability is recognised for revenue at the time of the initial sales transaction and is released over the contract period.
(DKK '000) 31 Dec 2023 31 Dec 2022
Arising from contracts with customers 19,138 22,291
Total deferred income 19,138 22,291
Current 19,138 22,291
Non-current - -
Total deferred income 19,138 22,291
(DKK ‘000) 2023 2022
Transactions
Outstanding balances
Sale and Purchase of shares - major shareholders - -
Note 18 – Other payables
(DKK '000) 31 Dec 2023 31 Dec 2022
Accrued vacation payables, long-term 2,885 2,885
Accrued vacation payables, short-term 1,700 1,620
Bonus and commission payables 1,352 1,665
Payroll taxes, VAT etc. 3,788 3,272
Other accrued costs 562 1,366
Total other payables 10,287 10,808
Current 7,4 02 7,923
Non-current 2,885 2,885
Total other payables 10,287 10,808
Annual Report 2023
39
Due to the nature of its operations, investments, and financing, Agillic is exposed to a number of financial risks. It is the company policy to
operate with a low risk profile, so that currency risk, interest rate risk and credit risk only occur in commercial relations.
The scope and nature of Agillic’s financial instruments appear from the income statement and statement of financial position in accord-
ance with the accounting policies applied. Provided below is information about factors that may influence amounts, time of payment, or
reliability of future payments, where such information is not provided directly in the financial statements.
This note addresses only financial risks directly related to the Agillic’s financial instruments. Agillic’s most important operational and
commercial risk factors are described in more detail on page 17 of the annual report.
Currency risk
Currency risk is the risk that arises from changes in exchange rates and affects the company’s result.
The general objective of Agillic’s currency risk management is to limit and delay any adverse impact of exchange rate fluctuations on
earnings and cash flows and thus increase the predictability of the financial results. Agillic also aim to balance incoming and outgoing
payments in local currency as much as possible as well as monitoring the development in exchange rates and adjust price lists when
required.
The most significant financial risk in Agillic relates to exchange rate fluctuations. The greatest exposure in foreign currency is to NOK
and in 2023 14.2% (2022: 10.5%) of Agillic’s revenue was denominated in NOK. Furthermore, the Agillic generally seeks to ensure that
contracts with clients are entered into in DKK, NOK or EUR.
Based on the net exposure of Agillic, the hypothetical impact of exchange rate fluctuations on revenue and EBITDA, is as follows:
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities.
Agillic’s interest-bearing borrowings of DKK 23,561 thousand as per 31 December 2023 is subject to a variable rate of interest based
on a 3-month CIBOR plus a premium.
If market interest rates increased by one percentage point, the interest rate sensitivity as calculated based on the loan balance to credit
institutions as per end of 2023, would lead to a yearly increase in interest expenses of DKK 236 thousand. A corresponding decrease in
market interest rates would have the opposite impact.
Liquidity risk
The main credit risk in the company is related to trade receivables. Agillic does not have material risks related to a single client or partner.
Agillic’s business model leads to a very limited credit risk as the majority of the subscription based revenue derived from contracts with
clients are subject upfront annual invoicing and payment.
Agillic has not historically had any siginficant loss on trade receivables and the risk of significant losses on the total receivables as per 31
December 2023 is estimated to be limited.
Also refer to note 14 Trade receivables.
Capital structure
Agillic manages its capital to ensure that the company will be able to continue as going concern while maximising the return to
shareholders through the optimisation of the debt and equity balances. The capital structure of Agillic consists of net debt and equity.
The Board of Directors reviews the capital structure continually to consider if the current capital structure is in accordance with Agillic’s
and shareholders’ interests.
Note 22 – Financial risks
(DKK '000) 31 Dec 2023 31 Dec 2022
Specification of financial assets and liabilities:
Trade receivables 3,489 4,425
Other receivables 35 118
Tax receivables 5,976 5,976
Cash 9,808 7,369
Total financial assets 19,308 17, 8 85
Debt to credit institutions 23,763 24,313
Prepayments from clients -
Trade payables 4,848 8,145
Other payables 15,637 7, 92 3
Total financial liabilities 44,428 40,381
Sensitivity to a 10% increase in NOK exchange rate 2023 2022
Revenue 917 700
EBITDA 1,091 874
Annual Report 2023
40
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the value of
subscriptions at a given date, including transaction-
based use, entered into with Agillic and converted
to a monthly value multiplied by 12.
New subscriptions are included in ARR at the time
of entering into the binding agreement, which would
typically occur at the time of signing the agreement.
For changes to existing subscriptions, ARR is
included at the time that the change enters into
force.
Subscriptions that are terminated or not renewed
are reduced on ARR at the time that the agreement
ceases to exist.
Subscriptions are typically entered into with an
irrevocable period of 12-36 months. Inclusion of
ARR is conducted in the following manner:
For 12 month subscriptions, ARR is included as
1 times the value of the agreement. For 24 month
subscriptions, ARR is included as ½ times the value
of the agreement. For 36 month subscriptions, ARR
is included as 1/3 times the value of the agreement.
Monthly subscriptions are included in ARR as 12
times the actual monthly value of the subscription
(MRR).
In addition to the value of subscriptions, the clients’
transaction-based subscription use, including email
and SMS transactions, are also included in ARR.
The value of ARR from transaction-based use is
calculated as the latest quarter’s actual transaction-
based use multiplied by 4.
From quarter to quarter, ARR is calculated as the
value from the last day of the most recent quarter’s
ARR adjusted for changes until the last day of the
current quarter.
The following elements are included in the
calculation of the changes in ARR:
+ Additional sales to existing clients (subscription -
-based upgrades/additional services)
+ Agreed upon price adjustments to existing
subscriptions
+ New sales of subscriptions
+ The change (+/-) in transaction use derived from
the subscriptions
- Termination or downgrading of subscription
= Change in ARR
ARR is calculated in Danish Kroner. When entering
into a agreement in a foreign currency, a currency
conversion is conducted at the time of entering into
the agreement.
ARR multiple
Cash adjusted EBITDA
Churn rate (%)
Customer Acquisition
Costs (CAC)
Customer lifetime
Earnings per share (EPS)
Earnings per share,
diluted (DEPS)
EBITDA
EBIT
Gross profit margin (%)
NRR
Number of employees year
end (FTE)
Years to recover CAC
Market cap / ARR.
EBITDA added back for R&D capitalisation plus the change
in deferred revenue
The value of terminated ARR for a 12-month period as a percentage of
total ARR end of reporting period.
The sales and marketing cost (inclusive direct related cost, like travel
costs, personal IT costs, costs of office etc.) of acquiring one new
customer.
Average number of years from customers acquisition to customer churn
calculated as 1 divided by gross value churn rate.
Net profit divided by the weighted average number of shares.
Net profit divided by the weighted average number of shares, inlcuding
the dilutive effect of stock options.
Net profit before interests, tax, depreciation, amortisation and result from
joint ventures.
Earnings before interest and tax.
Gross profit as a percentage of Revenue.
Net retention rate is a key customer success metric. It is an important
metric that indicates the profitability of a SaaS business generated solely
from your existing customers.
Number of full-time equivalent employees (part-time employees
translated into full-time employees) at the end of the year.
Average number of years to recover the costs of acquiring one new
customer (CAC) calculated as CAC divided by Average ARR*Gross profit
margin %.
Definitions of key figures and ratios
Board of Directors
Joar Welde, Chair
Martin Eriksen
Jesper Lohmann
Jan Juul
Thorsten Köhler
Executive Leadership
Emre Gürsoy, CEO
Claus Boysen, CFO
Date of establishment
2 December 1999
Financial year
1 January - 31 December
Auditor
Deloitte Statsautoriseret Revisionspartnerselskab
CVR no. 33963556
Company information
Agillic A/S
Masnedøgade 22, 2
nd
floor
2100 Copenhagen
Denmark
contact@agillic.com
agillic.com
Business Reg. no. 25063864