Loyal Solutions

CEO Peter Kisbye comments:

“In the period 1 July 2023 – 31 December 2023 (“the Period”) the Company delivered the following results:

• 65% revenue growth year on year
• 99% growth in gross margin (Revenue-CoGS)
• Stable OPX year on year (+3%)
• Growth in annual recurring revenue (ARR) of 7%
• EBITDA of TDKK -2.358 vs budget of TDKK -5.373 and last year TDKK -7.173
• Result of TDKK -3.648 vs budget of TDKK -6.405 and last year of TDKK -8.582
• Cash receipts of TDKK 18.545 vs budget of TDKK 19.233 and last year 12.182

We see our growth rate in revenue and gross margin as a testament to our SaaS business model and the solutions we enable for our clients.While achieving this solid growth rate, the Company has continued to focus on profitability and has maintained virtually unchanged operating expenses (OPX).

 During the Period our pipeline grew at the expected rate and while lead times remain long and we observed some uncertainty in the market we expect to deliver the budgeted annual result.

Our current clients’ implemented programs continued to perform well during the Period, and several clients opted to add further modules and solutions to their platform. While at different stages of maturity, all current programs achieved growth year-on-year, and with several clients now expanding to other countries, we have a firm client base on which to build future growth.

During the period we experienced the first customer churn, which will not significantly impact this financial year.

The financial performance in the Period is satisfactory, showing improvement in all but one KPIs. The one KPI that is not satisfactory is the growth rate in ARR of 7%. We will work hard on improving the growth in ARR in the coming 6 months.

Our most important resource, our employees, continued to do an outstanding job. Despite being quite busy, we have maintained our focus on work-life balance, inclusivity and on providing flexible working hours and locations. Our IT hub in South Africa has been an integral part in delivering solutions and our IT organization benefits from having operations in both Denmark and South Africa.

We truly believe in putting employees first and that “team is everything”, so a big thank you to everyone at Loyal Solutions for the results delivered.”

HIGHLIGHTS FOR THE FIRST HALF YEAR 1/7-31/12 2023

Business and operational highlights

During the Period the Company reached several milestones including:

• Signed long term agreement with Cathay Pacific Airways, our first client based in Asia
• Delivered a range of platform upgrades to existing clients, incl new payment scheme integrations
• 65% revenue growth year on year
• 99% growth in gross margin (Revenue - COGS)
• Stable OPX year on year (+3%)
• EBITDA of TDKK -2.358 vs budget of TDKK -5.373 and last year TDKK -7.173
• Result of TDKK -3.648 vs budget of TDKK -6.405 and last year of TDKK -8.582
• Continued building our pipeline on direct and partner sales
• Visa VMLS pipeline showing healthy growth
• Several new modules for LoyalTfacts® under development, some AI based.
• Started ISO 27001/018/019 and Soc2-Type 2 compliance project, to complement our PCI DSS Level1 compliance.

Conference call to present first half of financial year 2023/24

Loyal Solutions will present its first half year report 2023/24 results in a brief live webcast 30 January 2024, 10.00-10.30 CET. Please join and ask questions directly to CEO, Peter Kisbye and CFO, Pernille Normand Farup-Hansen, at this investor event.

To participate, please join the conference call on this link.

This financial report constitutes inside information that Loyal Solutions A/S is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out below, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.