Investor Q & A
Q: How do I buy shares in Risk Intelligence?
A: If you cannot find Risk Intelligence shares under the ticker RISK in the online banking system you should enter the ISIN number DK0061031978 in the share search field. You can also buy shares using Nordnet or Avanza.
Q: Have you delivered what you promised at the IPO?
A: All milestones for 2018 and 2019 have been met as planned and the most important one was the launch of our third product in the Risk Intelligence System, LandRisk, on 1 October 2019. Only the official launch of the Singapore office happened later than planned. We are also on track to deliver the last target, which is to double the maritime-oriented business from 2017 to 2020.
Q: You have negative EBITDA – why?
A: As part of our growth plan that was communicated to the market during the IPO in 2018 we have launched a range of investments and initiatives and these will have negative impact on EBITDA throughout 2020.
Q: What is your cash-burn per year?
A: As we do not have a public guidance, we do not comment on the cash burn. However, the first 6 months is an indicator, but of course impacted by one-off’s in terms of initiatives and investments to build the organisation etc. for the future. We expect to have positive EBITDA for the full year 2020.
Q: Your cash position was 2.3M DKK end Q2 2019. When do your run out of cash?
A: As we informed in a press Release the company is at this point fully funded to support the current strategy.
Q: Will you need further funding?
A: The company is fully funded to support the current strategy. If strategic business opportunities arise that need a larger cash amount, we cannot exclude that further funding will be necessary.
Q: Your share price is currently very low. When do you expect that we shareholders get our money back or are in breakeven?
A: In general, we do not comment on the daily share price development (positive nor negative). We have a business plan that is long-term, and we have delivered on all milestones and by that we will add value to the shareholders in the long run.
Q: What is your operations cost base going forward?
A: All of the new initiatives have been executed and the company will from the launch of LandRisk on 1 October 2019 be ready to substantially increase business revenue while increasing costs marginally due to the scalability of the Risk Intelligence System.
Q: When are you starting to make money?
A: We plan to have a positive EBITDA for the full year of 2020.
Q: Why is recurring revenue important for your business?
A: Our subscription license-based business is paid up front for 12 months and cannot be terminated during this period. With a renewal rate of 98+% it means that new license agreements are being added every year to our recurring revenue. Most of our original MaRisk subscribers have renewed every year since 2008.
Q: What is your target for recurring revenue?
A: The long-term target for recurring revenue is 90% of the total business.
Q: What is the size of the largest recurring revenue contract?
A: It is about 1.5M DKK.
Q: Are you sending out press releases for all new business contracts?
A: Unfortunately, due to the nature of our business as providers of security intelligence, a number of our clients are not interested in having their names disclosed, but major contracts will be presented to the market without mentioning of the name of the client unless they agree to having it disclosed.