ANNUAL REPORT
2024
Copenhagen, 11 March 2025
Annual report for the period
1 January 2024 - 31 December 2024
Penneo A/S
Enghavevej 40, 4th Floor,
1674 Copenhagen V, Denmark
Business reg. no. 35633766
2Penneo Annual Report 2024
ESG report 2024
In our ESG report, you can read more about Penneo’s environmental, social,
and governance indicators.
https://penneo.com/wp-content/uploads/2025/03/penneo-2024-esg-
report.pdf
3 Management’s review
4 ARR performance highlights
5 Financial performance highlights
6 Our vision
7 Letter to our stakeholders
9 Financial review
10 CFO statement
11 Key figures
14 Financial commentary
15 How we measure our performance
16 ARR growth from year-on-year
financial cohorts
17 Overview of ARR development
18 ARR development in Q4-2024
19 SaaS metrics
20 Domestic and foreign ARR base split
21 Project ARR contribution
22 ARR growth compared to free
negative cash flow
23 Employee development
24 Penneo at a glance
27 ESG strategy
28 ESG highlights
30 ESG statement
31 Governance section
32 Governance
33 Executive and Board of Directors bios
36 Key risks
37 Company information
38 Financial statements
39 Statement by management
40 Independent Auditor’s Report
43 Fiancial statements
48 Notes
CONTENT
3Penneo Annual Report 2024
MANAGEMENT’S
REVIEW
4Penneo Annual Report 2024
ARR performance highlights
Q4-2024 development 2024 development End of year 2024
• ARR increased by 4.3M DKK compared to 6.8M
DKK in Q4-2023
• ARR increased by 12.5M DKK compared to 18.4M
DKK in 2023
• ARR amounted to 101.8M DKK at the end of 2024
compared to 89.3M DKK at the end of 2023 (14%
year-on-year growth)
• ARR increase from newbiz amounted to 3.0M
DKK compared to 3.8M DKK in Q4-2023
• ARR increase from newbiz amounted to 11.3M
DKK compared to 10.1M DKK in 2023 • YoY ARR net retention rate amounted to 101%
• ARR increase from uplift amounted to 3.7M DKK
compared to 4.5M DKK in Q4-2023
• ARR increase from uplift amounted to 6.2M DKK
compared to 11.4M DKK in 2023
• YoY ARR uplift amounted to 7%
• ARR decrease from churn amounted to 2.4M
DKK compared to 1.4M DKK in Q4-2023
• ARR lost to churn amounted to 5.0M DKK
compared to 3.2M DKK in 2023
• YoY ARR churn rate amounted to 6%
• ARR from foreign markets amounted to 34.4M
DKK at the end of 2024 compared to 26.7M DKK
at the end of 2023 (29% year-on-year growth)
• ARR from foreign markets increased by 3.7M
DKK compared to 3.0M DKK in Q4-2023
• ARR from foreign markets increased by 7.7M
DKK compared to 7.1M DKK in 2023
Strong new business performance and sustained uplift from existing customers, driving a 14% year-on-year growth in ARR despite challenges from churn,
downgrades, and currency fluctuations in 2024.
5Penneo Annual Report 2024
Financial performance highlights
EBITDA development
M DKK 2024 2023 2022 2021
Revenue 102.1 88.4 72.1 54.3
Cost of sales (14.4) (12.4) (12.5) (9.7)
Gross profit 87.7 76.1 59.5 44.6
Other external expenses (22.7) (20.9) (17.8) (14.4)
Staff costs (51.0) (63.8) (52.8) (44.2)
EBITDA* 13.9 (8.7) (11.1) (14.1)
* EBITDA does not include “Other income” and “Other operation expenses” on page 43.
Cash development
M DKK 2024 2023 2022 2021
Cash flow from operating activities 5.8 7.5 (10.0) (8.1)
Cash flow from investing activities (24.0) (22.8) (19.4) (15.5)
Free cash flow (18.2) (15.3) (29.4) (23.6)
Adjusted* 0.0 0.0 2.4 0.0
Adjusted Free Cash Flow (18.2) (15.3) (27.1) (23.6)
Cash Flow from financing activities (3.8) 4.4 57.2 17.1
Net Cash Flow (22.1) (10.9) 27.8 (6.5)
M DKK 2024 2023 2022 2021
Cash and cash equivalents end of period 20.1 42.2 53.2 25.4
* Adjusted for the cost that is associated with the listing on the Copenhagen Main Market (2.4M DKK in 2022)
6Penneo Annual Report 2024
OUR VISION
A WORLD WHERE YOU CAN TRUST
THE WAY BUSINESSES DO BUSINESS.
Penneo transforms the way business-to-business companies
in Anti-Money-Laundering (AML) regulated industries can
meet growing compliance demands. With Penneo’s signing
and KYC workflow platform, they can optimize and automate
critical business workflows throughout the client lifecycle,
from customer onboarding to document signing and
ongoing risk assessment. This empowers them to spend less
time on quality assurance, compliance, and control freeing
up time for more value-adding tasks.
7Penneo Annual Report 2024
Letter to our
stakeholders
Delivering Value and Strengthening Foundations
In 2024, Penneo solidified its position as a
comprehensive SaaS platform provider for regulated
industries. Our profitability significantly increased,
with EBITDA reaching positive territory, ending the
year at 13.9 million DKK, compared with negative 8.7
million DKK in 2023. Notably, Q4 profitability more
than doubled compared to Q4 2023, showcasing the
success of our strategic initiatives and our focus on
cost efficiency.
Annual Recurring Revenue (ARR) grew by 12.5 million
DKK year-on-year, which was largely driven by strong
customer acquisition. At the end of Q4 2024, our
total ARR amounted to 101.8 million DKK. Notably, we
delivered significant growth in foreign markets, with
Belgium emerging as a standout market, with ARR
increasing by 83%, to 14.4 million DKK at the end of
2024.
Our strong financial results are further supported by
revenue growth of 15% in 2024 compared to 2023,
reaching 102.1 million DKK.
Strategic Highlights
In the financial year of 2024, we have successfully
onboarded the highest number of new customers in
any financial year, amounting to 730 new customers
across our four key markets.
Sustainable international growth
Recognising the importance of scaling efficiently,
we focused on expanding in foreign markets while
maintaining our increased presence in Denmark.
These efforts resulted in over 62% of our annual ARR
growth coming from international markets. Out of the
730 new customers, 224 came from Belgium and 175
from Norway and Sweden. This achievement reflects
our ability to deliver tailored solutions and adapt to the
unique demands of each region.
In Belgium, we launched Penneo KYC in Q3 2024,
catering specifically to the needs of AML-regulated
industries in that market. This was a key milestone for
our Belgian strategy, and the growth in this market is
something we’re striving to continue in coming years.
Additionally, in 2024, we have been preparing to
launch the KYC product for the German market in
close collaboration with our pilot customer MHL.
Throughout 2024 our product team has been
working on adapting the solution to meet German
market requirements. The ARR from this deal will
be recognised once they go live, which is planned to
happen in 2025. Our efforts in Germany, marked an
important step in our geographic expansion, ensuring
we tap into high-potential markets.
Continual product innovation and improvement
To drive growth and enhance customer satisfaction,
we have continuously innovated and improved our
products, including the implementation of multiple
new integrations and platform frameworks. These
improvements expanded the interoperability of our
solutions, enabling seamless integration with existing
systems and positioning Penneo as a preferred partner
As we reflect on 2024, I am proud to share Penneo
A/S’s journey and achievements during a year marked
by significant progress, innovation, and resilience. This
Annual Report provides a comprehensive overview of
our financial performance, strategic initiatives, and
operational developments, while offering a glimpse
into the road ahead.
8Penneo Annual Report 2024
Christian Stendevad
Chief Executive Officer
(CEO)
Casper Christiansen
Chief Financial Officer
(CFO)
Kirstine Møller Pedersen
Chief Marketing Officer
(CMO)
Hans Jørgen Skovgaard
Chief Technology & Product Officer
(CTPO)
Mads Paludan Aabling
Chief Sales Officer
(CSO)
for our customers.
Internally, we optimised our operational processes
making sure that we have the right team and
resources to deliver on our current product pipeline,
while ensuring alignment with our strategic objectives.
This approach allowed us to prioritise investments
that deliver the highest impact, ensuring sustainable
growth as we continue to serve a growing customer
base.
Strengthening our organisation
At Penneo, our people are the foundation of our
success. In 2024, we streamlined our workforce from
121 to 103 employees, focusing on agility and efficiency
while supporting our goals of achieving cash-
neutrality by the end of 2025. Despite this adjustment,
we maintained a culturally diverse team representing
over 20 nationalities, with women accounting for 38%
of our workforce, an improvement from 34% in 2023.
We also made strides in governance by beginning the
process of getting employee representation on the
Board of Directors, ensuring diverse perspectives are
included in our decision-making processes.
Recognizing that our people are the heart of Penneo,
we have invested a great deal of time in 2024 in
defining clear and transparent career development
plans for all employees, as well as investing in initiatives
such as learning and development, and continuing
to foster a positive work environment and culture.
The result of this focus is reflected in our increased
Employee Engagement score that we measure on
a monthly basis. We ended year 2023 on par with
industry benchmark with an engagement score of
7.8. By the end of 2024 this score had increased above
benchmark to 8.3.
Looking Ahead
As we prepare for 2025, we plan to focus on driving
growth in Belgium and Germany, leveraging the
momentum gained in 2024, while continuing to
strengthen our position in the Nordics. Our ongoing
investments in product innovation across both KYC
and Sign products will further strengthen our market
position.
Additionally, we remain on track to achieve a cash-
neutral status by the end of 2025, driven by our robust
ARR growth and operational efficiency.
Towards the end of 2024, Visma announced their
offer to acquire all shares in Penneo. At the same
time, Penneo’s Board of Directors also shared their
recommendation to accept the offer and the reasoning
for this. This offer is a testament to the strong business
we have built, and we look forward to seeing what the
future holds for Penneo.
On behalf of the entire Penneo Board of Directors
and our leadership team, we would like to extend
our heartfelt thanks to all customers, employees,
shareholders, and partners for the progress we
achieved.
Jostein Vik
Chair of the Board of Directors
Christian Stendevad
Chief Executive Officer
9Penneo Annual Report 2024
FINANCE REVIEW
10Penneo Annual Report 2024
CFO statement
Strengthened Profitability
2024 marked another year of progress for Penneo as
we remained focused on operational improvements,
growth initiatives, and product development invest-
ments.
Through disciplined cost control and effective
customer acquisition, including upselling, we created
a balanced foundation where ARR growth and our
cost base were more closely aligned. At the same time,
we optimized working capital, strengthened liquidity,
and maintained a stable investment level in product
development of approximately 5.7M DKK per quarter.
Our original plan to achieve positive liquidity from
operations by 2024 was already accomplished in 2023,
with a positive cash flow from operating activities of 7.5M
DKK. This result was temporarily boosted by the deferral
of certain employee taxes by SKAT, which improved
liquidity in 2023 but resulted in a corresponding
negative impact in 2024 when these payments
became due. Consequently, cash flow from operating
activities in 2024 amounted to 5.8M DKK. Adjusting for
the tax deferral, the underlying development showed
an increase from 5.1M DKK in 2023 to 8.2M DKK in 2024.
As expected, cash flow from operating activities
followed seasonal patterns, with lower levels in Q1
and Q3 and a strong finish to the year in Q4. This
development reflects the dynamics of our business
and the solid foundation we have built.
In 2024, we achieved significant improvements
in profitability, with EBITDA reaching 13.9M DKK,
compared to a negative 8.7M DKK in 2023. This positive
development was driven by a combination of revenue
growth and disciplined cost management.
This result exceeds our initial guidance provided in the
2023 Annual Report, where we expected EBITDA to
be in the range of 5-10M DKK by the end of 2024. The
stronger-than-anticipated profitability underscores
the effectiveness of our strategic initiatives and
operational execution.
For the financial year 2025, we anticipate that our
cash flow from operation will cover our product
development costs, bringing our overall free cash flow
to a neutral or positive state.
This milestone represents an important step toward
sustainable growth and long-term value creation for
our shareholders.
It’s important to note that due to the inherent
seasonality in our cash flow, one isolated quarter may
be negative while another may be positive. Therefore,
when referring to cash flow, we consider a 12-month
period end of year 2025.
Casper Christiansen
Chief Financial Officer
11Penneo Annual Report 2024
M DKK 2024 2023 2022 2021 2020
Financial performance
Annual recurring revenue
a
101.8 89.3 71.0 55.5 37.0
Revenue 102.1 88.4 72.1 54.3 35.5
Gross profit 87.7 76.1 59.5 44.6 28.5
Operating profit (9.8) (23.1) (23.5) (22.7) (16.2)
Net financials (1.7) (1.6) (2.3) (1.4) (1.0)
Net profit/(loss) (11.7) (24.7) (20.3) (18.6) (12.8)
Purchase of property, plant and equipment 0.0 0.0 0.1 0.7 0.6
Purchase and development of intangible assests 24.0 22.6 19.1 14.8 23.9
Trade receivables 18.8 15.8 20.0 11.8 8.7
Free cash flow (18.2) (15.3) (29.4) (23.6) (22.2)
Equity 83.8 94.1 105.5 57.0 57.6
Total assets 127.5 140.7 152.0 104.5 95.9
Financial ratios
ARR growth 14% 26% 28% 50% 48%
Revenue growth 16% 23% 33% 53% 29%
Gross margin 86% 86% 83% 82% 80%
Operating margin (10%) (26%) (33%) (42%) (46%)
Solvency ratio 66% 67% 69% 55% 60%
Asset turnover 0,8 0,6 0,6 0,5 0,5
Trade receivables turnover ratio 5,9 5,0 4,5 5,4 6,1
ARR growth vs FCF
b
(1.5) (0.8) (1.9) (1.3) (1.8)
Adjusted ARR growth vs FCF
c
(1.5) (0.8) (1.7) (1.3) (1.7)
a
Annual recurring revenue is a non-IFRS Accounting Standard financial measurement.
b
The growth rate represents the cost of increasing Annual Recurring Revenue by 1 DKK.
c
Adjusted for the cost that is associated with the listing on both the First North and the Copenhagen Main Market (2.3M DKK in 2020 and 2.4M DKK in 2022).
Key figures
12Penneo Annual Report 2024
Key figures
*EBITDA does not include income and costs categorised as “Other income” and “Other operating expenses” on page 43.
DKK 2024-Q4 2024-Q3 2024-Q2 2024-Q1 2023-Q4 2023-Q3 2023-Q2 2023-Q1
Revenue 39,878,184 17,017,802 24,025,561 21,187,626 32,567,558 15,904,086 21,934,250 18,043,494
Cost of sales (3,598,464) (3,261,586) (3,810,878) (3,755,385) (2,975,526) (3,374,083) (3,116,138) (2,897,461)
Gross profit 36,279,720 13,756,216 20,214,683 17,432,242 29,592,032 12,530,003 18,818,112 15,146,033
Gross margin 91% 81% 84% 82% 91% 79% 86% 84%
Other external expenses (6,023,975) (5,780,644) (5,614,030) (5,326,929) (6,102,025) (4,654,858) (5,571,369) (4,612,033)
Staff costs (12,132,781) (10,001,741) (13,058,429) (15,824,171) (14,469,437) (15,321,261) (16,882,535) (17,169,609)
EBITDA* 18,122,964 (2,026,169) 1,542,224 (3,718,858) 9,020,570 (7,446,116) (3,635,792) (6,635,609)
DKK 2024 2023
Revenue 102,109,173 88,449,388
Cost of sales (14,426,312) (12,363,208)
Gross profit 87,682,861 76,086,180
Gross margin 86% 86%
Other external expenses (22,745,579) (20,940,285)
Staff costs (51,017,122) (63,842,842)
EBITDA* 13,920,160 (8,696,947)
13Penneo Annual Report 2024
DKK 2024 2023
Cash flow from operating activities 5,806,638 7,507,822
Cash flow from investing activities (24,045,575) (22,846,116)
Free Cash Flow (18,239,937) (15,338,294)
Cash and cash equivalents beginning of period 42,223,136 53,161,291
Free Cash Flow (FCF) (18,239,937) (15,338,294)
Cash Flow from financing activities (3,844,203) 4,400,138
Cash position end of period 20,138,996 42,223,137
DKK 2024-Q4 2024-Q3 2024-Q2 2024-Q1 2023-Q4 2023-Q3 2023-Q2 2023-Q1
Cash flow from operating activities 5,415,884 (1,714,598) 2,759,714 (655,362) 11,381,871 (585,314) (4,236,847) 948,112
Cash flow from investing activities (6,081,209) (4,758,417) (6,574,609) (6,631,339) (5,997,383) (5,838,698) (5,640,207) (5,369,828)
Free Cash Flow (FCF) (665,325) (6,473,015) (3,814,896) (7,286,701) 5,384,489 (6,424,012) (9,877,054) (4,421,716)
DKK 2024-Q4 2024-Q3 2024-Q2 2024-Q1 2023-Q4 2023-Q3 2023-Q2 2023-Q1
Cash and cash equivalents beginning
of quarter
21,698,594 29,153,410 33,955,592 42,223,137 34,873,492 40,995,085 51,034,048 53,161,291
Free Cash Flow (FCF) (665,325) (6,473,015) (3,814,896) (7,286,701) 5,384,489 (6,424,012) (9,877,054) (4,421,716)
Cash Flow from financing activities (894,273) (981,801) (987,286) (980,844) 1,965,156 302,419 (161,909) 2,294,473
Cash position end on quarter 20,138,996 21,698,594 29,153,410 33,955,592 42,223,137 34,873,492 40,995,085 51,034,048
Key figures
14Penneo Annual Report 2024
Financial
commentary
Recognized revenue
Revenue has increased by 15% in 2024 compared to
2023. The growth corresponds to the ARR growth
of 14% in 2024 compared to 2023. Penneo initially
guided for an ARR of 105-112M DKK at the end of 2024,
corresponding to an ARR growth rate of 18%-25%. In
November 2024, the guidance was adjusted to 101-
106M DKK, reflecting a revised growth rate of 13%-19%.
Revenue originating from Belgium has increased
by 89% in 2024 compared to 2023, whereas revenue
originating from Denmark has increased by 10%, and
revenue originating from the rest of the Nordics has
increased by 7%.
The revenue has been slightly positively impacted as a
result of cost saving on an average signature line cost.
Please refer to note 1 for a detailed description of the
revenue recognition.
Conversely, financial compensation has been granted
to a few, but significant Penneo KYC customers in
2024 due to issues related to the software platform.
Cost of sales
Cost of sales has increased by 17% in 2024 compared
to 2023, mainly driven by higher usage of Penneo’s
products. However, server costs, which is a component
of cost of sales, only increased by 5%.
The gross profit margin remains at 86% in 2024,
consistent with last year.
Staff costs
Staff costs decreased by 14% in 2024 compared to
2023, primarily due to reduced headcount. However,
capitalized staff costs increased by 6% in 2024
compared to 2023, reflecting our strategic decision
to allocate more resources to our product team,
with a clear focus on new development rather than
maintenance.
Other operating expenses
Other operating expenses are primarily related to legal
advisor costs in connection with the public takeover
offer from Visma Danmark Holding A/S.
Right-of-use assets
Right-of-use assets have decreased by 29% in 2024
compared to 2023. The decrease is primarily due to
rental of the headquarters expiring in 2027.
Trade receivables
Trade receivables have increased by 19% in 2024
compared to 2023. The increase is primarily due to
December 2024 being the highest invoicing month
to date. Invoicing in December 2024 increased by 9%
compared to invoicing in December 2023.
Other interest bearing liabilities
The split in other interest bearing liabilities has
changed as we commence repayments in 2025.
Non-current other interest bearing liabilities have
decreased by the end of 2024 compared to the end
of 2023. Conversely, there has been a corresponding
increase in current other interest bearing liabilities.
Contract liabilities - current
Contract liabilities have decreased by 23% in 2024
compared to 2023. The decrease is primarily related
to a change in the cost-plus calculation due to cost
saving on an average signature line cost. Please refer
to note 1 for a detailed description of the revenue.
Income tax payable
Income tax payable is solely related to corporate tax
in Belgium.
Cash flow from operating activities
Net cash flow from operating activities resulted in an
inflow of 5.8M DKK in 2024 compared to an inflow of
7.5M DKK in 2023. The decrease in net cash flow from
operating activities is primarily related to the effect
from working capital changes being negative in 2024
compared to positive in 2023, this is primarily due to
the low level of working capital in 2023. In addition
the payment of deferred employee taxes related to
Q3-2023 were paid in Q4-2023 as well as Q1-2024.
Additionally, December 2024 has been the highest
invoicing month to date.
Cash flow from investing activities
Net cash flow from investing activities resulted in an
outflow of 24.0M DKK in 2024 compared to an outflow
of 22.8M DKK in 2023. The change is caused by an
increased focus and investment in the continued
development and enhancement of Penneo’s products.
Cash flow from financing activities
Net cash flow from financing activities resulted in an
outflow of 3.8M DKK in 2024 compared to an inflow
of 4.4M DKK in 2023. The decrease is caused by a
combination of exercised warrants in 2023 as well as
higher lease payment in 2024. In 2024 the net cash
flow from financing activities consisted of payments
related to financial leasing as well as repayment of
borrowings.
15Penneo Annual Report 2024
How we measure
our performance
Penneo uses a range of SaaS metrics to evaluate its
performance. E.g. Annual Recurring Revenue (ARR),
ARR churn, Net Revenue Retention (NRR), Customer
Acquisition Cost (CAC) and Customer Life-Time Value
(CLTV). These metrics provide a picture of our potential
ability to generate revenue and cash flow and how
effective we are in terms of gaining, developing and
keeping customers.
Continuous high ARR growth rates
Development in ARR comes from three sources:
(i) maintaining low churn, (ii) securing upsell and cross
sales to existing customers, and (iii) attracting new
customers on existing and new markets. Penneo has
significantly increased ARR each year since it was
founded. From 2020 to 2024, Penneo increased ARR
by 29% in CAGR from 37M DKK to 102M DKK.
Low ARR churn rate
By providing a strong product fit to our customers,
Penneo has consistently maintained a low ARR churn
rate of between 2% and 6% from 2020 to 2024.
Significant ARR uplift from existing customers
In absolute terms, Penneo achieved an yearly uplift
from existing customers of between 6.2M DKK
and 11.5M DKK from 2020 to 2024. These figures
Annual Recurring Revenue (ARR)
Used to measure the recurring revenue from customers. ARR can be measured in two ways: Live ARR
and Contract ARR. Live ARR is the recurring revenue currently being received, whereas Contract ARR
also includes the recurring revenue that a company has contracted to receive from its customers, but not
necessarily started receiving yet. In Penneo, we calculate ARR as Live ARR since we prefer to present the
current status of our business. From 2019 and onwards, all new customers in Penneo were onboarded to a
fully subscription-based model. By the end of 2024, 84% of the revenue was subscription-based compared
to 65% at the end of 2020.
ARR churn
Refers to the decrease in ARR in a given time span due to the expiration of a customer relationship. A
low ARR churn rate indicates that a company’s products have a strong market fit and the price/value
relationship is in balance.
ARR uplift
Used to measure growth from customers who became customers in a previous period. In Penneo, ARR
uplift comes from upgrading existing subscriptions, e.g. a larger commitment from Penneo Sign customers
or upselling Penneo KYC to Sign customers. Downgrades are included in ARR uplift.
Net Revenue Retention (NRR)
Measures the retention of ARR from existing customers in a given time period. NRR is calculated by
subtracting ARR churn from ARR uplift. A high NRR indicates that it might be profitable in the long term to
invest in acquiring more customers in the short term even if CAC increases.
demonstrate the company’s ability to sell more to
existing customers. Over the last year, uplift has
been driven by three factors; (i) existing customers
increasing their usage of Penneo Sign and upgrading
their subscription, (ii) existing Penneo Sign customers
subscribing to Penneo KYC, and (iii) a net small positive
effect from an annual adjustment of our pricing
reflecting the general increase in inflation rate.
New customers onboarded
Over the years, Penneo has been able to expand its
customer base significantly. We have onboarded
yearly between 404 and 730 new customers from
2020 to 2024.
Customer Acquisition Cost (CAC)
How much a company spends to acquire one new customer in a given period. Overall, there are two types of
CAC; Fully loaded CAC and Direct CAC. Fully Loaded CAC includes all costs associated with acquiring a new
customer, whereas Direct CAC includes only direct costs.
In Penneo, we include compensation costs to employees in sales and marketing who are involved in the
sales process and also direct advertising expenses. In other words, we use Direct CAC, as we believe it is the
best metric in a scaling phase where measuring the incremental investment in one new customer makes
sense. In the future, where overall profitability has a higher priority than growth, it makes sense to use Fully
loaded CAC. It’s important to note that CAC is a metric that should be tracked over time, as the number of
new customers can vary due to seasonality, selling cycle and coincidental factors.
Average Revenue Per Account (ARPA)
A metric used to measure the average yearly revenue generated from each individual customer. Commonly
used to measure the ability to create uplift from customers.
Customer Life-Time Value (CLTV)
Highlights the long-term value of a customer relationship making it possible to make informed decisions
about pricing, customer acquisition, and retention. Development in CLTV should be viewed alongside CAC
to evaluate the profitability in a scaling phase where cash flow often is negative.
16Penneo Annual Report 2024
ARR growth from
year-on-year
financial cohorts
New customers that Penneo acquires in one specific
financial period (customer cohorts) evolve and gra-
dually contribute with additional ARR in subsequent
years. This is important since the cost of acquiring
a new customer on average initially outweighs the
upfront income generated by this customer.
A cohort analysis based on all financial years since the
establishment of Penneo, shows a yearly growth of 16%
in net ARR the first five years (including both churn
of customers and ARPA development of retained
customers).
Moreover, when viewed individually, cohorts are
generally developing with a positive year-on-year
growth. From 2019 and onwards, almost all new
customers have been onboarded to a fully subscrip-
tion-based model. 84% of the revenue, by the end of
2024, was subscription-based compared to 83% by the
end of 2023. Subscription-based ARR had the highest
growth rate, but transaction based ARR also grew
since Penneo’s older customer cohorts continue to
develop positively.
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10
11
11
10
7
8
7
8
8
8
9
14
15
16
9
9
8
3 3
4
5
4
5
5
4
5
6
7
7
6
7
8
8
9
9
3
4
6
6
6
6
6
1
2
3
7
10
18
25
37
55
71
89
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2014
2015
2022
2023
2024
2021
2020
2019
2018
2017
2016
Annual Recurring Revenue development
year-on-year financial cohorts (M DKK)
This chart shows net ARR development
from customer cohorts in M DKK.
Customer cohorts refer to groups of new
customers that Penneo has acquired in
a 12 month financial period.
102
17Penneo Annual Report 2024
Overview of ARR
development
In the 12-month period from 2023 to 2024, Penneo
increased its ARR with 12.5M DKK which increased
total ARR for the full 12-month period to 101.8M DKK.
This performance was driven by a total ARR uplift
of 6.2M DKK from existing Sign and KYC customers
before adjusting for 5.0M DKK in ARR lost due to churn,
which corresponds to a 6% year-on-year churn rate.
Meanwhile, ARR from new customers contributed
with 11.3M DKK of which Penneo Sign accounted for
9.7M DKK and Penneo KYC for 1.6M DKK. At the end of
2024, ARR from foreign markets amounted to 34.4M
DKK compared to 26.7M DKK at the end of 2023, which
corresponds to 29% year-on-year growth.
At the end of 2024 13% of Penneo’s ARR comes from
Penneo KYC compared to 13% at the end of 2023.
At the end of 2024, Penneo’s ARR results were
negatively influenced by fluctuations in currency
exchange rates when comparing the NOK and SEK to
the DKK, resulting in a total currency loss of 0.5M DKK.
Consequently, in a fixed currency scenario, Penneo
would have achieved a slightly higher total ARR
of 102.3M DKK compared to the reported result of
101.8M DKK. During the 12-month period from 2023 to
90
100
110
The annual development represents the development from 2023 to 2024 and is
measured on the last day of both periods.
EoY 2023 Churn
Penneo
Sign
Churn
Penneo KYC
Uplift
Penneo
Sign
Uplift
Penneo
KYC
Existing
customers
New
Penneo
Sign
New
Penneo
KYC
EoY 2024
(3.6)
1.2
9.7
1.6
(1.4)
5.0
90.5
89.3
70
80
6% ARR churn on
lost customers
Sign
77.8
13% ARR
new customers
Sign
88.9
Sign
79.2
KYC
12.9
KYC
11.3
KYC
11.5
7% ARR uplift on
existing customers
ARR development during the last 12 months (M DKK)
101.8
2024, Penneo secured a record number of 730 new
customers compared to 584 in the 12-month period
from 2023 to 2024. Belgium, Penneo’s newest market,
was particularly successful, onboarding 224 new
customers over the past 12 months.
Additionally, in all other markets, we acquired more
new customers compared to the previous 12-month
period.
18Penneo Annual Report 2024
Q4-2024 was strong in terms of ARR growth originating
from new business but ARR uplift was lower than
same quarter last year.
ARR new business
In Q4-2024, Penneo achieved an ARR new business
growth of 3.0M DKK, compared to 3.8M DKK in Q4-
2023. This new business was primarily due to the
continued ability to acquire new customers, driven
especially by the success we are observing in Belgium.
Approximately 73% of new business ARR came from
foreign markets in Q4-2024, up from 70% in Q4-2023.
ARR uplift
In Q4-2024, Penneo’s existing customer base
contributed 3.7M DKK to our ARR growth, a decrease
from 4.5M DKK in Q4-2023. We continued to see
ARR Development
in Q4-2024
uplift from existing customers due to increased
engagement. However, the ARR uplift this quarter
was negatively impacted by a specific larger customer
downgrade. Finally, It is also related to limited positive
impact from price increases compared to last year,
along with lower-than-expected cross-sell of KYC.
ARR decrease due to churn
In Q4-2024, ARR lost due to customer churn amounted
to 2.4M DKK, compared to 1.4M DKK in Q4-2023. The
Average Revenue Per Account (ARPA) for customers
who churned in Q4-2024 was higher than average,
primarily due to a few larger customers churning.
By contrast, the ARPA for the remaining churned
customers was at the lower end compared to the
overall portfolio.
ARR impact from currency fluctuations
In Q4-2024, uplift was impacted by a decrease in
currency exchange rates, especially regarding the
NOK and SEK compared to the DKK. This negativly
impacted ARR by 0.1M DKK compared to end of
Q3-2024.
How Penneo defines ARRHow Penneo defines ARR
ARR is used to measure annual recurring
revenue from customers. It can be measured
in two ways: Live ARR and Contracted ARR.
Live ARR is the recurring revenue currently
being received, whereas contracted ARR
also includes the recurring revenue that a
company has contracted to receive from
its customers, but not necessarily started
receiving yet.
We calculate ARR as Live ARR as we believe
it presents the most accurate status of our
business. We also report ARR based on actual
currency exchange rates end-of-quarter. Our
ARR guidance, however, is based on currency
exchange rates per end of 2023.
Reported numbers Q4-2024 Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022 Q2-2022 Q1-2022 Q4-2021 Q3-2021 Q2-2021 Q1-2021
ARR newbiz 3.0 1.8 3.1 3.5 3.8 2.1 2.3 2.0 2.3 1.1 2.9 1.9 2.7 1.4 3.2 2.5
ARR uplift 3.7 0.8 1.7 0.0 4.5 1.7 3.4 2.0 4.4 1.0 2.4 1.6 2.7 1.8 3.6 1.4
ARR churn (2.4) (0.6) (0.5) (1.5) (1.4) (0.6) (0.6) (0.6) (0.8) (0.7) (0.3) (0.4) (0.2) (0.6) (0.1) 0.0
Total ARR growth 4.3 1.9 4.3 2.0 6.8 3.3 5.0 3.3 6.0 1.5 5.0 3.1 5.2 2.6 6.7 3.9
ARR EoQ 101.8 97.5 95.6 91.3 89.3 82.5 79.2 74.2 71.0 65.0 63.5 58.5 55.5 50.2 47.6 40.9
19Penneo Annual Report 2024
SaaS metrics
Q4-2024 Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022 Q2-2022 Q1-2022 Q4-2021 Q3-2021 Q2-2021 Q1-2021
New customers 213 119 192 206 218 113 142 111 125 78 103 98 123 87 171 149
Average ARR in the first year for new customers 14,016 14,771 16,251 16,782 17,363 18,527 16,016 17,839 18,619 14,686 28,131 19,432 21,939 16,366 18,845 17,027
Customer Acqusition Costs (CAC) (17,635) (22,353) (19,370) (20,898) (18,628) (31,864) (26,639) (36,574) (32,633) (35,833) (31,952) (29,871) (32,229) (35,640) (21,523) (22,511)
Net ARR retention (NRR) 101% 103% 105% 107% 112% 114% 113% 113% 113% 112% 114% 120% 124% 124% 130% 123%
Average Revenue per account (ARPA) 30,683 30,628 30,663 30,165 31,038 30,115 29,914 28,315 26,608 25,288 25,092 23,751 23,137 21,960 21,444 19,988
In Q4-2024, Penneo continued to showcase strong
performance in acquiring new customers. A total of 213
new customers were onboarded, compared to 218 in
Q4-2023, representing a slight year-on-year decrease.
Belgium remained a key growth driver, with 76 new
customers onboarded in Q4-2024, compared to 83 in
Q4-2023. Despite the minor decrease, these numbers
underscore Penneo’s continued strong presence and
growth potential in the Belgian market.
Average ARR in the initial year for new customers
over a trailing 12-month period stood at 15.5T DKK in
Q4-2024, showing a decrease from 17.4T DKK in
Q4-2023.
At the end of Q4-2024, ARPA was 30.7T DKK compared
to 31.0T DKK at the end of Q4-2023 which corresponds to
a decrease of 1%.
On average, Customer Acquisition Cost (CAC) was 17.6T
DKK in Q4-2024. This corresponds to a 5% decrease
compared to Q4-2023 where CAC was 18.6T DKK on
average.
This is driven by maintaining high influx of new
customers in Q4-2024 while decreasing the sales
costs base.
In the 12-month period from end-of-year 2023 to
end-of-year 2024, the Net Revenue Retention (NRR)
amounted to 101%* as a result of an ARR uplift of 7%
and ARR churn of 6%.
* The Net Revenue Retention is calculated using these
figures: (90.5/89.3*100=101%)
20Penneo Annual Report 2024
Domestic and
foreign ARR
base split
Penneo’s growth strategy is centered around entering
new markets while simultaneously increasing its
market share in existing markets.
This chart shows the growth of Penneo’s ARR base
split into the domestic market (Denmark) and foreign
markets including Norway, Sweden, Belgium and
others.
In the 12-month period from Q4-2023 to Q4-2024, the
amount of total ARR from the Danish market increased
by 8% to 67.4M DKK up from 62.6M DKK in Q4-2023.
Meanwhile, the amount of total ARR from the foreign
markets increased by 29% to 34.4M DKK up from 26.7M
DKK in Q4-2023. The growth came particularly from
the traction we have gained in the Belgian market
where ARR grew from 7.9M DKK end-of Q4-2023 to
14.4M DKK end-of Q4-2024 corresponding to a growth
of 83%.
In Q4-2024, 73% of our new business ARR came
from foreign markets. Looking into ARR from foreign
markets at the end of Q4-2024, Belgium remained
Penneo’s largest foreign market accounting for 41.8%
of the company’s foreign ARR. Norway is Penneo’s
second largest foreign market with a share of 34.2%
foreign ARR whereas Sweden accounted for 21.8%.
Q2-2021Q1-2021 Q3-2021 Q4-2021Q1-2022 Q2-2022 Q3-2024 Q4-2024Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024
32
9
12
13
14
16
18
19
20
21
22
24
27
28
35
37
41
42
45
46
51
54
57
59
63
64
Foreign markets
Norway 34.2%
Sweden 21.8%
Belgium 41.8%
Other 2.2%
Foreign markets break-down
(Q4-2024)
Domestic market
41
47
50
55
58
63
65
71
74
79
83
89
91
30
31
34
66
67 67
96
97
102
Q2-2024
21Penneo Annual Report 2024
16
18
21
24
28
CAC (Last 12 months)
Expected ARR for new customers (Last 12 months)
20
CAGR 16%
Projected ARR
contribution
A cohort analysis based on all financial years since
the establishment of Penneo in 2014, shows a yearly
growth of 16% in net ARR over the first five years for
a given cohort (including both churn of customers
and ARPA development of retained customers).
Consequently, the ARR could grow from 15.5T DKK in
year one to 28.1T DKK in year five.
In a SaaS business model, it is important to understand
the relationship between the cost of acquiring the
next new customer with the projected Customer Life-
Time Value (CLTV) of the customer. To calculate this
relationship, there are various elements that Penneo
considers.
Among others Customer Acquisition Cost (CAC),
Average Revenue Per Account (ARPA), contribution
margin, yearly ARR uplift and expected customer
lifespan based on churn rate. While these elements
are provided in this report, we have chosen not to
provide this calculation since our low churn in principle
provides a customer lifespan of 17 years and we have
only been active in the market for 11 years.
Average ARR development (T DKK)
A five year cohort analysis based on new customers
Year 1 Year 2 Year 3 Year 4 Year 5
22Penneo Annual Report 2024
ARR growth
compared to free
negative cash flow
In the 12 month period from end-of-year 2023 to
end-of-year 2024, Penneo realized an ARR growth of
12.5M DKK and a free cash flow of negative 18.2M DKK,
compared to negative free cash flow 15.3M DKK in the
12 month period 2023.
This is equivalent to a cash to acquired ARR ratio of 1.5
which we consider satisfactory considering that one
acquired DKK of ARR on average results in a revenue
of approximately seven DKK in the first five years.
Disciplined cost management maintained positive
cash flow from operating activities in 2024.
As outlined in the Annual Report 2023, the 5.5M DKK
tax credit facility was not expected to be received in
2024. Additionally, the postponement of employee
taxes from August 2023 to February 2024 had a
negative impact of 2.4M DKK on Q1-2024. Adjusting for
these factors, the cash-to-acquired ARR ratio would
have been 1.0 in 2023 and 0.8 in 2024, demonstrating a
positive trend in the underlying cash flow.
Looking ahead to the financial year 2025, we foresee
that our operational income will cover investment into
product development, which should bring our overall
2020* 2021 2022* 2023 2024
Cash Flow from investing activities
Cash Flow from operating activities
ARR Growth, YoY
(18.2)
12.5
5.8
(24.0)
(15.3)
18.4
7.5
(22.8)
(27.1)
15.5
(7.7)
(19.4)
(23.6)
18.6
(8.1)
(15.5)
(19.9)
12.0
(6.4)
(13.5)
*Adjusted for the cost that is associated with the listing on both the
First North Growth Market and the Copenhagen Main Market (2.3M
DKK in 2020 and 2.4M DKK in 2022)
ARR growth / Negative free cash flow
1.7 1.3 1.7 0.8 1.5
cash flow to either a neutral or a positive position for
the full financial year. Overall, we realized a positive
cash flow from operations of 5.4M DKK in Q4-2024,
compared to 11.4M DKK in Q4-2023, which included a
5.5M DKK inflow from the tax credit scheme.
23Penneo Annual Report 2024
Employee
development
In 2024, Penneo’s team composition saw a modest adjustment,
with our total number of personnel decreasing from 121 at the
end of 2023 to 103 at the end of 2024. This change reflects our
strategic approach to workforce management, ensuring that
our team remains agile and highly efficient, while reaching our
goal of becoming cash positive.
Despite this reduction, Penneo remains committed to
our growth strategy, focusing on investments that build
a robust foundation to support the ongoing expansion of
our company. Central to this strategy is our commitment to
making thoughtful hiring decisions that align with our core
objectives and enhance our capabilities, particularly in product
development and market expansion areas.
As we move forward, we will continue to review all hiring and
rehiring opportunities critically, ensuring that any additions
to our team are in direct response to operational needs and
strategic goals. Our aim is to optimize our talent pool to meet
the challenges and opportunities ahead.
We are dedicated to improve the diversity of our workforce,
which counts over 20 nationalities and a gender distribution of
38% women to 62% men.
We also want to take this opportunity to express our appre-
ciation for our team members. Their dedication, hard work,
and talent are the driving force behind Penneo’s success.
Q4-2020
Q4-2019
Q1-2021
Q1-2022
Q1-2020
Q3-2021
Q2-2022
Q2-2020
Q2-2021
Q3-2022
Q3-2020
Q4-2021
Q4-2022
Q1-2023
Q2-2023
Q3-2023
Q4-2023
Q1-2024
42
48
52
58
82
82
84
82
78
83
91
97
107
115
119
117
117
106
42
48
52
58
83
83
85
83
83
87
95
101
111
119
123
120
121
110
Contractors
Employee
1
1
1
1
5
4
4
4
4
4
4
4
4
3
Penneo’s workforce is diverse with +20 nationalities and a gender representation of 38% women and 62% men.
Q2-2024
103
106
3
Q3-2024
102
6
96
103
7
Q4-2024
96
96
24Penneo Annual Report 2024
Penneo is pursuing a two-fold growth strategy aimed at creating more
growth in our existing markets, while simultaneously expanding to new
geographical markets across Europe.
This effort is supported by three primary investment streams:
In existing markets, our focus is to target
the broader auditing and accounting
industry and other AML regulated
B2B industries. Furthermore, through
the auditors, Penneo is exposed to the
auditors’ clients locally and globally,
creating a basis for further expansion to
other industries and customer segments.
Penneo is a Danish Software-as-a-Service (SaaS)
company and a European leader in signing and
know-your-customer workflow software for the
auditing and accounting industry.
Our strategy Our equity story
Upsell Penneo KYC
product to auditor and
accounting customers
Penetrate AML
regulated B2B
industries with
Penneo’s KYC and
Sign products
Expand through the
audit and accounting
vertical to become the
preferred solution for
auditors in Europe
Outside existing markets, our
approach is to attract auditing
and accounting companies
by capitalising on the product
market fit and strong relations
and referral opportunities we
have with larger auditing and
accounting customers.
The combination of a strong subscription-based model with growing ARR
from both existing and new customers, low yearly churn, high contribution
margin, and attractive possibilities in both existing and new markets gives
us a strong foundation for growth. Particularly since our business model
is scalable and we operate in high-growth markets driven by increasing
digitalisation and regulatory demands.
We provide a scalable software platform that enables Anti-Money-
Laundering regulated B2B companies to optimise and automate critical
business workflows throughout the client lifecycle, from customer onboar-
ding to document signing and continual risk assessment.
Growing digitisation in Europe and the network effects provided by the
large audit and accounting customers are powerful enablers for Penneo
to become the preferred solution for AML-regulated business-to-business
companies throughout Europe.
Step 1 Step 2
25Penneo Annual Report 2024
Trust is a foundational principle that holds all business relationships
together because it plays a pivotal role in establishing and maintaining
positive connections and collaborations.
In today’s digital world, however, trust no longer relies on face-to-face
interactions and personal relationships. In this context, establishing trust
is far more complex due to the absence of physical interactions and the
prevalence of digital fraud.
Penneo’s platform for signing and KYC workflows is trusted by the world’s
most respected auditing companies and complies with the highest
privacy and security standards. In this way, it delivers positive experiences,
consistency, transparency, and reliability over time.
As the world continues to transform digitally, Penneo exists to make sure
our trust remains intact.
Because without trust,
there is no business.
Why leading AML-regulated B2B companies choose Penneo Why we exist
Our key differentiators Our view on trust
• Created to connect
Penneo seamlessly integrates with existing core applications and
tools used by auditors and accountants today.
• Designed for workflows
Work that doesn’t flow, doesn’t work - which is why Penneo is
designed to support the workflows of AML-regulated B2B businesses.
• Built on trust
Penneo places trust and security at the heart of our products and our
way of working. Because without trust, there is no business.
• Driven to simplify
Penneo combines digital signing and KYC in a single platform,
streamlining previously disconnected processes.
• Trusted by the best
The world’s most trusted and respected auditing companies, trust
Penneo.
26Penneo Annual Report 2024
Our marketsOur history
Denmark
Norway
Sweden
Belgium
Germany
Penneo was founded in 2014 by by a group of Danish entrepreneurs with
a shared ambition of reducing the “hassle to get documents signed” by
replacing pen and paper with a digital alternative.
Today Penneo has a strong presence in Denmark, Norway, Sweden, and
Belgium. These four countries have our main commercial focus. In addition,
we have strategically decided to enter the German market and thereby
expand our focus from the existing four core markets to five markets.
The Nordic markets are some of the most digitalised in Europe and have by
far the highest adoption of eIDs. Despite a strong foothold among auditors
and accountants, Penneo still has considerable potential to penetrate our
existing markets further with our combined platform offering by focusing
on other business-to-business AML-regulated industries with similar
complex client lifecycle needs as the accountant and auditing industry.
In line with the broader digitalisation of Europe, including the adoption of
national eIDs, Penneo is also well positioned to gain market share outside
of our existing markets.
Today, Penneo has evolved into much more
than just a digital signature tool. With our two
solutions, we ensure secure and convenient digi-
tal interactions with digital signing featuring
automated signing flows and identity verification,
as well as automated client onboarding/KYC
processes with risk assessment, record keeping,
and continuous data monitoring in compliance
with GDPR and AML regulation.
customers
3,300+
Early on, auditors became a strategic focus for
Penneo, and the company has evolved together
with the increasing complexity of workflows and
requirements related to this industry. However,
as companies in many other industries carry
out similar workflows and are subject to the
same regulation, Penneo is now helping more
than 3,300 customers across many industries
with automating recurring administrative tasks.
We are headquartered in Copenhagen and
currently employ more than 100 people.
27Penneo Annual Report 2024
ESG STRATEGY
28Penneo Annual Report 2024
Throughout the course of 2024, we’ve been actively
working to strengthen Penneo for the future and the
growth journey we are on. With this, have come a
series of activities, including ensuring the highest level
of compliance, increased focus on our people and
building strong and experienced leadership.
Social
• Manager Training: Monthly sessions addressed stress prevention, emotional
intelligence, and psychological safety.
• Diversity & Inclusion: Hosted Diversity & Inclusion Week with sessions on gender
diversity, religious awareness, LGBTQ+ inclusion, and bias recognition.
• Career Development: Implemented clear development plans to support
employees’ professional growth.
• Psychological Safety Program: Completed training designed to enhance team
performance and culture.
Environmental
• Ensuring that 100% of the energy Penneo uses, comes from renewable sources.
• Lowering indirect emissions in collaboration with our main supply chain partner,
AWS
• Continued collaboration with Klimatræ, planting 30 trees - one for each new
hire.
Governance
• Passed the ISO 27001:2022 and ISO 27701:2019 surveillance audit.
• Took steps to ensure NIS2 compliance.
• Assisted financial industry customers in achieving DORA compliance.
• Introduced educational resources and campaigns to promote awareness of
secure digital identification and AML processes.
2024 ESG highlights
29Penneo Annual Report 2024
2024 ESG highlights
Environment
Since the beginning, the Penneo Sign
product has endeavoured to reduce
paper consumption by offering digital
signatures. In 2024, we continued our work
to lower our impact on the environment.
89.6M
sheets of paper saved by using Penneo Sign
0 tons
of Co2e/FTE = Direct emissions
32
trees planted in collaboration with Klimatræ.
8.3
in employee engagement score
38% / 62%
Gender diversity f/m (all employees)
28% / 72%
Gender diversity f/m (leadership)
20% / 80%
gender diversity f/m on the board
100%
board meeting attendance
Social
Our people were a key focus in 2024, and
we introduced a number of initiatives
including manager training, work on
psychological safety, a clear framework
and plans for career development.
Governance
In 2024, our board remained highly
engaged, as reflected in a 100% board
meeting attendance rate and our
commitment to strong governance. We
continued to strengthen our cybersecurity
resilience by successfully passing our ISO
surveillance audit and taking steps to
ensure NIS2 compliance. Additionally,
we are dedicated to fostering diverse
leadership, working toward our goal of
gender equality in board composition by
2025.
a
Due to the nature of Penneo’s business, we do not have any direct CO
2
emissions.
Environment Total 2024 Unit Target 2025 2024 2023
CO
2
e, scope 1 (direct emissions) 0
a
Tons per FTE < 0.1 0.0 0.0
CO
2
e, scope 2 (indirect emissions) 14.51 Tons per FTE < 0.2 0.2 0.1
Energy consumption 408.02 GJ per FTE < 5 4.5 4.8
Renewable energy share N/A % > 20 100 20
Water consumption 199.15 M3 per FTE < 3 2.2 2.1
Documents sent through Penneo 7,099,496 No. of signed documents > 8,000,000 7,099,496 6,110,115
Social Unit Target 2025 2024 2023
Average full-time employees incl. contractors FTE 90 90 104
Gender diversity all staff f/m % 35/65 38/62 36/64
Gender diversity all managers f/m % 30/70 28/72 35/65
Sickness absence % < 3 2.3 2.0
Employee satisfaction Engagement 8.5 8.3 7.8
Customer satisfaction (measured as churn) % < 5 6 4
Governance Unit Target 2025 2024 2023
Gender diversity - Board of Directors (BoD) f/m 25/75 20/80 20/80
Attendance at the BoD meetings % > 95 100 100
ESG statement
30Penneo Annual Report 2024
31Penneo Annual Report 2024
GOVERNANCE
SECTION
32Penneo Annual Report 2024
Governance
Board of Directors
Company information
Executive Board Auditor
Penneo A/S
Enghavevej 40, 4th Floor
DK-1674 Copenhagen V
Jostein Vik (Chair)
Eske Gunge
Kaper Behrens
Morten Kenneth Elk
Rikke Stampe Skov
CEO Christian Stendevad Deloitte Statsautoriseret Revisionspartnerselskab
Business Registration No.: 35 63 37 66
Registered office: Copenhagen
Date of incorporation: 09.01.2014
Accounting period: 01.01.2024 - 31.12.2024
33Penneo Annual Report 2024
Executive and Board of Directors bios
Christian Stendevad
CEO (Chief Executive Officer) since 18.08.2021
Profession: Chief Executive Officer at Penneo
Educational background:
Master in Engineering in Electronics, DTU
Description: Christian Stendevad has solid experience within the
digital identity and security space, and in scaling SaaS businesses
globally. Christian is an experienced leader who previously held a
position as Chief Operating Officer in Omada. Christian was with
Omada for 17 years before Penneo, where he successfully co-
headed the international scaling and growth journey of Omada.
Prior to Omada he held a position as Managing Consultant in PwC
Consulting and IBM.
Jostein Vik
Chair of the Board
Chair since 10.04.2024
Profession: Partner, Viking Venture
Educational background:
Masters Degree, Business Administration and
Management, BI Norwegian Business School
Particular competencies in relation to Penneo A/S: B2B software,
internationalization of software companies, digital identity services,
experience as chairman and board member in multiple listed
software companies.
Other key positions: Chairman of the Board in Heeros (listed in
Helsinki), Chairman of the Board in FotoWare, Board Member in
Keystone
Status: Independent of Company
Rikke Stampe Skov
Board member
Board member since 5.03.2021
Profession: CEO at Impero A/S
Educational background:
Board Master Class (CBS), HD(O) (CBS), HA(jur.) (CBS)
Particular competencies in relation to Penneo A/S: CEO
(operational) experience, experience from the accounting profession
(PwC), international scaling of SaaS companies.
Other key positions: Member of the Board of Representatives of
Forenet Kredit
Status: Independent of Company
34Penneo Annual Report 2024
Eske Gunge
Board member
Board member since 10.04.2024
Profession: Business angel investor and board
member
Educational background:
Masters Degree, IT (MSc, e-business) – IT University of
Copenhagen (2002),
Executive Management Program
– INSEAD (2010-2011)
Particular competencies in relation to Penneo A/S: CEO and
founder of a startup/scaleup. Experience with international scaling of
SaaS B2B, as well as multi-sales channels and Go-to-Market.
Other key positions: Board Member in WOBA.IO, Board Member
in Pensure.dk, Board Member in Pleaz.io, Chairman of the Board for
StaySeat.dk
Status: Independent of Company
Morten Kenneth Elk
Board member
Board member since 14.09.2018
Profession: Professional board member and investor
Educational background:
Ph.D. Physics, University of Copenhagen
Particular competencies in relation to Penneo A/S: CEO & founder
(operational) experience: Devising strategies, start-up & scale-up
experience.
Other key position: Chairman of the Board, Copyright Agent A/S
Chairman of the Board, My True Value ApS
Status: Independent of Company
Kasper Behrens
Board member
Board member since 10.04.2024
Profession: Strategic advisor – Executit Advisory (Ex-
ecutit.dk), Strategic advisor – Netic A/S (Trifork AG)
Educational background:
Executive MBA – Aalborg University,
Data engineer – Odense Teknikum
Particular competencies in relation to Penneo A/S: Experience
with Penneo’s technical platform, product and customer segment.
Deep insight in the customer side, the positioning in segments, and
strategic architecture.
Status: Independent of Company
35Penneo Annual Report 2024
Board composition
As of 31 December 2024, the Board of Directors consists
of five members. To ensure constructive and value-
creating discussions, the Board aims at ensuring the
right composition and balance of competencies. This
includes Board members with competencies related
to scaling SaaS based businesses and preparing them
for international growth, but also members that hold
solid experience in other fields and a strong track
record from large listed companies to ensure long
term value-creation for Penneo.
In late 2024, an election was held to appoint three new
employee-elected members to the Board of Directors.
These new representatives will officially commence
their roles in 2025, strengthening the collaboration
between the Board and the organization as a whole.
Board evaluation
The Board of Directors normally conducts an
evaluation of the Board of Directors and the Executive
Management yearly, as recommended by corporate
governance standards. However, in 2024 this was
postponed due to the new board that was elected
at the Annual General Meeting in April 2024. The
rationale was to allow the board to settle in and then
conduct it after 12 months.
Additionally, on 19 December 2024, Visma announced
their offer to purchase all shares in Penneo, an offer
that the board and key shareholders have expressed
their support for. In the event of the completion of the
offer, a new Board of Directors is planned to be elected
by Visma, replacing the existing Board of Directors.
This forthcoming transition was also a key factor in the
decision to postpone the evaluation.
Board committees
During 2022, following the general assembly, Penneo
established a formal Audit Committee. Following the
recommendations on Corporate Governance, this
committee is composed such that the chair of the
Board of Directors is not chair of the audit committee.
Rikke Stampe Skov is currently Chair of Penneo’s
Audit committee, while Jostein Vik is a member of
the committee. The Audit Comittee has held four
meetings during 2024.
Penneo’s Corporate Governance Statement is available
on the company’s website
www.penneo.com/investors
36Penneo Annual Report 2024
Risk management
Penneo regularly assesses which risks the company is
facing as an organization in order to make sure that
appropriate mitigation measures are taken to address
them. The risk management approach is inspired by
the International Organisation for Standardization
(ISO) 31000 (Risk Management Framework) and
covers all areas within Penneo, such as financial,
organizational, legal, market, industry, and cyber risks.
Risk owners evaluate relevant risks and Penneo’s CEO
evaluates the risk assessments. The results of these
assessments are then presented to Penneo’s Audit
Committee and the Board of Directors where final
discussions are held and decisions are made.
Organisational risk
As a SaaS company, Penneo is highly dependent on
its employees. The fight for talent particularly in IT
and compliance, poses a significant risk to Penneo’s
organisation. To remain an attractive employer, we
must ensure that we prevent discrimination, and create
a fulfilling work environment. As such, Penneo focuses
on supporting employees’ rights to privacy, safe and
healthy working conditions, and fair remuneration, as
well as providing career opportunities, growth paths,
and an inspiring work environment.
Cyber risk
As a processor of personal data through the products
Penneo Sign and Penneo KYC, Penneo continues to
have product security as a top priority to mitigate the
risk of cyber threats, as well as other kinds of risks that
could disrupt Penneo’s services or lead to unintended
disclosure of data.
Penneo continues to operate its Information
Security Management System (ISMS), based on the
internationally recognised ISO 27001 standard, to
ensure internal processes and controls to address
risks related to the confidentiality, integrity and
availability of data. Penneo was in 2023 certified in
accordance with the ISO 27001 standard, and passed
the surveillance audit in 2024.
Penneo engages an external audit firm to audit
relevant internal processes and controls for both
Penneo Sign and Penneo KYC, which results in ISAE
3000 audit reports that are shared with customers
and other relevant stakeholders. Both technical and
organisational measures are audited and cover areas
such as governance, access control, encryption,
disaster recovery and software development. Penneo
also engages an external IT security firm to perform
security penetration tests aimed at testing Penneo’s
infrastructure and applications and discover potential
vulnerabilities.
Penneo uses Amazon Web Services (AWS) as its
Infrastructure as a Service (IaaS) provider, which
continues to be a secure and reliable hosting provider.
Both performance and compliance is monitored by
Penneo’s engineers and Legal and Compliance teams.
GDPR risk
Penneo handles a large amount of EU citizens personal
data and is subject to the General Data Protection
Regulation. Penneo is subject to risks as we operate
both as a Data Processor, in relation to our customers
data, and as a Data Controller for our employees’
personal data. Non-compliance with this legislation
can be due to human error, insufficient technical
security measures, misinterpretation of the rules or
case law. The consequences for non-compliance are
either public criticism or a fine. Most severely, Penneo
could face reputational damages.
Implemented measures
Penneo has implemented several initiatives to
mitigate risks. All employees must complete annual
cybersecurity awareness training. Penneo vets all
vendors and suppliers from a GDPR and security
perspective. Penneo tries to update our products in
response to new case law or data privacy specifications.
Penneo was in 2023 certified in accordance with the
ISO 27701 standard, and passed the surveillance audit
in 2024.
Penneo also ensures training of legal staff through
seminars and certifications to stay updated on
relevant changes to the legislation and the practical
implementation of data privacy rules/case law.
Additionally, Penneo has implemented a number
of People initiatives in 2024, to remain an attractive
employer. These include manager training, work on
psychological safety, a clear framework and plans for
career development.
Key risks
37Penneo Annual Report 2024
Company information
Penneo, a provider in the Software-as-a-Service
(SaaS) sector, was established in 2014 by Danish
entrepreneurs aiming to replace traditional pen and
paper with digital signatures. This vision created
Penneo Sign, a platform that enables easy and secure
online document signing.
As the digital landscape evolved, Penneo expanded its
services to include Penneo KYC, a tool that digitizes
customer onboarding and compliance processes in
line with anti-money laundering regulations.
Today, Penneo is a signing and KYC workflow platform
that enables anti-money-laundering regulated B2B
companies to optimise and automate critical business
processes throughout the client lifecycle, from on-
boarding to document signing and ongoing risk
assessment. Penneo is already trusted by over 3,300
companies, including the world’s leading auditors.
Penneo’s commitment to innovation and customer
satisfaction led to its listing on Nasdaq Copenhagen
in 2022, after an initial listing on Nasdaq First North in
2020.
Following Visma’s public offer to acquire all shares
in Penneo in 2024, and the acceptance of the offer
by shareholders representing more than 90% of the
shares, Visma carried out a compulsory acquisition
of the remaining minority shares and delisted the
company from Nasdaq Copenhagen in March 2025.
38Penneo Annual Report 2024
FINANCIAL
STATEMENTS
39Penneo Annual Report 2024
Statement by
management
The Board of Directors and Executive Board have
today considered and approved the annual report for
the financial year 1 January 2024 – 31 December 2024
for Penneo A/S.
The financial statements have been prepared in
accordance with International Financial Reporting
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 Penneo’s assets, liabilities and financial
position as of 31 December 2024 and of the results of
Penneo’s activities and cash flows for the financial year
1 January 2024 – 31 December 2024. We believe that
the management commentary contains a fair review
of the affairs and conditions referred to therein. The
annual report is submitted for adoption at the Annual
General Meeting.
In our opinion, the annual report of Penneo A/S for the
financial year 1 January to 31 December 2024 has been
prepared, in all material respects, in compliance with
the ESEF Regulation.
Copenhagen, 11 March 2025
Executive Board
Christian Stendevad
Board of Directors
Jostein Vik (Chair)
Eske Gunge
Kaper Behrens
Morten Kenneth Elk
Rikke Stampe Skov
Independent
Auditor’s Report
To the shareholders of PENNEO A/S
Our opinion
We have audited the financial statements of
Penneo A/S for the financial year 1 January 2024
– 31 December 2024, which comprise the income
statement, statement of financial position, statement
of changes in equity and notes, including a summary
of significant accounting policies, statement of
comprehensive income and cash flow statement.
The financial statements are prepared in accordance
with IFRS Accounting Standards as adopted by the EU
and additional requirements for listed companies in
Denmark.
In our opinion, the financial statements give a true
and fair view of the Company’s financial position
at 31 December 2024 as well as of the results of its
operations and cash flows for the financial year 1
January 2024 – 31 December 2024 in accordance with
IFRS Accounting Standards as endorsed by the EU
and additional requirements for listed companies in
Denmark. Our opinion is consistent with our Audit
Book comments issued to the Audit Committee and
the Board of Directors.
In our opinion, the financial statements give a true
and fair view of the Company’s financial position at
31 December 2024, and of the results of its operations
and cash flows for the financial year 1 January 2024 – 31
December 2024 in accordance with IFRS Accounting
Standards as endorsed by the EU and additional
requirements under the Danish Financial Statements
Act.
Our opinion is consistent with our Audit Book
comments issued to the Audit Committee and the
Board of Directors.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
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 independent
of the Company 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 responsibilities 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.
To the best of our knowledge and belief, we have not
provided any prohibited non-audit services as referred
to in Article 5(1) of Regulation (EU) No 537/2014.
We were appointed auditors of Penneo A/S for the first
time on 29 December 2019, for the financial year 2019.
We have been reappointed annually by decision of the
general meeting for a total contiguous engagement
period of 6 years up to and including the financial year
2024.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the financial statements for the financial
year 1 January 2024 – 31 December 2024.
These matters were addressed in the context of our
audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Revenue recognition
The recognition of revenue is subject to the inherent
complexities in the software industry. We focused on
this area due to the judgemental and complex nature
of revenue recognition, which include identification
of performance obligations in the contracts including
the associated timing of the revenue recognition.
Refer to note 3 “Critical accounting judgements and
key sources of uncertainty” and note 5 “Revenue” in
the Financial Statements.
How the matter was addressed in our audit
We performed risk assessment procedures to
obtain an understanding of the IT systems, business
processes and relevant controls over the Company’s
revenue cycle. For revenue recognized, we evaluated
40
Penneo Annual Report 2024
and challenged Management’s assessment that all
benefits for the licenses have been transferred.
For revenue recognized at a point in time, we evaluated
and challenged Management’s documentation for
the right to payment and that the licenses have been
transferred and made available to the customer.
For revenue recognized over time we evaluated
and challenged Management’s assessment that
customers over time consumes and benefit from the
services delivered. We also assessed the outcome of
prior period estimates.
Statement on the management review
Management is responsible for the management
review.
Our opinion on the financial statements does not
cover the management review, and we do not as a part
of the audit express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements,
our responsibility is to read the management review
and, in doing so, consider whether the management
review is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
Moreover, we considered whether Management’s
Review includes the disclosures required by the
Danish Financial Statements Act.
Based on the work we have performed, in our view,
Management’s Review is in accordance with
the Financial Statements has been prepared in
accordance with the requirements of the Danish
Financial Statements Act. We did not identify
any material misstatement in Management’s Review.
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
endorsed by the EU and additional requirements of
the Danish Financial Statements Act as well, 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. In preparing the
financial statements, Management is responsible
for assessing the Company’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 sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatementresulting 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
41
Penneo Annual Report 2024
Entity’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates andrelated 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.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and, where applicable, safeguards
put in place and measures taken to eliminate threats.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore
the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes
public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the financial statements of
Penneo A/S we performed procedures to express an
opinion on whether the annual report of Penneo A/S
for the financial year 1 January 2024 – 31 December
2024 with the file name Penneo-Annual-Report-2024
is prepared, in all material respects, in compliance with
the Commission Delegated Regulation (EU) 2019/815
on the European Single Electronic Format (ESEF
Regulation) which includes requirements related to
the preparation of the annual report in XHTML format.
Management is responsible for preparing an annual
report that complies with the ESEF Regulation. This
responsibility includes the preparing of the annual
report in XHTML format.
Our responsibility is to obtain reasonable assurance on
whether the annual report is prepared, in all material
respects, in compliance with the ESEF Regulation
based on the evidence we have obtained, and to issue
a report that includes our opinion. The procedures
consist of testing whether the annual report is
prepared in XHTML format.
In our opinion, the annual report of Penneo A/S for
the financial year 1 January 2024 – 31 December 2024
with the file name Penneo-Annual-Report-2024 is
prepared, in all material respects, in compliance with
the ESEF Regulation.
In our opinion, the annual report of Penneo A/S for
the financial year 1 January 2024 – 31 December 2024
with the file name Penneo-Annual-Report-2024 is
prepared, in all material respects, in compliance with
the ESEF Regulation.
Copenhagen, 11 March 2025
Deloitte
Statsautoriseret Revisionspartnerselskab
Business Registration No 33 96 35 56
Bjørn Winkler Jakobsen
State-Authorised Public Accountant
MNE-nr. mne32127
Henrik Wolff Mikkelsen
State-Authorised Public Accountant
MNE-nr. mne33747
42
Penneo Annual Report 2024
43Penneo Annual Report 2024
Statement of profit or loss and other
comprehensive income
Profit/Loss Note
2024
DKK
2023
DKK
Revenue 5 102,109,173 88,449,388
Cost of sales (14,426,312) (12,363,208)
Gross profit 87,682,861 76,086,180
Other external expenses (22,745,579) (20,940,285)
Staff costs 6 (71,170,409) (82,906,123)
Capitalized staff costs 20,153,288 19,063,281
Other income 44,785 44,785
Other operating expenses (4,541,308) 0
Depreciation, amortisation, impairment 8 (19,211,296) (14,446,523)
Operating profit/(loss) (9,787,659) (23,098,685)
Financial income 9 717,682 483,033
Financial expenses 10 (2,419,686) (2,118,410)
Profit/(loss) before tax (11,489,662) (24,734,062)
Tax for the year 11 (170,441) 0
Profit/(loss) for the year (11,660,103) (24,734,062)
Total comprehensive income for the year (11,660,103) (24,734,062)
Earnings per share, basic (EPS) 18 (0.34) (0.75)
Earnings per share, diluted (DEPS) 18 (0.34) (0.75)
44Penneo Annual Report 2024
Statement of financial position
Assets Note
31.12.2024
DKK
31.12.2023
DKK
Intangible assets 12 76,743,517 68,387,457
Property, plant and equipment 13 509,514 804,988
Right-of-use assets 14 6,949,715 9,719,849
Deposits 15 1,644,060 1,677,045
Total non-current assets 85,846,806 80,589,339
Trade receivables 16 18,782,151 15,837,505
Other receivables 54,127 1,734
Prepayments 2,636,510 2,097,320
Cash 20,138,996 42,223,136
Total current assets 41,611,784 60,159,696
Total assets 127,458,590 140,749,034
45Penneo Annual Report 2024
Statement of financial position
Liabilities Note
31.12.2024
DKK
31.12.2023
DKK
Share capital 18 681,825 681,825
Reserve for development expenditure 64,276,131 53,397,890
Retained earnings (370,139) 20,835,341
Treasury shares 405 3,431
Other capital reserves 19 19,257,390 19,170,233
Total equity 83,845,613 94,088,720
Contract liabilities 5 268,711 313,496
Lease liabilities 14 4,363,696 7,481,513
Other payables 2,621,331 2,548,217
Other interest bearing liabilities 20 9,623,785 12,972,425
Provisions 21 478,233 466,114
Total non-current liabilites 17,355,755 23,781,764
Contract liabilities 5 4,091,517 5,332,142
Lease liabilites 14 3,404,213 3,142,095
Trade payables 2,475,259 2,898,440
Other payables 12,767,152 11,189,098
Income tax payable 170,441 0
Other interest bearing liabilities 20 3,348,640 316,775
Total current liabilities 26,257,221 22,878,550
Total liabilities 43,612,976 46,660,314
Total equity and liabilites 127,458,590 140,749,034
46Penneo Annual Report 2024
Statement of changes in equity
2024
Share capital
DKK
Reserve for
development
expenditure
DKK
Retained earnings
DKK
Treasury shares
DKK
Other capital
reserve
DKK
Total
DKK
Equity beginning of 2024 681,825 53,397,890 20,835,341 3,431 19,170,233 94,088,720
Net profit/(loss) for the period (11,660,103) (11,660,103)
Transfer to reserves 10,878,241 (10,878,241) 0
Transfer of shares as a part of Employee Share Scheme 1,332,865 (3,026) (1,329,839) 0
Share-based payments 1,416,996 1,416,996
Equity end of 2024 681,825 64,276,131 (370,139) 405 19,257,390 83,845,613
2023
Share capital
DKK
Reserve for
development
expenditure
DKK
Retained earnings
DKK
Treasury shares
DKK
Other capital
reserve
DKK
Total
DKK
Equity beginning of 2023 642,933 43,224,973 44,232,570 4,477 17,396,193 105,501,145
Net profit/(loss) for the period (24,734,062) (24,734,062)
Excercise of warrants 38,892 10,227,591 (1,585,337) 8,681,146
Transaction costs (44,800) (44,800)
Transfer to reserves 10,172,917 (10,172,917) 0
Transfer of shares as a part of Employee Share Scheme 1,326,959 (1,046) (1,325,914) 0
Share-based payments 4,685,291 4,685,291
Equity end of 2023 681,825 53,397,890 20,835,341 3,431 19,170,233 94,088,720
47Penneo Annual Report 2024
Cash flow statement
Note
2024
DKK
2023
DKK
Cash flows from operating activities 5,805,638 7,507,822
Operating profit/loss (9,787,659) (23,098,685)
Amortisation, depreciation and imparment losses 19,211,296 14,446,523
Share-based payment expense 1,416,996 4,685,291
Other income (44,785) (44,785)
Changes in working capital 17 (3,548,868) 7,365,631
Income taxes received 0 5,500,000
Financial income received 717,682 483,033
Financial expenses paid (2,159,025) (1,829,185)
Cash flows from investing activities (24,045,575) (22,846,116)
Acquisition etc, of intangible assets (24,030,906) (22,563,114)
Acquisition etc, of property, plant and equipment (47,654) (45,131)
Deposits 32,985 (237,871)
Cash flows from financing activities (3,844,203) 4,400,138
Repayment of borrowings 23 (316,775) (1,079,785)
Payment of principal portion of lease 23 (3,527,428) (3,156,423)
Transaction costs from capital increase 0 (44,800)
Cash increase from capital 0 8,681,146
Cash and cash equivalents beginning of period 42,223,136 53,161,291
Net cash flow (22,084,140) (10,938,155)
Cash and cash equivalents end of period 20,138,996 42,223,136
48Penneo Annual Report 2024
Notes
1. Accounting policies 51
2. Adoption of new and amended standards 56
3.
Critical accounting judgements and key
sources of estimation uncertainty
56
4. Segment information 57
5. Revenue 58
6. Staff costs 59
7. Share-based payments 60
8. Depreciation, amortisation and impairment 65
9. Financial income 65
10. Financial expenses 65
11. Tax for the year 66
12. Intangible assets 68
13. Property, plant and equipment 71
14. Leases 72
15. Deposits 73
16. Trade receivables 74
17. Working capital changes 74
18. Share capital and earnings per share 75
19. Other capital reserves 76
20. Interest-bearing liabilities 76
21. Provisions 78
22. Financial risks 79
23. Liabilities arising from financing activities 82
24. Guarantees, contigent liabilities and collateral 82
25. Fee to the auditor 83
26. Related parties 83
27. Events after the reporting period 84
1. Accounting policies
Penneo’s financial statements have been prepared
in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the EU and
additional Danish disclosure requirements for the
financial statements of reporting class D enterprises
cf. the Danish Executive Order on Adoption of IFRSs
(“IFRS bekendtgørelsen“) issued in accordance with
the Danish Financial Statements Act (“DFSA”).
Reporting under the ESEF Regulation The Commission
Delegated Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation) requires
the use of a particular electronic reporting format for
annual reports of listed companies. More specifically,
the ESEF Regulation requires the annual report to
be prepared in XHTML format. Consistently with the
requirements of the ESEF Regulation, the annual
report approved by Management is an XHTML file
PenneoAnnual-Report-2024 that may be opened
using standard web browsers.
Basis of preparation
The financial statements are presented in Danish
kroner (DKK). 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.
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 rate adjustments arising between
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.
Income statement
Revenue
Revenue is recognised exclusive of VAT and taxes
and with deduction of any rebates given. Net
revenue is allocated to performance elements,
where performance elements are training/education,
customer access to systems agreed, delivery of any
validations and certificates of signatures and to a lesser
extent support and storage. Allocation is based on the
contract with the customer to the extent possible, but
for combined contracts, an estimate is being made
for the distribution of sales price to the performance
elements. Such allocation to performance elements is
based on historical data to the extent possible, with
frequent reestimation based on the development
in data or other knowledge around tendencies or
expected development. The contracts held by Penneo
are to a huge extent combined contracts. The main
contracts contain three elements: right to use the
system, signatures and support.
Penneo has two main price models within the
Sign solution: “old” transaction based and “new”
subscription based price model. The “old” transaction
based price model which is only for customers who
signed up before 2019 is recognized when the two
distinct performance obligations are met. The invoiced
subscription is recognized upfront at the start date of
the subscription. The signatures are recognized upon
the specific use since the customers have an inventory
that comprises signatures. Bought but not used
signatures are deferred according to the cost-plus a
margin approach as a part of the Contract liabilities.
49
Penneo Annual Report 2024
The “new” subscription based price model which
comprises a fair usage is recognized according to the
subscription period by a specific percentage upfront
and the remaining amount recognized on a straight-
line basis over time. The percentage is calculated by
the average cost of signature lines as certificates on
the signature lines is the only performance element
not fulfilled at the start date of the subscription. Refer
to note 3 for further details.
One-time fees comprises onboarding, other con-
sultancy services as well as platform overuse and is
recognized upon fulfillment.
Cost of sales
Cost of sales comprise costs incurred to achieve the
year’s revenue including server and eID costs.
Other external costs
Other external expenses include expenses relating to
Penneo’s ordinary activities, including expenses for
stationery and office supplies, marketing costs, etc.
Staff costs
Staff costs consist of salaries and wages, share-based
payments, and other benefits. Salaries, share-based
payments, and other benefits are recognised in the
year in which the associated services are rendered by
the 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.
Depreciation, amortisation and impairment losses
Depreciation, amortisation and impairment losses
relating to property, plant and equipment, intangible
assets and right-of-use assets comprise depreciation
and amortisation.
Share-based payments
The Board of Directors, Management and other
employees have been granted warrants. In addition
the Company has also had an employee share scheme
where the employees were able to sign up. The
warrants as well as the share scheme 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 as a consequence
of the share based payments being equity settled.
Lender warrants are measured at fair value at the grant
date and are recognised as an expense in financial
expenses over the vesting period. Expenses are set off
against equity as a consequence of the share based
payments being equity settled.
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.
Fair value is not subsequently remeasured. If sub-
sequent 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
end of 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.
Other operating income and expenses
Other operating income and other operating expenses
comprise income and expenses of a secondary nature
relative to the principal activities of Penneo.
Other financial income
Other financial income comprises dividends etc
received on other investments, interest income, net
capital or exchange gains on securities, payables and
transactions in foreign currencies, amortisation of
financial assets as well as tax relief under the Danish
Tax Prepayment Scheme etc..
Impairment losses on financial assets
Impairment losses on financial assets comprise im-
pairment losses on financial assets which are not
measured at fair value on a current basis.
Other financial expenses
Other financial expenses comprise interest expenses,
lease interest, net capital or exchange losses on
payables and transactions in foreign currencies, amor-
tisation of financial liabilities as well as tax surcharge
under the Danish Tax Prepayment Scheme, etc.
Tax
Tax on the profit/loss for the year comprises the year’s
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Penneo Annual Report 2024
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. Exchange
rate adjustments of deferred tax are recognised as
part of the adjustment of deferred tax for the year.
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 enacted 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.
However, no deferred tax is recognised for amortisation
of goodwill disallowed for tax purposes and temporary
differences arising at the date of acquisition that do
not result from a business combination and that do
not have any effect on profit or loss or on taxable
income.
Penneo recognises deferred tax assets relating to
losses carried forward when Management 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 Management’s
expectations regarding growth and operating margin
in the coming years.
Balance sheet
Intangible assets
Goodwill
In connection with every acquisition of businesses,
goodwill and a non-controlling interest (minority)
are recognised as follows: Goodwill relating to the
entity acquired comprises a positive difference, if any,
between the consideration paid plus the fair value
of previous held interest in the acquiree and the fair
value of the total net assets for accounting purposes.
Goodwill is recognised in intangible assets. It is not
amortised, but reviewed for impairment once a
year and also if events or changes in circumstances
indicate that the carrying value may be impaired. If
impairment is present, the goodwill is written down to
its lower recoverable amount.
Intellectual property rights and development
projects
Intellectual property rights etc. comprise development
projects completed and in progress with related
intellectual property rights, acquired intellectual
property rights and prepayments for intangible
assets. Development projects on clearly defined
and identifiable products and processes, for which
the technical feasibility, adequate resources and a
potential future market or development opportunity
in the enterprise can be established, and where the
intention is to manufacture, market or apply the
product or process in question, are recognised as
intangible assets.
Development costs that does not meet the criteria for
capitalization are recognised as costs in the income
statement as incurred. Following initial recognition of
the development expenditure as an asset, the asset is
carried at cost less any accumulated amortisation and
accumulated impairment losses. Amortisation of the
asset begins when development is complete and the
asset is available for use.
Acquired intangible assets are at initial recognition
measured at cost where as intangible assets acquired
in a business combination is measured at fair value.
Intangible assets are amortised over the period
of expected future benefit. During the period of
development, the asset is tested for impairment
annually. For development projects protected by
intellectual property rights, the maximum period of
amortisation is the remaining duration of the relevant
rights. The amortisation periods used are 2-10 years.
51
Penneo Annual Report 2024
Property, plant and equipment
Property, plant and equipment comprise other fixtures
and fittings as well as leasehold improvements and
are measured at cost less accumulated depreciation
and accumulated impairment. Cost comprises the
acquisition price, costs directly attributable to the
acquisition and preparation costs of the asset until
the time when it is ready to be put into operation.
Property, plant and equipment are depreciated on a
straight-line basis over the expected useful lives of the
finite-lived assets, which are as follows:
• Leasehold improvements – 5 years
• Other fixtures - 5 years
For leasehold improvements, the depreciation period
cannot exceed the contract period. Estimated useful
lives and residual values are reassessed annually. Items
of property, plant and equipment are written down to
the lower of recoverable amount and carrying amount.
Leasehold improvements 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.
Leases
When entering into an agreement, Penneo assesses
whether an agreement is a lease agreement or
contains a lease element.
The right-of-use asset is measured at cost, which is
calculated as the present value of the lease obligation
plus any direct costs related to the entering into of
the lease and prepaid lease payments. The cost also
includes an estimate of costs to be incurred by the
lessee in dismantling and removing the underlying
asset.
The right-of-use asset is depreciated on a straight-line
basis over the shorter of the lease term and the useful
life of the asset.
Penneo leases properties which includes a service
element in the payments to the lessor. This service is
deducted from the lease payment when measuring
the lease obligation. Where Penneo cannot reliably
separate lease and non-lease items, it is considered a
single lease payment. Short leases with a maximum
lease term of 12 months and leases where the
underlying asset has a low value are not recognised in
the statement of financial position.
The lease term is defined as the non-cancellable
period of a lease together with periods covered by
options to extend the lease if it is reasonably certain
that the options will be exercised and periods covered
by options to terminate the lease if it is reasonably
certain that the options will not be exercised. A
number of leases contain extension and termination
options in order to guarantee operational flexibility in
managing the leases.
The lease obligation, which is recognised under “Lease
liabilities”, is measured at the present value of the
remaining lease payments, discounted by Penneo
incremental loan interest rate, if the implicit interest
rate is not stated in the lease agreement or cannot
reasonably be determined. The lease obligation is
subsequently adjusted if:
• The value of the index or interest rate on which the
lease payments are based changes.
• There is a change in the exercise of options to
extend or shorten the lease period due to a material
event or material change in circumstances which
are within the control of the lessee.
• The lease term is changed as a result of exercising
an option to extend or shorten the lease term.
Subsequent adjustments of the lease obligation are
recognised as a correction to the right-of-use asset.
Trade receivables
Trade receivables are measured at amortised cost less
allowance for lifetime expected credit losses.
For trade receivables, Penneo applies a simplified
approach in calculating expected credit losses (ECLs).
Therefore, Penneo does not track changes in credit
risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date.
Penneo may also consider a financial asset to be in
default when internal or external information indicates
that Penneo is unlikely to receive the outstanding
contractual amounts in full before taking into account
any credit enhancements held by Penneo. Trade
receivables are written off when all possible options
have been exhausted and there is no reasonable
52
Penneo Annual Report 2024
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 external expenses.
Prepayments
Prepayments comprise incurred costs relating
to subsequent financial years. Prepayments are
measured at cost.
Cash and cash equivalents
Cash comprises bank deposits.
Contract liabilities
Contract liabilities include prepayments from
customers, which comprise amounts received from
customers prior to delivery of the goods agreed or
completion of the service agreed.
Interest-bearing liabilities
Interest-bearing liabilities are measured at amortised
cost, which usually corresponds to nominal value.
Interest-bearing liabilities are separated into two lines
in the Statement of Financial Position: Other Interest
Bearing Liabilities and Lease Liabilities.
Trade payables and other payables
Other payables include bonus and commission
accruals, vacation pay obligations, payroll taxes and
VAT. Payables are measured at cost.
Provisions
Provisions are recognised when Penneo has a present
obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a financial expense.
Reserves for development expenditure
Reserve for development expenditure is a reserve
mandatory by law related to development projects.
The reserve is increasing upon additions to the
development projects and decreasing upon
depreciation or impairment of the development
projects. The reserve does not hold any deferred tax
as the deferred tax asset of Penneo has not been
recognized. Refer to note 11.
Other capital reserves
Other capital reserve is used to recognise the value
of equity-settled share-based payments provided to
employees, including key management personnel, as
part of their remuneration as well as lender warrants.
The reserve is decreasing upon exercise of warrants
and transfer of shares as a part of Employee Share
Scheme.
Cash flow statement
The cash flow statement is presented using the
indirect method and shows cash flows from operating,
investing and financing activities for the year as well as
Penneo’s cash and cash equivalents at the beginning
and end of the financial year.
Cash flows from operating activities are calculated
based on operating profit/loss, adjusted for the cash
flow effect of non-cash operating items, working
capital changes, financial income, financial expenses
paid and income tax paid.
Cash flows from investing activities comprise payments
in connection with the acquisition, development and
sale of non-current intangible assets, property, plant
and equipment as well as financial assets.
Cash flows from financing activities comprise proceeds
from borrowings, repayment of borrowings, payments
relating to leasing obligations as well as cash increase
from capital and transaction costs related to the
increase.
Cash and cash equivalents comprise cash.
53
Penneo Annual Report 2024
2. Adoption of new and
amended standards
3.
Critical accounting
judgements and key
sources of estimation
uncertainty
Management has assessed the impact of new or
amended accounting standards and interpretations
(IFRSs) issued by the IASB and IFRSs endorsed by the
European Union effective on or after 1 January 2024.
Management assessed that application of these has
not had a material impact on the financial statements
for 2024.
Furthermore, Management has assessed the impact
of new or amended accounting standards and
interpretations (IFRSs) issued by the IASB that has
not yet become effective. Management does not
anticipate any significant impact on future periods
from the adoption of these amendments.
As part of the preparation of the financial statements,
Management makes a number of accounting
estimates and assumptions as a basis for recognising
and measuring Penneo’s assets, liabilities, income
and expenses as well as judgements made in
applying Penneo’s accounting policies. The esti-
mates, judgements and assumptions made are
based on experience gained and other factors that
are considered prudent by Management in the
circumstances, but which are inherently subject to
uncertainty and volatility.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur
for which reason the actual results may differ from
the estimates and judgements made. The accounting
policies are described in detail in note 1 to the financial
statements to which we refer. Management considers
the following accounting estimates and judgements
to be significant in the preparation of the financial
statements.
Revenue
Contracts with customers often include several
components. Subscription to the platform and cer-
tificates on signature lines constitute the main
performance obligations. The fees allocated to the
different performance obligations are recognized
separately.
The only performance obligation related to
subscription has been identified as the right to use the
Penneo platform which is why this is recognized upon
the start date of subscription.
Penneo uses the cost-plus a margin approach relating
to the determination of the deferred revenue relating
to the certificates on the signature lines. The residual
between the transaction price and the allocated price
for certificates on the signature lines are allocated to
the subscription to the platform. Judgment is applied
in allocating the transaction price to the different
performance obligations, subscription and certificates.
Development costs
Penneo capitalises costs for software development
projects. Initial capitalisation of costs is based on
management’s judgement that technological and
economic feasibility is confirmed, usually when a
product development project has reached a defined
milestone according to an established project
management model. In determining the amounts
to be capitalised, management makes assumptions
regarding the expected future cash generation of
the project and the expected period of benefits. At 31
December 2024, the carrying amount of capitalised
development costs was DKK 64,549k (2023: DKK
55,532k).
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Penneo Annual Report 2024
Share-based payments
Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which depends on the
terms and conditions of the grant. This estimate also
requires determination of the most appropriate inputs
to the valuation model including the expected life of
the share option or appreciation right, volatility and
dividend yield and making assumptions about them.
The assumptions and models used for estimating
fair value for share-based payment transactions are
disclosed in note 7. In 2024, the expense recognized
for share-based payments amounted to DKK 1,417k
(2023: DKK 4,685k).
Impairment of non-financial assets
Impairment exists when the carrying value of an
asset or cash-generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less costs
of disposal calculation is based on available data from
binding sales transactions, conducted at arm’s length,
for similar assets or observable market prices less
incremental costs of disposing of the asset. The value-
in-use calculation is based on a DCF model.
The cash flows are derived from the budget for the next
ten years and do not include restructuring activities
that Penneo is not yet committed to or significant
future investments that will enhance the performance
of the assets of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for
the DCF model as well as the expected future cash-
4.
Segment
information
For management purposes and based on internal
reporting information, Penneo is organised in only
one operating segment, as the information reported
includes operating results at a consolidated level
only.
The company setup and costs related to the main
nature of the business are not attributable to any
specific revenue stream or customer type and are
therefore borne centrally. The results of the single
reporting segment are shown in the statement of
comprehensive income. All non-current assets are
related to Denmark.
inflows and the growth rate used for extrapolation
purposes. These estimates are most relevant to
goodwill and other intangibles with indefinite useful
lives recog-nised by Penneo. In both 2024 and 2023,
the impairment test showed no impairment.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur,
for which reason the actual results may differ from the
estimates and judgements made.
55
Penneo Annual Report 2024
5.
Revenue
2024
DKK
2023
DKK
Subscription 84,220,363 71,568,212
Signature packages 15,495,818 15,237,939
One-time fee 2,392,992 1,643,237
Total 102,109,173 88,449,388
2024
DKK
2023
DKK
Denmark 68,767,587 62,791,149
Sweden 6,909,066 5,352,831
Norway 11,334,460 12,204,659
Belgium 14,378,660 7,612,545
Other countries 719,400 488,203
Total 102,109,173 88,449,388
Contract balances (liability)
2024
DKK
2023
DKK
Contract balances at 1 January 5,645,638 5,463,212
Additions 3,599,555 4,198,377
Performance obligations satisfied (4,884,965) (4,015,951)
Contract balances at 31 December 4,360,228 5,645,638
None of the Company’s customers constitutes 10% or more of the total revenue
Customers are invoiced in the starting or renewal month of their subscription. In addition the signature packages are invoiced upon request or at latest when the customer
runs out of signatures. The default payment term is net 14 days.
The following table shows the opening and closing balances of contract liabilities. There was no revenue recognised in the current reporting period that related to perfor-
mance obligations that were satisfied in a prior year.
Management expects that around 75% (2023: 87%) of the transaction price allocated to the unsatisfied contracts as of the year ended 2024 will be recognised as revenue
during the next reporting period. The remaining 25% (2023: 13%) will be recognised in the upcoming financial years.
56
Penneo Annual Report 2024
2024
DKK
2023
DKK
Salaries (59,091,207) (67,174,141)
Share-based payments (1,391,924) (4,660,218)
Pension contributions (1,483,266) (683,523)
Other social security costs (4,820,096) (5,232,349)
Other staff costs (4,383,916) (5,155,892)
Total (71,170,409) (82,906,123)
Average numbers of FTE during the year 90 104
2024
Board of
Directors
Executive
management
Key management
personnel Total
Remuneration (1,320,000) (2,763,620) (7,003,567) (11,087,188)
Share-based payments 231,685 (548,778) (342,263) (659,356)
Pension contributions 0 0 (142,147) (142,147)
Total (1,088,315) (3,312,398) (7,487,977) (11,888,691)
2023
Board of
Directors
Executive
management
Key management
personnel Total
Remuneration (1,276,305) (3,001,363) (5,531,040) (9,808,708)
Share-based payments (1,280,033) (2,006,047) (294,386) (3,580,467)
Pension contributions 0 0 (54,334) (54,334)
Total (2,556,338) (5,007,410) (5,879,760) (13,443,509)
Penneo has capitalized an amount corresponding to DKK 20,153k of staff costs as a part of development projects (2023: DKK 19,063k)
Employment contracts for members of the Key Management Personnel contain terms and conditions that are common to those of their peers in similar companies including
terms of notice and non-competitive clauses.
6.
Staff costs
57Penneo Annual Report 2024
7.
Share-based payments
2024
DKK
2023
DKK
Cost of share-based payments (1,391,924) (4,660,218)
Cost of lender warrants (25,072) (25,072)
Total (1,416,996) (4,685,290)
Costs of share-based payments are recognised as
staff costs with a corresponding effect in equity. In
2024 Penneo capitalised an amount corresponding
to DKK 201k of the share-based payments as a part of
development projects (2023: DKK 186k).
Costs of lender warrants are recognised as financial
expenses with a corresponding effect in equity.
Consideration received for warrants sold is recognised
directly in equity.
Employee shares
In December 2021, the employees were offered to
participate in an Employee Share Scheme starting as
of January 2022. A number of shares with a total fair
value at grand date equal to the voluntary deduction
in pre-tax salary vest successively over a period of 12
months ending 31 December 2022 and was transferred
to the employees when the Company published the
2022 Annual Report. If the employee leaves in the
vesting period, the employee will still receive the
shares corresponding to the amount deducted from
the pre-tax salary until they leave. Every employee was
offered to subscribe for shares within a maximum of
20% of the pre-tax salary before deduction.
27 employees accepted the offer and 51,481 shares
were earned corresponding to 0.16% of the share
capital. The share price was DKK 25.81 per share based
on the average share price during week 47 in 2021.
In December 2022, the employees were offered to
participate in an Employee Share Scheme starting as
of January 2023. A number of shares with a total fair
value at grand date equal to the voluntary deduction
in pre-tax salary vest successively over a period of 12
months ending 31 December 2023 and was transferred
to the employees when the Company published the
2023 Annual Report. If the employee leaves in the
vesting period, the employee will still receive the
shares corresponding to the amount deducted from
the pre-tax salary until they leave. Every employee was
offered to subscribe for shares within a maximum of
20% of the pre-tax salary before deduction.
32 employees accepted the offer and 79,438 shares
were earned corresponding to 0.25% of the share
capital. The share price was DKK 10.49 per share based
on the average share price during week 48 in 2022.
In December 2023, the employees were offered to
participate in an Employee Share Scheme starting as of
January 2023. A number of shares with a total fair value
at grand date equal to the voluntary deduction in pre-
tax salary vest successively over a period of 12 months
ending 31 December 2023 and was transferred to the
employees in December 2024. If the employee leaves
in the vesting period, the employee will still receive the
shares corresponding to the amount deducted from
the pretax salary until they leave. Every employee was
offered to subscribe for shares within a maximum of
20% of the pre-tax salary before deduction.
18 employees accepted the offer corresponding to
the issue of 71,855 shares equal to 0.21% of the share
capital. The share price was DKK 6.91 per share based
on the average share price during November 30th to
December 6th 2023.
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Penneo Annual Report 2024
Employee warrant programmes
The company has over the years introduced Warrant
programmes aimed to key employees. Warrants are
vesting over time to ensure the retention of such key
employees.
At 22 March 2021, 630,000 warrants were granted
in connection with the appointment of Christian
Stendevad as the new CEO of Penneo. The warrants
are vested over 36 months starting from the first day of
the employment. Continuous employment during the
vesting period is a condition for the vesting. Warrants
that have not been exercised before 22 March 2029 will
lapse automatically. Vested warrants can be exercised
in periods of four weeks starting the day after the
publication of the Company’s annual report, half-year
report or quarterly report, respectively.
At 28 April 2021, 406,377 warrants were granted in
connection with the election of Christian Sagild as
new Chair of Penneo. The warrants will vest over 36
months starting from the first day of employment.
Continuous board duties during the vesting period is a
condition for the vesting. Warrants that have not been
exercised before 28 April 2029 will lapse automatically.
Vested warrants can be exercised in periods of four
weeks starting the day after the publication of the
Company’s annual report, half-year report or quarterly
report, respectively.
At 27 April 2022, 220,600 warrants were granted to
the Board of Directors. The warrants are vested over
36 months starting from the grant date. Continuous
board duties during the vesting period is a condition
for the vesting. Warrants that have not been exercised
no later than 8 years after the date of issuance will
lapse automatically. Vested warrants can be exercised
in periods of four weeks starting the day after the
publication of the Company’s annual report, half-year
report or quarterly report, respectively.
At 1 July 2022, 660,000 warrants were granted to Key
management personnel as well as key employees.
The warrants are vested over 36 months starting
from between the grant date and 1 January 2023.
Continuous employment during the vesting period
is a condition for the vesting. Warrants that have not
been exercised no later than 8 years after the date of
issuance will lapse automatically. Vested warrants can
be exercised in periods of four weeks starting the day
after the publication of the Company’s annual report,
half-year report or quarterly report, respectively.
At 31 March 2023, 553,491 warrants were granted to
the Board of Directors, Key management personnel
as well as key employees. The warrants are vested
over 3 years starting from between 31 March 2024 and
30 June 2024. Continuous employment during the
vesting period is a condition for the vesting. Warrants
that have not been exercised no later than 6 years
after the date of issuance will lapse automatically.
Vested warrants can be exercised in periods of four
weeks starting the day after the publication of the
Company’s annual report, half-year report or quarterly
report, respectively.
At 31 March 2023, 227,122 warrants were granted to the
Chair of the board, Christian Sagild. The warrants are
vested over 36 months starting from the grant date.
Continuous board duties during the vesting period
is a condition for the vesting. Warrants that have not
been exercised no later than 8 years after the date of
issuance will lapse automatically. Vested warrants can
be exercised in periods of four weeks starting the day
after the publication of the Company’s annual report,
half-year report or quarterly report, respectively.
At 27 March 2024, 593,854 warrants were granted to
Key management personnel as well as key employees.
The warrants are vested over 3 years starting 31 March
2025. Continuous employment during the vesting
period is a condition for the vesting. Warrants that
have not been exercised no later than 6 years after
the date of issuance will lapse automatically. Vested
warrants can be exercised in periods of four weeks
starting the day after the publication of the Company’s
annual report, half-year report or quarterly report,
respectively.
59
Penneo Annual Report 2024
Lender warrant programme
At 8 December 2021, 25,000 warrants were granted to EIFO in connection with raising of a loan. The warrants will vest upon and can solely be exercised in connection
with one of the following three events: In a period of fourteen days following repayment of the loan, in a period of fourteen days from the due date of repayment in which
repayment has not been completed or in a period of ten working days following the Company’s announcement of delisting from Nasdaq First North with no simultaneous
listing of the Company on Nasdaq Copenhagen Main Market. Warrants that have not been exercised before 18 January 2027 will lapse automatically.
As of 31-12-2024, 1,920,928 of the outstanding warrants have been vested and are able to be exercised. 715,025 of those warrants have a lower exercise price than the closing
share price as of 31-12-2024 which amounted to 15.90 DKK
Number of warrants
Weighted
average
exercise price
DKK
Board of
Directors
Key
management
personnel
Employees,
former
employees and
advisors
Lender
warrants Total
Outstanding at 1 January 2023 20.38 910,204 1,684,590 1,248,409 25,000 3,868,203
Granted 2023 8.91 286,582 409,031 85,000 780,613
Exercised 2023 4.46 (283,167) (755,650) (905,798) (1,944,615)
Forfeited 2023 11.04 (64,884) (64,884)
Outstanding at 31 December 2023 28.94 913,619 1,337,971 362,727 25,000 2,639,317
Transferred 2024 10.24 (19,444) 19,444 0
Granted 2024 7.93 470,454 233,400 703,854
Forfeited 2024 10.18 (251,507) (168,034) (68,056) (487,597)
Outstanding at 31 December 2024 26.96 662,112 1,620,947 547,515 25,000 2,855,574
Specication of outstanding warrants:
60Penneo Annual Report 2024
Specification of outstanding warrants:
Warrants outstanding
Weighted average
exercise price
DKK Vesting period Exercise period 2024 2023
Warrants granted 22 March 2021 58.94 From August 2021 to July 2024 From August 2021 to March 2029 630,000 630,000
Warrants granted 28 April 2021 53.79 From April 2021 to March 2024 From April 2021 to April 2029 406,377 406,377
Warrants granted 8 December 2021 23.20 From December 2021 to January 2027 From December 2021 to January 2027 25,000 25,000
Warrants granted 27 April 2022 17.85 From May 2022 to April 2025 From May 2022 to April 2030 146,393 220,660
Warrants granted 1 July 2022 10.24 From August 2022 to July 2025 From August 2022 to July 2030 73,611 91,667
Warrants granted 1 July 2022 10.24 From November 2022 to October 2025 From November 2022 to October 2030 35,000 35,000
Warrants granted 1 July 2022 10.24 From December 2022 to November 2025 From December 2022 to November 2030 50,000 50,000
Warrants granted 1 July 2022 10.24 From January 2023 to December 2025 From January 2023 to December 2030 369,444 400,000
Warrants granted 31 March 2023 8.91 From March 2024 to March 2026 From March 2024 to March 2029 415,188 518,491
Warrants granted 31 March 2023 8.91 From June 2024 to June 2026 From June 2024 to March 2029 35,000 35,000
Warrants granted 31 March 2023 8.91 From April 2023 to March 2026 From April 2023 to March 2031 75,707 227,122
Warrants granted 27 March 2024 7.93 From March 2025 to March 2027 From March 2025 to March 2030 593,854 0
Outstanding at 31 december 2,855,574 2,639,317
2024 2023
Average remaining life of outstanding warrants at 31 December (years) 4.9 5.9
Exercise price for outstanding warrants at 31 December (DKK) 7.93 to 58.94 8.91 to 58.94
61Penneo Annual Report 2024
Warrant programs
2024
Warrant programs
2023
Warrant programs
2022
Warrant programs
2021
Lender warrants
2021
Average share price (DKK) 7.91 8.91 10.24-17.85 53.79-58.94 23.20
Expected volatility rate (% p,a,) 18.05 18.05 15.75-16.49 25 25
InterRisk-free interest rate (% p,a,) 2.75 2.75 0.5 0 0
Expected duration of warrants (in years) 6 6-8 8 8 5
Exercise price (DKK) 7.91 8.91 10.24-17.85 53.79-58.94 23.20
Fair value all warrants, after dilusion (DKK'000) 1,131 1,826 1,762 16,300 129
From 2022 and onwards the expected volatility rate is based on Penneos historical standard deviation on the share price during Penneos time listed on the Nasdaq market.
The standard deviation on the share price is defined as the daily average.
Before 2022 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 2020 as the entity had not been listed for 12 months as of grant date.
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. Penneo expects no dividend
to be paid out within the near future. The calculation is based on the following assumptions at the grant date:
62
Penneo Annual Report 2024
2024
DKK
2023
DKK
Amortisation of intangible assets (15,674,845) (11,188,016)
Depreciation of property, plant and equipment (343,128) (335,029)
Depreciation of right-of-use assets (3,193,324) (2,923,478)
Total (19,211,296) (14,446,523)
2024
DKK
2023
DKK
Interest expenses (1,697,250) (1,451,976)
Exchange rate adjustments (363,590) (244,153)
Other financial expenses (358,845) (422,281)
Total (2,419,686) (2,118,410)
2024
DKK
2023
DKK
Interest income 573,248 343,638
Exchange rate adjustments 144,434 139,395
Total 717,682 483,033
8. Depreciation, amortisation, and impairment
9. Financial income
10. Financial expenses
63Penneo Annual Report 2024
11. Tax for the year
2024
DKK
2023
DKK
Current tax for the year income (152,618) 0
Adjustment concerning previous years (17,823) 0
Total (170,441) 0
2024
DKK
2023
DKK
Tax calculated as 22% of profit/loss before tax (2,527,726) (5,441,494)
Non-capitalised tax assets 2,386,226 6,232,154
Taxation related to Belgium PE (170,441) 0
Non-deductible expenses 141,500 (790,660)
Effective tax (170,441) 0
Effective tax rate for the year 1,48% 0%
Income tax for 2024 solely relates to Belgium taxation.
64
Penneo Annual Report 2024
Deferred tax is recognized in the statement of financial position as follows:
2024
DKK
2023
DKK
Deferred tax (asset) 0 0
Deferred tax (liability) 0 0
Total 0 0
Deferred tax concerns
2024
DKK
2023
DKK
Intangible assets 13,584,000 11,745,000
Property, plan and equipment (186,000) 35,000
Right-of-use assets 1,529,000 1,980,000
Lease liabilites (1,709,000) (2,337,000)
Tax loss carried forward (13,218,000) (11,423,000)
Total 0 0
Due to uncertainty of utilisation of the tax loss carry-forward, Penneo has not recognised any deferred tax assets. Deferred tax asset not recognized has a total value of DKK
25,938k as of 31-12-2024 (2023: DKK 20,668k). Total tax loss carried forward amounts to DKK 39,156k in 2024 (2023: DKK 32,092k).
65
Penneo Annual Report 2024
12. Intangible assets
2024 DKK
Acquired
intellectual
property rights
Completed
development
projects
Development
projects in
progress Goodwill Total
Cost as at 1 January 6,600,000 61,840,189 22,563,115 9,500,000 100,503,304
Additions 24,030,906 24,030,906
Transfer 22,398,815 (22,398,815) 0
Cost as at 31 December 6,600,000 84,239,004 24,195,206 9,500,000 124,534,210
Amortisation and impairment as at 1 January (2,145,000) (28,870,848) 0 (1,100,000) (32,115,848)
Amortisations during the year (660,000) (15,014,845) 0 (15,674,845)
Amortisations and impairment as at 31 December (2,805,000) (43,885,693) 0 (1,100,000) (47,790,693)
Carrying amount as at 31 December 3,795,000 40,353,311 24,195,206 8,400,000 76,743,517
2023 DKK
Acquired
intellectual
property rights
Completed
development
projects
Development
projects in
progress Goodwill Total
Cost as at 1 January 6,600,000 40,209,510 21,630,680 9,500,000 77,940,190
Additions 22,563,114 22,563,114
Transfer 21,630,679 (21,630,679) 0
Cost as at 31 December 6,600,000 61,840,189 22,563,115 9,500,000 100,503,304
Amortisation and impairment as at 1 January (1,485,000) (18,342,831) 0 (1,100,000) (20,927,831)
Amortisations during the year (660,000) (10,528,017) 0 (11,188,017)
Amortisations and impairment as at 31 December (2,145,000) (28,870,848) 0 (1,100,000) (32,115,848)
Carrying amount as at 31 December 4,455,000 32,969,342 22,563,115 8,400,000 68,387,457
66Penneo Annual Report 2024
Impairment testing
Penneo tests goodwill for impairment annually, or more frequently if there are indications that goodwill might be impaired. The carrying amount of goodwill has been allo-
cated to the following cash-generating unit:
a
Expected remaining lifetime of Acquired intellectual property rights are 6 years, (2023: 7 years)
b
Expected remaining lifetime of Completed development projects are 4 years, (2023: 4 years)
Development projects in progress include the
development of new software. The development
project essentially consists of costs in the form of direct
costs which are registered through Penneo’s internal
project module.
Management is of the opinion that it is technically
possible to complete the development projects during
execution.
Completed development projects comprise software
development costs related to development of the
existing software platform.
The software is under continuous development for
the use of customers and is sold as a licence to use
the software for a given period. The user has access to
upgrades and new functionalities during the contract
period. Costs related to maintenance are expensed
when incurred.
Development costs for the year cover both develop-
ment of the front-end and the back-end part of the
software solution. Both parts to increase the user
experience and functionalities within the software in
order to increase Penneo’s revenue by maintaining
existing clients and acquiring new clients.
It is Management’s assessment that the expected
useful lives, as well as the expected future revenue
streams from the assets are sufficient to cover
the value of recognised developed software at the
reporting date.
In 2024, Penneo expensed DKK 10,032k (2023:
DKK 8,928k) for development projects, primarily
planning, administrative and other general overhead
expenditures not meeting the recognition criteria
applicable to internally generated intangible assets.
2024
DKK
Penneo KYC
2023
DKK
Penneo KYC
Goodwill 8,400,000 8,400,000
Acquired intellectual property rights
a
3,795,000 4,455,000
Development projects in progress 11,666,947 10,109,772
Completed development projects
b
13,427,991 7,495,034
Total 37,289,938 30,459,806
67Penneo Annual Report 2024
Management is of the opinion that the lowest level of cash-generating unit to which the carrying amount of goodwill can be allocated is in the CGU, Penneo KYC.
In both 2024 and 2023, the impairment test of goodwill showed no impairment.
The following key assumptions have been used in the impairment testing:
Budgets used for the impairment testing are based on an external and independent research report. The report has been evaluated by management and adjusted to the
Penneo KYC CGU. In addition to the research report a projection has been made by Management according to the research report, historical values and expected revenue
split.
WACC:
WACC has been calculated before tax and according to the company’s financial numbers and loan agreements.
Growth rate in terminal period:
Growth rate in the terminal period has been set to 1% according to external and independent research reports.
Budget period:
The budget period of 10 years has been set according to the current growth stage of Penneo. The growth is not expected to hit a terminal period before 10 years.
CAGR:
Compound annual growth rate has been set to 25% for the budget period. The revenue growth rate is decreasing over the years.
Penneo has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used to determine the recoverable amount for the company’s
CGU to which goodwill is allocated. Management believes that any reasonably possible change in the key assumptions on which the recoverable amount of Penneo KYC is
based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the related CGU.
2024
Penneo KYC
2023
Penneo KYC
WACC 10.69% 11.19%
Growth rate in terminal period 1.00% 1.00%
Budget period (years) 10 10
CAGR 25% 27%
68Penneo Annual Report 2024
13. Property, plant and equipment
2024
Other fixtures
DKK
Leasehold improvements
DKK
Total
DKK
Cost as at 1 January 509,237 1,335,771 1,845,008
Additions 0 47,654 47,654
Cost as at 31 December 509,237 1,383,425 1,892,662
2023
Other fixtures
DKK
Leasehold improvements
DKK
Total
DKK
Cost as at 1 January 509,237 1,290,640 1,799,877
Additions 0 45,131 45,131
Cost as at 31 December 509,237 1,335,771 1,845,008
Depreciation as at 1 January (118,822) (921,197) (1,040,019)
Depreciation during the year (101,847) (241,280) (343,128)
Depreciation as at 31 December (220,669) (1,162,478) (1,383,147)
Carrying amount as at 31 December 288,568 220,947 509,514
Depreciation as at 1 January (16,975) (688,016) (704,991)
Depreciation during the year (101,847) (233,181) (335,028)
Depreciation as at 31 December (118,822) (921,197) (1,040,019)
Carrying amount as at 31 December 390,415 414,573 804,988
69Penneo Annual Report 2024
14. Leases
2024
Properties
DKK
Cost as at 1 January 20,178,912
Additions 423,189
Cost as at 31 December 20,602,101
2023
Properties
DKK
Cost as at 1 January 19,138,054
Additions 1,037,903
Adjustments and revaluations 2,955
Cost as at 31 December 20,178,912
Depreciation as at 1 January (10,459,063)
Depreciation during the year (3,193,324)
Depreciation as at 31 December (13,652,386)
Carrying amount as at 31 December 6,949,715
Depreciation as at 1 January (7,535,585)
Depreciation during the year (2,923,478)
Depreciation as at 31 December (10,459,063)
Carrying amount as at 31 December 9,719,849
70Penneo Annual Report 2024
Carrying amounts of lease liabilities and movements during the period:
The following amounts have been recognized in the income statement:
Penneo had total cash outflow for leases of DKK 3,527k (2023: DKK 3,156k). Penneo leases offices and lease terms are negotiated on an individual basis and contain different
terms and conditions. The lease term runs until 31 March 2027 and it can be extended if Penneo wishes.
In addition Penneo have short term and low value leases which according to IFRS 16 have not been recognised as a part of Leases. The total recognised cost in the income
statement amounted to DKK 280k (2023: DKK 293k). Refer to note 22 for a table of the maturity profile of Penneo’s lease liabilities.
2024
DKK
2023
DKK
At 1 January 10,623,608 12,461,760
Additions 423,189 1,037,903
Acrual of interest 248,540 277,413
Payments (3,527,428) (3,156,423)
Adjustments 0 2,955
At 31 December 7,767,909 10,623,608
Non-current 4,363,696 7,481,513
Current 3,404,213 3,142,095
2024
DKK
2023
DKK
Depreciation expense of right-of-use assets 3,193,324 2,923,478
Interest expense on lease liabilities 248,540 277,413
Total amount recognised in the income statement 3,441,864 3,200,891
15. Deposits
2023
DKK
2022
DKK
Cost as at 1 January 1,677,045 1,439,174
Additions 44,987 237,871
Disposals (77,972) 0
Cost as at 31 December 1,644,060 1,677,045
71Penneo Annual Report 2024
16. Trade receivables
31.12.2024
DKK
31.12.2023
DKK
01.01.2022
DKK
Trade receivables 19,264,400 16,626,028 21,653,655
Write-downs (482,249) (788,523) (1,672,985)
Total 18,782,151 15,837,505 19,980,670
DKK Not past due Overdue by 0-45 days Overdue by 46-90 days Overdue by >90 days Write-downs
Carring amount of
receivables
31, December 2024 (Trade receivables) 14,429,596 3,857,470 348,181 629,153 (482,249) 18,782,151
31, December 2023 (Trade receivables) 8,269,989 5,962,850 1,154,943 1,238,245 (788,523) 15,837,505
01, January 2023 (Trade receivables) 13,026,399 4,670,121 1,061,224 2,895,911 (1,672,985) 19,980,670
The carrying amounts are equivalent to the fair value of the assets. In 2024 an income of DKK 306k (2023: DKK 884k) was recognized as a result of Expected credit
loss.
The following table details the risk profile of trade receivables based on Penneo’s expected loss on trade receivables:
Expected credit loss
The expected credit losses on trade receivables are estimated using a provision matrix. The matrix has been divided into the specific industries in which Penneo has
sales. In addition to the matrix, Penneo has made specific provisions towards high risk customers. The total provision is considered to cover all expected credit loss
in the trade receivables
17. Working capital changes
2024
DKK
2023
DKK
Change in receivables and prepayments (3,536,229) 4,243,966
Change in trade payables and other payables (12,639) 3,121,665
Total (3,548,868) 7,365,631
72Penneo Annual Report 2024
18. Share capital and earnings per share
As at 31 December 2024, the share capital consisted of 34,091,262 (2023: 34,091,262) shares with a nominal value of DKK 0.02 each. The shares are not divided into
classes and carry no right to fixed income.
Earnings per share
*The diluted effect of outstanding share options has not been calculated as the Earnings per share is negative.
DKK Number of shares
Share capital as at 1 January 2023 642,933 32,146,647
Capital increase 38,892 1,944,615
Share capital as at 31 December 2023 681,825 34,091,262
Share capital as at 31 December 2024 681,825 34,091,262
The calculation of earnings per share is based on the following: 2024 2023
Profit/(loss) for the period (11,660,103) (24,734,062)
Average numbers of ordinary shares for calculation of earnings per share: 33,053,687 31,054,573
Earnings per share, basic (EPS) (0.34) (0.75)
Earnings per share, diluted (DEPS)* (0.34) (0.75)
Treasury shares Number Nominal value
% of share capital,
year-end
Holding at 1 January 2023 223,841 4,477 0.7%
Transfer of shares as a part of Employee Share Scheme (52,276) (1,046) -0.2%
Holding at 31 December 2023 171,565 3,431 0.5%
Transfer of shares as a part of Employee Share Scheme (151,292) (3,026) -0.4%
Holding at 31 December 2024 20,273 405 0.1%
73Penneo Annual Report 2024
20. Interest-bearing liabilities
The carrying amount is by Management assessed as equivalent to the fair value of the liabilities as explained in note 22.
Non-current borrowings
31.12.2024
DKK
31.12.2023
DKK
Debt to credit institutions 9,623,785 12,972,425
Lease liabilities 4,363,696 7,481,513
Total 13,987,481 20,453,938
Current borrowings
Debt to credit institutions 3,348,640 316,775
Lease liabilities 3,404,213 3,142,095
Total 6,752,853 3,458,870
19. Other capital reserves
Other capital reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their
remuneration as well as lender warrants. Refer to Note 7 for further details of these programmes.
The reserve is decreasing upon exercise of warrants and transfer of shares as a part of Employee Share Scheme.
74
Penneo Annual Report 2024
2024 EIFO (i) EIFO (ii) EIFO (iii) Total
Non-current borrowings (DKK) 0 2,144,741 7,479,044 9,623,785
Current borowings (DKK) 0 1,275,941 2,072,699 3,348,640
Total 0 3,420,682 9,551,743 12,972,425
2023 EIFO (i) EIFO (ii) EIFO (iii) Total
Non-current borrowings (DKK) 0 3,420,682 9,551,743 12,972,425
Current borrowings (DKK) 316,775 0 0 316,775
Total 316,775 3,420,682 9,551,743 13,289,199
EIFO (i) EIFO (ii) EIFO (iii)
Last scheduled repayment July 2024 April 2027 October 2028
Exit obligation (maximized DKK) 0 800,000 0
Performance obligation (maximized DKK) 0 400,000 0
Dividend limitation agreement Yes Yes Yes
Warrants granted No No Yes
Debt to credit institutions
Penneo has signed a dividend limitation agreement, which entails that the Company is not entitled to propose a resolution to pay dividends without the consent of EIFO.
The dividend limitation agreement applies until all current and future loans are fully repaid. The last scheduled repayment fall due on October 2, 2028.
EIFO has the right to demand the loans to be repaid if a change of control in Penneo should happen. A “change of control” is defined as a direct or indirect transfer of more
than 25% of the shares or the rights of the shares in the Company, or in any other way the transfer of a controlling majority.
EIFO (ii) is entitled to a one-time performance bonus of DKK 400,000.00 if the Company reaches a performance target within a financial year during the loan period. The
performance target is reached when the Company’s accumulated earnings measured at EBITDA-level exceeds DKK 15,000,000 in accordance with the latest audited report.
75
Penneo Annual Report 2024
21. Provisions
2024
Decommissioning
DKK
At 1 January 466,114
Unwinding of discount and changes in the discount rate 12,119
At 31 December 478,233
2023
Decommissioning
DKK
At 1 January 454,302
Unwinding of discount and changes in the discount rate 11,812
At 31 December 466,114
A provision has been recognised for decommissioning costs associated with an office lease. Penneo is committed to restore the site at the end of the lease term.
Cash flow effect of the decommissioning is expected in 2027.
Further, EIFO (ii) is entitled to a one-time exit bonus of DKK 800,000, if an exit transaction occurs, and the Company has experienced an added (equity) value in the period
between July 2019 and the date of the exit transaction. An “exit transaction” is defined as a direct or indirect transfer of more than 25% of the shares or the rights of the shares
in the Company, or in any other way the transfer of a controlling majority. For the avoidance of doubt, capital increases by the issuance of new shares does not constitute an
exit transaction.
Warrants have been granted as a part of the loan agreement with EIFO(iii). Refer to Note 7 for further details regarding the warrants.
76
Penneo Annual Report 2024
22. Financial risks
Capital Management
Penneo manages its capital to ensure that it will be
able to continue as a going concern while maximising
the growth in ARR through the optimisation of the
debt and equity balances. The capital structure of
Penneo consists of net debt and equity. Management
reviews the capital structure continually to consider if
the current capital structure is in accordance with the
company and shareholders’ interests.
Financial risk management
Due to the nature of its operations, investments, and
financing, Penneo is exposed to a number of financial
risks. It is 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 the financial instruments
appear from the income statement and statement of
financial position in accordance 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 Penneo’s financial instruments.
Credit risk
Credit risk is the risk that a counterparty will not meet
its obligations towards Penneo, leading to a financial
loss. Penneo is exposed to credit risk primarily related
to its trade and other receivables. Penneo are using
a provision matrix to write off expected credit loss,
in addition to a specific provision towards high risk
customers or when there is a court order of bankruptcy
from the counterparty. The maximum exposure to
credit risk at the reporting date is the carrying value
of trade receivables in note 16. Penneo does not hold
collateral as security
Penneo is also exposed to credit risk in regards to
bankdeposits. In order to limit Penneo’s counterparty
risk, deposits are only made in well-reputed banks.
Foreign currency risk
Foreign currency risk is the risk that the fair value or
future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. Penneo issues
invoices in local currency, which is why the incoming
cash flow reflects different currencies. Penneo has in
all aspects only transactions in DKK, NOK, SEK and
EUR. The material costs and investments are primarily
paid in DKK and EUR, which is why there is low risk on
that part.
Penneo operates with bank accounts in NOK and EUR
currencies, as well as DKK, to reduce costs and lower
risks in the short term. Penneo avoids the small effects
of fluctuations, as both incoming and outgoing pay-
ments are made directly in the respective currencies.
Liquidity risk
Penneo ensures sufficient liquidity resources by
liquidity management. Overall Penneo has a policy
to only allocate cash flow that the company has at its
disposal defined as cash, cash equivalents, forecasted
cash flow and credit facility.
After each month, the previous month is financially
closed and reviewed with an updated running 12
month forecast. The forecast is adjusted to meet
Penneo’s policy through adapting it to the hiring plan.
Each quarter, an updated 12 month cash flow forecast
is reviewed and approved by the Board of Directors.
At 31 December 2024, Penneo’s cash and cash
equivalents amounted to DKK 20,139k (2023: DKK
42,223k). The cash reserves including the current credit
facility at DKK 10,000k and expected cash flow for 2025
are considered to be adequate to meet the obligations
of Penneo as they fall due.
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Penneo Annual Report 2024
The table below summarises the maturity profile of Penneo’s financial liabilities based on contractual undiscounted payments:
Year ended 31 December 2024
On
demand
DKK
Less than 6
months
DKK
6 to 12 months
DKK
1 to 5 years
DKK
> 5 years
DKK
Total
DKK
Other interest-bearing loans 0 2,215,714 2,215,714 10,969,413 0 15,400,841
Lease liabilities 0 1,778,085 1,782,033 4,422,516 0 7,982,635
Trade and other paybles 755,401 11,733,230 0 2,621,331 0 15,109,961
755,401 15,727,029 3,997,747 18,013,259 0 38,493,437
Year ended 31 December 2023
On
demand
DKK
Less than 6
months
DKK
6 to 12 months
DKK
1 to 5 years
DKK
> 5 years
DKK
Total
DKK
Other interest-bearing loans 0 808,813 717,747 15,400,841 0 16,927,401
Lease liabilities 0 1,701,184 1,674,859 7,683,726 0 11,059,769
Trade and other paybles 782,505 7,850,338 0 2,548,217 0 11,181,060
782,505 10,360,335 2,392,607 25,632,784 0 39,168,230
Financial liabilities:
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Penneo Annual Report 2024
Financial assets measured at amortised cost
2024
DKK
2023
DKK
Deposits 1,644,060 1,677,045
Trade receivables 18,782,151 15,837,505
Other recelvables 54,127 1,734
Current Cash 20,138,996 42,223,136
Total 40,619,333 59,739,420
Financial liabilities measured at amortised cost
Other interest bearing loan 12,972,425 13,289,199
Lease liabilities 7,767,909 10,623,608
Trade payables 2,475,259 2,898,440
Other payables 12,634,702 8,282,620
Total 35,850,295 35,093,868
Financial instruments:
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities. Penneo’s interest-bearing debt to EIFO of DKK 12,972k as per 31 December 2024 (2023: DKK 13,289k)
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 2024 would lead to a yearly increase in interest expenses of DKK 130k. A corresponding decrease in
market interest rates would have the opposite impact.
Penneo’s bank deposit at Danske Bank of DKK 20,139k as per 31 December 2024 (2023: DKK 42,223k) is subject to a variable rate of interest based on Danske Banks
calculations including, among other things, the interest rates of Nationalbanken as well as competitive and business considerations. If the interest rate decreased by one
percentage point, the interest rate sensitivity as calculated based on the bank deposit as per end of 2023 would lead to a yearly decrease in interest income of DKK 201k. A
corresponding increase in interest rates would have the opposite impact.
Fair value of financial assets measured at amortised cost
Since Penneo’s financial instruments measured at amortised cost are either short-term and/ or exposed to floating interest rates, Management has assessed that the carry-
ing amount is a reasonable approximation of fair value.
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Penneo Annual Report 2024
23. Liabilities arising from financing activities
2024
Other interest bearing
liabilities
Lease
liabilities
Total
DKK
Liabilities at 1 January 13,289,200 10,623,608 23,912,808
Loans raised 0 423,189 423,189
Repayments (316,775) (3,527,428) (3,844,203)
Other 0 248,540 248,540
Liabilities at 31 December 12,972,424 7,767,909 20,740,333
2023
Other interest bearing
liabilities
Lease
liabilities
Total
DKK
Liabilities at 1 January 14,368,984 12,461,760 26,830,745
Loans raised 0 1,037,903 1,037,903
Repayments (1,079,785) (3,156,423) (4,236,208)
Adjustments 0 2,955 2,955
Other 0 277,413 277,413
Liabilities at 31 December 13,289,200 10,623,608 23,912,808
24. Guarantees, contingent liabilities and collateral
Contingent liabilities
As security for debt to credit institutions of DKK 12,972k, a company charge of DKK 15,000k has been provided comprising trade receivables, intangible assets and property,
plant and equipment. The total carrying amount of the comprised assets is DKK 95,994k (2023: 85,030k).
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Penneo Annual Report 2024
25. Fee to the auditor
2024
DKK
2023
DKK
Statutory audit 527,000 433,000
Other assurance agreements 46,800 69,000
Tax and VAT advisory services 100,400 7,000
Other services 97,750 20,000
Total fee to the auditor 771,950 529,000
26. Related parties
Shareholders with more than 5% ownership Registered office Basis of influence
ARBEJDSMARKEDETS TILLAEGSPENSION Denmark 9.90%
Viking Venture 29 AS Norway 8.95%
Biostrat Biotech Consulting ApS Denmark 6.68%
Clausen Online ApS Denmark 5.60%
Flora IT ApS Denmark 5.59%
* None of the shareholders have control or significant influence over the company
Other related parties
Other related parties of Penneo A/S with significant influence comprise the Board of Directors and Executive Board and their related parties. There were no other related
parties identified.
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Penneo Annual Report 2024
DKK
Impero A/S, related to Board member Rikke Stampe Skov, CEO at Impero A/S 2024 2023
Services provided by Impero A/S 60,060 60,000
Ratios ApS, related to former CCO André Clement, Chair at Ratios ApS 2024 2023
Services provided by Ratios ApS 9,491
Estaldo ApS, related to former Board member Jakob Neua, CEO at Estaldo ApS 2024 2023
Services provided by Penneo A/S 40,057 91,854
Viking Venture AS, related to Chair Jostein Vik, Partner and co-founder at Viking Ventures AS 2024 2023
Services provided by Penneo A/S 34,954
There were no unsettled balances with related parties at the end of the year.
In Penneo A/S there were no transactions with the Board of Directors or Executive Management besides remuneration. For information on remuneration of the Board of
Directors and Executive Management please refer to note 6.
27. Events after the reporting period
An exit event has occured efter the balancesheet date. Visma has in February 2025 obtained a controlling interest in Penneo. Besides from that, no matters, which would
influence the evaluation of the annual report has occurred.
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Penneo Annual Report 2024
