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Third party research

Relesys: Cost levels to normalise after abnormal Q3 - ABG

Relesys

This is a third party research report and does not necessarily reflect our views or values

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ARR in line (36% y-o-y growth); minor '23e-'25e top-line revisions
'23e EBITDA up 8% on abnormally low Q3 costs and slower hirings
Small '24e-'25e EBITDA revisions; positive long-term view reiterated


Minor '23e-'25e top-line revisions on reiterated guidance

We make minor changes to our '23e-'25e top-line estimates (<1%), meaning we remain a tad below the mid-points of the reiterated DKK 59m-64m FY'23 ARR guidance (ABGSCe DKK 60.8m) and the DKK 54m-60m revenue guidance (ABGSCe DKK 56.0m). Q3 ARR of DKK 54.8m was in line with ABGSCe (corresponding to strong 36% y-o-y growth), driven by low churn of ~3%, ~16% uplift, and new ARR of ~23%. Revenues of DKK 14.5m were 2% higher. On a further positive, the company's ongoing transition to a stronger focus on enterprise customers appears to be progressing according to plan. Relesys sees the potential for closing some enterprise customers before YE'23e, as well as a pipeline that remains strong.