This article was originally featured in Danish Finance newspaper Dagbladet Børsen on May 9th, 2018.
By Gro Høyer Thielst (Photo: Peter-Emil Witt)
A high-growth stock with a lot of dynamics was the promise that CEO Jesper Valentin made to future shareholders at the beginning of the year, and a few months before the listing of the technology company Agillic.
With the first quarter’s figures in writing, the shareholders are able to see that the CEO is keeping his promise.
The subscription sales (ARR) have risen by 51 percent, to DKK 35 million in the first quarter of 2018, compared to the DKK 23 million in the first quarter of 2017.
This is in line with the management’s guidance, as the company previously reported that the growth would continue on that level in order to reach the expected annual subscription sales of DKK 100 million by 2020.
Moreover, the accounting figures show that the real turnover has risen by 111 percent, to DKK 9.7 million, compared to the DKK 4.6 million in the same quarter of the previous year.
The market welcomes the statements that Agillic has risen by 9.8 percent.
“We are really happy that we have been able to deliver the results that we promised the shareholders and the market. During the course of this quarter, we have worked towards delivering within those main areas that we introduced when entering the stock market,” says Jesper Valentin, CEO of Agillic. He also mentions the strategic partnership with the Swedish agency chain House of Friends, new customers such as the Red Cross, Bolia, and the Norwegian clothing company Varner, as well as the employment of new key employees.
Agillic sells subscription solutions of its cloud-based software platform to new customers such as Sportsmaster, Matas and Mofibo. The customers deliver their own customer network, with all the elements of big data included, while Agillic provides a tailormade and relevant marketing platform via SMS, email, online and print media using artificial intelligence, etc.
In the stock exchange report, the company writes that the quarter was characterised by the employment of growth-focused key persons, in order to strengthen and support the planned expansion in Scandinavia and the UK. These employees included Christian Tange, who is the new CFO, and Thomas G. Andersen who is the new Sales Director.
“Thomas comes from the Danish company Sitecore, which is a company that we look up to and feel inspired by. They have already travelled the road that we are hoping to take, and currently have a turnover of approx. DKK 1.5 billion. When Thomas arrived at Sitecore 11 years ago, the company was approximately Agillic’s current size. So he has a lot of experience in building a sales organisation, knows how to run the sales and how to keep life in the pipeline, which is necessary for maintaining the growth that we have begun”, says Jesper Valentin.
On the bottom line, the red figures have grown from minus DKK 1.1 million to minus DKK 1.9 million in EBITDA. However, Agillic has not promised any credit yet, and the CEO is not particularly nervous about the deficit.
“As long as we’re in a growing market, which is looking to increase fivefold within the next five years, and we outperform in terms of growth, then it’s an attractive investment.”
Agillic was listed on the stock exchange on 22 March 2018, and the price closed at DKK 35.5 during the Tuesday’s trading.