Interim report
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Q1 Report 2025 1 January 2025 - 31 March 2025 Impero A/S Dannebrogsgade 1, 2. tv. 1660 Copenhagen, Denmark CVR No.: 32326676
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Financial highlights at Q1 2025 At the end of Q1 2025, Impero realized a 24% year-on-year Annual Recurring Revenue (ARR) growth, demonstrating solid growth and reinforcing the strength of our recurring business model. Revenue for the quarter increased by 27%, while other external expenses and staff costs increased by 30% due to investments in growth, leading to a decrease in EBITDA. However, Impero remains in a strong financial position, with positive cash-flow from operating activities of DKK 4.4M and a cash-position of DKK 12.3M at the end of Q1. We are narrowing the ARR outlook for year-end 2025 to DKK 46M to 49M, reflecting the lower end of the previously communicated range of DKK 46M to 52M.EBITDA is still expected within the DKK -10M to -8M range. Impero Q1 Report 2025 Introduction 2 ARR end Q1 40.2 DKK M Increased by 24% from DKK 32.4M on 31 March 2024 Net ARR growth Q1 1.5 DKK M Compared to net ARR growth of DKK 2.1M in 2024-Q1 EBITDA end Q1 -2.8 DKK M Compared to DKK -2.0M for the 3-month period ending 31 March 2024 Uplift 12% YoY Compared to 14% in the 12-month period ending 31 March 2024 Churn 2% YoY Compared to 6% in the 12-month period ending 31 March 2024 Net Revenue Retention 110% Compared to 108% in the 12-month period ending 31 March 2024 Quarterly financial key figures 2025-Q1 DKK M 2024-Q4 DKK M 2024-Q3 DKK M 2024-Q2 DKK M 2024-Q1 DKK M Revenue 10.0 9.7 9.2 8.7 7.8 Cost of sales (0.3) (0.1) (0.4) (0.4) (0.3) Gross profit/loss 9.7 9.6 8.8 8.3 7.5 Own work capitalized 1.4 0.8 0.8 0.9 1.1 Other external expenses (5.6) (4.8) (5.9) (4.6) (3.8) Staff costs (8.3) (7.5) (5.3) (7.8) (6.9) EBITDA (2.8) (1.9) (1.6) (3.1) (2.0) ARR (12 months) 40.2 38.7 36.9 35.4 32.4 YoY
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Regardless of macroeconomic headwinds, our Q1 performance reflects strategic focus on long-term value creation and continued investment in platform development and commercial growth. We ended the quarter with a 24% year-over-year increase in ARR, reaching DKK 40.2M, and a 27% rise in reported revenue compared to Q1 2024. In line with our 2026 strategic direction, Increasing the Impact, which embraces enhancing our platform’s capabilities and accelerating delivery speed, we continued to allocate resources bolstering our Product teams’ capacity. Simultaneously, we increased investments in go-to- market initiatives across new geographies and channels to support long-term pipeline development and customer acquisition. Financial highlights Q1 concluded with a strengthened cash position of DKK 12.3M at the end of the period, supported by positive working capital movements. We remain committed to our current investment strategy, accepting a negative EBITDA as we build up future scalability. We remain on course to become cash flow positive before the end of 2026. Commercial progress Q1 is typically marked by limited momentum due to customers’ fiscal year-end activities. Nonetheless, we achieved gross ARR growth of DKK 2.1M, underpinned by strong upsell activity with existing customers. During the quarter, we saw a notable contraction, due to discontinuation of a recurring service agreement with a long-standing customer. Net ARR growth for the first quarter ended at DKK 1.5M and churn remained low at 2%. While geopolitical uncertainty has lengthened decision-making cycles, particularly among new customers, we observed steady partner engagement with onboarding of new German partners. In the UK, recent regulatory developments such as the Corporate Governance Code are creating new opportunities, and we are seeing promising dialogues that we anticipate will drive momentum in the future. ESG, CSRD, and the Omnibus Proposal Over the past years, many conversations among compliance professionals have related to ESG, CSRD, and CSDDD. The recent Omnibus proposal from the EU Commission is seeking to harmonize and simplify the related compliance processes. Key changes include a reduction of affected companies, postponed reporting deadlines and decreased data points. Due to Impero’s focus on enterprise customers, these simplifications of reporting requirements are expected to have only minor negative impact on our current ARR. Platform expansion and innovation A key milestone in Q1 was the Beta launch of our Control Testing module, with general availability planned for end of Q2 2025. Adding the capability to assess and audit the effectiveness of internal controls expands our support for complex compliance workflows and underlines our ambition to serve as a comprehensive GRC platform. Feedback during the Beta phase has been encouraging, and we see the potential to deepen engagement with existing enterprise customers while attracting new ones in parallel. We delivered several enhancements to the module during the quarter, all tailored to simplify control testing across large organizations. AI-driven efficiency and user benefits We are progressing well with integrating AI across internal and product-facing functions. Internally, AI is improving our development speed and operational efficiency. On the product side, we laid the groundwork for future AI capabilities by deploying an initial feature set, including an AI model that automatically generates control descriptions based on existing program context. This feature is undergoing rigorous testing to ensure alignment with compliance and regulatory standards. Our vision for AI is two-fold: enhancing development velocity and delivering intelligent tools that simplify compliance work for our users. Looking ahead As we continue to scale our platform and commercial operations, our focus remains on delivering meaningful innovation and simplifying compliance for large organizations. Our solid customer base, strengthened team, growing partner network, and expanding platform capabilities position us well for the journey ahead. Thank you We extend our heartfelt appreciation to our employees, customers, partners, and shareholders for their continued trust and support. Together, we are building a stronger, smarter Impero. Management commentary Impero remains committed to long-term growth “Despite increased economic uncertainty, we continue to believe that our emphasis on reducing complexity, allowing businesses to focus on their core activities, is the right strategic path and a fundamental driver of our relevance and value to customers. Our continued investments in innovation and market expansion reflect our strong belief in Impero’s long-term potential. We remain on course to become cash flow positive before the end of 2026.” Rikke Stampe Skov CEO, Impero Impero Q1 Report 2025 3
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Photo credits: © Bavaria Studios “User-Friendly Risk and Compliance Tool” Impero Q1 Report 2025 4 “The tool offers all the flexibility needed to tailor internal control system (ICS) controls to fit specific business areas. The controls are very easy to create and maintain. Another major advantage is the integrated risk management module. The risk analyses are documented in a transparent way and can be kept up to date at any time.”
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79% 21% Channel Split New ARR in 2025-Q1 (YTD) Impero Partner channel As of the end of March 2025, Impero’s ARR reached DKK 40.2M, reflecting a 24% increase year-over-year. During Q1 2025, gross ARR growth amounted to DKK 2.1M, driven by both a growing customer base and a rise in average ARR per account (ARPA) now at DKK 218T, up from DKK 195T in March 2024. ARR from new business was lower than anticipated and generally driven by prolonged sales-cycles and impacted by the broader economic and political uncertainty globally. The net ARR growth during Q1 2025 amounted to DKK 1.5M and saw a notable contraction of DKK 0.6M, stemming from a long-standing customer terminating a recurring service agreement. This development reflects the successful implementation and self-sufficiency enabled by Impero’s platform. While uplift from existing customers moderated to 12%, the churn rate improved to 2% over the past 12 months. Impero maintains a robust Net Revenue Retention (NRR) of 110%, demonstrating strong revenue retention and expansion within our existing client base. Churn is only recognized upon contract termination and based on current visibility; we do not foresee any substantial increases for the coming periods. The DACH region continues to lead growth, accounting for 61% of new ARR year-to-date, followed by Denmark at 29% and other regions at 10%. The majority of the new ARR in Q1 was driven by Impero’s own channel. Customer Acquisition Cost (CAC) rose by 20% year-on- year to DKK 294T in Q1 2025. This increase, alongside a lower Average ARR per Account (ARPA) in the initial 12 months and fewer new customer acquisitions during the quarter, extended the CAC payback period to 22 months, compared to 18 months in the prior year. ARR development and SaaS metrics Key SaaS definitions • Annual Recurring Revenue (ARR) is a term for the recurring revenue from subscriptions at a given date for the coming 12 months. ARR will not factor in future events, including new deals closed but not yet recognized as revenue. Following the same logic, a churn is not realized until expiration. ARR is measured as the monthly recognized revenue from subscriptions multiplied by 12. • Churn is defined as the ARR from existing customers being canceled during a 12-month period, divided by the ARR at the beginning of the period. A churn is not realized until the expiration of the subscription period. • Contraction is a decrease in recurring revenue from existing customers due to subscription downgrades. • Uplift is the growth of recurring revenue generated by existing customers over a 12-month period. • Net Revenue Retention (NRR) is the percentage of recurring revenue retained from existing customers and is based on ARR at the beginning of the period, adjusted for churn and uplift during the period. Impero SaaS metrics (12 months rolling) 2025-Q1 2024-Q1 Annual Recurring Revenue (DKK M) 40.2 32.4 Average ARR per Account (ARPA) (DKK T) 218 195 ARPA (first 12 months) (DKK T) 160 169 ARR Growth (%) 24% 28% Uplift (%) 12% 14% Churn (%) 2% 6% Net Revenue Retention (NRR) (%) 110% 108% Customer Acquisition Cost (CAC) (DKK T) 294 244 CAC Payback (months) 22 18 29% 61% 10% Market Split New ARR in 2025-Q1 (YTD) DK DACH Other Impero Q1 Report 2025 5
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Reported numbers (DKK M) 2025-Q1 2024-Q4 2024-Q3 2024-Q2 2024-Q1 2023-Q4 2023-Q3 2023-Q2 2023-Q1 2022-Q4 2022-Q3 2022-Q2 2022-Q1 2021-Q4 2021-Q3 Opening 38.7 36.9 35.4 32.4 30.4 28.1 27.6 25.3 22.7 20.4 19.7 18.1 16.6 15.2 14.0 ARR New Business 0.6 1.2 1.1 1.5 1.5 1.5 0.6 1.2 1.6 1.4 0.2 0.8 1.1 1.1 1.0 ARR Uplift 1.0 0.6 0.8 1.4 0.8 1.0 0.4 1.6 1.2 1.0 0.5 0.8 0.5 0.6 0.2 ARR Churn (0.2) (0.1) (0.3) (0.2) (0.1) (0.3) (0.4) (0.6) (0.2) (0.1) 0.0 0.0 (0.19 (0.2) 0.0 End of Period 40.2 38.7 36.9 35.4 32.4 30.4 28.1 27.6 25.3 22.7 20.4 19.7 18.1 16.6 15.2 0 5 10 15 20 25 30 35 40 45 ARR 2019 ARR 2020 ARR 2021 ARR 2022 ARR 2023 ARR 2024 ARR 2025 ARR Cohort (DKK M) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ARR 1 Apr 2024 Churn Uplift ARR Existing New customers ARR 31 Mar 2025 20.0 25.0 30.0 35.0 40.0 45.0 Increase Decrease Total ARR development 12 months rolling (DKK M) 32.4 - 0 . 7 3.8 3 5 . 5 4 . 6 4 0 . 2 Impero Q1 Report 2025 6
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-20 -15 -10 -5 0 5 10 15 30 Jun 2023 30 Sep 2023 31 Dec 2023 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024 31 Mar 2025 DKK M Free cash flow to new ARR development In the 12-month period till the end of Q1 2025, Impero realized an ARR growth of 7.7M DKK and a free cash flow of negative 6.1M DKK. This is equivalent to a cash-to-acquired-ARR ratio of 0.8, which is in line with our plan and an improvement compared to the end of Q1 2024, where the corresponding ratio was 1.4. The development reflects both stronger ARR generation and primarily a lower cash burn from operating activities, mainly driven by better utilization of our capacity costs. We will continue to execute our strategy plan and expect the ratio of free negative cash flow to net new ARR growth to continue to improve towards the end of 2026. However,depending on timing of contract renewals, payment dates and investment levels, we may see minor negative fluctuations in some quarters. *Free cash flow includes cash flow from operating activities as well as cash flow from investing activities. 2.0 1.7 1.6 1.4 1.2 0.7 0.9 0.8 Impero Q1 Report 2025 7 Free cash flow / Net new ARR
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Outlook 2025 We are narrowing the ARR outlook for year-end 2025 to DKK 46M to 49M, reflecting the lower end of the previously communicated range of DKK 46M to 52M. This updated outlook corresponds to an expected annual ARR growth rate between 19% and 27%. The refinement is primarily driven by a slower-than- anticipated pace of new customer acquisitions, influenced by prolonged decision-making cycles and intensified geopolitical and macroeconomic uncertainty. Revenue retention and expansion within the existing customer base is expected to remain strong, underpinning the company’s robust recurring revenue foundation. The timing of revenue recognition for new customers remains essential in relation to the ARR outlook. The outlook for EBITDA remains unchanged, with full- year expectations between DKK -10M and -8M, as Impero continues to pursue its strategy of investing in platform innovation and commercial expansion to support long-term ARR growth. Key assumptions underpinning the outlook include: • Continued ability to attract and retain key commercial and technical talent. • Effective execution of go-to-market initiatives across channels and markets. • No material worsening of the macroeconomic or geopolitical environment. Impero will maintain focus on improving the ratio between cash-burn and net new ARR (12-month rolling), while executing on its long-term strategy aimed at becoming cash flow positive before the end of 2026. Events after the period There have been no events that materially change the assessment of this Report from the balance sheet date and up to today. Safe-harbor statement: Statements about the future expressed in the Report reflect Impero’s current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the Company’s actual results may differ from the expectations expressed in this Report. Impero Q1 Report 2025 8
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Statement by management The Board of Directors and the Executive Board have today considered and approved the Report of Impero A/S for the period 1 January 2025 - 31 March 2025. The Report, which has not been audited by the company’s auditors, is presented in accordance with the Danish Financial Statements Act. In our opinion, the Report gives a true and fair view of Impero’s financial position on 31 March 2025 and of the results of its operations for the period 1 January 2025 – 31 March 2025. We believe that the management commentary contains a fair review of the affairs and conditions referred to therein. Copenhagen, 23 May 2025 Executive Board Rikke Birgitte Skov, Chief Executive Officer Morten Lehmann Nielsen, Chief Financial Officer Board of Directors Jørgen Vilhelm Løvenørn Bardenfleth, Chair of the Board Jens Kolind, Vice Chair Line Køhler Ljungdahl, Board member Steffen Pasgaard, Board member Charlotte Rosendahl Dohm , Board member Christian Stendevad, Board member Financial calendar 29 August 2025 Interim Report (H1) 2025 26 November 2025 Quarterly Report (Q3) 2025 13 March 2026 Annual Report 2025 Impero Q1 Report 2025 9
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Financial review Revenue Recognized revenue in the 3-month period ending 31 March 2025 increased by 27% compared to the same period in 2024 and is a result of the commercial focus and investments in developing our platform and offerings. The revenue growth was fueled by expanding activities in our main markets. Cost of sales Cost of sales has decreased slightly compared to the first three months of 2024, leading to an improvement in the contribution margin to 97% compared to 96% the year before. Cost of sales is related to hosting and platform security costs. Other external expenses Other external expenses increased by 48% for the first three months of the year compared to the same period last year. The primary drivers are increased commercial activities, consultants and fees for lead generation activities through an agency. Staff costs Staff costs increased by 21% for the first three months of 2025 compared to the previous year and the increase is primarily related to organizational growth within product development and the commercial team. Operating profit/loss (EBIT) Impero’s operating profit amounted to negative DKK 3.7M in the first three months of the year, decreasing from negative DKK 2.6M for the same period in 2024. EBITDA Impero’s EBITDA amounted to negative DKK 2.8M in the first three months of the year, which is a decrease from negative DKK 2.0M for the same period in 2024. The development is driven by the already mentioned increases in staff costs as well as other external expenses. Activation of development costs positively impacted the EBITDA, compared to the first quarter of Q1 2024. Intangible assets Intangible assets as of 31 March 2025 have increased by 5% to DKK 10.1M when comparing to the end of 2024 and is driven by investments in development projects. Trade receivables Trade receivables as of 31 March 2025 have decreased by 39% compared to the first three months of 2024. The development reflects primarily the timing of contract renewals and payments but is also impacted by slightly lower inflow of new customers, compared to the same period in 2024. The Company does not foresee losses on its debtors. Cash flow statement Impero had a positive cash flow from ordinary operating activities of DKK 4.4M for the first three months of the year against DKK 2.5M for the same period in 2024. Despite increased operating loss the development is driven by a higher amortization as well as improved working capital. Additions of intangible assets come from investments to develop Impero’s product in accordance with the strategy. The development in Proceeds from other financial assets is related to a deposit payment in connection with relocation of our headquarters in Copenhagen. Impero Q1 Report 2025 10
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Number of outstanding shares (end of period) 23,774,889 23,774,889 Average number of outstanding shares 23,774,889 23,774,889 Earnings per share, EPS (DKK) (0.16) (0.11) 2025-Q1-YTD DKK T 2024-Q1-YTD DKK T Revenue 9,991 7,838 Own work capitalized 1,401 1,122 Cost of sales (296) (311) Other external expenses (5,588) (3,783) Gross profit/loss 5,508 4,866 Staff costs (8,305) (6,864) Depreciation, amortization and impairment losses (873) (629) Operating profit/loss (EBIT) (3,670) (2,627) Other financial income 34 118 Other financial expenses (51) (23) Profit/loss before tax (3,687) (2,532) Tax on profit/loss for the period 0 0 Profit/loss for the period (3,687) (2,532) EBITDA (2,797) (1,998 ) Income statement Impero Q1 Report 2025 11
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31 Mar 2025 DKK T 31 Dec 2024 DKK T Completed development projects 8,305 6,770 Development projects in progress 1,034 1,971 Other intangible rights 786 856 Intangible assets 10,125 9,597 Investments in group enterprises 214 214 Deposits 875 347 Other financial assets 1,089 561 Fixed assets 11,214 10,158 Trade receivables 3,806 5,278 Receivables from group enterprises 581 583 Deferred tax 435 435 Prepayments 1,259 943 Other receivables 168 156 Receivables 6,249 7,395 Cash 12,299 9,798 Current assets 18,548 17,193 Assets 29,762 27,351 Balance sheet Assets 31 Mar 2025 DKK T 31 Dec 2024 DKK T Contributed capital 2,377 2,377 Reserve for development expenditure 7,285 6,818 Retained earnings (7,190) (3,036) Equity 2,472 6,159 Trade payables 1,300 1,378 Payables to group enterprises 1,069 830 Other payables 3,506 3,588 Deferred income 21,415 15,396 Current liabilities other than provisions 27,290 21,192 Liabilities other than provisions 27,290 21,192 Equity and liabilities 29,762 27,351 Equity and liabilities Impero Q1 Report 2025 12
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2025-Q1-YTD DKK T 2024-Q1-YTD DKK T Operating profit/loss (EBIT) (3,670) (2,627) Depreciation, amortization and impairment losses 873 629 Working capital changes 7,244 4,532 Cash flow from ordinary operating activities 4,447 2,535 Financial income received 34 118 Financial expenses paid (51) (23) Cash flow from operating activities 4,430 2,630 Additions of intangible assets (1,401) (1,122) Investments in group enterprises 0 0 Proceeds from other financial assets (528) (73) Cash flow from investing activities (1,929) (1,195) Increase of capital 0 2,597 Cash flow from financing activities 0 2,597 Increase/decrease in cash and cash equivalents 2,501 4,032 Cash and cash equivalents beginning of period 9,798 14,860 Cash and cash equivalents end of period 12,299 18,892 Statement of changes in equity 2025-Q1 Contributed capital DKK T Reserve for development expenditure DKK T Retained earnings DKK T Total DKK T Equity at 1 January 2025 2,377 6,818 (3,036) 6,159 Increase of capital 0 0 0 0 Costs related to equity transactions 0 0 0 0 Transfer to reserves 0 467 (467) 0 Profit/loss for the period 0 0 (3,687) (3,687) Equity at 31 March 2025 2,377 7,285 (7,190) 2,472 Cash flow Impero Q1 Report 2025 13
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The information here in may not be published, distributed or delivered wholly or partly, directly or indirectly, in or to the USA, Canada, Australia or Japan. Statements about the future expressed in the Report reflect Impero’s current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the company’s actual results may differ from the expectations expressed in this Report. Certified Advisor: HC Andersen Capital Bredgade 23B 2 1260 Copenhagen, Denmark Impero A/S Dannebrogsgade 1, 2. tv. 1660 Copenhagen, Denmark CVR No.: 32326676