[Foreign language] [Foreign language] Sorry, English. Together with me today I have Casper, the CFO, and Nicolaj Højer Nielsen, Interim CEO and Co-founder. Today's event, we will go around the Q1 report and try and look a little bit. As you all know, Penneo did that, they took a little bit of the excitement out of Q1 report by upwards guiding their guidance. Still, I think there are some messages that might be good to take with you today, and also an order, I think today, that they will get a little bit more into details. That's kind of the event. As always, please ask questions down in the right corner. If people feel like doing it in Danish, do that. I will translate the questions, do it runningly through the presentation. If it doesn't fit in, I will make sure that we get all the questions answered in the end. Nicolaj, will you take it from here? Thanks, Michael. Yes, for those of you who haven't seen me before, my name is Nicolaj. I'm one of the co-founders. I'm also the interim CEO. Come back to that. I have Casper with me, our CFO. I'll do the introduction, just on the events from a more strategic perspective, and then Casper will take the Q1 figures afterwards. Again, I know many of you have seen before, so I'll do it in basically 20 seconds. What do we do? We do Software as a Service, not to consumers, but to businesses. Why do some of you, at least in the Nordic countries, know about us? That is most likely because you've seen annual reports being signed by your auditor, because auditors is one of our key segments. A bragging figure will be that 66% of all annual reports in Denmark were signed with Penneo last year. Now our goal is to do that across Europe. We are headquartered in Copenhagen. I will normally brag about all these nationalities because it is actually part of our go-to-market strategy to roll out across Europe from Copenhagen, and we were listed last year. I basically only have one slide to show you, because I will talk about what happened during Q1 and a little bit what happened afterwards. I think one of the most important things is that we, as Michael said, we adjusted our guidance upwards because we could see that we had stronger performance. We increased our guidance for both the H1 of the year and the total year compared to what we had done previously. Again, I will not go into detail with the figures because that is Casper's part. I will just say we are on good track. We always talk about people, and people is everyone at every level. Of course, we also need managers and directors, and that's why I think we did some good hirings during this quarter. I'm still interim. We hired Christian Stendevad as CEO. He will start no later than October 1st. We're very happy about the signing simply because he had the right background and personality. One of the key things he has done is that he had been in charge of co-heading Omada, which is a very successful Danish B2B software. We also strengthen our board with two key figures. Christian Sagild, former CEO in the insurance industry and recently a very senior board member in some of the largest Danish companies, have resigned the position as Chairman. We also hired Rikke Stampe Skov, former partner at PwC, and now CEO of Impero, which is another SaaS company, as board member. Again, we're going from being a founder-led, investor-led board to independent board. What we did last week, I think we announced the first customer in German. As some of you might know from the Agile material, one of the goals is to roll out Penneo across Europe. With the German customer, and disclaimer is, it's a small customer that we will co-develop the German market with, but we are now in six markets. Finally, I would just say one thing that is so new, it's only two hours ago, that we signed a big KYC deal with KPMG in Norway. For those of you who don't remember, but we bought a company with a software called CLA Reply in Q4 last year. One of the goals was to both sell the product to existing customers in Denmark, especially the auditor segment, but also to roll it out to the markets where we present. That's why we're so happy to announce a deal with a lighthouse customer like KPMG in Norway for that specific product. In other words, I think we have progressed very well on both the core subscription revenue, which is our North Star metric, our leadership team, and also international enrollment of both the core software and now also the KYC. With these words, I will give it to Casper. Are you taking it from here, Casper? Yeah. Thank you, Nicolaj. Michael, you want to change the slide? No, I can do that. Perfect. Yeah, first of all, please ask questions. I love if it's more a dialogue than just one-way communication. If you have any questions, just write them down and Michael will let us know about them. First of all, this is how it goes the last 12 months within Penneo in terms of ARR. When you see this slide, there's two halves. The first half is how we develop our current subscription base ARR, customer base. The second half is how much are we gaining the ARR from new clients. What we see here is that we, the last 12 months, have seen a very low churn. It's approximately 3%. It's the same level as we normally see. We are happy that we are maintaining our low churn, and we are aware of having this low churn. The second half of this existing customers is to uplift the current portfolio. This is also very important numbers for us, since this means that we have a product that our customers engage more with over the time. Before getting new customers in the last 12 months, we are increasing our ARR from DKK 27 million to DKK 32 million. On top of that, we put approximately DKK 9 million. We end up Q1 with DKK 41 million approximately. As Nicolaj has said before, some couple of weeks ago, we announced that we are raising the improved guidance for the entire year and also the H1 of this year. Can I change? No, I can just do it, Casper. Sorry. I did it. Oh, yeah, here it is. This slide shows how we develop our portfolio year-on-year. It's not the matter of just getting new customers in, it's also a matter of can we develop the current customers year-over-year. This slide shows all the cohorts. Cohorts here mean that the dark blue color, for instance, is the customers coming in in 2014 and how the ARR from that bundle of customers is developing. This chart shows that we year-on-year develop all our cohorts positively, and that's one of the reason why we raised the money on the IPO last summer. It was just to scale up and get new customers in, because we can see it's a good idea to do it faster than we actually can achieve. When we see the next slide, we can see that we're using more money scaling Penneo than we actually are gaining at the moment. Of course, when you're working with ARR, at some point in time, you'll see that your new cost base is covered by the new ARR when you're going into the new level of cost. That's the main reason why we raised the money to grow faster and do the pre-investment in new headcounts and so on in Penneo. Yeah, we are satisfied seeing that we are continuous with growing every cohorts. No, I can. Just say click, Casper, and I'll click. That's your normal job, Nicolaj, to click, click. This is our P&L. Normally, I'll not dive that much into it, but please ask some question if you have some. I think one of the main things for me to answer was a question I saw some weeks ago from one person on LinkedIn saying that when they raise the ARR and they're not raising the guidance for the EBITDA, I assume that this means that they earn less money on the current customer base. I want to address this question here, because Penneo raised money on the IPO to speed up our growth and hire people before we actually can achieve. When we see we have a new possibility to scale our business, we prefer to scale our business instead of making it profitable for now. As an investor, you have to understand that our journey right now is not to gain EBITDA, positive EBITDA, it is to scale the business and scale our ARR. That's the kind of journey we are on right now. It also means that, for instance, other external expenses is growing a lot this year, and this is because we are investing heavily into the organization and also the staff cost and so on. Maybe Nicolaj will elaborate a bit on my comments on the three last slides, or maybe we have some questions. Maybe I should just round it up and say, Why are you not making money? We can say, well, we are not making bottom-line profit because we're investing in growth. The reason why we are so confident in that is because we can see the cohorts all the way from 2014 that we're able to grow. In other words, we are putting a lot of sales and marketing into getting customers a year, and these will only pay for part of the cost this year, but we know that they would 99% or 97% of them will be customers next year and again and again and again. In other words, we invest in growth, and if we didn't have that ambition, I don't think we'll raise money, right? Because our goal is to say, at some point in time, we're not able to see investment opportunities, and of course then, we would turn it more into a profitable company. For now, our goal is to keep this growth, and we'll become profitable later on. If I can ask a question here, and we will take to Germany. The question is, you're upgrading your inbound lead machine, that means heavy investments. If you look down behind the figures, are you still seeing the right number? What a customer costs coming in, maybe cleared off the investment side? The lifetime value, which is extremely high. You really have had a churn of 2% for a long time. You're still seeing that number stripped out from the investment side that you are for future easier customer access. I know you don't want to give the number, but you're still seeing that parameter being very, very strong, I guess, because you are taking the extra revenue you're getting this year and actually also putting it in. I guess you must be seeing still some very strong numbers there. Yeah, you can see, I think there's a lot of good traction. Again, not to take too much into today's announcement on KPMG in Norway, but that was a deal that when we acquired the software six, seven months ago, was something we could dream about, right? Not only to sign a weekend customer with the KYC, but sign a really big, one of the top four, I guess, at least top 10. Sorry, I can't remember the KPMG in Norway. One of the big accounting companies in Norway using our software. When we can see such kind of progress and we can see, as this slide shows, that we are able to keep low churn, we're able to uplift existing customer, meaning they're paying us more and more because they're using us more and more, and we can get new customers on board. It's really hard to say let's slow down. That's how we see it. Yeah. Yes. There was actually a question regarding the first German client. You mentioned it yourself. It's a test client. How long are you in this testing, if I should kind of understand this? Are you testing the last features and are you close of rolling it out, or is it a client that you will develop forward sometimes so you have a fairly strong solution when you roll it out? Where are we in the picture here? Are you close to be able to roll it out to other German customers? No, we're not there yet. What we announced was that this is a small customer that primarily use it for the Danish clients. We have not implemented the electronic ID in Germany yet. Many things go into new because again, we're not doing a fitness app, whatever. We're basically doing compliance for auditors, right, that have to comply with all kind of legislation and all that. It's something that takes time. Basically, what we also announced is that we develop our solution for the German market with this first customer. There might be more, but we don't see this as a real opening of the German market yet, and that's also why we have downplayed the importance in the company announcement. Is it a part of your strategy when you go into a country to choose a smaller client to develop it with, so there is less friction there by a large organization, or what are your thinking here? I would think a larger lighthouse customer developing it with could do it easier. What are your thinking? What we have done from the beginning, that goes back from the early days in Norway and Sweden. Basically, that was our sales team coming up there and with fire in the eyes, talk with these lighthouse customers and said, "What do you need?" That's basically how we're getting customers. We're doing the same both in Germany and other new markets. We're working with these lighthouse customers, but again, sometimes because their solution demand are often bigger, as you know. Yeah. Typically what happens is while we develop the solution together with big clients, we also get some of the smaller ones on board, right. Here we had a client that basically has a lot of Danish customers also. That was obvious choice to work with those. Perfect. There's a question here on the competitive side. I've seen new entrants going in on your side. It is clear that you are one of the longer companies with a history of a very low churn, meaning stickiness. Do you see any competitors threatening that low churn? Well, not yet, right? We can see these, of course, we're following churn rates quite closely, not only when we announce this. No, of course, they come out all the time. I think that's also the reason why we become niche. We're not a signature platform, right? We're focusing on specific workflows of specific industries. Yes, they're competitors. They've been competitors all the way. Since we started, basically, a few months after we started in Denmark, there has been competitors. When we ended up Norway and Sweden, there are competitors. I think that's name of the game. I think the good thing what we have is, I think we have what economists call network effects, meaning that when we implementing software at a customer, it's always for any kind of software, it's always hard to change, right? In any business. We're having that they're actually sending out our documents to their customers also. When one of our clients wants to switch, it's not only the employees that have to switch, it's also our customers' customers that have to switch. Of course, can churn happen? Can that be increased? Of course, it can. It's not something that we see as, can it go up to 3%, 4%? 4%, 5%? Maybe it can, but we're coming from very low levels. Yeah. There's a question here. Given your burn DKK 40 million in the quarter, if you deduct the net working capital, I don't know whether that's a really correct picture because I get net working capital for you is kind of a financing source. You have burned a little bit more cash than your profit and what you have on your balance side, what you have of cash. The question is regarding you're stepping out of your plans, meaning would you need to raise more money in the future earlier than maybe expected to deliver on the growth plan? I don't know. I said for me, maybe I can start for it. We haven't announced. Could we see ourselves raise money and in the future? Of course, we could. We don't have any immediate plans for that. Maybe Casper, you can answer it more from a financial side. Maybe I can elaborate a bit. When we did the IPO, the budget says that the ARR going this way, we see the costs scaling fast, we'll come in and gain the revenue to cover the costs. If we imagine that we will not do another S-curve for the company, I can surely say that I feel comfortable that we can meet the cost when it comes to it. Signs are clear. We're on the right track here. I don't know whether there is about the net working capital. Is there something special in your numbers on the balance side here this quarter we should be aware of that maybe distorts the picture? We have a lot of debtors invoice just up to the quarter, so we have a very high debtor amount this quarter. Yeah. Yes, I think that's kind of the questions from the audience as far as I can see. I don't know whether you have any closing remarks, Nicolaj or Casper. Thanks for- No, it's nice to see that you guys actually are asking questions. Perfect. One closing thing. If you want to be receiving announcement, don't worry, we'll not spam you, but when we are coming up with announcements, and it's only when something important happens, sign up for investor newsletter at penneo.com/investors. That was the commercial break from my side. Perfect. Let that be the final remark. Thank you for good questions, and thank you for Casper and Nicolaj taking us through the Q1 results.