Welcome to this session. My name is Christian Stendevad, and I'm the CEO of Penneo. Together with me, I have Casper Christiansen, who is the CFO. This Q&A session is in relation to the announcement that we sent out earlier today regarding adjusted ARR guidance for 2022. I will put some words to our announcement first, and then you are all more than welcome to ask any questions to us either by raising your hand or simply just speak up if you are on the phone, and then we will answer all of them. We are right now in the beginning of October, and we are preparing our quarterly report. As part of that, we have, you know, they've been crunching all the numbers from our ARR sales and profit and loss, and then our forecast for the rest of the year. As part of that, we do not have any specific number available yet, and therefore, we are not releasing specific numbers. As part of that process of evaluating the numbers for Q3 and forecasting for Q4, we have looked into our forecast and have come out with the conclusion that we will adjust the guidance for 2022 from DKK 77-DKK 82, that was the former range, to now DKK 70-DKK 75. That corresponds to an adjusted ARR guidance of a year-on-year growth of now, with the new one, 27%-36%. We have also kept our EBITDA guidance on a negative DKK 15-DKK 20, so that remains unchanged. In our latest announcement regarding our guidance that came out with our H1 report in August, we with our guidance, we set up some assumptions together with the guidance, a continued low churn on our customer, a continued level of engagement with the platform, a continued ability to obtain new customers, and then a continued ability to roll out our Penneo KYC to large audit and accounting customers. Those were the three assumptions. After that, we came out with that guidance, and we came with that announcement. Now based on the Q3 and what we look into Q4, we can see that there are changes to these assumptions. We simply see that the whole market is much more cautious in taking decision on investing in our product. Basically, there are three things that we can see right now. The first thing is when we look at our new customers that are coming in, then in general, they are smaller commitments to our platform. Our ARR is based on that you buy our product, and then you make a commitment on how much you would like with our signed product as an example, how much you would like to sign with it, and then the price is based on that commitment. What we see in general is that the commitment for new customers is lower, meaning that the average deal size is simply lower. Our customers are more cautious in taking on new investments when they buy new. In reality, how it should be seen is you take a commitment, for example, in buying 10,000 signatures or case files, or you base it on sending out a user link for X amount of customers. What you can do is you can start up committing a lower level, and then later you can see the situation, and then you can start using it more. You can always increase the commitment to later. We simply see, let's say, a lower commitment. That's one thing. The other thing is that we also see in existing customers that they are, let me say, the increasing use of it, they are still increasing in general in our cohorts, but that is on a lower level. We saw that already in H1, and we also mentioned that in our H1 report, that continues the increase in the use of it, and we can see that continues. For both of them, we foresee that what we have seen in Q3, we now put that also in the assumption that that will continue into Q4. Last but not least, we also see a delay in our rollout of our Penneo KYC product to large auditing and accounting. It's not that they are lost, they're simply postponing and also their decisions. They might not either very small with pilot or simply postpone the decisions. When we take these things into account, what we have seen now here in Q3 and also what we predict in Q4, the level is simply lower. For that reason, we have adjusted our guidance down to the range of DKK 70 million-DKK 75 million. If we then look at the guidance for EBITDA, then there we have given a range between DKK 15 million and DKK 20 million, and we believe with the expectation that we have and the investment level that we are having right now, and we will continue into the rest of the year, that it will be still in the same range of -DKK 15 million--DKK 20 million. That part is unchanged, too. This is what we have seen when we are looking into it. We of course love to give some numbers out, but that will only be ready when we have finalized our report, and that we are going to release here in November. That's where all the numbers are there. It's based on this. What we have taken into account when we now look into our adjusted guidance for it is everything we experience now in our dialogue with our customers. That is just to put some voice over to the adjusted ARR guidance announcement that we did earlier today. With this, I would basically open up for any questions that you might have to this. I can see the first one that is Mikkel from ABG. You're welcome to ask your question. Thank you, Casper and Christian. What I'm wondering about is what effect will this have on the trade-off between growth and profitability going forward? Yeah, that is a good question. What we do, ongoing also in this case, now that we expect to be lower, that the future investment level that we have, we always adjust the investment level to our, you know, the cash position. We look continuously the two years ahead. If this will be on this level and have an influence on next year, then we will need to lower our investment in the planned investment that we have, so we don't run out of cash. We are in this very fortunate situation that we did raise growth capital. So many of these investments that we have planned, that will give, you can say, the foundation for further growth, we will continue to invest in these areas. Of course, we will always look cautiously to our financial situation. Thank you. I have two more questions, if that's okay. With respect to the KYC deals, you seem quite confident that these are merely postponements and not something that's canceled. What sort of steps are you taking to ensure that you will land them next year instead? Yes, that is. You know what I'm saying? We believe, you know, and we build our confidence that they are delayed and postponed based on our dialogue with them. There are different ways of evaluating that. It could be in some cases where we start up a smaller pilot, so the process basically started. And therefore, but there's not a commitment in the platform, meaning in that you buy and commit to a large amount of, you know, KYC cases, the number of customers that are covered with it. That part is postponed, but you start up, you know, maybe implementing it or start using in small size. That's how we evaluate it. Then based on our dialogue with them. Yeah. With respect to the churn rate, has there been any change to that or is it merely explained by lower uplift, and new ARR growth? Yes. It's the churn rate that is, you know, it is an assumption we have put in, but it's not mentioned at some of the changes. The churn rate is within, you know, the expectations that we have. It goes a little bit up, and it goes a little bit down, but it is within the range that we expect. Around 5%, which you have said is like you would be happy with that number? Correct. Okay. Yeah. That differs sometimes, so two, sometimes three, sometimes four. As long as it's below five, yeah, then we are happy. Okay. Perfect. I mean, I'm not sure if anyone else has some questions, but otherwise I could continue. You can continue. We will take every question that is there. Okay. Perfect. Yeah. We will all have the opportunity. That is concerning the employee growth. You cut ARR growth, but you retain Adjusted EBITDA guidance. Does it mean that you have hired less people than you initially expected to? Yes, there's some of the investment is that we said also earlier that some of these investments that we did, some of it have been, let me say, slower. Let's say we had the expectation that we would ramp up faster, but it will be a little bit lower now that we also lower the ARR. That's basically it. Just to elaborate a bit. Of course, we are conscious about if we are not succeeding ramping up fully in sales and the development, we'll also postpone some of the more internal investments that's also affect the financial. Yeah. Last question is, with respect to the sign solution, which you mentioned in the Q2 2022 report that was actually also affected by COVID-19 effects. Well, so I mean, how much of this downgrade does that explain that you actually don't have a COVID-19 lockdown right now or impact from that? We mentioned it that we saw that during COVID-19 last year that there was a high uptake and a higher, let me say, high commitment, more than usual. In the springtime in H1, we saw it, let me say, decrease. When we are now evaluating, we all say, "Okay, is this now the new level?" We can see that further decrease. There's simply this caution about, let me say, the use of it. That's what we see compared to earlier. Okay. Perfect. That was my question. Thank you very much. Thank you. Anybody else? Yes, Nils. Yeah. Hi there. Just a question concerning your target for reaching break-even on cash and profitability. Do you see that changing? I know it's some years out, but do you see that changing? The planning, I guess, for 2023 in hindsight of what you have seen during Q3, how does that impact your planning for cost and your reaching your break-even target going forward? It is part of planning. Now, we have not done the budgeting yet for next year and the year after. In our monthly planning, when we look ahead in our investments, we always take that into account, let me say, what we foresee based on, let me say, the current level of performance. The profitability will be still at the same, let me say, at the same time, then or, let me say, yeah, that we anticipated also earlier. You don't foresee you have to make extra cost measures or delay growth to reach those targets? That's not what you are in your planning right now? No. Of course, if we need to balance the investments up against the results. Depending on, you know, the future, which we have not let me say forecasted yet as a part of our guidance yet, but that's what we're evaluating. If in general the level is lower, yeah, then the investment level will also be lower. Because as we are building, let me say, on top of former performance, we will also have more money to invest. It can have an impact on the let me say future growth rate. Because we have this, we will never run out of cash. Okay. You're assuming that Q4 will be like Q3, that trends will continue. I mean, in looking outside the window and then the current macroeconomic situation, seems like things are in the rest of the world deteriorating. Are you not afraid you're too optimistic that Q4 will be at the same level as Q3, and you're only at the beginning of this more hesitant behavior from customers? Yeah. That's what we are taking into consideration now. The reason why we go out and adjust is we can see that behavior, and that's what we now have taken forward. We believe now at this, let me say, that behavior will continue. Okay Reason for the immediate adjustment is to, let me say, simply be more precautious based on what we see outside. You have included in your expectations that it will get worse. It's not in this that we will see the same behavior, but you will see a continued deterioration as we go forward. That is in your numbers right now. Yes, it is. Let me say, based on all our dialogues with the customers that we experience now, we are hearing also in September and October, that's what we base it on. Okay. Thanks. Yes. Anyone else that would like to ask a question? Yes, Nils. Well, I can continue. Yeah. Yeah, that's okay. In general, we have no fantastic experience with your business model through recessions because you're a young company, so we cannot really model you compared to the financial crisis and earlier recession. So, what's your thinking in terms of if you look at the two main products you have, how cyclical they are and how they will behave through an economic downturn? I mean, you would sort of imagine, I guess that the sign business. It's quite sticky in the number of annual reports and the number of documents that has to be signed, et cetera. It's not cyclical as such, but could you sort of expand on the two business areas and what's your sort of overall thinking in terms of cyclicality in those? Thanks. Yes. If we take it as signed first, that is based on digitalization, so efficiency, as part of that. There is a saving in time, and there is also an expectation from end customers. It's not only the customer they are not only our customer that give us saving by being more efficient is also towards their customer that they would like to have it. We will expect that there will continuously be a need for our solution. Maybe it's postponed right now in some of the decision or the commitment is lower, but that digitalization agenda will continue. For the KYC, that's based on regulation, and you need to fulfill, how you say, the legislation and regulation around anti-money laundering. For many customers, they would need a solution like ours or the things like that kind of solution in order to fulfill efficiently. Today, many of them are doing it manually, and it's simply too cumbersome, and there are too many times that they cannot fulfill it all consistently by securing that they have done a proper customer due diligence on all of their customers. We believe in that one because it's driven by regulation. You might postpone right now a decision, but at a certain point you need to take a decision because there are audits from the authorities that are happening, and then they get a remark. Basically, we believe that in both areas that despite the, there will be a recession or and therefore customers will, how you say, will invest less. We believe that they will invest in solutions, like ours at a certain point. There is only a postponement. Okay. Thank you. Yes. Anybody else? No. Otherwise, I will thank you all for participating in it. Of course, if you have any other comments or questions that were raised, then, yeah, feel free to reach out to us, and then we will answer them. Thank you very much for participating. Thank you.