Hi, and welcome to today's event where we have the pleasure to present Penneo. To help us through today's presentation, we are fully covered by the company, CEO Christian Stendevad, and CFO Casper Christiansen. Today's event will cover the Q3 report, fresh from the press this morning. Some headline keep I got in my eyes. You kept the guidance that you downgraded early on, but still it needs to be a busy Q4. Also what we are seeing from the sector, it seems there's a little bit of postponement from customers in general, but nothing that we haven't seen from a lot of guys in your sector. As always, you are able to ask questions in the box down below. Do it in Danish, do it in English, Swedish, German. I will try and translate to the best of my ability. We will keep this presentation in English, and we will have the answer, question and answer at the end of the presentation. For now, Christian, I think I will hand the call over to you. Thank you very much. Welcome to all participants on this call. We will now present the Q3. Before we will just have a very short introduction to Penneo, if there are any newcomers to this call. I will comment on some of the key features and then hand over to some of the detailed numbers to Casper, and then the outlook at the end. The very short introduction to Penneo. We are a business-to-business Software-as-a-Service company with more than 2,500 customers, and we have a focus on digital signing and all the document workflows around that, and then know your customer, that is part of the Anti-Money Laundering regulation. We have customers in Denmark, Sweden and Norway, Finland, Belgium and Germany. We have our aim of becoming the preferred platform for auditors and accounting across Europe. That's really our go-to-market strategies, grow through auditors and accounting. Looking into the Q3 result. As if you have seen already our report, you will see that we have now enhanced the reporting with some more key figures. Here on this presentation, I have selected four to put some focus on that. In the report itself, we have enhanced it with the actual result for Q3, then the year to date for this year, and then year on year. And we also put in Penneo in brief. We have tried in our reporting to put all the key numbers up front. Looking into the key features here, then the ARR amounted to DKK 65 million at the end of Q3 2022, and that's compared to DKK 50.2 million at the end of 2001 Q3. That represent a 29 year-on-year growth. If you take behind these numbers, if you then look at the Q3 number itself, then the Q3 2022 was DKK 1.5 compared to DKK 2.6 in 2021. If we take the year-on-year net retention, then that amounted to 112%, and then constitute of a churn rate of 3%. Still at the low end, we have this norm that if we are below 5%, we believe we are doing fine. A year-on-year uplift amount to 15%. The ARR from foreign markets is DKK 18.7 at the end of Q3, compared to DKK 13.2 at the end of Q3 last year. 42% year-on-year growth. The EBITDA amount to -DKK 14.3, compared to -DKK 13.5 last year. At a similar level. If I then comment on it. Q3 as a quarter in general, and that was also last year, but also this year, is our low quarter in general. Q3 this year is then low also compared to earlier quarter by itself. Even though you say the churn and other things have been fine, then from the level it is at the low end. We came out earlier this year in mid-October and came out with an announcement of updated guidance where we adjusted the guidance. We also gave some reasoning there, I'm just going to repeat because it's basically the foundation of the result is that what we see in general from the market is a more cautious buying behavior. What we have seen here in Q3 is that when customers come to us as new customers, looking at the number, we got 78 new customers in Q3 compared to 87 in Q3 last year. It's a little bit lower, but approximately on the same level. The average deal size is lower. When we get new customer in, then the commitment that they upfront to the volume is simply lower. There's... They're more cautious about the buying behavior. That is compared to when we had in last year, 2021, that was around COVID, in the first half and then later on also into Q3, we saw that effect that we now when we compare things, they started off a year ago with a much higher commitment than we see now. Last year there was a positively impacted, and then what we see now is negatively impacted by this in general the market with the small cautiousness. That also has an influence on our uplift in general. We still grow, as we can see here on the number, in, so that is an uplift, and, so meaning existing customers are engaging more with our product and buy more from us, but with a less growth than than we have seen earlier. It's a little bit to the same. Then a third part that we have been focusing on all year or this year is a high focus on getting new KYC customers on board. It's by upselling KYC to our existing base, and also chasing new customers on it. For that we are getting new customers on board also on KYC, but we were chasing a large customer deals, and we took that on purpose, that choice, even though that is a more binary, these large deals. We can see that this has also been postponed to next year. That was the reason why we here in October made an adjustment to the guidance that we'll come back to. We are lower in the lower end. Here we can see also based on the numbers how that is reflected in the number. That is, you can say from a numbering point of view, how we look at it. If we then take also but what from a business point of view and some business highlights. What are we doing in this? In general, we have a continued growth in foreign market, and that is our clear focus. We grow in Denmark, but what we would like to do is grow even more outside of Denmark in the foreign markets. We saw the number just before with 42% year-on-year growth. If you look into the report, we can see that the growth outside of Denmark is higher than in Denmark. That is a clear business focus that we had. We announced in H1 report that we here in the spring had hired a local sales manager in Belgium, and now we have created a team around with additional resources in Belgium to pursue that market. We can see that has a good effect on the both the number of leads opportunity and also intake. That is what we have seen there. In beginning of the year, we raised the growth capital. What we are continuing also here in Q3 is investment in this, based on this growth capital in our growth strategy. One of the milestones that we reach is our 100 employees milestone that we reach here in also in Q3. That continues also in Q4. We continue that by hiring more people, both in sales and also in product. We also had continued with our sales transformation that we named in H2. In the report you will see that we explain a little bit more what we mean by sales transformation. That is that we are both specializing our sales force in both KYC and Sign. We knew from the start, before we have raised growth capital, it was the same people that had to do the same. Now we can also, with our effort and growth, we can now specialize in both KYC and Sign. That's one of the things we have done. What we have also done is, we have hired, a team that are proactively reaching out, so an outbound team or sales development team that we have added on top of our inbound. When we looked back in, when we originally raised money in 2020, there was a high focus on creating an inbound lead, machine, with marketing, and that also continue now. Now we on top of that also have an outbound, sales development team that we put even more focus on. By that specialized and that we have, put in place, and that is part of that plan that we do. That is also how we also going forward, even though we see now that the market is more cautious, yet then it is really to reach out and find those that are willing to invest right now. In general, we believe that the market is there, and that's what we experience also by dialogues all known with our customers. They might postpone, but there's still a need both for our Sign and our KYC. That is not only in our domestic market only, but also outside. What we are also some of the highlights that have happened here since our last report is that we have extended our agreement with Bankdata, and below Bankdata is basically our eight large eight banks, which of some of them are Jyske Bank and Sydbank. A year ago, we closed a deal with them, and then they started deploying it. Now they have extended that agreement to their private customers. That's a substantial increase of that agreement. That's one of the example also of uplift. We start maybe small in our agreement, and then we have uplift from there. We are very happy that with that extension that we have done together with them. It also came out in an announcement. What we also did in our H1, we open up and we told about our European Commission Trust List project on how to become on that list that only very few vendors are, and in order to be able to deliver Qualified Electronic Signatures. There are three level of signatures: simple, Advanced, and then the Qualified, which is the highest level of quality of electronic signature, which is something that help us with our European expansion. What we have now done, now we've done all the auditing, and now we have handed into the authorities, and then they get it approved. That's the last step of it that we expect to get approved so we become on it here before end of the year. According to also the plan that we released earlier, and that help us in our European expansion going forward, especially when we go south of the border. Here in the Nordics, a tradition of the Advanced signature is enough, but going south then, in other countries then the Qualified electronic signature give us an advantage. These are the things that we have worked hard on and also how with that we invest into also the future growth. With this, I would hand over now to you. Thank you, Christian. C asper to go into some of the numbers. Now we can start on the interesting part of the slide deck. Yes. Cool. The first chart I have chosen to present for you guys is our cohort analysis. This chart shows that we divide all our customers up in the year they become customers, and then we show the annual value for that customers. Here you have an entire history of our portfolio, has it developed over the year. For instance, the dark blue column in the bottom here is the customers coming in in 14, and here you can see it has developed over time, and that's more or less the story about Penneo that every cohort is growing year-over-year, meaning that when some customer is churning, customers are growing more than the customer that churned. The next slide is our development the past 12 months. As Christian says, we have had a year-over-year growth on 29%. Here in the charts we have divided into how the current customers before Q3 up until Q3 last year, how that has developed during this period, and how much is coming from new base. What you can see here is that we are maintaining our low churn. It's on 3%. I also think that Christian told, we are proud as long as it's below 5%. Uplift is 15%, while we have a net average retention rate on 112%. On top of that, we added 18% by getting new customers in. Here you also have the split between Sign, which is our original product, and then the newer custom product, which is our newest product. This chart shows how we growth in terms of domestic market, Denmark or foreign new market, every country outside of Denmark. When I dive into the numbers behind this charts, I can see that more than 40% of our new base in Q3 is coming from countries outside of Denmark. Of course, foreign new markets is pretty important for us since we since 20 set out an internationalization of our company, it's also important to see that we are having good traction on that part. This is our SaaS numbers. The last 12 months, we have gotten approximately 400 new customers in, average ARR on DKK 22,000, and it costs DKK 32,000 to get those customers in average. Just to highlight that in this slide, you have the 16.5% growth on average the first five years, what we can see from our historical performance cohorts. You can do your own math about how much is the lifetime value for one customers, so you can compare that amount to the DKK 32k. As you can see and what Christian also told, in Q3, the average ARR per new customers is for DKK 15,000, and it's a pretty low number as far as, but even the fact that this is a low numbers, since we have a net retention rate on 112%, we managed to increase our average revenue per account since we have a huge portfolio. The 78 new customers on top of this, even it's below our average, it's not enough to take down the average. Here's our P&L. What you can see here is that our revenue increased by 30%, our contribution margin is the same as last year, last year was more or less the same as the year before. Normally if for some quarters it's, you know, going one percentage point up or down, what we normally say is that as long as it's 80%, we are satisfied with this numbers. What is more interesting here is like the staff cost, how much have we increased our staff cost during this year since last year, it's 33%. This slide shows how much one new Danish ARR crown we get in, how much does that crown cost? I believe it makes sense to always look on a 12-month period since we have seasonality, so it's not fair to judge from one quarter to another. You will be, like, very happy or very disappointed. Always look on a 12-month period. What you can see if we take from Q4 last year up until now, Q3, is that for every time we spent DKK 2.1 in negative cash flow, we gain DKK 1. The relationship there is like it's pretty high when you look into the 2020 and the 2021 average here, it's like 1.8 and 1.3, and now we're on 2.1. The reason is that we are a half year into our new investment period. We raised capital in this spring, and now we have had a half year where we start deploying, hiring a lot of new people. As you also said, we reached this 100 milestone. What we actually do is to hire more people than we could afford if we hadn't raised capital. Why? Now the journey has set out, why it shows that we have deployed a lot of cost, and now we're waiting to see the benefit of that cost. When we coming, the longer we are in this investment period, you will see that we start having a better relationship between cash, negative cash flow and the growth. Of course, if you don't raise further money, you cannot invest more than what's coming in. At the end it will be, at least down to one, this relationship. Going to the outlook for 2022, so meaning the rest of the year. Originally, we had a year-on-year growth rate set out for 77%-82%, and here in October, we made an adjustment to 70%-75% corresponding to a year-on-year growth of 27%-36%. That is kept also in our Q3 report. We expect to be within this range based on all the knowledge we have now, including also the knowledge of Bankdata that has now have been coming in. That is from the guidance point of view and from the EBITDA. Originally in our report before we raised capital, we had a guidance of -5% to -10%. We increased the investment of -15 to -20, and we have kept that, both in the adjustment and also in the after the ARR adjustment and also in the Q3 report. We expect to be within this range also. That ends basically our presentation. We are open for all the questions that might. Questions. Yeah. All. Yeah. Let's start with one of the questions there. Do we see any special reason that the ARR size of new customers is smaller than usual? I think you touched a little bit upon it that they don't sign up for such a big package. Any other reasons here, you know, it might connect to some other questions about price competition and such stuff? Yeah. It is basically. Of course there is competition, but the main thing that we see is that the commitment, so the volume you commit to is smaller. Basically, you know, we estimate the volume that is needed together with the customer and then, based on that, they then make a commitment on what they believe, and then they pay up front for 12 months. The more you commit to, the more volume discount you basically get. And a better deal. Here when it's a little bit cautious, then you say, "Okay, we don't know yet as a customer," or we might know it, but let's just start smaller. It might be a little bit more expensive per unit, but in general that is. That's what we see, and that's a clear trend that we see among our customers. Of course, then when they then come to the volume that they do expect later on, then you can always add more, and then they, of course, then it'll become as upsell later on. That's the cautiousness that we see from customers. They are a little bit more cautious when they make these commitments because of this uncertainty that are in the market, even though they're not directly, can we say, influenced by it from their profit and loss. To that question, I might ask, should we then expect, you know, to see if this continues, then you might also be able to raise the 16.5% that you can grow your current customer base on? You know, I guess if you get a customer in of a certain size, you kind of know that if they are not smaller customers, if it's not price competition, then at some point in time, and if they implement it fully, then they must have grown to a normalized size. Meaning that smaller customers now will mean maybe a higher growth rate for this current customer base. Yeah. That, you're right. Not that we can say from every one of them, but in general, when you commit lower at the beginning, yeah, then if you then deploy it as we have seen before and then the engagement will increase, and then you buy it later on. A little bit like when you do subscription on a phone subscription of data, for example, how much data do you need to have? Yeah. Then you look at it and see do we really need it for now, and then you increase it later on. It's the same with us. Yeah. Perfect. To that question, I'm thinking, you know, there's a question here about price competition. I guess. Smaller customers might be a little bit more prone to, you know, to look at cost, very, very fast. You have competition out there. Are you seeing anything by the smaller customers, I guess, where you are really integrated in their system? It's probably not the case, but in other cases, are you seeing anything out there in the market? Not more than usual. Yeah, no. The short answer is there is competition, that's not the pressure. It's more the commitment level. The situation you mentioned on the staff turnover, I guess we closed the quarter a couple months ago. Has that improved, you know, in the 1.5 months? Are you seeing that the things you are doing to try and make that better is actually working? Yes, we can see completely true. It also said that in our report that that's what we have seen, and also it will also went into Q3. There, now of course one thing is we have got a team on board, fully committed. The second part is that has also helped us that we are one of the companies that do grow and invest in more people, and then the other company that do not. We can now see also how we can attract more people, talented people. We are now in that advantage situation compared to at least others. The 100 you mentioned and looking at it is now developing according to. Yeah The plans that you put out for growth. It's already now a higher number than the 100. Yeah. Yeah. Then there's a question here. You stated that investment will be carried out for precaution. Is also that the case for 2023? What are the deciding factors? When I read your report, you are mentioning that you are precautionist, but you're still going ahead with the plans for 2023. A little bit elaboration around how to interpret us those statements. Yes. Exactly. Often we are asked, "Okay, but under these circumstances, shouldn't we, shouldn't you try to be profitable as soon as possible?" We believe that it is a good business case in investing in growth, based on the numbers that we have also seen, you say how much the CAC is, the customer acquisition cost up against the, say, our average value and how we can have a uplift afterwards. We believe it's a good idea, what we still do is we constantly balance the growth wave that we are seeing up against the free cash flow that we are using. That metric that Casper went through is a very important one. Then we go month after month. We could also just say, yeah, if we, for example, we believe, you know, the market will be completely normal in three months time. We just deploy all the money immediately. That will not be cautious under these circumstances. We check it, but as we go, we, and we look at these numbers, we take all the precautions of evaluating if we are on track. We will not run out of cash. I'm sure you will not answer this, is there a cut off there? You know, I know you really track this and a very good number, this cash flow to the ARR, and I do understand that it's not the 1.3 we should compare with, it's the 1.8 where you were also in the growth phase, you know, and it's not that much higher. Is there a cut off there, you know, where you're seeing maybe we should look a little bit more on profitability versus growth? Yeah. Of course, if that is too high, yeah, then we believe, then we should slow down a little bit the growth. We will still grow, but it's really that rate. That's what we are evaluating. We are also showing to some of it as part of the plan. That's the reason why Casper walked through. When we are in the end of an investment cycle, yeah, then we go towards profitability. Because we believe there's a good business case investing in growth, yeah, then we do it because we have cash to do it. You touched upon it. You said that you would actually be satisfied with 5%, but you have had the churn level at a very low rate. A low churn level, is that kept despite the market uncertainty, any insights into 2023? Are you seeing anything? Do you have a feeling that this could be pressured by a worse market? Yeah. No. That's a forward-looking statement on that sense on we see. It's a figure that we follow and say also very closely if suddenly customers start leaving us. We have a churn, as we can see on these 3%, 4%, 3%, 2%, and that's the level we say below 5%. What is very important for us, if suddenly, for example, then customers cannot, you say they cannot afford us anymore because of whatever reason, then start churning, that would be something that is, you say, will be critical for us. What we focus on is to, you say, also after sales support and customer success in keeping them getting the value, and there is a high level of stickiness in this. If they get the value out of it, they stay board. That's what we have seen so far. It is a metric that is important for us to follow. So far we have had on that level and there's no indication that suddenly it should be completely different. A question regarding that, is that why you have focused so much on upselling the KYC because your stickiness will actually increase by it being a more integrated system? That is exactly a good comment. Yes, we believe that, you know, the more you buy from us and also have it integrated and you're part of it, and with the trust that we provide to the customer, that will also increase the stickiness by itself. A question I also see from the sector is actually that some are switching again a little bit more to not only subscription, but also a part usage based. You are not switching that. That's not the reason why you're going down to 14,000. As you mentioned, maybe the customers are a little bit more hesitant to switch to a model and going lower. Are there any thinking about switching a little bit more to a base subscription and a usage model? No. We are continuing with the model that we have. You're continuing with the model you have. Yeah. Perfect. All new customers coming in right now is subscription based. Is that correctly understood? All. The revenue still covers a little bit of the old agreements from earlier on. Correct. That's exactly right. Perfect. I think that was all the questions. Thank you to you, Casper and Christian, for taking us through. Thank you for the audience for listening in and asking questions. May everybody have a nice day. Thank you very much. Thank you.