Hi, everyone. My name is Mikkel Korsgaard Rasmussen, and I'm working as an equity analyst here at DBG, covering Danish IT and tech companies. Today, I have the pleasure of welcoming Penneo, represented by the CEO, Christian Stendevad. So, Christian, I think you can go ahead with your presentation, if you're ready. Yes. Thank you very much, and thank you for this opportunity to present Penneo. So we are a Software as a Service, growth case, and I'm happy to give you an introduction, both to our offerings but also to the market and the business model and some key SaaS metrics, and also the future growth potential in Europe. But, let's start with some history, so if you take the next slide. So in 2014, Penneo was founded by a group of entrepreneurs who saw the opportunity in the new electronic ID that had been launched a few years earlier here in Denmark. And the solution, the Penneo solutions, was developed in close collaboration with several of the major auditor firms to automate and optimize their manual workflows towards their client. The motto back then was, "Kill the pen with a digital alternative." Penneo has since then expanded with a solution for KYC, that is also known as Know Your Customer, that helps companies comply with the Anti-Money Laundering regulation. Today, we are 120 employees and over 2,700 customers in Denmark, Norway, Sweden, and Belgium. As a fun fact, 81% of all annual reports in Denmark in 2022 were signed with Penneo, so quite a large penetration. Then the picture that we started off with was from when we moved to Main Market, Nasdaq Copenhagen, that we did in 2022. If we take the next slide, then we can see some of the key customer pains that we address with our solution. Boiled down to its essence, we streamline workflows, and then we enhance efficiency, cut cost, and we help our customer, such as auditing accounting customer, achieve legal compliance and improve the experience they are able to offer to their clients. Traditionally, many of these workflows are manual and inconsistent, and they are often leading to time-consuming and unsustainable practices, with a lot of errors and unnecessary expenses. Implementing our digital signing, but also automation of processes like the Know Your Customer or the Anti-Money Laundering risk assessments that are mandatory to do, yeah, that can result in substantial productivity gains, and this is exactly what we help our customer achieve. If you take the next slide, then some of the growth driver that we're looking into. In a broader perspective, Penneo is well-positioned to support the whole digital transformation that is picking up speed right now across Europe. In a large part of Europe, they are not as advanced in their digitalization as we are here in the Nordics, and this is especially true within our focus industries, such as auditing and accounting. They have traditionally been very conservative and slow to digitalize, and in general, we believe that they can learn a lot from the experience that we have here from the Nordics. Moreover, the KYC legislation is tightened significantly in these years, and companies are exposed to more control. Having control over the KYC process has simply become license to operate. For example, if an auditor has not conducted a comprehensive onboarding of their customers with all the Know Your Customer checks and risk assessments, they are simply not allowed to commence their work. This graph shows some of this growth that we can see over the coming years. So if you take the next slide, that's a little bit about our overall go-to-market approach. So when we go into a new market, and that's based on the experience that we've had, first from Denmark, and then later also when we entered Norway and Sweden, and also Belgium, our overall go-to-market approach is we always start with the auditing accounting and get a good penetration into that segment and automate their processes. And then later on, then we go to what we call our tier two customers. They are other industries that are regulated by the Anti-Money Laundering regulation. That can be lawyers, financial institutions, and others. And then what we have also experienced over time is, when, for example, auditors and accountants are sending out their annual report for signatures, then, who is it that is signing it? That's a CEO and board members in the different companies. And there we have seen a network effect of those industries and customers for those industries. They are then coming to us and ask, and say, "Okay, that solution that you're providing, we can also take similar advantage and automate our processes." So we have seen from inbound, a lot of inbound leads coming in translate into business. So that's our overall go-to-market approach that we are using. If you take the next slide, then a little bit about our growth journey. So we were founded in 2014, and this is an overview of the growth journey that we have been since our founding. We started off with some seed capital, and then for the first five years, we were bootstrapped, meaning we were profitable every year. And those, during those five years, that's where we created the solution together with our key customers, and then we expanded initially to Norway and Sweden... And there we could see the metrics that how we have performed. And then we said, "Okay, we can grow our company further by investing in growth." So we sought some growth capital, and then we went IPO in 2020 and raised DKK 50 million. After two years, we could see that we were still performing, and we could see a lot of good results and a good SaaS metrics of further growth, that I will come back to, and then we raised additional capital in 2022, when we went on the Main Market in Nasdaq Copenhagen. Continuing to 2023, and I'll come back to some of those numbers, how we are looking at it is that capital is invested in growth in our product development for further product, and also in sales and marketing. At the same time, we never run out of cash. So we are investing because it gives some good metrics that I'll come back to, but as you can see here from the cash curve, we never run out of cash. So we have the ability to become cash positive and be profitable, meaning that our ARR and our revenue is above our cost. So we can basically get profitable and create cash after that moment. We have that ability based on our current investment plan. And what are those SaaS metrics? Let's go into the next slide. So this is one of the core slides that we have showing our business. This shows our customer cohorts, and cohorts is a group of customers that we have acquired in one specific financial years from the very beginning, and how each of these cohorts have evolved over time and gradually contributed with more and more ARR in all the subsequent years. And what we can see is that customers who come on board on average purchase more each year. We have the very few actually that are leaving us, and that happens for every cohort, year after year. And as a result, we have a growing revenue stemming from both new customers entering and existing, existing customers that are buying more. And also, what is important to note in this regard is that we have demonstrated this ability since our founding. Also, the attractive things about this type of business model is that at the start of the year, we have already secured a significant portion of the revenue we achieved the previous year. If we then go into the next diagram, that shows our annual recurring revenue and ARR development over the last 12 months. This is a result of our equal focus on growth, both from existing customers, but as well also on new customers, and our focus on growing both our Penneo Sign solution and our KYC solution. It shows some of our key metrics that we are delivering. So if you observe here from the left to right, you can see that, you can say, how we were here, that's from our latest Q3 report. You can say a year back, we were at DKK 65 million, and then you can see that we have a decrease of 4% in our ARR due to customer churn. And that is consistent with the 4%. We have been on 2%, 3%, 4% for the last many years. And we have also achieved a solid uplift of 18% from sales to existing customer. These two numbers together result in a Net Retention Rate of 114. Meanwhile, we also got ARR from new customers and also made significant contribution, leading to a 13% increase in ARR. In total, over the last 12 months, this has led to a year-to-year growth of 27% in our annual recurring revenue, and year-to-date, we have reached an ARR of 82.5 million DKK, which correspond to approximately 130 million SEK. This split between uplift to existing customer, low churn, and then also acquiring new customers, we have performed consistently over the last years. If we take the next slide. That slide showing why are we investing? Why we raised capital, and why are we investing in the customer, and why does that make sense? We believe it's very attractive for us to invest in growth. Acquiring a new customer, of course, comes with some costs, but we bill upfront for a year. So when we send the second invoice after a year, we have covered the cost acquiring a new customer, and this is what we refer to as the customer acquisition cost, or in short, CAC or CAC. And what we see is that over five years, we have generated seven times the CAC. In other words, if we have the funds, investing in growth is actually a very profitable business, because after all, a DKK 1 million investment in year one yields DKK 7 million over five years. Two years ago, we didn't spend so much time explaining this business model, but today, however, during our investors call, we often face this question: "Why are you not profitable?" But the answer is that we could achieve profitable bi-, we're gonna achieve a profitability tomorrow if we wanted to, but it makes more sense for us to invest in growth, both in sales and, and in product development, when we show these kind of metrics. Let's go into the strategy by taking the next slide. An important part of our strategy is European expansion, and this is why, the reason why I've chosen to show this slide.... This slide shows, you can say, the part of our ARR that comes from our domestic market, which is Denmark, and foreign market, which is outside of Denmark, and that is right now Norway, with around 50%, Sweden with approximately 25%, and Belgium approximately 25%. There's a few other markets, too, but these are the Main Market s. 63% of all our new ARR originate from foreign market at the end of Q3 2023, and our foreign market grew by 28% year-on-year. That's part of our strategy that also going forward, that we will tap into the great potential in Europe. We will focus on expanding further. If you take the next slide, then I'll show a little bit about, you can say, how that looks like. Belgium is a very good example where we have a lot of we see a lot of traction right now, with some good result. And so this show the revenue, since the very first customer and until the end of Q3 this year. At the beginning, when we enter a country like Belgium, yeah, when we start up getting the first pilot customers on board, where we co-create the specific that are the specific for the Belgium market. You can say, every market have some specific things, then we co-create that together with the customers. And then what we saw after of year, then we saw the picking up, getting more and more customer on board, and then we were completely ready with our integrations, key integration to their target systems in the auditing and accounting segment. And then we start picking up, and getting more and more on board. And then we established a local team, with a sales manager and then a team around it. And then it had grown, quarter by quarter, quite substantially. So if we compare Q3, end of Q3 this year, we grew 333% compared to a year ago, and we got a lot of new customers on board in Belgium. But that is based on the initial launch, integration, be ready, and then when it's ready, then to push, fully, forward. And that also ties into, similar, the way we also going to expand further with our plans. So right now there's a lot of momentum in Belgium, and we put even more resources into it to secure, ensure that we continue this momentum, but we also have plan of further expansion. If you take the next slide, then basically right now we are looking into Germany as the next possible market opportunity, and we have... This is chart showing. It's the similar ARR model. Basically what we like to do is to copy all the experiences that we have had, both from the Nordic country, where we have been now for many years, but also what we have done in Belgium, and then do it. What we would like to achieve is to be, and start, and be established in the market when it starts to pick up. So a country like Germany is not as digitalized as we've seen in the Nordic country, so it is to be ready when they are ready and then start pick up. We believe they are ready, and soon start to pick up, so that's the reason why we have chosen right now to dive into, to Germany as a market. We have had our preliminary investigation, and we are part of the workshop with our pilot, customers. And then we also start adapting our solution to the local market and be ready. And then the plan is to, get up, pick up the first pilot customers and then, learn from that, and then make a similar growth path. And that's the way we do it now with Germany, and it's also the way we investigate further ahead, simply to tap into what we see as a great potential that we have in Europe right now. So that's basically my final slide. We see Penneo on a very exciting journey, showing some strong SaaS metrics, and that's what we also, looking ahead, what we expect to continue to see. So handing over to you, Mikkel, if you have some questions for us? Yeah, definitely I have. I think we could start off the Q&A session where we already left, Germany, namely. I remember from following you throughout the year, that you've actually been saying that we expect to enter Germany throughout or during the course of 2023. But then it feels like you have changed your communication a bit here lately. Is that correctly understood? I mean, are you cutting back on costs, due to some factors that... I mean, maybe you could talk about those factors, or how should we read into this? Yes. So, so what we have said from the very beginning, if you look up, is that what we will do is we expect to enter Germany. So we have not finally decided, because that was exactly based on this investigation and then this initial, in dialogue, both with customers but also authorities, to be ready at the same, at the time when they are ready as a market. Many have wondered, okay, Germany, that's a big, big market with a lot of opportunities, but they are not as advanced in the digitization as the other market. But we believe they will be, so we have doing it cautiously, just as we did also when we entered Belgium. So originally, when we started off the year, we said, "We will enter Belgium... We will enter, Germany. That's our expectation, but don't estimate any revenue from Germany." And that's also where we are. We have done a lot of investigations. We have had a lot of these target talks. We are preparing our product for it. And now that will continue also into 2024. We have not come up with any guidance and expectations for 2024 yet, but we are there where we would like to be. At the same time, when we also see a lot of good momentum in some of the other markets, like Belgium, we also put full force on that. So when we distribute our resources, we also put it where we have most success and the highest growth. ... Yeah. No, that's very interesting, because coming back to one of your slides, where, you know, it, it's very clear that it makes sense to invest heavily into the customers now to gain the, you know, get the best long-term benefit out of them. But, or at your Q3 earnings call, you indicated we should expect fewer hirings going forward. Is that mainly due to a matter of preserving the cash position or to slow it, or is it... I mean, aren't you suffering in the long term here due to, say, cash constraints or? So what we leave, what we do with our two things we do, we invest in new customers, and then we never run out of cash at the same time. So from an investment period point of view, originally, and that's what we also could see on one of the slides at the beginning, the growth journey, and when we raise capital, as like we did in 2022, then that's where we start up the ramp up. So there we hired a lot, and we can see we went from, I think 87 to now we are 120. So it's almost a 50%, on top that we have added of resources, and we did that when we raised, and then do it as fast. Then what we are looking at now, there will still be some additional hirings and investments, but what we have achieved this year is that we have increased our, for example, our product organization. So we are ready also to scale even more. So that has been a high priority. We have also scaled up our sales and marketing, but that was what we used to have, used to, you can say, the growth capital that we raised for. So it has been, from the very beginning, it has been that initially hire more people, and then so we have that upfront, and then show the metrics on how we can show, and then either become profitable or we can, of course, also have other options later on. But we are always that, then we have in our investment period, that we have at the end of it, that our ARR is above our cost base. Sure. And then turning to a complete different subject, could you shed some light on the competition and also briefly touch upon how you're gonna make sure that you're gonna win against competitors in the long term? Yes. So, from a competition point of view, what we have been successful with so far, and what we also expect to be successful with going forward, is our focus on certain industries, such as the auditing, accounting. By really knowing their processes in and out and how we automate them, have close relationship with them, integrate to their core system, that's where we really do a differentiation compared to other users have abroad. That has been, from the very beginning, our go-to-market strategy, and that's also how we differentiate ourself, by being this specialized solution for this kind, of our core segments. And that also that we could... So when we look at competition, yeah, then we can narrow it down from, say, if you, for example, take the Sign, yeah, then, in a general term, that's along, then have it on that level, where we have the highest level of security, then in a specific segment, specified for their processes, adding on our another product like the KYC. So really get, you know, say, even an enhanced solution, that they can take advantage of. That's how we are getting, you know, say, I have got competitive and also we stay competitive by further investment in that. Yeah. And then turning back to another short-term question. Obviously, you have seen weak demand in the past year or so, maybe a bit more. Could you shed some light on how much visibility you have going into next year without, you know, obviously, talking about guidance or anything? Do you see any signs of improvement or...? So, what we have seen so far, what we expected from the beginning of the year, was that we had the cautious buying behavior that we experienced last, we say, second half last year. It started off in Q3, and then we continued that. So we set that up as an expectation it would continue. That was our expectation, even though we hoped that that would change. Now it had turned out quarter by quarter that that had continued, and also here the Q3, that had continued. So we have still achieved 27% year-on-year growth, so we have grown both on both product and both upsell and in new biz, despite the fact... Because one of the things that we have done is then we have increased the number of new customers. So it might be that it's cautious buying behavior, so some of them have, you can say, smaller initial commitment, but then we have got more of them, so that balances out, partly at least, you can say- Yeah ... that they are not as willing to buy. Yes, that's- Looking ahead, it's hard to see how much will that continue, this cautious buying? Is that just the new normal? Yeah, right now we don't see any signs, and that's what we also reported here end of Q3. We don't see any signs that would change. We can hope for it, but right now, we believe this is the new normal until something else turned up. At the same time, when we also are looking at our expansion plan, there are differences, for example, between the Nordic market and a market like Belgium or Germany and others, where they are not as far with the digitalization. There, there's a lot of potential for the individual customers that they can gain, and, you know, the bigger the potential, the better the savings. The better, you can say. They will still do it, despite the fact of cautious buying behavior. Absolutely. So that's what we expect, and you will see that in our numbers. Yeah. I think we have just time for one final quick question before we wrap up. So if you are to give me three key risks to the long-term case in Penneo, what would they be? Very brief. The three key- 2 or 3, whatever ... risk? Yeah. Yeah, right now we are in our expansion plan, we are depending on the continued digitalization. We really believe that will continue, but of course, we are dependent on the market is as mature as we would like to be. And that's part of the government that they do their regulation in the different European countries and adoption of electronic ID and adoption of, you can say, that, for example, on our KYC, the authorities should go out and make controls, because that is a big help. Yeah. That controls of the companies that they actually do. You can say, that we have that risk of, if they don't do it. Then, of course, the general, as you see, the market, as even there was a big difference a year ago and or two years ago compared to now. Of course, there are some general market conditions that can be tough, and that is a risk by itself. And also, of course, the whole financial market and other things. If the interest rates go even further up, of course, that can also have an impact. We hope it goes down at a certain point. But these are some of the key risks that we see, but we are very cautious in the way we are managing our business, like, so we are in control as much as possible of it. Yeah, perfect. Engaging the actions on it. Yeah? Yeah. I think that's all we have time for, unfortunately. So, thank you very much for your time, Christian, and, yeah, for to all of you, have a great rest of your day. Thank you very much for the opportunity.