Since 2018 Risk Intelligence A/S has used an ARR definition, which is based on the last 4 quarters recurring revenue (backward looking). During discussions with investors, it has become apparent that this conservative model was not suitable for comparison with other companies using a SaaS model as they were practically all using a forward-looking model and furthermore it did not correctly reflect the actual growth. Therefore, it has been decided to change the way of estimating ARR.

The new ARR model will include 1. All known recurring revenue during the next 12 months based on existing license agreements 2. All known license agreement-based price increases. The new model will not include estimates for upsell (additional license value added).

The change will be effective as of 31 December 2023 and the Q4 end-of-year report will include the new ARR as well as comparison figures for the old ARR model for 2024.

Hans Tino Hansen, CEO of Risk Intelligence says:

"We have over the recent year understood that our conservative model of ARR did not serve us well as it did provide a less preferable basis for comparison with other companies using a SaaS model. Subsequently, we have decided to revise the definition and develop what we believe provides the best and most accurate estimate of ARR, which is based on known recurring revenue with known price increases from the existing client base.

With the new definition the company will provide the market with a much better picture of ARR, which can be compared with other companies in the market."

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