Klappir hf.: Financial statement release for 2024 Management Report

• Subscription Revenue grew by 18.2% YoY
• Klappir’s Ecosystem is expanding rapidly, now comprising over 2,000 businesses
• The Global Partner Network has grown to include 30 Partners in 30 Countries

The consolidated financial statement is unaudited and subject to change until the publication of the company's annual accounts on April 9th, 2025.

Main impact highlights for 2024:

• Klappir's ecosystem is expanding rapidly, now comprising over 2,000 companies, with growing opportunities in global markets. The company's global operations now extend to more than 30 countries.
• The global partner network is growing, now encompassing 30 partners who are steadily increasing Klappir's marketing presence and reach across various markets.
• Subscription revenue grew 18.2% year-over-year, reflecting strong performance across various markets.
• Subscription revenue was 64% of the total revenue compared to 54% in 2022.
• The operating profit was 97.0 million in 2024.
• Net profit was 81.4 million in 2024. If we include the periodical allocation of revenue the net profit is 31.8 millions.

Main financial highlights for 2024, in Icelandic krona:

• Total revenue reached 602.9 million, reflecting an 5.1% increase from the previous year. Of this, subscription revenue accounted for 384.3 million, representing a 18.2% growth year-over-year.
• EBITDA was 153.9 million (25.5%) compared to 97.2 million (16,9%) in 2023 reflecting solid and efficient organisation.
• Operating profit (EBIT) was 97.0 million, compared with 46.0 million in 2023.
• Net profit was 81.4 million compared to 8.8 million in 2023. If we include the periodical allocation of revenue the net profit is 31.8 millions.
• Total assets were 913.4 million, compared with 804.9 million in 2023.
• Total liabilities were 504.5 million compared with 427.1 million in 2023.
• Equity ratio was 44.8%, compared with 46.9% in 2023.
• Cash and cash equivalents at the end of 2024 was 265 million.

Jon Agust Thorsteinsson, Klappir CEO:
“Despite uncertainty in the market for sustainability accounting and reporting, Klappir is coming out with a good year. The subscription revenue had an impressive 18.2% growth, and the EBITDA ratio is 25.5% of the total revenue. This positive performance comes despite a challenging economic climate, demonstrating the resilience and strength of Klappir's business model. Even with this challenging environment, we notice increasing interest in our sustainability software and a willingness from Nordic countries to start their sustainability journey. Companies are starting to understand the importance of implementing end-to-end sustainability solutions that create the technical environment for companies to fulfill compliance requirements and, at the same time, lead them further into their sustainability journey.

Strong Subscription Growth and Increased Customer Subscription Value: The 2024 results show strong growth in subscription revenue, increasing 18.2% YoY. Additionally, average revenue per customer subscription is rising. This indicates increased user adoption within organizations and a growing recognition of sustainability's importance.

Healthy Operating Results Fuel R&D and Marketing Expansion: A healthy 25.5% EBITDA margin strengthens the company's ability to invest in product innovation and market expansion. As the market evolves, it is increasingly important for companies to choose the right partner for the sustainability journey – one with a market-leading product and the capacity to adapt it to international requirements.

Partnership Strategy Boosts Sales, Shows Promising Scalability: A strong focus on becoming a partner-first organization allows us to act locally and expand globally with our sustainability product. This go-to-market strategy not only helps us recruit new partners and expand our footprint in the Global market, but it also enables us to scale our business and improve efficiency.

Klappir's Sustainability Initiatives Make Impact in Brazil and Denmark: As our global leadership and recognition in the sustainability sector grow, we are invited to participate in impactful projects that positively affect communities. Our projects in Brazil and Denmark exemplify our commitment to educating the market and implementing technical frameworks that help thousands of companies and individuals recognize sustainability as a key driver in our society.

New Subscription Plans Support Customer Sustainability Journeys: In 2024, Klappir invested significant effort to align its product features with companies' sustainability journeys. These new offerings have been well-received by our customers, who can now better identify their position on the sustainability roadmap and set their ambitions for the coming years.

AI Simplifies Data Collection and Management: Klappir foresees AI becoming a key driver in collecting and processing sustainability data, simplifying processes and increasing data quality. Klappir is investing heavily in this technology to maximize benefits for its customers and stay ahead of the curve in product innovation.

Predefined Customer Success Program Enhances Service Quality: As our customer base and business partnerships grow, we've invested in predefined blueprints and best practices programs to enhance customer onboarding and elevate our customer success service levels. Additionally, we've established a customer advisory board to gather valuable feedback, strengthening our product roadmap.

Redesigned UI and New Reporting Module Enhance User Experience: Klappir has consistently invested a significant portion of its revenue into research and development to maintain product leadership in the sustainability sector and strengthen its position as a pure-play, product-led company. This strategic focus has resulted in continuous product improvement, including this year's UI redesign, a new reporting module, and numerous other released features”