The report in brief:
(Q1 2023 vs Q1 2022):
- Net revenue increased to KSEK 18,839 (15,794) which corresponds to a growth of 19 (107)%, of which 16 (78)% was organic.
- Gross profit for the period amounted to KSEK 15,549 (13,604) with a margin of 83 (86)%.
- EBITDA for the period amounted to KSEK 2,769 (-705) with a margin of 15 (-4)%.
- Cash flow from operating activities amounted to KSEK 2,578 (-835).
- Net Revenue Retention LTM amounted to 108 (140)%.
- Cash and cash equivalents amounted to KSEK 41,719 (61,966).
- Reports breakthrough in the travel vertical after the end of the quarter.
CEO Letter from Quarterly Report
We began the new year with a quarter which in many ways was undecided. Seasonally the beginning of the year has often been a tough period, but there is no point in hiding the fact that the revenue growth during the first quarter was weak. Above all, we saw significantly lower volumes from our customers in iGaming, which pushed down the variable part of our revenues and our NRR figure from the previous quarter. The fixed revenues did admittedly increase, but not enough to compensate for the decreased volumes. At the same time, this was a quarter where we managed to build the foundation for a new step in our growth journey with strong investments in our infrastructure and technology. We have more than six-doubled our maximal technological capacity during the quarter to be able to enter the customer projects we are now about to roll out. The fact that we have already started to reap the benefits of this work at the time of writing still makes me quite expectant for the coming year in spite of a rough start.
I have previously mentioned ongoing discussions with one of
Besides the iGaming vertical, which has started the year weakly, we see that usage from other customer verticals and sales overall has developed positively. Furthermore we are in the integration phase or discussions with several interesting projects of potentially significant size, both in
The combination of a scalable business model, a high gross margin and synergies realized from the acquired technologies we integrated into the software meant that the EBITDA margin for the quarter increased by 19 percentage points compared to last year, in spite of our heavy investments. Profitability was also improved significantly on the bottom line and the operating cash flow closed at over MSEK 2 for the quarter. I have previously said that we expect profitability to strengthen step by step, an expectation that remains for the rest of 2023. The capacity investments we have made during Q1 are starting to be completed and I believe that we can expect also a strengthened operating result going forward.
The target of MSEK 500 in net revenue 2025 remains and we must build long term to get there. We also aim to achieve this goal while maintaining strong growth in revenue per share. This measurement not only showcases how fast, but also how capital efficient the company grows. It is only if we succeed in using our capital in a wise way, create strong margins and carry out smart acquisitions that we create lasting values for us owners and not just growth for growth's sake. Here, I hope that with the above mentioned revenue-generating projects supporting us, we can further increase the value creation and also add additional smart acquisitions during 2023. Executed right we will be able to continue creating values for us owners also in the long run.
CEO and founder,
The full quarterly report is now published and available on: https://group.checkin.com/investors/reports/
Webcast (Swedish)
Investors, analysts and journalists are invited to a webcast 2023-05-11
https://www.finwire.tv/webcast/checkin-com/q1-2023/
An English version of the webcast will be published on the company's website later today.
For further information, please contact:
Jonas Köpniwsky, Head of
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