CHECKIN.COM GROUP AB The report in brief:
Q1 2024 (vs Q1 2023):
- Net revenue increased to KSEK 21,285 (18,839) which corresponds to a growth of 13 (19)%, of which 13 (16)% was organic.
- Gross profit for the period amounted to KSEK 16,445 (15,549) with a margin of 77 (83)%.
- EBITDA for the period amounted to KSEK 4,803 (2,769) with a margin of 23 (15)%.
- Cash flow from operating activities amounted to KSEK 4,343 (2,578).
- Net Revenue Retention LTM amounted to 120 (108)%.
- Cash and cash equivalents amounted to KSEK 36,711 (41,719).
CEO Letter from Quarterly Report
We started the new year with a revenue that, although it has grown organically since last year, is still significantly lower than the previous quarter, foremost driven by lower volumes in the important travel segment. In the previous quarterly report, we did expect lower usage during major parts of the first quarter, but it is only to acknowledge that volumes have been low during all three of the first months of the year.
At the same time as the year has begun weak in terms of volumes, the underlying operations have continued to take important steps, and I maintain that in many ways, we are on a new level as a company. The new commercial cooperations we have in the pipeline are on a different scale than previously and several of our most important cooperations have strengthened significantly. I am convinced that the focus on the absolute largest customers in general and within the travel segment in particular is the right way long-term even though it means volatility between individual quarters before we reach a critical mass of customers of similar size. At the same time as the strategy we have chosen right now has increased our dependency on individual customers and their usage, we feel confident with this phase and the leverage it provides when volumes eventually go up.
The financial target to maximize the sum of revenue growth per share and EBITDA margin remains, as does our ambition to exceed 80% on a yearly basis. Here it is worth noting that we, in spite of the head wind in terms of volumes during Q1, continued to strengthen our profitability and build net cash. EBITDA strengthens to MSEK 4.8 with a margin of 23%. Together with the revenue growth per share the first quarter sums up to 36%, but the underlying efficiency and the solid cost base should result in a nice profitability leverage when volumes increase.
The weaker volumes we have seen during Q1 from the travel segment can be attributed to both a generally weaker season and to the fact that our solution for preventing third-party bookings has worked better than expected, thereby reducing this type of bookings. Even though this has meant a negative effect on the volumes in the quarter, I am sure that the fact that the software performs well and creates significant long-term value for our customers is something positive. The operational focus is now to continue widening the usage to all types of bookings, a project that has rather gained momentum with the confidence generated by the successes in third-party bookings. The collaboration has also attracted attention from other industry players, which has led to us currently being in commercial discussions with a handful of international airlines. As we add more customers of similar size, growth should increase and the volatility between quarters should decrease.
When it comes to Enterprise customers we have high hopes not only in the travel segment but have during the quarter advanced our positions in several other segments, and I believe we have a good chance to add several transformative customers during the year. We have also continued developing the cooperation with the large Swedish fintech and initiated a joint long-term project that should significantly broaden their use of our software. I have become even more convinced that if handled correctly, this customer should not only become a substantial revenue driver, but also increase our chances of acquiring more customers among the largest financial players, including both so called fintechs and more traditional banks.
In summary, the organization has taken several strategically important steps during Q1 and continued developing
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 2024-05-16
https://www.finwire.tv/webcast/checkin-com/q1-2024/
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
This information is information that
Certified Adviser
About
The company has its headquarters in
For more information about the company visit: https://group.checkin.com/investors/
https://news.cision.com/checkin-com-group/r/checkin-com-group-quarterly-report-q1-2024,c3982441
https://mb.cision.com/Main/20448/3982441/2800779.pdf
(c) 2024 Cision. All rights reserved., source
