Pressreleaser | 11 May 2023 | Checkin.com Group

Checkin.com Group Quarterly Report Q1 2023

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 Europe’s largest airlines about increased usage of our software. I am happy and proud to share that this customer after the end of the quarter has completed the integration and since April 14th has started using two additional modules of our software. As of writing, this already leads to an increase of the total usage to over 500% of previous levels and thereby driving revenue increases to a corresponding degree. Hopefully the customer will also substantially increase the usage from this level during quarter two. Thanks to the investments we have made in technology during the quarter we are well positioned when the taps are opened up further. Such increased usage will not only strengthen our position in the travel vertical but also have an effect on our total growth as a group.

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 Europe and North America. I am convinced that our long term effort towards enterprise customers in new verticals is right and expect that the set path will have a positive impact in the upcoming quarters even if the lead times sometimes become longer. 

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. 

Kristoffer Cassel
CEO and founder, Checkin.com Group

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 08:30 CEST where the company’s CEO and CFO will present the report, followed by a Q&A session. The presentation is available through this link:
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 Communications Checkin.com Group, press@checkin.com

This information is information that Checkin.com Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 2023-05-11 07:30 CEST.

Certified Adviser
Checkin.com Group’s Certified Adviser is Erik Penser Bank.

About Checkin.com Group

Checkin.com Group creates shareholder value through capital efficient growth achieved by strong organic growth and strategic acquisitions. The Group’s advanced technologies and innovations offers a unique end to end solution that reshapes how end users checkin with products and brands online. The comprehensive framework gathers multiple hyper specialized technologies that covers every aspect of an end user’s checkin experience.

The company has its headquarters in Stockholm, Sweden, but operates and recruits globally to attract world-leading talent across the globe. 

Checkin.com Group’s share is since 2021 listed on Nasdaq First North Growth Market under the trading symbol ”CHECK”. 

For more information about the company visit: https://group.checkin.com/investors/