Checkin.com Group (STO:CHECK) reports 20% EBITDA margin, net profit and continued growth during the fourth quarter of 2022.

The report in brief:

FY 2022 (vs FY 2021):

• Net revenue increased to KSEK 70,187 (38,860) which  corresponds  to  a  growth  of  81  (74)%,  of  which 55 (70)% was organic.
• Gross  profit  for  the  period  amounted  to  KSEK  59,952 (32,481) with a margin of 85 (84)%.
• EBITDA for the period amounted to KSEK 5,509 (-2,661) with a margin of 8 (-7)%.
• Cash flow from operating activities amounted to KSEK 2,898 (810).
• Net Revenue Retention LTM amounted to 116 (137)%.
• Cash  and  cash  equivalents  amounted  to  KSEK  47,425 (91,590).

Q4 2022 (vs Q4 2021):

• Net  revenue  increased  to  KSEK  19,750  (13,358)  which corresponds to a growth of 48 (84)%, of which 31 (58)% was organic.
• Gross  profit  for  the  period  amounted  to  KSEK  17,196 (11,279) with a margin of 87 (84)%.
• EBITDA  for  the  period  amounted  to  KSEK  3,927  (-774) with a margin of 20 (-6)%.
• Cash flow from operating activities amounted to KSEK 4,301 (-964).
• Net Revenue Retention LTM amounted to 116 (137)%.
• Cash  and  cash  equivalents  amounted  to  KSEK  47,425 (91,590).

CEO Letter from Year-end report

When we now close the books for 2022 we conclude the year with a quarter showing strong momentum and for the first time in the history of the company we show profit on the bottom line. After a challenging third quarter it feels good that we now increase revenue significantly. The growth since last quarter corresponds to a yearly growth rate of about 80% which also is the growth for the full year. 

The combination of a scalable business model, a gross margin of 85% and synergies realised by the acquired technologies we have integrated into the software makes the EBITDA margin continue upwards, landing on 20% for the quarter, up from -6% compared to the same period last year. On the bottom line, profitability also improves significantly and also the cash flow follows suit. The operational cash flow closes at over MSEK 4 for the quarter and our total cash is basically unchanged despite repayments of loans. I have previously stated that we expect profitability to strengthen step by step, an expectation that remains also for 2023. 

As the largest shareholder I am very fond of the measurement net revenue per share. It 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. I am therefore almost most proud of the fact that net revenue per share during the whole year rose by as much as 60%.

We have during the quarter also continued adjusting our commercial organisation and I think we get closer and closer to living up to the high level of ambition we set ourselves. The platform strategy we began during the year, among other things through the deal with Playtech, has during the quarter entered the integration phase and in North America we feel that we have taken important initial steps. Hopefully this will materialize into concrete volumes in the coming quarters.

The loss of revenue we saw from German partners previous quarter drags along in our rolling Net Revenue Retention (NRR LTM) and lowers the base for the growth even if that is in the rear view mirror so to say. Long term a high NRR is important both for the growth and the capital efficiency. That partners that already use us increase their usage is also in general an important confirmation of strength. Here I would specifically like to highlight the existing cooperation with one of Europe’s largest airlines where we at the time of writing have discussions about extended usage of our software. So far no minimum commitments are in place, but we plan to enter an evaluation phase together during the coming months. Short term, this evaluation will require increased investments and somewhat increased costs for us, but with a positive outcome and a full roll-out, in a best case scenario our revenues will increase significantly. 

Strengthened by the experience from the two acquisitions we completed and the synergies we have been able to materialize, we are looking at further opportunities, despite a turbulent market. Here we hope for a more stabilized macro situation, as it has still been almost impossible to complete a deal when valuations and multiples have moved strongly. Additional acquisitions should be able to open up for more synergies, increase our technical lead and thereby create clear shareholder values. Acquisitions are also an important leg in reaching our financial target of 86% growth year on year including acquisitions, and thereby MSEK 500 in net revenue 2025. 

Kristoffer Cassel
CEO and founder, Checkin.com Group

The full Year-end report is now published and available on: https://group.checkin.com/investors/reports/

Webcast (Swedish)

Investors, analysts and journalists are invited to a webcast 2023-02-09 08:30 CET 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/2022-q4/

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, [email protected]

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 07.30 CET on 9 February 2023.

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/