Checkin.Com Group AB (publ)

Hej och välkomna till Checkin.coms andra kvartalsrapport. Med oss för att presentera har vi vd Christian Karlsson och CFO Martin Boimell. Har ni frågor till företaget skickar ni in dessa i formuläret till höger. Med det sagt så ger jag ordet till dig Christian.

God förmiddag. Som sagt jag heter Christian Karlsson och är vd för Checkin.com Group. Together with our CFO, Martin Bäumel, I will take you through our report for Q2 2025. I hope you will be able to watch the report this morning. There is a lot more time for the webcast this afternoon. You are very welcome to send in questions. The idea is that I will talk about the general development of the company, followed by Martin following up on the figures and that we, after a short summary, open up for questions. We are starting to see that the focus on costs has started to play back on the EBITDA margin. At the same time, we continue the hunt for long-term growth. We ended the quarter with a turnover of 18.1 million kronor, which is a decline of 4% from our first quarter this year. Year-on-year, year-to-year, we saw a decline of minus 11%. If you adjust to these earlier revenues that we mentioned earlier from cooperation with RingCentral, which at the same time raised personnel costs at a similar level, the growth was up 6% with last year. The cost savings we started at the beginning of the year are now starting to appear in the figures with an EBITDA margin of 17% in the quarter. We have... We will continue to focus on costs in the future to make the organization even more efficient. We expect an increased EBITDA margin at the end of the year. The newly regulated IGME market in Brazil had a very strong start in Q1, especially in the first month. But we now saw in Q2 that the volumes came down a bit and stabilized. We continue to see a very rapid technical development through the travel vertical, and as we have previously communicated, we believe that we have very big opportunities in the industry. During the summer, we had a very successful launch with the Filipino casino and hotel group Solaire Resort. with a so-called omni-channel launch, where our softwares help to connect their physical gaming environment with the digital one. During quarter two, we have continued to make the organization more efficient in order to reach a positive cash flow again. At the same time as we do these cost savings, we work on increasing our revenues. Both with increasing cooperation with existing customers, as well as with the creation of a new customer base. We also have a strong belief that many of the big companies we have previously signed have a great potential to bring out their full potential with us. So far, we feel that the potential is not reached, but that we have very large companies, large enterprise companies that we are actually waiting for to be able to get a full effect. As I mentioned at the beginning, we had a strong start on the newly regulated Brazilian iGaming market during the first quarter. We saw that the volumes stabilized during quarter two. We have seen the same in other newly launched markets, such as the Netherlands and Germany earlier. It was common with tops during a launch, while the volumes dropped slightly after a few months. There is also an increased tax pressure on operators and suppliers, which is a bit of a pressure on the market. We have also seen a decline in operators' investments, especially in marketing, which also reduces traffic to us. Our new part of the software, which was launched at the beginning of the year, called Face Check-in, is still of great interest to us. mainly connected to the travel industry, where you can verify a user via the face of a microsecond, such as logging in to different types of services. What the industry is known for, however, is that it is still driven by long lead times and fairly large transactions. But we see that, especially during quarter two, the intensity in the industry has increased, intresset för nya lösningar genom framförallt biometri och ansiktsigenkänning. Vi tror fortsatt med den positioneringen vi har som bolag med exempelvis Ryanair och WestJet att vi är väldigt väl positionerade att ha ytterligare marknadsandelar inom just industrin och vi är i detta nu involverade i ett flertal olika upphandlingar. Under sommaren så gjorde vi en så kallad omnichannel-lansering med den filippinska casino-hotellgruppen Solar Resort. Någon som inte har koll på det så är det filippinernas största casino- och hotellgrupp. Framförallt casino. Vi ser att fler och fler bolag har stort intresse att knyta ihop sina fysiska och digitala miljöer. Just denna lansering är ett utmärkt exempel på det. Vi har också just nu minst ytterligare en stor aktör som vi planerar att gå live under hösten. Vårt finansiella mål, vår finansiella ambition är för er som har följt bolaget en tid en variant av det klassiska SaaS-måttet Rule of 40 som mäter lönsam tillväxt. The goal is to maximize growth per share in combination with EBITDA margin with an ambition level of over 80% over time. It is sad to note that we will not achieve this ambition by 2025. Despite that, the ambition is still there. With that, I would like to hand over to our CFO, Martin, to go through the financial part.

Thank you, Christian. Som sagt, som vanligt så är rapporten späckad med alla siffror som finns och jag tänkte här gå igenom huvudpunkterna. Nettoomsättningen i kvartalet gick ner med 11% jämfört med samma kvartal förra året och landade på 18,1 miljoner. Här tappade vi en del på grund av valutakursförändringar så vid operändrade växelkurser så var tappet istället minus 5% jämfört med förra året. And as Christian already mentioned, compared to QS 2025, we went down 4%. The gross margin was 70% in the quarter. This is in line with the level we have been at in the past 12 months, but a little lower than we have been in previous years. I will come back to that later. EBITDA went up to 3.1 million, with a margin of 17%. Kassaflödet från löpande verksamheten landade på drygt 1,5 miljoner kronor plus. Vi avslutade kvartalet med en kassa på 20 miljoner och en soliditet på 87 procent. Om man tittar lite närmare på nettomsättningen så ser man här att vi tappade lite grann från det förra året. Omsättningen landade på 18,1 miljoner för kvartalet. vilket då är ner 11% jämfört med Q2 förra året och Christian var redan inne på det där tappet är framförallt drivet av kontrakten med RingCentral som vi diskuterade tidigare och som avslutades förra sommaren och den kunde då stå för drygt 3 miljoner intäkter ungefär lika mycket kostnader så om man justerar för det så är vi upp 6% jämfört med samma period förra året Om vi går in till bruttoresultat, bruttomarginal, så minskade bruttovinsten till 12,7 i kvartalet. Framförallt drivet av de fallande intäkterna. Och marginalen på 70% är i linje med vad vi legat senast 12 månadersperioden. Men som man ser till höger, grafen till höger, är lägre än vad vi legat på tidigare år. Och här tror vi att marginalen kommer att gå upp igen när vi vänder till tillväxt igen. It is mainly due to the fact that there are scale divisions in many of our larger direct costs that affect the brutto results and the brutto margin. Servers, which is one of our largest costs, are relatively movable, but there are a lot of fixed components and startup costs. We also pay a lot of fixed license fees that are on a yearly basis, where there is a lot of unused capacity in the current situation. And another example is that we have a manual team that verifies the ID card and identifies end-users where we have coverage all around. And there is also unlimited capacity. So there are a number of costs here where there is higher capacity and storage costs. When the volumes come back, the gross margin will also go up. And then, as I mentioned last quarter, since we have grown a bit in Brazil this year, we also have more exposure to the hiring market in South America. And there we generally see a little lower margins than in the rest of the business. If we move on to sales and marketing costs, we have continued at the same level as before. This quarter, the investments landed at 4.1 million in Q2, which corresponds to 22% of the revenues. In the graph to the right, you can see that so far this year and the first half of the year, we have put about 21% of net revenue on sales and marketing activities. If we move on to EBITDA, we are up a little compared to last year. EBITDA landed at 3.1 million and a margin of 17% in the quarter. Christian mentioned that we have done a number of cost savings initiatives, and a number of other savings are underway right now. We believe that they will be completed by the end of this year. If you look at the graph to the right, you can see that the GDP has also decreased compared to previous years. And that is mainly because we have lost revenue and gross margin, but also due to lower operational costs. And in the same way as with the gross margin, we are well positioned. We have an optimized cost system so that when the turnover comes back, we are very well positioned to be able to significantly increase the EBITDA margin. And finally, we ended the quarter with a cash register of 20 million kronor. And if you adjust for the loans we have, the net cash register was about 14 million kronor in the end of the quarter. And the solidity in the end of the quarter was 87%. And with that, I'll go back to Christian for some concluding comments and questions.