Checkin.Com Group AB (publ)

Välkomna till dagens sändning med Check-in på Gong Group. Det har med oss idag vd Christian Karlsson och CFO Martin Boymel som kommer att presentera Q3-rapporten för 2025. Vi kommer att börja med en presentation följt av Q&A så om ni önskar att ställa några frågor så gör ni det via formuläret till höger så tar vi upp det under frågestunden. Och med det så lämnar jag ordet till er. Varsågoda!

Thank you. Good morning. My name is Christian Karlsson and I'm the CEO of Checking.com Group. And together with our CFO Martin Boyman, I'm going to take you through our report for quarter three 2025. I hope you'll be able to watch the report in the morning and we'll have some time before the webcast in the morning. I'm going to talk in general about the general development of the company, following up on Martin's figures. Efter en kort summering så öppnar vi upp för frågor. Under kvartal 3 så har vi en kraftigt förbättrad evita marginal samtidigt som vi fortsätter jakten på att få tillbaka tillväxten igen. Vi landar i kvartalet på en omsättning av 17,4 miljoner kronor vilket är en nedgång med 4% från förra kvartalet. The decline is mainly driven by a little less income within the travel segment. The cost focus we have had in the last six months has now begun to replay itself on the figures. We have had our next highest EBITDA margin in the history of the company. We continue at the same time to work to further optimize the organization against profitability. And the majority of the cost savings are expected to give effect during part of quarter four now. As I mentioned earlier, compared to the previous quarter, we had minus 4% and 6% versus last year. And with that, we move on to the next slide. After the end of the quarter, we have signed an agreement with Visma. The agreement means that we will be an integrated part of their platform. And above all, there has been an interest from their customers on their platform to take part in the technology we provide. With that, above all, it opens up for us to reach more verticals and a possibility for us to distribute softwares on a completely different scale compared to before. We expect that the first customers will be launched in a few weeks. After the end of the quarter, a deal was signed with New Zealand's largest casino group, Sky City. Planen är att de också ska gå live under slutet av året. Man kan väl nämna lite finansiellt om den här typen av avtal är att det finns en månadslicensavgift som startar egentligen vid signeringen av avtalet och sedan så finns det en rörlig modell som är egentligen beroende på hur stor del av trafiken de egentligen har på mjukvaran. Därför är det väldigt viktigt för oss att de driftsätts ganska så snabbt We see that the omni-channel part is a big part of the demand in iGaming. It's mainly concerns that go from a physical environment to a digital one. We also believe that the French casino group Casino Barrière is expected to be launched at the end of the year. Generally, we see right now that Vi har bra momentum i just iGaming-vertikalen. Det känns som att vi verkligen har börjat komma tillbaka där igen. Framöver ser jag att det är framförallt den intäktssidan som kommer att växa och som kommer att vara den viktigaste vertikalen för oss de kommande kvartalen. Marknaden för biometri och ansiktsigenkänning väntas växa ungefär 15% globalt årligen de kommande fem åren. Vår bedömning är att det finns runt 4-5 miljoner bolag globalt idag som direkt eller indirekt behöver använda någon form av denna teknik. Above all, what drives development is new regulations globally, increased demands on who is behind the scenes and above all the development of AI fraud or so-called deepfake. Within the industry, there is also a big consolidation, where we see above all many larger multinational companies that buy niched companies within just one area. Vår finansiella målsättning har varit det klassiska SAS-målet Rule of 40 som mäter lönsam tillväxt. Målet har varit att maximera summan av tillväxt per aktie i kombination med ebitda marginal. Vår ambitionsnivå har varit att nå över 80% över tid. Vi har tidigare informerat om att vi inte kommer att nå målen för 2025. Med bakgrund av det, med det PM vi skickade ut igår, så har styrelsen beslutat att slopa det här målet tills vidare. And with that, I would like to turn it over to our CFO, Martin Boimel, to go through the financials.

Thank you, Christian. As usual, there will be a bit of an axiom of the figures. There are a lot more figures in the report itself. But to start with, the net turnover, as Christian mentioned, decreased during the quarter, down 6% compared to the same quarter last year. It landed at 17.4 million SEK. Here we lost a little due to currency exchange changes. If you adjust for that, it looked a little better, down minus 3% compared to last year. And compared to Q2 this year, the turnover went down 4%. The brutto result landed at 12.7 million kronor in the quarter and it was a margin of 73%. EBITDA went up to 6 million, with a margin of 35%, and that is actually the next best quarter marginally in the company's history. The cash flow from the running business increased by almost 300,000, and we ended the quarter with a cash flow of over 14 million kronor, and the solidity was 92%. If you look a little closer at the net turnover, you can see in the graph that we are down a little compared to last year. We lost 6% compared to last year and the net turnover was 17.4 million. This was mainly driven by the poor development of our existing customers. Here we have previously talked about from our earlier customer RingCentral. And that impact does not affect Q3 at all. But if you look at the year-to-date figures, then the entire year-to-date stage is driven by the development of our customer RingCentral, which we talked about earlier. So when you look forward from now, it will not have any impact on the figures or the comparison in the figures. If we move on to the gross profit, it decreased to 12.7 million kronor per quarter and a margin of 73%. The margin is in line with what we've had in the past 12 months, but lower, as you can see in the graph to the right, a little lower than what we've had in recent years, if you look back. Here we have continued to work with cost optimizations, especially in server capacity. But, as we talked about earlier, many of these costs, direct costs that affect the gross margin, are of When we are well prepared for growth, the gross margin will automatically rise, and vice versa. If we lose revenue, the gross margin will go down, and so on. So that's what I can say about that. Moving on to sales and marketing costs. Even here, as we have been talking about, we have put a lot of focus on optimizing the costs. And this also applies to this area. We have optimized processes, looked at all costs, and here we have put a little less money than in the previous quarter. Under Q3 2025, we put 2.9 million on sales and marketing costs. And it corresponds to 17% of the net turnover in the quarter. And if you look at this year, we are at 20% of the net revenues. And when you come down to EBITDA, as we have been talking about, we have We have had a lot of focus on the cost side, and that is of course affected by EBITDA when you sum it all up. That is why EBITDA has risen to 6 million in the quarter, and that corresponds to 35%. As I mentioned earlier, this is our next best quarter marginally in the company's history. And if you look at year-to-date this year, we are at 21% during the first nine months of the year. And finally, we ended the quarter with a budget of over 14 million kronor. And if you adjust for our loans, the net budget was about 9.5 million kronor at the end of the quarter. And the solidity was 92%. And with that, I'll leave it back to Christian for some closing comments and questions.

Tack för det Martin. För att summera kvartal 3, vi hade en minustillväxt på 4% mot föregående kvartal, minus 6% jämfört med fjolår. Vi hade en förstärkt evigt marginal till 35%. Det kostnadsfokus vi har haft börjar nu på allvar synas i siffrorna. De förväntas nå full effekt under delar av kvartal 4. Efter kvartalets slut har vi gjort avtal med Visma och Skycity. Vi har också flera planerade lanseringar under kvartal fyra. Med det lämnar vi över till Q&A.

Thank you so much, Christian and Martin. You've been up for a while now. If you have any questions, please raise your hand. The first question is this. Why is the total number of customers decreasing between the quarter? And why do your customers want to end the collaboration?

Yes, I can answer that. First of all... Sista året framförallt har vi lagt väldigt mycket energi på så kallade plattformssamarbeten eller resellers eller distributionskanaler. And that means that each of those is counted as one customer. So even if they, for example, have 10 customers who use our softwares through these collaborations, it's only counted as one customer. So in general, there are more customers than before who use our softwares, but it's not reported that way. So it can look a little misleading. I can, for example, take this Visma collaboration, that they will have several different companies that will use our softwares. på sin plattform men vi kommer bara rapportera det här som en kund helt enkelt.

Tack för det svaret. Och ni rullade i maj 2024 ut en ny reseprodukt med det europeiska flygbolaget på den irländska marknaden som skulle kunna ta alla typer av bokningar. Har den här produkten rullats ut på fler marknader?

Nej, det har inte gjort. Och just nu så ser vi inte... I understand.

And why is there still so much focus on the travel industry when it continues to be a financial disappointment for you? Yes.

Disappointment, yes. With our expectations and the upsides that have been there, I agree that it can be a disappointment. Then there has been an important vertical for us. It is very complex. Above all, there are not so many companies you can work with. The negotiations and everything are much more complex compared to other industries. We have changed the company a bit, as I mentioned in the presentation as well. I think we will see other verticals grow more, and it's about that we also need Istället för att hoppas att vi behöver lägga krutet där vi ser att vi har momentum så det kommer nog framöver vara lite mindre fokus på just resa vertikal.

Tack. Hur ska den nya styrelsen arbeta för att ni ska kunna komma tillbaka till tillväxt mellan kvartalen?

I can't answer the board, I can only answer what we do internally. But it's mainly that we optimize all parts of our business and we are not satisfied with the development that has been in the last few years. And you learn many parts of that. Above all, we believe that with many of the partnerships we have created and especially with many of these planned launches during quarter four now, that we will have the opportunity to grow between the quarters in the future. So there are great opportunities for it and it's just up to us who work with this on a daily basis that it actually goes away.

Yes.

Vi har haft en diskussion med dem under ganska lång tid, vilket gör att vi har kommit ganska långt innan avtalet blev påskrivet. Vi hoppas att vi ska börja kunna se att det ska driftsättas inom kommande veckorna. Sen kommer inte det att ha någon större effekt, i alla fall på intäkterna i part 4. Det finns väldigt stora möjligheter ihop med de som går upp framöver och framförallt med den distributionen de har att för oss kunna nå väldigt många olika kunder i flertal olika vertikaler. Det kommer förmodligen att vara ett gäng olika affärsområden så vi hoppas att det ska bli ett väldigt lyckat partnerskap tillsammans.

And due to the cost savings that you have made and improved profitability, can you expect further improved profitability in the future, now that all cost savings are completely completed? Do you want to answer that, Martin?

Yes, absolutely. Cost savings are always... Vissa kostnader försvinner för rikt, medan andra försvinner över tid. Framförallt personal, det är väl det som tar längst tid. Även saker som vi redan har genomfört tar tid för att försvinna från resultaträkningen. Där har vi fortfarande en del jobb kvar och en del kostnader som kommer att försvinna framgent. Yes, part of it is to improve profitability, quite simply. Then, of course, what will long-term drive profitability for us is growth. So that's what we have the biggest focus on. But given how the company's development has gone in recent years, the cost of maintenance has been a big and important part during the last half of the year.

Thank you, Martin. And then we keep a little focus on the revenues. How are you going to increase the revenues again, despite the fact that you, as you mentioned, have a focus on costs? And that should also affect what you can invest in sales and also marketing.

Yes, exactly. Above all, we need to be more selective in what we invest in. And when we have done this cost overview, we have actually gone through quite a few areas where we have been able to make savings. Then we need to give ourselves the opportunity to invest in growth. But that, above all, investments will take place in i vertikaler och liknande där vi ser att vi har momentum istället för att hoppas på att någonting ska hugga. Så att vi skapar oss också utrymme med de här kostnadsbesparingarna att investera i tillväxt framöver.

Jag förstår. Och ni bytte ju precis styrelsen. Vad är tanken med det och hur påverkar det bolaget framöver i kombination med att ni då har tagit bort de finansiella målen?

It's the same as the question about the board before. It's up to the board to communicate. As you mentioned, we had a press conference yesterday to remove the financial goals. som vi har just nu, den finansiella ambitionen. Vi gick upp med det i Q2 att vi inte kommer nå det för 2025 och då slutade styrelsen att vi helt enkelt tar bort dem för nu. Sen tror jag att styrelsen kommer komma tillbaks med detaljerad information lite senare vad planen är framöver och med eventuellt nya finansiella mål.

Bruttomarginalen har ju sjunkit de senaste ett, två åren. Den vände du upp igen. Vad beror det här på?

Jag kan ta den. Den vände upp något, men ändå hyfsat i linje med de senaste tolv månadersperioden, även om den kanske var upp 1-2 % jämfört med det senaste kvartalet. As I said in the presentation, it is driven by additional focus on costs. Above all, we have looked at the server side, which is one of our biggest costs, which drives the gross margin. But again, the most important part of the gross margin is that many of these costs are fixed or semi-fixed. When we grow, the gross margin will automatically increase, and if we lose revenue, the gross margin will go down. The focus is on growth, and that will lead to higher gross margin.

Thank you for that answer. Let's take a final question here when we round off. Can you say something more about the EBITDA margin during the quarter and what you think can happen in the long term?

Yes, as I said there too, we have put a lot of focus on cost-effectiveness in recent years, one could say, and that has been a significant impact on the EBITDA margin. As I said, we ended up at 35% in the quarter, which is our next best quarter marginally for the company in history. Long-term, it's hard to guide too much, but when you look at mature SaaS and software companies, it's quite common that they have a margin of 30-50%. It's not completely unreasonable that we're going to be somewhere in that range long-term as well, when we're kommer upp och får lite mer skala. Någonstans där, men det är svårt att uttala sig om i dagsläget.

Tack så mycket. Och med det så rundar vi av frågestunden. Och stort tack, Kristen och Martin, för er presentation och även svar på alla frågor. Så önskar jag lycka till nu framöver. Tack!