Checkin.Com Group AB (publ)

Welcome to today's broadcast with Check-in.com Group. With us today is our CEO Martin Bojmel who will present and answer questions after the presentation. If you want to ask questions, you can ask them in the formularies to the right of the broadcast and we will take them up afterwards. And with that, the floor is yours Martin, please.

Thank you Martin and welcome everyone to today's webcast. My name is Martin Bojmel and I am the interim CEO and We have had two tough years behind us. I would say that the feeling right now is that the company has a strong desire for revenge, with a focus on finding growth again. Vi landar i kvartalet på en omsättning på 15,5 miljoner kronor, vilket är en nedgång med 11% från förra kvartalet och 10% från samma kvartal förra året. Som jag nämnde i rapporten så är det drivet av ett intäktstapp från en av våra största kunder här under hösten. And I will come back to that later. But despite reduced revenues, the cost control is strong and the EBITDA is rising and the margin is doubling compared to last year. And in terms of cash flows, we had our best quarter for over two years with a positive cash flow even after investments in R&D. Organisatoriskt känns det lite som en ny start eftersom vi har en ny styrelse på plats sedan i november och en ny vd som kommer in i maj. Jag är bara interim vd här i några månader. Om man går vidare till intäktstappet här, som jag nämnde i rapporten, så är det framförallt drivet av minskade användande av mjukvaran från en av våra största kunder, verksam inom flygbranschen. The important thing to note here is that the contract is still in place and the customers still continue to use our soft goods in large quantities. They are still one of our ten largest customers, so there is no indication that they will reduce the volumes further. Men vi har heller inte lyckats offsätta tappet i minskad användning med tillväxt från andra kunder. Det gjorde att intäkterna föll med 10 % under kvartalet. Det här gör att Q4 är vårt femsta kvartal intäktsmässigt, som vi såg på grafen i början. Vårt femsta kvartal intäktsmässigt sen slutet på 2021, vilket vi såklart inte är nöjda med. And this has led to our development lately, which has not at all met our expectations, means that we must be a little more conservative with our future prospects, and therefore the board has made the decision to write down our goodwill, which came up in connection with the acquisition of GetID and DataCorp as a whole, and that is why Vi har en väldigt negativ eller stor förlust på sista raden i rapporten, i och med att Goodwillen belastar resultatet med 116 miljoner kronor i kvartalet. Dock är det viktigt att notera att det här är en redovisningsmässig engångspost som inte påverkar vår kassa eller kassaflöden. Men fördelen är då att vi då får en balansräkning som nu bättre reflekterar verksamhetens nuvarande förutsättningar. Och med det sagt så ska man säga, vi använder ju fortfarande teknik och resurser från de här förvarven, men den här Goodwill-inskrivningen reflekterar mer att vi tar en mer konservativ approach kring de framtida värden som finns i de här enheterna då. If we move on to the business as a whole, we have been historically strong in iGaming, but also focused on fintech and the travel segment. Due to the limited size we have on our company today and the commercial organization, my focus has recently been to focus resources in the right way, so we can't do everything everywhere. Therefore, we have put more focus on what we do best, where we have the strongest product market fit and market position. And that is mainly within iGaming, but also within fintech. This will not mean that we will hand over other segments, but we will focus less resources on, for example, to find big American enterprise companies, we've seen that the win rate in those deals is significantly lower and the sales processes are significantly longer in those segments. So a little go back to basics and focus on what we can best. And I prepared a slide on iGaming. iGaming has many challenges, but it also creates opportunities. And just within iGaming, it's I can say that there are two counter-polls that are balanced. There is a strong rule of thumb with governments and laws that create the rules, but it is also important to have a completely friction-free user experience. It is precisely these two counter-polls, rule of thumb versus a friction-free user experience, And that's why our product works so well in this segment, because we help the company to meet all the rules when it comes to identity verification, responsible playing, age control, etc. At the same time, we have a lot of focus on UX and user experience, which makes the speed and conversion best in class. And it's these regulations that different countries choose to regulate, different authorities trying to get rid of the black market and re-regulate or re-regulate the market. That has historically driven our business. And we have been especially successful in, for example, the Netherlands, for example, in Brazil, which we talked about earlier. The other important thing is that these regulations are very fragmented. There is not one regulation that works everywhere, but there are different regulations in different markets. Which makes it complicated for our customers to be in different markets. That's why our software works. We solve this for them. We show this to our customers in different geographies and jurisdictions. But the challenge is that too much regulation is not good either. Which we have seen in Germany, as I mentioned earlier, where some gaming companies have a hard time making money and therefore left that market completely. And if you look at the rest, except for regulation, the main focus right now is fraud. Deepfake and synthetic identities are becoming more and more common. And it's important that our product is at the forefront to catch this. And that's where we're most at right now, to improve our fraud with daily updates, daily iterations and features that make it harder for companies to succeed in fooling the system. And this is what our customers, not only in iGaming, but in general, ask the most. If we move on to the financial side, I'll put on my CFO hat here. Som jag nämnde så minskade ju omsättningen med 10% jämfört med samma kvartal förra året och vi landade på 15,5 miljoner i intäkter i kvartalet. Här tappade vi en del på grund av valutakursförändringar, så vi oförändrade växelkurser och tappade istället 5% jämfört med förra året. Bruttomarginalen låg på 72% i kvartalet i linje med vad vi legat på senaste året. And as I mentioned earlier, EBITDA increased to 3.5 million with a margin of 22%, which is a double compared to the same period last year. And the most positive quarter was the cash flow from the running business, which landed on plus almost 6 million, which means that even after our investment in R&D, we generated a positive cash flow in that period. I think it's the first time in about two years that we have had a positive cash flow even after these investments this year. And we ended the quarter with a cash flow of almost 14 million SEK and a solidity of 83%. If you look a little closer at the net turnover, you can see here in the graph that we went down with 10%, lost 10% compared to last year and landed with 15.5 million SEK in the quarter. And almost SEK 70 million in the whole year, which is also down 10% compared to the year before. And under Q4, it was mainly due to reduced income for the airline customer, which is on this reduction. Then, if you look at the whole year, it is mainly the effect from RingCentral, which we discussed in previous quarterly reports, som inte påverkar Q4-jämförelsen alls, men year-to-date, eller årssiffrorna, så är det faktiskt RingCentral-tappet som är den största bidragande orsaken till att nettomsättningen fallit, eftersom vi hade nästan 7 miljoner intäkter från RingCentral under 2024, men noll under 2025. Så om man rensar bort det så är vi mer stabila jämfört med 2024. If we move on to the gross profit and margin, the gross profit decreased by 11.2 million in the quarter, due to the falling interest rates, but the margin is 72% in line with what we have had in the past 12 months, but a little lower than what we had back in 2023, as you can see in the graph to the right. Here we have continued to work with cost optimizations, especially server capacity, as we talked about earlier. And some of these costs are of fairly solid character, which means that the gross margin will go up when we get back on the growth again. So it's important to remember that we have taken costs even in this area to maintain the marginals. If you look at the sales and marketing costs, we have also put a lot of focus on optimizing and optimizing the costs. We put 2.4 million kronor on sales and marketing activities during the quarter. That's down from 3.7 million last year. That's 16% of the revenue during the quarter and 19% if you look at the whole year 2025. If you go to EBITDA, the cost savings that we have made during the year, even though we have lost income and growth, EBITDA went up to 3.5 million kronor per quarter and a margin of 22%. And we ended up with a margin of 21% for the entire year 2025, which is up to 18% in 2024. I'd like to comment that the goodwill note that we talked about doesn't appear in the EBITDA by definition. But if you look at the EBIT, the figure becomes strongly negative, since the note is at 116 million. But here we have to remember that it is a cost that does not affect the cash flow. But it is important to remember when you look at EBITDA. And if we look at our liquid funds and solidity, we ended the quarter with a cash flow of just under 14 million kronor. And if you adjust for our loans, the net and cash flow was 9.8 million kronor. And the solidity at the end of the quarter was at 83%, and here we can see that it has gone down compared to 2004. And this is mainly explained by this goodwill description, since it also affects our own capital. And finally, to sum up, I can say that we have had Vi har haft ett tufft kvartal bakom oss. Intäkterna minskade med 10% drivet av intäktsstampet från en av våra största kunder. Kostnadsförsörjningar gör att ebitda-marginalen ändå dubbleras jämfört med förra året. Vi har tagit en nedskrivning i Goodwill kopplat till förvärven av GetID och Datacorp som är på i storleksordning 115-116 miljoner kronor. We had a positive cash flow, even after investments in R&D, for the first time in two years. That's the most positive thing we have to take with us from this, which creates room and space to succeed in turning this around. It feels like Boland is a new start with a new board and a new CEO that starts in Q2. Despite the fact that it is a rather heavy report with a lot that has historically pointed in the wrong direction, I am very positive about Boland's future prospects. We have taken big cost savings, the margins are okay, the cash flow was very strong in the quarter. Vi är i en position där det räcker med att någon eller några av de här dialogerna vi har på den kommersiella sidan, att vi får lite stolpe in istället för stolpe ut som vi haft under det senaste året. Och med det leverage vi har med kostnadsstrukturen och så vidare så gör det att det räcker med att någon av dem går i mål så är det en väldigt stark position att vända till tillväxt och då kommer marginalerna också förbättras avsevärt utifrån det. And with that, I'll hand it over to Finwire, who will handle the Q&A.

Why did you choose to write down the entire value of immaterial assets at once? Do you think it's so easy to generate revenue with your current products?