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?

As we mentioned, Sweden is a bit of a grey area with valued companies and cash flows. And it's a bit... Det är lite svar på frågan hur långt är ett snöre och med det sagt så är det ingen nyhet att vi inte har uppnått våra mål och när vi haft fallande intäkter utan meningsfulla vinster under två års tid så är det svårare att motivera ett värde på tillgången eftersom rent matematiskt när man gör de här framtidsutsikterna i en Excel-modell så går DCF inte ihop. Vi kunde såklart valt att Thank you, Martin, for that answer. Let's move on to the next question.

You mentioned that the income gap in Q4 is driven by a larger European airline. Is that contract still in place? And what would you say is the risk that they will stop using you completely?

I mentioned this a little bit in the presentation as well. It is of course extremely sad for us that the income has become so large in Q4, but the contract is definitely still in place. We continue to work closely with this customer. Vi har ganska nyligen lagt till nya moduler och ny funktionalitet där vi lyckas öka månatliga faktureringen. Men de tillägg vi har gjort är så pass små i förhållande till den minskande användning de hade i ett av deras flöden som de nu har sänkt av med oss. Men kontakter är fortfarande på plats. Så det är väl svaret på den frågan.

And can you tell us a little more about what you expect the new CEO to do for the company?

This is a very difficult question to answer, but from my perspective, I think that Arif, as he is called, will come in with new experiences and new perspectives. He will be the first external CEO after our founder and Christian, who have been in the company for a long time, the previous CEOs. Arif has a very broad experience, long experience from leading roles in various tech companies. And then I personally like that he is educated in the old Kinnevik school with everything that involves analysis and work capacity. I really look forward to him joining. I think that the whole company as a whole has, as I mentioned, a bit of a rematch. I've used the word renewal a bit. We've had two tough years behind us. It feels like we're standing in front of a new start and renewal. I think that 2026 will be much better than what the last two years have been.

And why do your largest customers choose to terminate or reduce the collaboration with you?

This may be related to the previous question, but in general you can say that there are many different reasons for customers to terminate their contract. That they leave a geographic market, it can be that they put down a use area. Sometimes it is driven by that our customer is bought up by another company that has a competitive solution. But more specifically, in terms of what happened during the autumn, we have already mentioned that this customer had two different, larger flows with us that generated a lot of traffic and where they chose to shut down one of them. And that made it quite a strong volume decrease from that customer.

And how has the collaboration with WestJet and Oredo developed in terms of revenue?

We have talked about these customers a little earlier. They are still customers with us and generate revenue every month, but the rollout has not gone as fast as we hoped. So they are still relatively small, but of course Hur stora de här bolagen är och deras behov av den produktsrit som vi erbjuder så finns ju potentialen ändå där. Men just nu så har vi liksom ingen specifik stor utrullning i närtid som vi står och väntar på.

Och hur ser churnen ut inom iGame i Verticalet om jämfört med koncernen som helhet? Och hur upplever ni konkurrenssituationen där?

Yes, it is difficult to get rid of the term when you work with SaaS and software. But as I mentioned in the presentation, it is the strongest within IGMEB. It is where we have had the widest success in history. And although that industry has its challenges, we see ourselves as a very natural supplier within this area. Just what I said about the focus on Regel efterlevnad versus optimal kundebelevelse och konvertering. Sen så, i förhållande till, det är svårt att säga, här är det ingenting som vi har gått ut med exakt, vad olika körntal är för olika segment. Men historiskt sett så är det där vi har haft mest framgång i alla fall.

Och hur sannolikt skulle du säga att ni behöver anskaffa nytt kapital?

It's also hard for me to answer. It's a question for the board and the big owners. But there are no plans like that in the current situation. As I've mentioned, we've reduced the costs of pairing the income tax we've had in the last two years. So we're in a pretty good position in terms of costs versus our income. We had a budget of almost 14 million kronor at the end of the quarter. So right now, there are no plans or needs for such a rescue emission that other companies might have, where they have significantly more burn and a higher cost base. Then the board can take in money anyway, but my hope is that it is not to save the company, but rather to actively invest in growth and hire more people. Try to grow stronger and focus on new things and where we are strong. But right now there are no such plans in the map.

And what does it take for you to find a profitable growth again?

Jag var inne på det lite i avslutningsordet där. Egentligen väldigt lite. Jag kommer tillbaka till det återigen med kostnadsbesparingen här. Vi har ju en slimmande organisation just nu där vi är. Almost break even. So just that one or a few of our larger customers, that we get the goal to solve the rollout faster, can lead to considerable growth. And then that growth will fall down quite quickly in the last row as well. And there we have... Yes, only here at Fråga Stundas have you mentioned a number of companies with great potential, but we also have dialogues with other customers that we have not yet signed, where we also see potential. So I would say we have been a little proud of some of those dialogues here over the past year or two years, and that has made us have lost revenue. Om vi får lite solp in, det räcker med en solp in på en större avtal så är vi tillbaka till tillväxt igen och då kommer marginalerna också bli betydligt starkare.

Finns det någon statusuppdatering rörande kontraktet med Visma?

Visma is also a customer where there is a lot of potential, but where we have just rolled out the product. It is live now and there are a number of interested customers already. This is Visma's customers, company customers who can use this product. Men det kommer ett tag tid vi måste utbilda både Visma och deras kunder om vad vi erbjuder och hur det kan hjälpa dem. Det finns såklart väldigt stor potential i det här samarbetet men givet att det är en ytterligare utrullning som måste ske på kundbasis så är det ingenting som kommer hända över en natt utan det kommer sakta växa över tid men med en stor potential i slutändan.

Bruttomarginals have gone down in the last 1-2 years, but are now going up again.

What does this have to do with it? Even this quarter, I think, is quite a line with the level from the last year. We have been down around 70% or something like that. I think we ended up at 72% this year. And that is driven by further cost focus, especially on the server side. And again, the most important thing is that the cost response we have taken, that we are in a position now where we are almost break-even. So when the growth comes in, we have quite high gross marginals of 70% in total. So then a lot of that will fall on the last row and the marginals in the rest will go up again. So focus right now and find back to growth again and then the marginals will follow along.

And then we take a final question here Martin. What specifically speaks for that 2026 will be a better year regarding growth?

We have, together with the new board, decided to be even more focused on areas where we are at our best. We have been a bit sparse before, I think, and it has cost a lot of money. And where we haven't really gotten a return on those investments. And in addition to that, the cost savings we have taken over the past year Gett oss mer utrymme också att internt fördela om resurserna så att vi kan lägga mer resurser på just tillväxtbrydande aktiviteter. Jag får väl också säga att vi har en ny vd på väg in med lång och bra erfarenhet som jag tror kan bidra med nya infallsvinklar och hitta nya sätt att hitta intäkter och nya sätt att arbeta på. Så jag är hoppfull över att vi får in use the positive we have within the company, but also be able to add more positive things with his experience. And then I would say that the most important thing is actually the product. We have an incredible number of satisfied customers who think that our product is better than competing products. Especially after the investments we have made over the past year within R&D, within fraud, as I mentioned, as mentioned earlier, where we have a very, very good product suite. So it's about getting more companies to open their eyes to us. And it's about succeeding commercially with marketing and sales, quite simply. And then finally, as I mentioned in a previous question, we have quite a few interesting companies that are already signed, that we still haven't started yet. Even what is already signed, there is a lot of potential to grow in. I'm thinking of Visma, and you mentioned Redo earlier, where there is a lot of growth potential. There is a lot of positive things to hope for here in the company, even if we have a tough quarter and a tough year behind us.

Tack för det Martin. Och med det så avrundar vi frågestunden. Och stort tack för din presentation. Och även svar på alla våra frågor. Och så vill jag rikta stort tack som har följt dagens sändning med checkin.com. Och så hörs vi nästa kvartal. På återseende. Tack.

Tack så mycket.