Checkin.Com Group AB (publ)

Hej och välkomna till dagens webcast med Check-in, där vd Arif Rehman och CFO Martin Boimel kommer att presentera rapporten för det första kvartalet 2026. Efter presentationen kommer det hållas en Q&A. Och med det sagt så lämnar jag över ordet till er.

Tack så mycket, Ludvig. God eftermiddag och varmt välkomna till Check-in.com Groups presentation av det första kvartalet 2026. Jag heter Arif Rehman och tillställs som ny vd för några veckor sedan. Och det är med en blandning av ödmjukhet och fast övertygelse. Jag håller min första kvartalsprestation för er idag tillsammans med vår CFO Martin Bojme. Det som fick mig att tacka ja till det här uppdraget stavas egentligen potential. Vi har en genuint värdefull kärnkompetens. Ett team med djup domänkunskap och vi verkar i en snabbväxande marknad. Det är en väldigt bra utgångspunkt. Men jag vill också vara ärlig mot er idag. Det finns arbete att göra. Förra året 2025 var ett tufft år som bekräftade att förändring är helt nödvändig för oss. Den förändringen väntar vi inte på, utan den är redan i full rörelse. Låt oss påminna oss om varför Check-in.com spelar en sån viktig roll i den marknaden. Vi är ju ett business-to-business SaaS-bolag som löser ett av de mest komplexa problemen inom just digital on-boarding. Och det är att verifiera vem en person är i realtid, med full regel-efterlevnad för olika jurisdiktioner, och att göra det utan att förstöra upplevelsen för slutanvändaren. Det är svårt att göra bra, men vår styrka är att vi faktiskt gör det bra, riktigt bra. Och den förmågan, den är intakt. In combination with this, we see a structural imbalance, not only in Europe, but also globally, where the market for regulatory identity verification is growing due to both strict license requirements, but also actors who need to consolidate their compliance infrastructure. Our job is to ensure that we are in the right position to capitalize on this structural imbalance that prevails. Under mina första veckor har jag lyssnat på teamet, kunderna och analyserat siffrorna såklart. Och min slutsats är att vi inte behöver göra fler saker. Vi behöver göra färre saker, men vi ska göra dem bättre. Att välja är också att välja bort. Vi ska gå från att försöka göra allt till ett absolutt domänfokus där vi skapar mest värde. It can be domain focus, it can be parts of a value chain, but that's where we have the repeatable value that can be used. We must become more disciplined and build a product portfolio that exactly matches the market's demands. We should go deeper where we create greater value instead of spilling too much. And the honest picture is that our commercial machinery needs to be built up. It's not a quick fix, but we will build an offerable portfolio that matches the market's actual requirements. Right now, we are investing in the right people at the right place to strengthen our commercial team and to be able to drive sustainable sales and growth. It's about consistent execution and tactical adjustments, quarter after quarter. Incremental development is not only about software development, but also about processes and development of companies. And this leads to my conclusion to you. To our shareholders, you will get transparency, commercial discipline and a strategy based on reality. I will not give you a quarter optimism without substance, but a supply strategy that builds on reality. And to our customers and partners, our unique combination of technology and compliance understanding is intact. But in the future, you can expect a company that is even more loyal and even more focused on delivering what you actually need and where we deliver the most benefit. And to my team, you have navigated a very tough year with great commitment. From me, you can expect your leadership to be clear with the direction, to make quick decisions and to hold on to our priorities consistently. And to summarize, real changes in companies do not happen overnight or in a single isolated quarter. They are built through accumulated decisions, consequent execution and patience. I promise you, there will not be a dramatic change tomorrow. Men det jag däremot lovar er är en tydlig och konsekvent riktning över tid. Den här riktningen sakas ut i detta nu, och de första stegen på den vägen har vi redan tagit, och arbetet är i full gång. Med det sagt, tack för mig, och nu lämnar jag mig med varm hand över till Martin, som kommer att gå igenom lite mer finansierade detaljer.

Tack, Arif. As you have seen in the report, the report is filled with all the figures. So I thought in this presentation to go through the financial highlights and how we see the development of the quarter. The net turnover went down by 24% compared to the same quarter last year, landing at 14.4 million kronor. It was mainly driven by our large airline customers, as we talked about in the previous report, but we also lost a lot due to currency changes. and we unchanged exchange rates compared to last year, we could not have actually collected a bit over SEK 15 million during this quarter. The gross margin was 74% in the quarter, something above what we have been on lately. I will come back to that later. EBITDA rose to SEK 4.1 million with a margin of 29%, which is more than a doubled margin compared to the same period last year. And the cash flow from the ongoing business is probably the strongest in the report, landing at plus 7.5 million, which means that even after our investments in R&D, or CapEx as we call it, we generated quite a strong positive cash flow during the period. And that also meant that we ended the quarter with a cash flow of 15.4 million, which is up by almost 2 million compared to the end of last year. If we move on to If you look closer at the net turnover, you can see in this chart that we lost a bit compared to last year. The turnover dropped to 14.4 million. And if you look at the trend here between the QL stacks, then we have lost. And here you can see that there are two main factors behind this income drop that we have mentioned earlier. I would like to remind you as shareholders that between 2024 and 2025, this stage will mainly depend on our customer RingCentral, the contract we ended in the middle of 2024, which actually explains the entire stage. Similar to this drop between 2025 and 2026, it depends on our large airline customer, which during the fall cut off a large part of its traffic, which caused a large part of our revenue from that customer to disappear. So if you clean for these two customers, the picture is completely different and the revenue is much more stable. If we look at the gross profit, it decreased to 10.6 million kronor per quarter, due to the falling revenues. But the margin of 74% is a happy subject. Here we have, as I mentioned earlier, worked with cost optimizations, especially on the server side, but also a lot of re-prioritization among suppliers and smarter transactions. As we talked about earlier, These direct costs are of a relatively solid character and even after these cost savings, our main message is that the GDP will go up when we get back to the revenue. If we jump to the operational results of the EBITDA, we can see that the cost-sufficiency programmes we carried out in 2025 have now passed, and EBITDA ended up at 4.1 million SEK in the quarter. Especially positive with this is that the margin more than doubled to 29% compared to 12% in the quarter last year, but also 21% throughout the year 2025. And this strong EBITDA in combination with positive movement capital changes led to an even stronger cash flow, the best we've seen in about two years. And that's a pretty good segue to the next slide. Here you can see that the strong cash flow we had in the quarter made that the cash went up with almost 2 million to 15.4 million kronor at the end of the quarter. And if you adjust for our loans where we amortized 1 million during the quarter, then the net cash rose with almost 3 million during the quarter and is at 12.4 million at the end of the quarter. Och med det lämnar jag över till Arif för lite avslutande kommentarer och sen kör vi en frågestund.

Tack Martin. För att summera backspegeln för det gången kvartalet så som Martin nämnde så minskade intäkten med 7% men värt att notera att bruttomarginalen steg till 74% och även EBITDA som landade på 4,1 miljoner mer än fördubblades från 12 till 29%. Just as Martin mentioned, the most important of all is the cash flow, which was the highest in two years with 15.4 million SEK on the bank. And if we look forward, it is worth mentioning that the market is intact, the market is right, the competence exists and we do what we do genuinely really really well. Vägen framåt är fokus, inte bredd. Färre saker gjorda bättre och med disciplin i vad vi väljer bort. Ett mantra är just att att välja är också att välja bort. Och sist men inte minst, vändningar sker inte på en natt eller ett kvartal. De byggs genom ackumulerade beslut, konsekvent riktning och tålamod. Och den riktningen stakas ut nu och arbetet är i full gång. Tack för mig och tack för oss.

Tack så mycket för presentationen där och precis som du nämnde innan så är det nu dags för lite frågor här och den första frågan är till dig Arif. Du kliver in som ny vd på bolaget, vad kan vi förvänta oss?

That's a good question. As I mentioned, it's actually primarily three things. Honesty and transparency. I mentioned how important it is not to fall into the trap of a quarter's optimism without substance behind it. And I think that you deserve a leadership that is transparent about what is needed. And for the second focus, which I conclude with, to choose to choose away. We should do fewer things better. And it's about discipline in everyday life, in what we choose to prioritize away. And of course, as much discipline in what we choose. And the third thing is the execution. Again, changes are not made in a quarter or overnight, but it is precisely the consequence that they are built through accumulated decision and consequent direction. And as I said, that direction is being taken right now, and the first decision is made.

Thank you very much. Have you signed any new interesting customers that can drive growth in 2026?

Within iGaming, if we start with that sector, we have large customers who are now actually developing collaborations with us. We have Superbett that will be used in two new markets, which is very positive and a strength signal. But even outside of iGaming, we have more interesting use cases that are coming through now. A growing interest from e-health platforms around the world is growing steadily, where we have signed two customers who are active in over 15 markets together. We also have an AI company with over 7,000 employees, which we signed at the beginning of the year and has actually grown to one of our largest accounts in a very short time and still has even greater potential. As an AI company, they have a growing need, of course, to verify consulting and secure the identity of those who handle the training data. to reduce fraud and guarantee high quality. This shows that the use case that we have as our core is quite generic and repeatable over a number of different verticals. So to choose and to be able to choose can also mean that you choose a part of the value chain that is repeatable between verticals and I think that we see a trend in the future. And I can also mention that we actually, as late as last week, I can't disclose the name, but CERN is a large financial platform with several million users, which will require continuous verification. And also a high level of protection against deepfake and fraud, which we, as I said, do really well.

Thank you so much. You mentioned that the income loss in QE compared to the same period last year is driven by a larger European airline company. Is that contract still in place and what is the risk that it will end up using you completely?

I can take that. As we mentioned in the Q4 report, we saw in this stage already during Q4 when this customer dropped one of their larger flows and more than half of the volume actually disappeared during the beginning of Q4. However, contracts are still in place. We work closely and actively with this customer to introduce new modules and even if the revenues from this customer are a bit from some levels Thank you very much. What does it take to find profitable growth again?

I'll take it, Martin. Well, that's why I'm here. But it's actually less than what people might think. And it's actually one of the things that convinces me to say yes to this challenge. I would say that we are a slimmed organization with an effective cost structure, not least because of the new EBITDA figures. This also means that marginal income falls in the last row in a very favorable way. As I said, we already have a number of customers with significant potential and companies like Alive that have not yet grown completely and ramped up in terms of their geographies and full potential. And the focus is of course to maximize the value of the existing customer base first and foremost. But of course we are building the commercial machinery in parallel, because even if you can have a couple of accounts that fall into bigger characters, we are now trying to build a repeatable, predictable commercial machinery. And that's what we're starting to work with now, to get a better and more repeatable ability to take in new customers. And it's not a dramatic turnaround in terms of resources, it's rather a turnaround in execution and focus, I would say. So, short, less than what people might think. We understand that.

Thank you so much. The brutto marginals have dropped in the last one to two years, but if you turn it up again, what does that mean?

We saw this starting last year as a lead in the cost savings and cost optimizations that we introduced last year and cost focus. And I think I mentioned a little, especially on the server side, to be more effective with that, but also a lot of prioritization among suppliers and smarter transactions. And that gives results even in this quarter where we have falling revenues.

Thank you very much. Both the EBITDA and the cash flow are very strong during the quarter. What drives this?

One of the highlights in the report is our strong EBITDA with a more than doubled margin compared to last year. But maybe especially the cash flow, which is driven by the cash savings program we implemented in 2025, which we are now in full swing of. It takes a little time before all costs fall off, if you say so. And it's not just personal savings, but also, as I mentioned, in the question of common margin, it is a general cost focus even in other areas. A part of the reason for the strong cash flow is due to capital movements and changes. There it can go up and down between the quarter. But the strong EBITDA in the region and the cash flow in general means that we now have a bigger cash flow on the bank than we had at the end of last year, or last quarter, because the cash flow went up by almost 2 million kronor.

Thank you very much. Arif, you mentioned choosing and choosing away in the presentation.

What does that mean for concrete changes? What a good question. It's more of a discipline, of course. It's about going from a situation where we've tried to be very much, for very many, to a situation where we are exceptionally picky in choosing what we actually do best. As I mentioned before, the repeatable needs between verticals, where you may focus on a part of the value chain that is actually repeatable between industries. Specifically, it can also mean three things. Focus on repeatable needs, rather than reduced-sourced solutions, as I mentioned before, i.e. parts of the value chain. Because that will of course free up capacity and also improve the market structure. And then it is to increase product development towards modules that solve recurring needs, rather than hypothetical nice-to-haves, as we ourselves believe. And we prioritize harder internally. We are a small company and there is no excuse to hang on to everything, of course. So, in summary, it's about discipline. To choose is also to choose away. And that's the discipline that will shape how we make decisions in the future.

Thank you very much. And finally, when do you think your new initiative can bear fruit?

There we can think of two good questions. Again, this type of friendship takes time, as I said, and it's the consequences and the consequential decisions that will bear fruit. But I still think that you can look at two time horizons. In the short term, you will be able to see how we operate and the tactical adjustments that we do in the discipline of choosing and choosing away. I think that the tactical adjustments will be able to be seen relatively quickly. How we prioritize existing customers, how we package our offers, I was just talking about the investment portfolio, and also how we allocate the commercial time. I think we will see that quite early. And then it is the longer change, and what really changes the company, is the sum of the decisions made over time. And it is that development that will be built quarter by quarter. And do not expect a dramatic curve tomorrow, but the direction is clear and it is the one that is consequent.

Stort tack för presentationen och tack för att du svarade på frågor och tack till alla som har tittat. Vi förönskar dig en fortsatt trevlig dag här.

Tack så mycket.