Closing another quarterly chapter, Westpay continues to prove its business model. We do this with hard work, keeping a steady course, trust in ourselves, and a strong customer offering. We finish the third quarter with revenues at almost 15 MSEK and positive EBITDA. This is an achievement since we don’t have any government pandemic support for this quarter. Smart spending continues resulting in positive cash flow for the period. Two other KPIs of ours - gross margin and recurring revenue – remain at record levels. But we don’t rest here, there are still room for improvements, and we keep our focus on execution for growth.
During the period I had the pleasure to welcome a few new investors to the Westpay team. We now have the means necessary to continue with desired speed, quality, and innovations. Having this trust and support from new and old shareholders, gives us the energy and confidence to continue our ongoing, long-term strategy.
We are closing in on 2022, but expansion and growth are already in our everyday focus. Historically we have depended on mainly two revenue streams: system sales and recurring revenues. Moving forward, thanks to our position in the value chain, technology platform and business model, we will see an even further shift in our revenue mix. With our SaaS like offering, transaction revenues will blend into this mix. Without making any predictions in numbers, a large portion of our future growth will come from recurring and transaction revenues. A side effect, worth to keep in mind, is that our gross margin from these revenue sources is significantly higher compared to system sales.
Our expansion in Norway continues to make a difference. We now have a modern office just south of Oslo. More importantly, we managed to attract experienced talent that knows pretty much everything about payments. In Q3 our new POS Partnerships have started to have an impact on our revenues.
An important aspect of reaching our goals is our ability to deliver. That's why we now are searching and hiring additional experts and talents to join our journey. After a solid assessment, we have a good view of how we should grow. We are strengthening our sales and customer success muscles. Perhaps the most important key success factor is that we continue to take care of our customers in the best possible way.
Our strategy expansion continues, where we now have a new collaboration with Klarna. We are integrating Klarna’s payment offerings, making them an integral part of our Swipe2Pay technology. This solution will make Klarna a natural choice for Westpay’s merchants and POS Partners, parallel to other payment methods. I am looking forward to working together with Klarna, advancing the next generation of in-store payments
The payment industry continues to evolve rapidly. New payment methods, consumer behaviours, and merchant demands are keeping us on our toes. It’s an ongoing process and we still have lots of work ahead of us. But judging from the past 18 months, I am confident that we stand strong, have a future-proof business model and the right people to execute.
Best regards/ Sten Karlsson, CEO at Westpay AB
Publisert oktober 28, 2021