From the CEO

From the CEO - Q2 2022

It feels like I am repeating myself. But once again, we have managed to grow our business. My colleagues continue to walk the extra mile to level up our business, now for the fifth quarter in a row. It grows both compared to the previous quarter as well as the same period last year. Compared with the last pre-corona period 1H 2019, we have significantly improved all vital KPIs, from topline, gross margin, share of recurring revenues down to the bottom line result. This outcome is the result of hard and proactive work. Now with eCommerce as a natural component in our overall portfolio, we have expanded our scope to continue our journey. As a result, our customers show strong trust in our capacity and innovative offering.

We have put yet another quarter behind us, again where we get rewarded for following our long-term strategy. Foremost we managed to protect our growth. We finished the quarter with revenues coming in at 17,2 MSEK. This is an increase of 48 % compared to the same period last year. Gross margin is kept at solid and record levels and our recurring revenue keeps increasing. For the second consecutive quarter we are also having a small, but positive EBITDA. Our operative cash flow was positive for the quarter, again being important for our financial endurance. Given this trend, I am confident with our business model moving forward. Our offering, expanding reach, and brand awareness give me a good signal of our potential to come.

There are still a few external challenges, such as a lack of electronic components and increasing transportation costs on the world markets. But thanks to our team at Westpay and proactive partners, we managed to keep our delivery capacity and our gross margins on desired levels. This is an area we monitor on a daily basis. If the situation should escalate, we will take action to minimize the effect. But in this context, I like to highlight that we now, with our integrated commerce offering and an increasing amount of transaction-based revenues, are slightly less exposed to this scenario.

During the quarter, we have partnered with ACI Worldwide for a complete Integrated Commerce offering. The partnership will extend our current payment solutions for instore applications with state-of-the-art eCommerce capabilities, thus forming a market leading offering for Integrated Commerce. Our first customer is now live with our eCommerce payment solution. The benefits for our customers are huge. Ability to follow the customer between channels, security, acquiring redundancy, and easier administration are just a few examples.

For the consumer, it means a much higher level of user experience. We will continue our quest of making our full-service offering known in the market. We have a solid position as the natural choice for anyone looking for a complete solution without giving up their independence regarding acquirers and other transaction-sensitive costs.

In July, we have extended part of the outstanding convertible loan with one year. It is encouraging to have this trust from our investors which adds to our financial endurance.

Even in the most successful teams, change is inevitable. After almost five years at the watch, Lars Levin has decided to take a new step in his career outside of the company. I personally want to thank Lars for his rock steady work as CFO during some pretty tough times. His legacy at Westpay will remain for many years to come.

I am very glad that we managed to attract and appoint Pernilla Ullsten as new CFO. She will, thanks to her experience, play an important role in taking Westpay to the next level. We will be able to scale up our ability of being data driven and, simultaneously, continue to give our existing customers and partners a world-class service.

Let me summarize. The numbers tell me that we are doing the right things. We have a world class payment solution that covers in-store as well as eCom. Now, with this in place, our focus will be scalability, profitable growth and customer experience. Behind our offerings we have a vital enabler that provide trust, quality and innovation – my colleagues here at Westpay.


Published augusti 29, 2022

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