From the CEO

From the CEO - Q3 2020

I would like to start on a positive note, sharing some of signs that continue to prove our business. These signs combined give me a good feeling as we are facing 2021. I remain humble, as we are facing big challenges in the society, but it gives me great joy that this quarter's financial outcome beat the expectations.

2020 is soon behind us. And what a year it has been. We still cannot predict when the Covid-19 challenges are behind us. Protecting our financial endurance therefore continues to be our #1 objective. We accomplish that by not compromising with our smart-spending-attitude and pragmatic mindset. The cherry-picking that takes place every time we make a decision is not all bad. The good thing is that our roadmap is more relevant and crispy than ever.

Being a listed company means that the market always has an opinion about us. It comes with the territory. In line with these opinions, our determination of building a solid business operation is starting to pay off. Our revenues for the third quarter came in at MSEK 14,2 which exceeded the market expectations. I am happy for this achievement, but personally my target is much higher.

However, I am really proud that we, as a team at Westpay, managed to reach a positive EBITDA. It is a first small step but a vital milestone and something we will nurture moving forward. A gross margin as high as 65 % and continuation of growing recurring revenues, are factors further reinforcing the strength of our business model.

Having a big reach is critical for most companies. Westpay has a well-established partner strategy that has served us well. But to expand our footprint even more and give merchants a plug & play offering, we are now adding more leading POS suppliers to our ecosystem. This expansion of our POS Partner strategy, simplifies medium to large- sized merchants getting access to our technology.

As a first step we have recently signed agreements with three great point-of-sale (POS) suppliers, Bedege, Centric, and FDT. As a result, these POS suppliers will integrate their POS solutions and make Westpay’s offerings available for their merchant customers.

This venture is something we will amplify even more during 2021. Westpay is in a position where we can handle even the most prominent merchants and retailers. Our ongoing and successful delivery with Axfood is one of many activities that supports my confidence.

As you can see, we are moving our position to a stronger spot. Parallel to this, we make the spot bigger. So, when we managed to sign up Christian Myrland as Region manager for Norway, the decision was easy. Christian is coming from a position as sales and marketing director in one of the largest firms in the payment industry. His know- how and business insights will make a huge difference for us. We now have the brain and the muscle to aim for a bigger market share in Norway and the rest of the Nordic markets.

As I mentioned earlier, our roadmap is more relevant than ever. Our innovation lab continues to explore the possibilities to push the customer experience even further. Payment Application as Service (PAaS) and Swipe2Pay continue to be at the core of our ecosystem; adding new, alternative payment methods on-demand. Enabling new customized applications invented by our customers is something that differentiates us and makes us future proof.

The potential is vast. The numbers from this quarter tell us that we are moving in the right direction. We need to be patient, stick to the plan, and do what we do best. Enable payments.


Published oktober 23, 2020

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