From the CEO

From the CEO - Q4 2019

Once again, we are closing the chapter and are about to flip the page. 2019 was a year which financially was nothing but poor. I take this very seriously. As we are entering a new decade, we have the information necessary, from which we have made our analysis, reflected, and now are executing the proper adjustments. Is our outlook dark? Certainly not! We have several vital accomplishments in place, strengthening our position in the fintech industry, and enabling our growth journey towards profitability. But more on that later.

When I summarize 2019 from a financial point of view, I am not pleased with our performance. We aimed much higher. Our main objectives are growth and profitability, and my team and I will not rest before we are back on track. Until we reach more substantial revenue levels, I have implemented sev- eral tight cost control measures, and Westpay will be back on track as we leave 2020.

A minor but positive trend is that our revenue Q4 2019 was up 28 % compared to the same period previous year. Our recurring revenue as well as the gross margin again validate the strength of our business model. Leaving 2019 we have once more reached all time high levels regarding recurring reve- nue and gross margin.

Competitive product roadmap, tight customer collaboration, employee retention and a service centric business model are our main means moving forward towards our objectives. With the continued support from our shareholders, we have a state-of-the-art payment solution in place. It is highly adaptable to cater for specific demands, while still being scalable, which in combination is a major uniqueness. Our loyal and growing customer base proves this.

Perseverance pays off. For a long time we have been targeting Axfood, Sweden’s second-largest food retailer with brands such as Willys, Hemköp, Tempo, Axfood Snabbgross, Mat.se, and Middagsfrid. As you can imagine, I am so proud that we managed to come out on the right side, in competition with companies which are both much
bigger and more well-known. Axfood has, as a result of an in-depth assessment, chosen Westpay as their payment solution provider in the years to come. The order amounts to SEK 20 million initially and will be delivered during the coming three years.

Again, we have proven that Westpay has what it takes to attract everything from small businesses to large enterprises.

On the people side we continue to attract super- stars. Peter Eklund has strengthened our sales team. Peter is adding tons of retail know-how, and together with the rest of the team, we now have
a great line up that will improve our performance. People are our most valuable asset, and a priority of ours to stay competitive is to attract and keep the talented people that come to us.

As you can see, standing still is not our strategy. We still need to gain some more hight before we reach the wanted cruising altitude. But our business foundation and pipe are healthy, our roadmap well defined, and we have great people. With that said, I am taking on 2020 with the most serious dedication but also with much excitement and expectation.


Published april 9, 2020

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