From the CEO

From the CEO - Q4 2020

2020 was a year where we needed to add extra discipline, creativity, and strength to our overall effort. During the year, we have had to challenge ourselves every step of the way. Now, looking back, there are two words that describe the outcome of our effort: team spirit and focus. I could not be more proud how we, despite the pandemic, managed to not only protect our business but also continue preparations for future growth. The positive signs confirming our business effort continued also during the fourth quarter.

Our society was again hit hard by the pandemic which worsened in the fourth quarter. From Westpay’s perspective, the companies in the hospitality sector are facing the toughest restrictions. We continue to support our customers during the second wave of the pandemic. To us at Westpay, this is a given.

We have a good control of our operations at Westpay. Thinking outside the box and finding new ways of doing more things with less. Financial endurance is my no. 1 priority, and I will not budge from this position.

During the fourth quarter, there are several positive signs confirming our business efforts. Given the circumstances, I am pleased, but not satisfied. Our revenue for the fourth quarter came in at MSEK 13.9, which was in line with market expectations.

For the second quarter in a row, we can summarize a positive EBITDA. Other key performance indicators such as gross margin and recurring revenue continue to speak in our favour. Both reached record levels with a gross margin of 70 % and continued growth of recurring revenues in absolute numbers.

Thanks to this financial outcome, I am confident in our decisions and the way we operate our business. Much remains to be done, so our efforts and focus on smart spending continues.

During 2020 we started to implement our extended business model with POS (point-of-sale) Partners. Several more leading POS suppliers have signed up during the fourth quarter. Together with these POS Partners we expand our relevance, competitiveness, and reach. Our payment solutions are ready to be enabled on-demand for all the identified merchants within these partnerships, giving us a growing addressable market as we move forward.

Our refocus on Norway has started better than expected. After only a few months, we already have two leading POS Partners in place. Expanding this footprint remains our target.

This extended business model combined with a relevant technology and product portfolio are key differentiating factors when we stand shoulder to shoulder with our competitors. Our roadmap is well aligned with our customers' demands.

During the pandemic, new consumers demands and behaviours are emerging. Contactless has been the new normal as well as some new alternative payment methods. Swish is an excellent example of a payment method in Sweden that the consumer more or less takes for granted these days. Future proof is getting more critical for any merchant that is about to choose a supplier. At Westpay we stand strong thanks to our innovative and flexible solutions. They allow the merchant to continuously add new payment methods as they occur.

When I summarize 2020, some features stand out. The staff at Westpay continue to walk the extra mile for our customers. On top of that, the strength of our payment solution is proven as it levels up the customer experience for any merchant. Last but not least, I want to highlight our operations department. They support all our customers in a way that makes all the difference.

As I have said previously, we are moving in the right direction. We need to be humble and patient, stick to the plan and do what we do best. Enable payments. I am looking forward to the rest of 2021.


Published februari 22, 2021

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