From the CEO

From the CEO - Q3 2022

The trend is clear. We continue to grow our business. Now for the sixth consecutive quarter. As always, several factors are behind this trend: brand awareness, quality, capacity, and hard work. The strength of our strategy is paying off. Now with eCommerce as a natural component in our overall portfolio, we have expanded our scope to continue our journey. But also our work to add more elements of simplicity, scalability, and automation is strengthening our position. As a result, our customers show strong trust in our capacity and innovative offering.

It is time to summarize yet another quarter, and 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 MSEK 19,0. This is an increase of 29 % compared to the same period last year. On rolling twelve months the revenues now amount to MSEK 68,9, an increase of 33 %. Also, our recurring revenues keep increasing. Recurring revenues for the quarter amounted to MSEK 9,1, an increase of 33 % compared to the same quarter last year. For the third consecutive quarter we are also having a small, but positive EBITDA.

The extraordinary situation in our world is having an effect on our gross margin. It still remains at a rather high level, reaching 63 % for the quarter. During this quarter the Swedish krona has weakened substantially compared to the US dollar. Our gross margin is further impacted by external cost drivers on the global market, such as a lack of electronic components and increasing freight costs. I believe that this situation will remain well into next year. These external factors also impact our cash flow in the near term. We monitor this situation very closely and are taking actions to counter the negative impact from these challenges.

On the market side, we now approach our customers with Integrated Commerce, our full-service solution. We are now in a position where we can deliver payment solutions in all channels. The way we manage to combine in-store payments and eCommerce payments is one of a kind. Westpay has a unique market position in being a supplier independent from the acquirers. Our customers can cherry-pick their preferred acquirer – one or several. That is just one of many reasons why we attract customers.

Our business model is focused on two targets - suppliers of POS systems and merchants. To this date, we have managed to contract several leading POS Partners in our market. Once signed, the work starts aiming to establish and develop a successful partnership with each POS Partner. Here we have to be patient because this effort takes time. During the past quarters, our main focus has been taking care of the signed POS Partners in the best way. Our search for even more qualified POS Supplier will level up during 2023. On the merchant side we continue to expand our business. As a consequence, our rental portfolio is growing nicely. Important, since rental supports our recurring revenues for years to come.

As earlier communicated, in July we 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.

The team at Westpay is getting stronger. Our new CFO Pernilla Ullsten is now up and running. She is already making vital impact on our current performance. On the tech side, we now have a 12 people strong development team fully operational at Westpay Technologies Ltd. in Sri Lanka. In less than a year and a half, we have built this team. They are a key strategic competence and capability resource ensuring our technology roadmap stays ahead of the game.

Let me summarize. Growth is a natural component and priority in our everyday effort. But it is growth in combination with profitability that matters and where we have all our focus. Our relevance in the market is undisputed. We have the solutions, capacity, and confidence to cover any demands within payments. The team at Westpay will continue to do everything possible to expand our offering, add more revenue streams, and grow our business at the same time.


Publicerad november 11, 2022

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