Checkin.com Group (STO:CHECK) reports negative growth during Q4, but a turning point around the year-end.
The report in brief:
FY 2024 (vs FY 2023):
- Net revenue decreased to KSEK 77,477 (96,987) which corresponds to a growth of -20 (38)%, of which -20 (37)% was organic.
- Gross profit for the period amounted to KSEK 56,995 (79,690) with a margin of 74 (82)%.
- EBITDA for the period amounted to KSEK 13,600 (27,204) with a margin of 18 (28)%.
- Cash flow from operating activities amounted to KSEK 13,748 (24,627).
- Net Revenue Retention LTM amounted to 58 (141)%.
- Cash and cash equivalents amounted to KSEK 28,966 (37,656).
Q4 2024 (vs Q4 2023):
- Net revenue decreased to KSEK 17,162 (27,191) which corresponds to a growth of -37 (38)%, of which -37 (38)% was organic.
- Gross profit for the period amounted to KSEK 11,593 (22,035) with a margin of 68 (81)%.
- EBITDA for the period amounted to KSEK 1,877 (9,238) with a margin of 11 (34)%.
- Cash flow from operating activities amounted to KSEK 5,165 (16,578).
- Net Revenue Retention LTM amounted to 58 (141)%.
- Cash and cash equivalents amounted to KSEK 28,966 (37,656).
CEO Letter from Year-end report
Despite hard and determined work during 2024 we now close the fourth quarter and acknowledge that we are far from satisfied with the results. Revenues for the full year decreased by around 20% compared to 2023. At the same time it feels like the hard work is starting to pay off as we recently stopped the downward trend. We have signed an agreement with our second major airline, something that has been a much-anticipated milestone for us as a company. Equally important, however, is that we are also seeing a slight improvement on the revenue side towards the end of Q4.
We are currently in a transition period regarding how we organize and carry out our sales and marketing efforts. The main focus has been on developing and refining our digital tools and processes for customer acquisition. The ambition behind this reorganization is to ensure that more global companies recognize us and the advantages of our software. As noted above, we are already seeing positive signs in this area. Our software is truly world-class, and we see significant opportunities to win additional market shares across all our customer segments.
Ever since Checkin.com was founded in 2017, it has been crucial for us to invest significant resources in our software development, not only to stay at the forefront technologically but also to enhance the experience we deliver to all users. In 2024, we have invested in the development of a new biometric login solution, FaceCheck. FaceCheck uses facial recognition to verify an individual in just a second. For users, the process is completely seamless, providing an even smoother verification experience. This new product is specifically designed to comply with upcoming regulations and creates new revenue opportunities by enabling additional touchpoints throughout the customer journey. FaceCheck has already been launched, and in January 2025, our first partners went live.
For some time now, we have focused on attracting Enterprise partners within the travel vertical. That's why we were especially excited to announce that one of North America's largest airlines, Canadian WestJet Group, has signed an agreement with us. It has been a long process, so it feels great to finally have it in place. This agreement is important for us in two ways: first, it marks our second major airline partnership, and second, it represents an important step in our efforts to expand our business in North America. WestJet is already live with our solution, but we expect the financial impact over the next few quarters to be limited. We are also actively engaged in several ongoing procurement processes and discussions with other major airlines, with a few in decisive stages. The more Enterprise agreements we secure, the easier it becomes to build momentum within the industry.
In previous quarters, we have communicated uncertainty regarding the collaboration with the large Swedish fintech company, and that situation remains. The agreement is still active, but the same uncertainty as before remains regarding the usage and future development of the partnership.
Summarizing: the full year of 2024 is a disappointment, of course from a growth perspective, but foremost based on the expectations we have on ourselves as a company. With that said, we have taken many important steps which have laid a foundation both for how effectively we can develop our software and from an organisational perspective. A foundation that we believe will be decisive for Checkin.com looking long-term.
Even though revenue has not increased as hoped, we maintain a strong cost control and continuously adjust our costs to align with current revenue levels. In this context, it is also important to highlight the negative impact on revenue from the previously communicated termination of our partnership with RingCentral. The agreement, which was not profitable for us, generated revenue of approximately MSEK 1.1 per month but also resulted in personnel costs of a similar magnitude.
Our long-term target remains: to maximize the sum of revenue growth per share and EBITDA margin, with an ambition of exceeding 80% on an annual basis. This is a highly ambitious target, and for the full year 2025, achieving it will be challenging unless we can significantly accelerate growth in the coming quarters.
The entire team is now working with determination and a long-term perspective to increase our revenue sustainably and, in doing so, reclaim our position as a strong growth company.
Christian Karlsson
CEO, Checkin.com Group
The full Year-end report is now published and available on: https://group.checkin.com/investors/reports/
Webcast (Swedish)
Investors, analysts and journalists are invited to a webcast 2025-02-13 08:30 CET where the company's CEO and CFO will present the report, followed by a Q&A session. The presentation is available through this link:
https://www.finwire.tv/webcast/checkin-com/bokslutskommunike-2024/
An English version of the webcast will be published on the company's website later today.
For further information, please contact:
Jonas Köpniwsky, Head of Communications Checkin.com Group, press@checkin.com
This information is information that Checkin.com Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at the time stated by Checkin.com Group's news distributor Cision at the publication of this press release.
Certified Adviser
Checkin.com Group's Certified Adviser is Carnegie Investment Bank AB (publ).
About Checkin.com Group
Checkin.com Group, founded in 2017, specializes in creating secure digital environments by helping businesses establish who is on the other side of the screen. The company's advanced KYC solutions streamline user registration, identification and login processes while also ensuring that their customers meet strict regulatory standards. This is achieved through a variety of advanced technologies that in real time verify user identities, assess ages, and scan official documents with high accuracy. The software also features biometric technologies to provide an extra layer of fraud prevention while enabling seamless experiences for end-users.
By offering a smooth and secure experience for users and flexibility and customer-focus for partners, the software drives both user trust and business growth. The Group is headquartered in Stockholm, Sweden, but operates and recruits globally to attract world-leading talent.
Checkin.com Group's share is since 2021 listed on Nasdaq First North Growth Market under the trading symbol "CHECK". The company creates shareholder value and growth through organic growth and strategic acquisitions.
For more information about the company visit: https://group.checkin.com/investors/
