Quickbit publishes Q1 interim report ‘23/24

 Quickbit reports sales of €4.1 million in Q1 '23/24. At the same time, the gross margin was 4,3%. 

First quarter, July – September 2023 in summary

• Net sales totalled €4.1 million (68.1). 
• Gross profit amounted to €0.2 million (2.9) with a gross margin of 4.3% (4.2).
• Adjusted EBITDA was €-1.3 million (1.1). 
• EBIT was €-1.9 million (0.1). 
• Basic earnings per share amounted to €-0.02 (-0,02).
   

Events during the quarter

•  Quickbit published the Nomination Committee ahead of the 2023 Annual General Meeting comprising Scott Wilson (appointed by Aurentum LLP), Thomas Jonsson (appointed by Furuhem Fastigheter AB), Wael Mrad (Chairman) and Peter Liljeroos, Chairman of the Board.
• Quickbit announced the launch of an innovative Merchant Referral Program to increase market awareness of the new product Quickbit Pay.
• Quickbit announced the completion of a rights issue of SEK 32.5 million.
• Quickbit held an investor presentation, followed by a Q&A.
• Quickbit signed a settlement agreement with Parman Enterprises UK Limited regarding a previous acquisition.
• Quickbit launched a Chrome extension and Web App in preparation for expanding accessibility towards an even wider market. 
• Quickbit started a collaboration with the World Ethical Data Foundation involving the integration of Quickbit Pay. 
• Quickbit started a partnership with Paysecure for driving new customers and users through their advanced and secure payment platform, along with their network of merchants.
   

Events after the quarter

•  Quickbit started a collaboration with RightBridge Ventures Group to commence investments in Esport and Gaming.
• Quickbit strengthened the business with additional experience in tech.
• Quickbit announced an updated schedule for the rights issue, published a prospectus and announced new dates for the publication of the Annual Report and the Annual General Meeting.
• Quickbit announced an expansion of its offering to Poland and Lithuania.
• Quickbit provided an update about the subscription of shares by Board members, senior executives and certain employees in connection with, and after, the rights issue. 
• Quickbit signed its first customer for Quickbit Pay via the collaboration with Paysecure.
• Quickbit signed a partnership agreement with e-commerce platform Abicart, which has over 2,500 merchants. The first merchants were also signed through the platform.
• Quickbit completed a rights issue, raising additional capital of approximately SEK 21 million before issue expenses of about SEK 5.3 million.
• Quickbit strengthened its Group Management through the appointment of Elvira Vänerfors as Head of Compliance.
• Quickbit announced that the Board has decided to, in the second quarter of ’23/24, write down the value of one of the product platforms that the company acquired during the previous financial year. This will result in a profit effect of €-2.85 million, but the impairment is an accounting technical measure and will not affect Quickbit’s liquidity.
• Quickbit expanded the collaboration with Paysecure so that it to a larger extent includes marketing and customer acquisition from Paysecure in exchange for the possibility of future ownership in Quickbit.

Comments by the CEO

During the previous financial year, Quickbit experienced a significant loss in revenue in the transaction structure that was primary at the time. Already at the end of the second quarter ‘22/23, the board perceived clear signals that the revenue was at risk of being significantly reduced. This risk was realized around the turn of the year 22/23 and was primarily driven by reduced revenue at partners, but also through their choice to reduce the proportion of the transaction volume that was sent to Quickbit. 

In February, the board chose to change the CEO and the new management put full focus on securing the company’s financing, reducing costs, completing the in-house developed products Quickbit Pay and App, and seeking new, stable and far-reaching partnerships.

The decline in revenue continued during the first quarter ‘23/24, which was expected. The effects of the new management’s measures have already had an impact in the first quarter of ‘23/24, mainly regarding lower personnel and consulting costs. However, the revenue-generating measures have not yet yielded results, which is the reason for the quarter’s loss. I want to point out that this was expected and the primary reason why Quickbit chose to carry out a rights issue.

Despite this, the quarter offers several important successes. Among other things, a new important strategic partnership with Paysecure which will be a platform for efficient customer processing and cost-effective user generation.

We have also received a positive response from the market, where several well-known merchants have shown clear signs that they see a future for themselves in the use of Quickbit’s proprietary products. A number of dialogues have led to successful partneships and several exciting business collaborations are underway.

I am grateful and impressed by the performance and energy of all committed employees in how they tackled this challenging time that the company has gone through. I see it as a clear statement of strength that several merchants with significant business volumes showed great interest in Quickbit so quickly after the launch of the first version of our new products.

Quickbit has thus managed a problematic time to the best of its ability and we will be a stronger company than before when new partnerships begin to deliver fully.

Daniel Sonesson
CEO 
Quickbit
 

For further information, please contact:

Daniel Sonesson, VD

+ 46 73 530 30 25
[email protected] 

This release is published in Swedish and English. In the event of any differences between the English version and the Swedish original, the Swedish version takes precedence. 

This information is such information that Quickbit eu AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above contact person, on Wednesday, 29 November 2023 at 8:00 a.m CET.

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Quickbit is a Swedish fintech company, founded in 2016 with the goal of making the integration of cryptocurrencies into the everyday lives of people and companies smoother. Today, Quickbit offers safe and easy-to-use products for e-merchants as well as customers. With a transaction volume to date in excess of €1 billion, Quickbit has already enabled and empowered individuals around the world, through the use of cryptocurrencies. Quickbit has been listed on NGM Nordic SME since July 2019. For more information, please visit www.quickbit.com