Quickbit publishes Q3 interim report ‘23/24

Quickbit reports sales of € 23.4 million during Q3 ‘23/24 to compare with € 8.9 million during the second quarter ’23/24. This growth is due to increased transaction volumes via Quickbit’s new partners and that Quickbit’s inhouse developed products are now starting to contribute to turnover. The gross margin amounted to 5.4 %. For the fourth quarter '23/24, Quickbit expects to further double its net sales from the third quarter's level while maintaining a gross margin above 4%.

After the end of the quarter, Quickit’s liquidity position has been strengthened by approximately € 0.5 million through the previously communicated bridge loan received from Paysecure, as well as by € 0.7 million regarding a repayment of previously paid preliminary tax.

Third quarter, January - March 2024 in summary

•  Net sales totalled € 23.4 million (59.3). 
• Gross profit amounted to € 1.3 million (2.5) with a gross margin of 5.4% (4.2%).
• Adjusted EBITDA was € -0.2 million (0.0). 
• EBIT totalled € -1.1 million (-3.8). 
• Basic earnings per share amounted to -0,01 EUR (-0,04). 

Nine months period, July - March '23/24 in summary

• Net sales totalled € 36.5 million (209.0). 
• Gross profit amounted to € 1.9 million (8.8) with a gross margin of 5.1% (4.2%).
• Adjusted EBITDA was € -2.9 million (1.9). 
• EBIT totalled € -7.7 million (-4.9). 
• Basic earnings per share amounted to -0.09 EUR (-0.06). 

 

Events during the quarter

• Quickbit announced that the Gibraltar Financial Services Commission (GFSC) has completed its investigation regarding Quickbit Limited. The result of this investigation meant that Quickbit Limited's local registration was revoked. However, the GFSC found no reason to impose any fines or other action.
• Quickbit strengthened the Group Management team with Wilhelm Eklund who was promoted to Chief Technical Officer.

Events after the quarter

• Quickbit responded to an article published in Affärsvärlden regarding the partner Paysecure that lacked essential information necessary for a fair view.
• Quickbit announced a financial update where the net sales for the third quarter of ’23/24 were expected to double from the last reported level of 8.9 million EUR, with a maintained gross margin over 4%. At the same time, Quickbit announced that an agreement had been made with Paysecure regarding an interest-free convertible bridge loan of 0.5 million EUR within the framework of the option agreement announced on November 28, 2023.
• Quickbit announced that Group Management strengthens with the new recreuitment of Bas Hagenaars as Head of Marketing.

Comments by the CEO

It is with great pleasure that I can report a strong recovery and growth in the past quarter. This demonstrates that Quickbit is on the right track. We are seeing an increase in transaction volumes, closed deals with new customers, and more people choosing to use Quickbit’s payment solutions. We are also witnessing growing demand for our payment solutions from partners operating in other European countries. The model that Quickbit pivoted to, after abandoning the old transaction structure, is working well and provides Quickbit with a more long-term and sustainable business.

Financially, the quarter can be summarized by noting that our estimate of a 100% revenue increase from Q2 to Q3 has not only been met, but significantly exceeded. We increased revenue by a remarkable 163%, which is a fantastic result that I am very proud of. At the same time, we have halved our operating costs compared to the same quarter last year as a result of reaching full effect in our cost-saving program initiated in the spring of 2023.

Our financial position has also been strengthened after the end of the quarter. This is partly due to the interest-free convertible bridge loan from Paysecure of € 0.5 million and partly due to the repayment of preliminary taxes paid of approximately € 0.7 million.

At the same time, I am very pleased to announce that we are seeing continued strong revenue growth in the current fourth quarter and expect to double revenue again in the fourth quarter compared to the third. This is an unprecedented testament to strength and a phenomenal achievement by the new generation at Quickbit.

With our strengthened financial position and continued good development, I am proud that Quickbit is now on the right track and that we are approaching the point where we can stand completely on our own.

We now see that there is better stability in our products and therefore higher quality in our delivery to partners and customers. At the same time, we have improved our capacity to handle larger customers’ transaction volumes. Quickbit has made significant progress in automated and mechanical handling of transaction volumes to further be a reliable partner to merchants with high demands. We have worked closely with established partners with large European transaction volumes on product development, which means that Quickbit Pay has made great strides and matured as a solution. This makes the product increasingly competitive for large customers, and we see a greater international demand from this type of actor.

With lower costs, higher efficiency, greater product capacity, and increasing demand, Quickbit is now well-positioned for the future. It is also a true joy to see how the staff at Quickbit have developed during last calendar year’s challenging liquidity, pivoting, and capital injection. Today, the company has record levels in the employee satisfaction survey eNPS, which indicates that employees are both confident and believe in the company. This is an important component in the continued growth and scaling journey.

Now that some established partners with large transaction volumes are close to starting to use Quickbit’s solutions, there is every reason to believe in increased growth going forward. Furthermore, at the beginning of the next financial year, Quickbit will prepare to target new industries. Quickbit will take increasingly larger steps towards becoming a comprehensive solution for established customers and will continue with adaptations for market-specific needs for follow-up and transaction handling.

Times are good. With these words, I want to thank owners, staff, and the board for excellent cooperation in turning the company from a strongly challenging situation to a future with enormous potential.

Thank you.

 

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, 22 May 2024 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