Checkin.com (CHECK) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 declined 3% year-over-year to SEK 20.4 million (KSEK 20,385), while H1 2024 grew 5% to SEK 41.67 million, driven by new customer acquisition but offset by lower travel volumes.

• Gross margin decreased to 75% in Q2 (from 81–85%) and 76% in H1 (from 82%), reflecting higher direct and personnel costs and capacity investments.

• EBITDA margin for Q2 was 13% (down from 21%), and 18% for H1; operating profit and net result were negative for both Q2 and H1.

• Travel vertical volumes declined sharply, impacting overall growth, while fintech expanded with a major Swedish client now the second-largest by revenue and live in the US.

• The company remains focused on enterprise clients, signing a double-digit number of new contracts in Q2 and broadening reach through technical partnerships.

Financial highlights

• Q2 net revenue: SEK 20.4 million (-3% YoY); H1 net revenue: SEK 41.67 million (+5% YoY).

• Q2 gross profit: SEK 15.31 million (margin 75%); H1 gross profit: SEK 31.76 million (margin 76%).

• Q2 EBITDA: SEK 2.7 million (margin 13%); H1 EBITDA: SEK 7.46 million (margin 18%).

• Q2 operating profit (EBIT): SEK -4.84 million; Q2 net result: SEK -4.95 million; H1 net result: SEK -7.69 million.

• Cash and cash equivalents at June 30, 2024: SEK 35.3 million; equity ratio: 87%.

Outlook and guidance

• Financial target is to maximize revenue growth per share plus EBITDA margin, aiming for 80% on an annual basis, but achieving this in 2024 is challenging after a slow start.

• Management expects a stronger H2 2024, with improved leverage and margins as volumes from large customers increase and new product rollouts and agreements take effect.