Checkin.com (CHECK) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 declined 38% year-over-year to 18,646 KSEK, with organic growth also at -38%.

• For the first nine months, net revenue fell 14% year-over-year to 60,315 KSEK, with organic growth at -14%.

• EBITDA margin dropped to 23% in Q3 and 19% for the nine-month period, reflecting lower gross margins and reduced operational leverage.

• The company confirmed it will not meet its 2024 financial ambitions, citing weak demand and customer-specific challenges.

• Strategic focus has shifted to enterprise customers in the travel vertical, but short-term returns have been limited.

Financial highlights

• Q3 2024 gross profit was 13,646 KSEK (margin 73%), down from 25,062 KSEK (margin 84%) in Q3 2023.

• EBITDA for Q3 was 4,259 KSEK (margin 23%), down from 10,881 KSEK (margin 36%) year-over-year.

• Net revenue retention LTM was 58%, a sharp decline from 173% a year earlier.

• Cash flow from operations in Q3 was 2,023 KSEK, down from 7,650 KSEK in Q3 2023.

• Cash and cash equivalents at period end were 30,232 KSEK.

Outlook and guidance

• Management expects a challenging Q4 and confirms 2024 financial targets will not be met.

• Long-term ambitions for 2025 and beyond remain, with optimism for growth in new markets and verticals.

• Anticipates opportunities from Brazil's iGaming regulation in 2025 and expanded partnerships.