Checkin.com (CHECK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 38% year-over-year to SEK 18.6 million, the lowest quarter this year, mainly due to travel segment weakness and loss of Datacorp-related income.

• Gross profit margin fell to 73% from 84% in Q3 2023, and EBITDA margin dropped to 23% from 36%.

• Operating profit and net result turned negative, with a Q3 2024 net loss of SEK -3.85 million compared to a profit last year.

• Heavy investments in product and marketing, especially in the travel vertical, have not yet yielded growth, making 2024 a 'lost year' for expansion.

• Optimism remains for 2025, with ongoing discussions with global airlines and opportunities in the regulated Brazilian iGaming market.

Financial highlights

• Net revenue for Jan–Sep 2024 was SEK 60.3 million, down 14% year-over-year; organic growth also -14%.

• Gross profit for Jan–Sep 2024 was SEK 45.4 million (margin 75%), down from SEK 57.7 million (margin 83%).

• EBITDA for Jan–Sep 2024 was SEK 11.7 million (margin 19%), down from SEK 18.0 million (margin 26%).

• Cash flow from operating activities was SEK 2 million in Q3; quarter-end cash position was SEK 30.2 million with an equity ratio of 87%.

• Net result for Jan–Sep 2024 was SEK -11.5 million, compared to SEK 1.3 million last year.

Outlook and guidance

• 2024 is not expected to meet financial goals, but the ambition remains to exceed the Rule of 40 (growth + EBITDA margin >80%) in 2025.

• Q4 is expected to remain challenging, but management is optimistic about 2025 due to a strong pipeline and regulatory changes in Brazil.

• Long-term growth ambitions focus on enterprise customers and the Travel vertical.