Checkin.com (CHECK) Q4 2024 earnings summary

Executive summary

• Net revenue for 2024 declined 20% year-over-year to SEK 77.5 million, with Q4 revenue down 37% to SEK 17.2 million, mainly due to negative developments in the Travel & Leisure vertical.

• The negative revenue trend seen throughout 2024 has stopped, with signs of growth at the end of Q4 and into early 2025.

• Major new agreements were signed with WestJet Group (Canada) and Ooredoo (telecom, Middle East), expanding reach in travel and telecom sectors.

• Launched FaceCheck, a new biometric login product, with first partners live in January 2025, opening new revenue streams and enhancing user experience.

• Cost control and restructuring of sales and marketing resulted in increased leads, improved sales cycles, and reduced personnel and operating expenses.

Financial highlights

• Q4 net revenue: SEK 17.2 million, down 37% year-over-year; full-year revenue: SEK 77.5 million, down 20%.

• Gross margin in Q4 was 68% (81% in Q4 2023); full-year gross margin was 74% (82% in 2023), both below historical levels due to capacity investments and delayed customer rollouts.

• EBITDA for Q4 was SEK 1.9 million (11% margin); full-year EBITDA margin was 18%.

• Net result for 2024 was a loss of SEK 18.8 million, compared to a profit of SEK 3.5 million in 2023.

• Cash and cash equivalents at year-end were SEK 29 million, with net cash of SEK 21 million.

Outlook and guidance

• Ambition remains to reach 80% Rule of 40 SaaS metric in 2025, despite 2024 result of -3%.

• Growth expected to accelerate in coming quarters, especially in travel and telecom verticals.

• Management expects the financial impact of the new WestJet agreement to be limited in the next few quarters.

• No changes to financial targets, but achieving them requires significant growth.

• The company is focused on reorganizing sales and marketing to drive global customer acquisition and aims to reclaim growth.