Crunchfish (CFISH) Q3 2024 earnings summary

Executive summary

• Focus shifted to commercial opportunities and revenue generation in offline payments, including Digital Cash, with divestment of gesture interaction business to cut costs by 25%.

• Eight specific revenue opportunities identified globally, structured by geography and payment system type.

• Rights issue launched to raise SEK 57 million for working capital, product development, and sales expansion, especially in India and CBDC projects.

• Direct sales efforts concentrated in India, with partner-driven sales in other regions.

• Commercial rollout in India progressing, with RBI approval and pilot with IDFC FIRST Bank.

Financial highlights

• Q3 2024 net sales: SEK 274 thousand (up from SEK 189 thousand in Q3 2023); nine-month net sales: SEK 2,371 thousand (up from SEK 654 thousand year-over-year).

• Q3 EBITDA: SEK -5,142 thousand (improved from SEK -5,717 thousand); nine-month EBITDA: SEK -14,929 thousand (improved from SEK -19,069 thousand year-over-year).

• Q3 loss before tax: SEK -6,997 thousand; nine-month loss before tax: SEK -21,186 thousand.

• Cash and cash equivalents at Q3 end: SEK 9,062 thousand (up from SEK 4,770 thousand year-over-year).

• Investments in intangibles for Q3: SEK 3,260 thousand; nine months: SEK 11,683 thousand.

Outlook and guidance

• Revenue opportunities are expected to materialize within 3–24 months, with some deals potentially closing before year-end.

• Rights issue proceeds to fund continued product development, sales, and marketing, with further financing possible via warrants in 2025.

• Major deals with Indian payment authorities and central banks are prioritized for their strategic and revenue potential.

• Timelines are best estimates due to the complexity of negotiations with large organizations.

• Eight identified revenue opportunities in India and globally, targeting both commercial and CBDC payment systems.