Qliro (QLIRO) Q3 2024 earnings summary

Executive summary

• Strategic shift to focus exclusively on payments, divesting the loans business and prioritizing growth over short-term profitability, supported by significant capital raises.

• Over EUR 100 million raised in capital, including SEK 50 million in new share issue and SEK 55 million in AT1 bond, to accelerate growth and Nordic expansion.

• Strong commercial momentum with more than 35% contracted volume growth, 175% increase in active merchants, and over 200 new merchant agreements signed.

• Successful launch in Norway exceeding expectations, with Finland launch planned for Q1 2025 and new country managers appointed.

• Multiple new product launches, including Qliro Checkout 0.0, Qliro Instore, and Loyalty Driver, enhancing merchant and consumer experience.

Financial highlights

• Adjusted operating profit declined to SEK -12 million in Q3 2024 due to increased investments in growth and expansion.

• Operating income grew by 2.3% year-over-year to SEK 96.1 million, mainly from increased interest in payment products.

• Total payment volume increased by 6% to SEK 2.9 billion, driven by 26% growth in Pay Now volumes.

• Credit losses rose to SEK 27 million (0.9% of TPV), mainly due to product mix changes and temporary factors.

• Restructuring expenses of SEK 5.6 million incurred in Q3 related to divestment and cost optimization.

Outlook and guidance

• Targeting over 35% payment volume growth by Q2 2025, with most new merchant volumes expected to go live in Q1 or early Q2.

• Continued prioritization of growth over short-term profitability, with ongoing investments in sales, marketing, and new market entries.

• Income growth from new volumes expected to materialize with a lag of about 18 months.

• Focus on accelerating SME and enterprise sales, optimizing onboarding, and launching in Finland.