Westpay (WPAY) Q4 2022 earnings summary

Executive summary

• Revenue reached SEK 70.4m in 2022, and EBITDA was positive for the full year for the first time since 2017; net loss narrowed to SEK 8.8m from SEK 19.1m.

• Growth continued in each quarter for seven consecutive quarters YoY; gross margin and recurring revenue reached record levels.

Financial highlights

• Revenue was SEK 70.415m vs SEK 53.706m in 2021; operating loss was SEK 8.140m vs SEK 18.557m.

• Net loss was SEK 8.768m vs SEK 19.057m; financial expenses were SEK 659k vs SEK 501k.

• Capitalized own work was SEK 12.022m vs SEK 6.600m; inventory write-downs were SEK 6.662m vs nil.

• Operating cash flow was negative SEK 2.351m vs positive SEK 2.130m; year-end cash was SEK 4.665m vs SEK 12.481m.

Outlook and guidance

• Long-term targets remain average annual sales growth above 20% and average EBITDA margin of at least 10%.

• Planned investment in products, technology, sales resources and certifications is intended to support growth and long-term customer and partner relationships.

• Management expects funding to cover the next 12 months only if the planned additional capital raise is secured.