Westpay (WPAY) Q4 2023 earnings summary

Executive summary

• FY 2023 was marked by weaker demand, lower system sales to resellers carrying prior-year inventory and a weak Swedish krona; revenue declined YoY, while Q4 showed improvement.

• Cost savings, new partnerships and contracts, product launches and capital measures were intended to improve financial flexibility and support growth in 2024.

• New long-term agreements signed in recent months were valued at more than SEK 100M over the next four years.

Financial highlights

• FY revenue was SEK 61.113M versus SEK 70.415M in 2022; operating loss was SEK 19.709M versus SEK 8.141M.

• Net loss was SEK 27.594M versus SEK 8.769M, including a SEK 6.634M deferred-tax-asset write-down; excluding this non-cash item, the reported loss was lower by that amount.

• Operating cash flow was negative SEK 20.657M versus negative SEK 2.351M; investing cash flow was negative SEK 17.781M and year-end cash was SEK 0.856M.

Outlook and guidance

• Management expects the cost-saving program, largely fully implemented by Q4-end, to support positive EBITDA and positive operating cash flow in 2024.

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

• Planned investment focus includes product and technology development, sales resources and certifications to build long-term customer and partner relationships.