Quickbit reports sales of SEK 68.1 million in Q1 ’22/23. A rising sales volume was noted toward the end of the quarter, which is expected to continue into Q2 ’22/23. As the result of continued cost efficiency enhancements and a balanced product mix, the gross margin amounted to 4.2%. Full focus on the new products Quickbit Pay and Quickbit Checkout ahead of their broad launch before the year end.
First quarter, July – September 2022 in summary
- Net sales totalled €68.1 million (97.1).
- Gross profit amounted to €2.9 million (3.6) with a gross margin of 4.2% (3.7).
- Adjusted EBITDA was €1.1 million (0.3).
- EBIT totalled €0.1 million (-0.1).
- Basic earnings per share amounted to €-0.00 (-0.00).
Events during the quarter
- Quickbit Earn Wallet launched to enable users of Quickbit App in Sweden and Norway to lend Bitcoin cryptocurrency and earn a yield via a third party.
- Quickbit acquired two product platforms for increased growth and profitability going forward.
- Quickbit launched its consumer offering in Finland as part of its strategic geographical expansion.
- Anders Jonson was appointed acting CEO in addition to his role as Chief Operating Officer.
- Quickbit completed the development and integration of the first two products for the Quickbit Merchant product suite; Quickbit Pay and Quickbit Checkout and announced that the project is progressing to a phase of testing and soft launch to ensure functionality ahead of a broad launch before the year end.
Events after the quarter
- Quickbit’s Nomination Committee proposes the election of four new board members: Henrik Vilselius, Daniel Sonesson, Scott Wilson and Elena Kontou, the Committee also proposes re-election of Mikael Karlsson as Chairman of the Board. Jan Frykhammar and Hammad Abuiseifan declined re-election.
- Quickbit launched its consumer offering in the Netherlands as part of its strategic geographical expansion.
Comments by the CEO
After my first months as Chief Operating Officer and acting CEO, I am positively surprised by the high levels of competence and ambition I have seen at Quickbit. The first quarter of the financial year has been an intense period with increasing macroeconomic uncertainty globally, and rising inflation and interest rates at the same time as consumer spending power has declined. Despite the above, we see great potential in our B2C and B2B offerings where we continue to invest both in existing and in new products. We have identified future opportunities with Quickbit Merchant to adopt a more aggressive role in crypto payments.
For the quarter, net sales amounted to €68.1 million and the average daily volume (ADV) totalled €0.7 million. Net sales during the quarter has been affected by lower activity at merchants. This has been addressed and discussions held. Towards the end of the quarter, an increasing sales trend was noted, which trend we estimate will continue during the next quarter.
Year-on-year, the gross margin strengthened to 4.2% (3.7%) in the quarter as a result of cost efficiencies and favourable product and market mixes. Our ambition to increase the gross margin over time remains firm and in pace with growth in our consumer (B2C) offering, together with our new products in Quickbit Merchant, we have identified favourable opportunities for higher profitability.
High activity levels have dominated the most recent period. At the end of the quarter we completed development of the first two products of the Quickbit Merchant offering: Quickbit Pay and Quickbit Checkout. Both of these B2B products are now in a testing and soft launch phase, and we have identified considerable potential ahead of their launch.
Quickbit Pay and Quickbit Checkout will enable our expansion into additional segments while concurrently allowing us the opportunity to take a leading role in cryptocurrency payments. Once the products are launched, we will use Quickbit Pay to facilitate the user experience for our users when making cryptocurrency payments at the same time as we will be able to drive more users to the Quickbit App. With Quickbit Checkout, we enable consumers to carry out cryptocurrency payments, regardless of their crypto wallet. Broad launches are scheduled for both products before the year end, which will help increase the number of merchants. Quickbit Checkout is based on one of the two product platforms that we acquired in August.
Moreover, we are also nearing the launch of the second product platform that we acquired in the quarter. The product is a more advanced version of Quickbit Affiliate that caters to an enhanced user experience both for merchants and for consumers. The product is expected to enable increased traffic beyond the current Quickbit Affiliate solution.
On the consumer side during the quarter, we launched Earn Wallet for the Quickbit App, which allows users to lend Bitcoin and obtain a yield from third parties. We view this as a complement to our consumer offering through the ability to earn a yield with dormant capital. At the same time, we expanded our consumer offering with Quickbit App, Card and Earn Wallet to Finland, which is our third consumer market. In addition, after the quarter, we launched our consumer offering in the Netherlands. We have identified long-term potential for accelerated geographic expansion in Europe if the proposed EU MiCA regulation enters force, with a preliminary date toward the end of 2023.
As 2022 is drawing to an end, I look forward with great humility to continuing Quickbit’s development and to advancing the company to the next level and optimising the existing potential in the business.
Acting CEO and COO
For further information, please contact:
Anders Jonson, Acting CEO and COO
+ 46 73 316 80 28
This release is published in Swedish and English. In the event of any differences between the English version and the Swedish original, the Swedish version takes precedence.
This information is such information that Quickbit eu AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above contact person, on Wednesday, 9 November 2022 at 8:00 a.m CET.
Quickbit is a Swedish fintech company, founded in 2016 with the goal of making the integration of cryptocurrencies into the everyday lives of people and companies smoother. Today, Quickbit offers safe and easy-to-use products for e-merchants as well as customers. With a transaction volume to date in excess of €900 million, Quickbit has already enabled and empowered individuals around the world, through the use of cryptocurrencies. Quickbit has been listed on NGM Nordic SME since July 2019. For more information, please visit www.quickbit.comQuickbit Q1 22/23