Quickbit reports a temporary decline in sales, at €69.3 million, while the product mix and cost-efficiency improvements resulted in a higher gross margin of 4.3% in the fourth quarter. Quickbit’s strong financial position enables continued investments in future growth, despite the increase in economic and geopolitical uncertainty in the business environment.
Summary of the fourth quarter, April–June 2022
- Net sales totalled €69.3 million (83.1).
- Gross profit amounted to €3.0 million (3.0) with a gross margin of 4.3% (3.6).
- Adjusted EBITDA was €0.7 million (-0.2).
- EBIT totalled €-0.5 million (-0.3).
- Basic earnings per share amounted to €-0.00 (-0.01).
Full-year summary for July 2021–June 2022
- Net sales totalled €346.7 million (250.6).
- Gross profit amounted to €13.6 million (10.5) with a gross margin of 3.9% (4.2).
- Adjusted EBITDA was €2.4 million (2.3).
- EBIT totalled €-0.9 million (1.6).
- Basic earnings per share amounted to €-0.0 (-0.01).
Events during the quarter
- In April, Karin Burgaz, at her own request and for personal reasons, chose to step down from Quickbit’s Board of Directors.
- In May, Quickbit launched a VISA card, the Quickbit Card, for the general public in Sweden, thereby making Quickbit the first Swedish crypto company to offer a debit card in Sweden. The Quickbit Card was also launched in Norway at the end of the quarter.
- In May, Simon Afeworki announced his departure from Quickbit. Susanne Andersson was appointed as the interim CFO and will join Quickbit’s management team.
- In June, Quickbit announced that they would strengthen the management team with the addition of Anders Jonsson in a newly created role as Chief Operating Officer (COO).
- In June, Quickbit received the final repayment of the outstanding receivable comprising deposited collateral in the form of €3.9 million in cash and cash equivalents. The payment is intended to be used for acquisitions and investments in growth.
Events after the quarter
- In July, Earn Wallet was launched – a feature that allows users of Quickbit App to lend cryptocurrency and earn a yield via a third party. Earn Wallet is initially being launched for the lending of Bitcoin and is available for users in Sweden and Norway.
Comments by the CEO
In the fourth quarter of ’21/22, we noted a turbulent business environment with considerable financial and geopolitical uncertainty, high inflation and monetary tightening. Despite greater uncertainties about the economy, we are noting sustained robust demand for Quickbit’s services. Consequently, we are investing in the further development of new and existing products in order to increase the acceptance of cryptocurrency and further strengthen our growth potential.
Net sales for the quarter totalled €69.3 million, down 17% year-on-year. ADV totalled €0.8 million. The decline in revenue is temporary and primarily attributable to a lower conversion rate within Quickbit Affiliate, which resulted in expedited system upgrades to a more flexible product solution with a capacity for processing greater volumes. Upgrading efforts will continue initially into the next quarter and will strengthen our offering in anticipation of a stronger winter season. The decline in sales was also attributable to lower activity among merchants in comparison with the preceding year. The number of merchants rose by 8 to total 82 during the quarter.
The gross margin strengthened to 4.3% (3.6%), as a consequence of the product mix and improvements in cost-efficiency from renegotiated supplier agreements. We have a strong financial position with net cash of 10 million and no loans.
Despite a year upset by the pandemic, inflation and macro-economic uncertainty, we have increased our sales by 38% in the past year and laid a solid foundation for a scalable business model, as well as expanded our offering, which will result in more diversified revenue streams over time. Today, Quickbit has an established platform for e-merchants operating within a growing segment, where our solution is in demand. During the year, we also acquired several licenses, which is a clear indication of the company’s maturity and a critical component of our strategy for sustainable growth. Our licenses in Sweden, the Netherlands, Finland and Norway provide us with a solid foundation to further expand and establish our consumer platform within Europe.
As a company, we have also matured in our processes and during the year, we strengthened our establishment in Gibraltar and built a tech hub in Serbia. Our innovations and development processes are beginning to show results, with a series of future product launches. Our capacity to develop and adapt our products in an agile and precise manner, will be important for staying at the leading edge of future consumer needs.
During the year, we launched several new products for consumer platforms: The Quickbit App in Norway, the Quickbit Card and, following the close of the quarter, Earn Wallet.
We are making progress in the development of the Merchant platform and we are in the final phase of our first product launch, which we are looking forward to in the autumn. The first Merchant product will involve an integrated payment solution provided by e-merchants that allow cryptocurrency wallets. The customer will have the option of choosing Quickbit as one of several payment options. Discussions are under way with major actors who could provide the product with increased visibility among several merchants.
With our current business mix (B2B) comprising: Quickbit Affiliate, soon to include Quickbit Merchant and within (B2C): Quickbit App, Quickbit Card and Earn Wallet – we have a unique ecosystem of services and a thus ready to establish ourselves as a strong European actor in cryptocurrencies.
Looking ahead, we will continue to invest in our products and organisation, and establish new global business partnerships. Despite the current macro-economic uncertainties, we are noting good opportunities for recovery and to increase sales within Quickbit Affiliate as well as to expand with new revenue streams in our consumer offering. The goal is to achieve sustainable and profitable growth with an improved gross margin, driven by our future business mix and further improvements to cost efficiency.
Finally, I would like to thank our customers, business partners and our fantastic organization for a successful year, and look forward to leading Quickbit toward new goals.
For further information, please contact:
Hammad Abuiseifan, CEO, +46 (0)73 095 87 12
Susanne Andersson, CFO, +46 (0)73 066 89 04
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.com
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 persons, on Thursday, 21 July 2022 at 8:00 a.m CET.Year-end report 2021/2022