Westpay (WPAY) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased 12% year-over-year to MSEK 15.1, driven by growth in the rental business and recurring revenues.

• EBITDA improved to MSEK -0.7 from -4.3, and EBIT to MSEK -2.1 from -7.0, reflecting cost savings and operational efficiency.

• Recurring revenues accounted for 63% of total revenues in H1 2024, up from 58% in H1 2023.

• Strategic transition to cloud infrastructure and AI integration enhanced efficiency, security, and innovation.

• A directed share issue and new partnerships, including with Dahlgren Capital and Heads, supported growth and market expansion.

Financial highlights

• Q2 2024 net sales: MSEK 15.1 (Q2 2023: 13.5); H1 2024: MSEK 30.5 (H1 2023: 30.2).

• Q2 2024 EBITDA: MSEK -0.7 (Q2 2023: -4.3); Adjusted EBITDA: MSEK 0.8.

• Q2 2024 EBIT: MSEK -2.1 (Q2 2023: -7.0); Adjusted EBIT: MSEK -2.5.

• Q2 2024 net earnings: MSEK -2.9 (Q2 2023: -6.9); EPS: SEK -0.04 (Q2 2023: -0.15).

• Gross margin in Q2 2024 improved to 84% from 78% year-over-year.

Outlook and guidance

• Long-term goal: average annual sales growth of 20% and EBITDA margin of at least 10%.

• Continued focus on expanding recurring revenues, cloud transition, and AI-driven innovation.

• Strategic partnerships and cost discipline expected to support ongoing performance improvements.