Westpay (WPAY) Q3 2024 earnings summary

Executive summary

• Net sales grew 32% year-over-year in Q3 2024 to MSEK 16.3, with recurring revenue now 67% of total sales.

• EBITDA improved to MSEK 1.6 in Q3 2024 from MSEK -3.0 in Q3 2023, reflecting cost management and rental business growth.

• Transaction volume through the payment gateway surged 170% compared to 2023, with a 12-month run-rate near SEK 150 billion.

• Strategic partnership with Nykapital in Denmark expands Nordic market presence.

Financial highlights

• Q3 2024 net sales: MSEK 16.3 (Q3 2023: MSEK 12.4), up 32%; recurring revenues: MSEK 11.4, up 16%.

• Q3 2024 EBITDA: MSEK 1.6 (Q3 2023: MSEK -3.0); EBIT: MSEK -0.8 (Q3 2023: MSEK -5.8); net earnings: MSEK -1.4 (Q3 2023: MSEK -6.5).

• Gross margin in Q3 2024 was 82% (Q3 2023: 88%).

• For Jan–Sep 2024, net sales: MSEK 46.8 (Jan–Sep 2023: MSEK 42.6), up 10%; EBITDA: MSEK 2.7 (Jan–Sep 2023: MSEK -10.2).

• Cash flow from operating activities in Q3 2024 was MSEK 1.2 (Q3 2023: MSEK -3.4).

Outlook and guidance

• Management expects continued growth, focusing on reliability, security, and compliance.

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

• Ongoing investment in scalable cloud infrastructure and data-driven services to support expansion.