Westpay (WPAY) Q4 2024 earnings summary

Executive summary

• Achieved profitability in Q4 2024, marking a significant financial recovery milestone.

• Net sales grew 22% in Q4 year-over-year to MSEK 20.1; full-year net sales up 13% to MSEK 67.6.

• Recurring revenues now represent 63% of total sales, enhancing revenue predictability.

• Strategic partnerships and technology innovation, including cloud migration and SoftPOS launch, expanded market reach.

• Transaction volumes processed surged 210% year-over-year, with a 12-month run-rate exceeding SEK 150 billion.

Financial highlights

• Q4 EBITDA was MSEK 3.2 (1.3), EBIT MSEK 0.7 (-1.7), and net earnings MSEK 0.2 (-8.7) compared to Q4 2023.

• Full-year EBITDA was MSEK 5.9 (-8.9), EBIT MSEK -3.6 (-19.7), and net earnings MSEK -6.2 (-27.6) year-over-year.

• Gross margin improved to 87% in Q4 (65% prior year) and 85% for the full year (75%).

• Cash flow from operating activities was MSEK 5.6 in Q4 and MSEK 8.6 for the year, both positive reversals from 2023.

• Equity ratio increased to 17% (6% Q4 2023); cash position at year-end was MSEK 0.4.

Outlook and guidance

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

• RCRR for the next 36 months stands at MSEK 159, supporting long-term revenue visibility.

• Organizational restructuring in early 2025 aims to drive efficiency and sustain innovation.