Checkin.com grows revenues 70.9% in Q3 following GetID acquisition
Swedish technology supplier Checkin.com has released its financial results for the third quarter of 2021, showing net revenue for the period of SEK9.6m, representing a growth rate of 70.9% year-on-year.
Checkin.com offers products and services to businesses in iGaming and other industries, which allow users to more easily register and log in to customer accounts.
The business’ gross profit for the quarter, calculated as the net revenue less the costs directly attributable to the usage and transaction volume in the supplier’s products and services, but not including indirect costs such as sales and marketing or research and development, came to SEK7.5m, up 62.7% year-on-year.
Checkin.com also pointed out that the gross margin has increased from 81% in the full year 2020, to 84% during the first nine months of 2021. This, the business said, indicates that the gross margin generally increases with scale.
Excluding figures from GetID, which Checkin.com acquired during the quarter, the supplier said the gross margin would have stood at 87% for the year-to-date, rather than 84%.
The business has invested significantly into its growth during the quarter, including expenses of SEK3.8m relating to sales and marketing. This represents an increase of 245.5% compared to sales and marketing spend in Q3 2020.
Given its increased levels of investment, EBITDA for the quarter came in at a negative figure of SEK1.3m – this, compared to SEK1.3m in positive EBITDA for Q3 2020, represents almost exactly the SEK2.7m increase in sales and marketing expenditure seen year-on-year.
Total operating expenses came to SEK17.8m, and left the business with an operating loss of SEK4.1m.
The expenses consisted of SEK2.0m in direct costs, SEK3.9m in other external costs, SEK9.0m in personnel costs, SEK2.8m in depreciation and write-down of tangible and intangible assets, and other operating expense of SEK56,000.
After a further loss of SEK120,000 on interest and other financial items, Checkin.com announced a net loss of SEK4.2m, or SEK0.16 per share.
The business said its plans for the coming years remain firm, with continued investments in partner acquisition and global scalability expected.
The business also has an active acquisition strategy, and is looking at opportunities to acquire technology and teams to help drive its growth.
At the end of the quarter, Checkin.com partner Betcity went live on the newly regulated Dutch iGaming market, and was the supplier’s first partner to do so.
Checkin.com said it has more clients lined up in Dutch iGaming, and that revenue from the Netherlands alone should be able to significantly contribute to growth in Q4.
Kristoffer Cassel, chief executive and founder of Checkin.com, concluded: “As we put another quarter behind us I can state that our financial position is good, with a strong core business with high margins.”
“This enables continued investments. We try to build a company that moves both quickly and long term, thereby creating sustainable shareholder value. I think Q3 is a great example of this.”