Qliro Ab · OMXSTO:QLIRO
Qliro Ab — Q3 2024 Earnings Presentation
27 slides from Qliro Ab's earnings presentation, Nov 15, 2024
Slide 1: Q3 2024 Presentation
Q3 2024 PRESENTATION CEO CHRISTOFFER RUTGERSSON INTERIM CFO MIKAEL RAHM Qliro 1
Slide 2: Today's Presenters
TODAY’S PRESENTERS Christoffer Rutgersson Mikael Rahm CEO Interim CFO Qliro 2
Slide 3: Agenda
AGENDA • STRATEGIC UPDATE & HIGHLIGHTS Q3 2024 • BUSINESS MODEL • FINANCIAL UPDATE • OUTLOOK • Q&A Qliro
Slide 4: Strategic Update & Highlights
STRATEGIC UPDATE & HIGHLIGHTS Qliro 4
Slide 5: Strategic shift: double down on payments with new growth investments
STRATEGIC SHIFT: DOUBLE DOWN ON PAYMENTS WITH NEW GROWTH INVESTMENTS 1 DELIVER A WORLD-LEADING EXPERIENCE FOR MERCHANTS, AND THEIR CUSTOMER JOURNEY 2 ACCELERATED GROWTH MOMENTUM IN PAYMENTS VOLUME +35% TPV GROWTH 3 STRONG GROWTH OF +175% CONNECTED MERCHANTS IN Q3 4 NORWAY LAUNCH ABOVE EXPECTATIONS,
Slide 6: Strategic shift from profit towards accelerated growth
1 STRATEGIC SHIFT FROM PROFIT TOWARDS ACCELERATED GROWTH QLIRO DOUBLE DOWN ON GROWTH, SUPPORTED BY +105 MSEK CAPITAL RAISE PURE PAYMENTS COMPANY UNIQUE MARKET OPPORTUNITY ACCELERATED GROWTH FOCUS • Divested non-core private loan portfolio to focus on • Competitor’s divestment of their checkout solut
Slide 7: Deliver a world-leading experience for merchants and their customer journey
211 DOUBLE DOWN ON PAYMENTS TRANSFORMATION: DELIVER A WORLD-LEADING EXPERIENCE FOR MERCHANTS, AND THEIR CUSTOMER JOURNEY Digital Banking Services divested during Q3 enabling Qliro to fully focus on the merchant's customer journey. CONFIDENTIAL 7
Slide 8: Payments volume ramping up, +35% TPV growth signed
2 PAYMENTS VOLUME RAMPING UP +35% TPV GROWTH SIGNED Key takeaways Total Payments Volume, Growth (%) • In Q3 TPV grew 6% YoY, boosted by increased +35% number of active merchants • Slow July and August in the general e-com 35% market and lower sales at a few existing enterprise merchants • TPV rampin
Slide 9: >45% of Pay Now volumes processed in Unified Payments
2 >45% OF PAY NOW VOLUMES PROCESSED IN UNIFIED PAYMENTS DOUBLE DOWN ON PAYMENTS TRANSFORMATION QLIRO UNIFIED PAYMENTS LIVE ONE AGREEMENT LIVE QLIRO BANK MERCHANT BANK ACCOUNT ACCOUNT ONE ONBOARDING LIVE ONE PAYOUT AND REPORT LIVE Unified Payments Volumes (% of total Pay Now Volumes) ONE POINT OF CON
Slide 10: Building long term momentum in the market
3 BUILDING LONG TERM MOMENTUM IN THE MARKET MERCHANT GROWTH TAKING OFF AS OUR SME SALES SUCCEEDING Key takeaways No of active merchants • Qliro is building a position of being the first choice for merchants who change providers • Significant growth of +175% in no of active 175%, YoY merchants Y-o-Y
Slide 11: Why leading merchants choose Qliro?
3 WHY LEADING MERCHANTS CHOOSE QLIRO? COMPOSABLE PAYMENTS FOR GROWTH Marketplace/Price comparison/ DELIVER A WORLD-LEADING EXPERIENCE FOR Shopping/E-commerce MERCHANTS, AND THEIR CUSTOMER JOURNEY 1 LEADING CONVERSION IN NORDICS Experience. 2 UPSELL -> HIGHER AOV -> GM3 BOOST 3 MODULAR CHECKOUT & INT
Slide 12: Geographical expansion increases addressable market
4 GEOGRAPHICAL EXPANSION INCREASES ADRESSABLE MARKET Headquarters Norway Finland % of TPV • Launch in Norway has exceeded expectations, • Country manager with experience from main Established local commercial presence competitor starting January 2025 1 with agreements of 300 MSEK signed in Norway &
Slide 13: Launch of Qliro Checkout 0.0
5 LAUNCH OF QLIRO CHECKOUT 0.0 Comments Qliro Checkout 0.0 – Setting the new standard of conversion • Qliro Checkout 0.0 sets a new standard for maximizing checkout conversion and enhancing the customer journey • Provides seamless configuration options that integrate all major e-commerce platforms,
Slide 14: Launch of Qliro Checkout 0.0
5 LAUNCH OF QLIRO CHECKOUT 0.0 Conversion Increase Decreased Customer Drop-off +10,6% +3,2% +6,6% +7,1% Authentication Drop-off Shipping Drop-off Payment Section Drop-off -21.3% -22.3% -29.7%
Slide 15: Launch of Qliro Instore
45 LAUNCH OF QLIRO INSTORE Key takeaways Qliro Checkout 0.0 – Setting the new standard of conversion • Expands Qliro’s addressable market by entering the physical retail sector, unlocking Pay Later growth potential • Delivers a seamless, customer-focused in-store payment experience, offering merchan
Slide 16: Launch of Qliro In App Loyalty Driver
5 LAUNCH OF QLIRO IN APP LOYALTY DRIVER Key takeaways Loyalty Driver • Enhances customer loyalty by elevating the post-purchase experience. • Enables merchants to integrate targeted offers directly after purchase, driving repeat purchases. • Strengthens customer relationships through tailored offers
Slide 17: Summary Q3 2024
SUMMARY Q3 2024 • QLIRO DOUBLE DOWN ON OUR PAYMENTS TRANSFORMATION • SIGNIFICANT GROWTH MOMENTUM IN PAYMENTS (EXPECTED >+35% TPV) • STRONG MERCHANT BASE GROWTH (+175%), LAYING THE FOUNDATION FOR LONG-TERM GROWTH AND PROFITABILITY • SIGNIFICANT INCREASE IN PAYMENT VOLUMES IN THE BEGINNING OF Q4 • ENH
Slide 18: Financial Update
FINANCIAL UPDATE Qliro 18
Slide 19: Scalable business model with a natural delay between payment volumes and profit
SCALABLE BUSINESS MODEL WITH A NATURAL DELAY BETWEEN PROCESSED PAYMENT VOLUMES AND PROFIT REALIZATION Business model illustration Comments Natural Delay • Profit realization is delayed due to onboarding times and gradual loan book growth. Revenue Streams • Immediate cash flow from Pay Now, with long
Slide 20: Focus shift from profit to growth
FOCUS SHIFT FROM PROFIT TO GROWTH Key financial highlights Income development Adj. Operating expenses • With the strategic focus on Payments, we are now short-term +2.3%, YoY shifting focus from profit to growth. 101,2 + 4,6m 94,0 98,6 99,2 96,1 • Adjusted operating profit decreased to -12.0 MSEK pr
Slide 21: Q3 Performance
Q3 PERFORMANCE Comments Operational KPI’s • Total Payment Volume No. of active merchants Total Payments Volume, Bn SEK BNPL Volumes, Bn SEK increased by 6% to 2.9 Bn BNPL is our most profitable part of the Pay Later volumes given that the invoice volumes have limited fees SEK, driven by higher Pay 6
Slide 22: Stable cost base despite increased growth investments
STABLE COST BASE DESPITE INCREASED GROWTH INVESTMENTS Comments Adjusted operating expense development excl. IAC • Our focus has deliberately shifted towards growth. Increased growth efforts and geographical expansion led 81 to increased Sales & Marketing 76 75 77 expenses by 6.4 MSEK (incl. cost for
Slide 23: Capital and liquidity
CAPITAL AND LIQUIDITY Comments Capitalization Financing mix • Capital headroom of 5.4%-pts or 19,1% 103 MSEK towards regulatory requirements. 17,2% 5.4% o Including the Pillar 2 guidance (P2G) (103m) 3,5%* buffer of 3.5%, the capital headroom 15.9% was 1.9%-pts or 37 MSEK. • Solid liquidity position
Slide 24: Outlook
OUTLOOK Qliro 24
Slide 25: Looking ahead - acceleration
LOOKING AHEAD - ACCELERATION 1 ACCELERATE OUR SME & ENTERPRISE SALES ENGINE 2 PRIORITING GROWTH TO CAPITALIZE ON OPPORTUNITIES 3 CONTINUED TO INVEST IN OUR PAYMENT CAPABILITIES 4 EXPAND ADDRESSABLE MARKET BY LAUNCH IN FINLAND 5 CONTINUE TO OPTIMIZE ONBOARDING TO HANDLE INFLOW 6 TARGET OVER 35% TPV G
Slide 26: Q&A
Q&A Qliro 26
Slide 27: IR@qliro.com
QLIRO SAFE AND SIMPLE IR@QLIRO.COM