PEPINS GROUP AB (PUBL) September was somewhat of a quieter month news wise. We are extremely focused on booking meetings with as many customer prospects as possible. Since our sales cycles are long, it is somewhat of a numbers game to ensure that a sufficient number of those prospects convert. I'm pleased to say that in September, we broke a record in the number of booked meetings, which is good for the future. Our sales team's efforts are working nicely!
It is superb that the sales activities have really started. We lost some momentum with the turbulence this summer, which unfortunately will show in the figures for the autumn. But it is a bump in the road that we have now passed. To support sales, we will have a customer webinar the second week of November.
Some exciting news from the market is thatEQT acquired Billtrustfrom Nasdaq for 1.7 billion dollars. Billtrust is similar to Payer in how they are transforming B2B payments and the order-to-cash cycle for the world's largest brands. It shows once again that the market is ripe for our solutions, and that interest is high despite the market downturn for tech companies. One of Billtrust's competitors in North America has already shown interest in us, and as we grow, this interest will only increase. B2B Payments is hot.
After the summer, we worked to further reduce our burn rate, which has had a positive effect on our liquidity. The major effect of our savings program will now come in Q4, but since revenue for the autumn will be somewhat lower than forecasted, we have a clear focus on reducing costs to reach profitability.
We have reduced the cost base by 40% since May. Despite this, we expect to increase turnover by 70% for the year, which is fantastic under the circumstances! The team has done an outstanding job with the funds they have been given to work with.
Please find below our recap for September.
Best regards
TeamPayer
HIGHLIGHTS
- We have very high team activity on the commercial side. The sales team has multiple exciting discussions with prospective customers underway, such as with Sweden's largest real estate company.
- As mentioned in our previous update, we helped Returpack integrate Swish into their payment solutions stack. Returpack is a customer we expect to be a great case. Approximately 100 million transactions can be made via Swish for Returpack each year.
CHALLENGES
- Although we have numerous exciting customer discussions underway, they have long lead times. Our current estimate is 12 months for the entire sales cycle. To combat this, we have increased our volume of meeting new leads.
- With our new budget to keep burn low, we have decreased our spend on external consultants. This resource limitation affects the volume of projects we are able to develop and execute which in turn affects revenue. Everything simply takes longer.
CONTRIBUTION WELCOME
- We are looking for new customer leadsand are grateful for introductions to companies within the Banking & Financing sector and large European industry enterprises with global sales. If you have a company in mind who you can introduce us to, please do.
- There is only 7 million SEK left in our convertible. If you know someone who would be a great fit for us, now is the time to introduce us as we are close to closing.
- We are making a public sales push for our B2B SignUp solution. Please engage with our most recentLinkedIn post, by liking, commenting and/or sharing, where we highlight how SignUp helps B2B companies onboard new customers quickly.
KEY METRICS
[Link][Link]Transaction volume growth 2020 - September 2022[Link]
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Pepins Group AB published this content on 19 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2022 13:55:13 UTC.
