Spotlio AS (SPOT) Earnings Call Transcript & Summary

Welcome to the Q4 Presentation for Canopy Holdings Group. Just as a reminder, we have a deviating financial year, so our Q4 is from February to April. I am Ivar Blekastad. I'm the Group CFO, and I'm also currently serving as the interim CEO. I will just go through some items. Sherry -- sorry, I had some feedback here. First, going through some summary of highlights before I bring it over to the financials and also show some updated KPIs, including May before we go to Q&A. We had NOK 29 million in revenue in the quarter, and we ended the quarter with NOK 77 million in the cash balance. Updated KPIs, including May shows EUR 7.9 million in B2B recurring revenue. And that's a growth of 28% year-over-year from May last year, and that comes from 238 resort partners, which show a growth of 29 partners since May last year. Other items, I would like to say that we -- as we also considered last year, we now decided on a noncash impairment charge to the intangible assets related to the former Skitude Technologies Group of NOK 53 million. And we also have decided to discontinue the ski business, which will give us an expected net improvement in annual cash flow of some NOK 2.5 million going forward. There are some further details on both of these items in appendix, so I will not go into details here. Another thing is that we have seen this churn in Q4 compared to prior year, and I will get back to that. First, I will take you through the financials and starting with the P&L. And the revenues of NOK 29 million in the quarter is actually up 47% growth over same quarter the prior year. But that includes a quite large recognition of deferred revenues related to non-redeemed gift cards that has been sold on Liftopia.com in previous years. And that part of our revenues is recognized under others, as you can see in the pie chart there. We also have recognized NOK 5 million in a calculated share-based compensation cost in the quarter. And we also had some other nonrecurring items, among others, some extra costs related to the CEO change. And you can see how much the impairment charge is affecting our profits. It takes operating loss from some minus NOK 26 million, down to under minus NOK 80 million in the quarter. And of course, that's hitting our profits this quarter and this year. But the positive thing is that going forward, we'll have some NOK 8 million less in annual depreciation because of this. And for the full year figures, it's a bit difficult to compare because the prior financial was impacted by a lot of M&A activities doing throughout the year. So the numbers here does not represent full year figures for the entities, but they're at the year-end. So instead, I have provided pro forma figures on the revenues. And as you can see here, we can't record much growth from the pro forma figures from last year or the prior year. But I will argue that the underlying performance is quite much better than these numbers are showing. Among others, we have recorded an increase in ARR for the B2B SaaS segment of some 22%. This is not showing in the P&L yet because of the deferred revenues on the contract. And also for the transactional revenues, I can point out that the figure here that shows a lot of lost resorts at the tail end of the prior year's ski season and it was as many as 21 resorts that disappeared. That was resorts that were really not under contract. They were just service through that ski season and the reason was that they had decided on migrating to new vendors because of the bankruptcy in Liftopia Inc. in the autumn of 2020. And -- but we haven't been able to migrate yet before season. So Catalate serviced them during the season. And the revenues we recognized from those in that season was $1.1 million. So we could also argue to pro forma, adjust that in the prior year, and then we would also show some good growth in the transactional revenues. So the point there is this, that the underlying growth is actually much better than this number shows. And that's also reflected in the growth in our KPIs ARR. Moving over to the balance sheet. Here, you can see that goodwill has come down significantly from last year. That's both impacted by depreciation throughout the year, but of course, also the impairment charge we did end of the year. Our cash is NOK 77 million, as previously mentioned. Another item I would like to point out here, which is probably not understood properly is that other noncurrent liabilities of NOK 14 million, that really is related to earn-outs for the -- to the sellers of Spotlio, that was acquired in early 2021. So we are about to receive shares after 12 months and after 24 months. And the first portion of that share is now processed, so it's on the right to be released. And the last portion will -- is expected to be released in February '23. So this item will probably be reclassified over to current liabilities in our annual report. Here, you have cash flow, NOR 13 million negative operational cash flow in the quarter, NOK 54 million for the year. We also had some items related to shares buyback and others. So all in all, we had NOK 16 million in the cash flow from the quarter and NOK 70 million for the year. And I guess, investors wonder if we will have the same negative cash flow in the next 12 months, but we will have a significantly better cash flow in the next 12 months, but I'm not allowed to guide on any specific number, but it will be an improvement. Then I will go into the KPI updates. I hear -- I sent out KPIs for -- based on April some weeks ago. Here is an update with -- also with May just to show year-over-year as per May. And you can see that in terms of number of resorts, we have a 29 -- a growth of 29 resorts in 12 months. And for the revenues, we have 30% growth in the transactional recurring revenues and 20% growth in the B2B SaaS revenues. In total, it's a growth of 28%. And also, as I have also highlighted before that the growth in the recurring revenues mostly comes from non-ski resorts, where we have revenues in the summer, but also all around the resorts. This is parks and attractions as we call them. They are summer park, amusement parks and other types of parts like Zoos and different things. So the growth we have seen there in the KPI is based on new contracts over the last months, but the revenues from these new contracts is expected to come over the next 6 months during the summer season, as big a portion of it. So we are quite optimistic towards the growth in revenues for Q1 and Q2. Yes, that was a very quick run through the presentation and then I can move over to Q&A. So if there are any questions, please post them. I don't see any questions yet. I can wait for a little bit more time. No questions, so then I just suggest that we round off here, and I wish everyone a good summer. And we will see you again in our Q1 presentation. Thanks for now.