Bricknode interim report January - September 2022
Bricknode has today published its interim report for the period January – September 2022. The report is attached to this press release and is available on the Bricknode website.
Q3 2022 in brief
- Net revenue increased by 16% to 4,502 (3,880) TSEK
- Net revenue retention rate 104% (127%)
- Earnings per share amounted to -0,34 (-0,24) SEK
- EBIT result amounted to -3,203 (-1,813) TSEK and the margin amounted to -71% (-47%)
- Savings plan announced 1 August that will reduce costs significantly
- Analyst Group published its first equity research report on Bricknode
Comments from the CEOs, Stefan Willebrand & Erik Hagelin
What do you do as a company with exceptional product vision, awesome people, all the knowledge needed to operate and support any financial business in the world, but you lack the financial resources to persevere until the rest of the world sees what you think is obvious?
Well, you have to cut down on what you are currently doing and re-focus on some key initiatives according to the product vision, working with a smaller team of believers until you can come back stronger!
This is exactly what we have done at Bricknode. We have looked long and hard at what the most important things are for us right here and now, and made sure that we put a laser focus on those key initiatives.
We are experts in operating investment and lending services, and that is where we can deliver the most value. The way we have designed our transaction and account-based system is the gold standard. It can scale indefinitely and support any financial service that one would like to launch on top of it.
We are defining the way administration of financial assets and liabilities will be done in the future and we believe that we have the best product in the world. We want to compete at scale and that is why we have to make sure that our product is the best!
By December, our workforce will have transitioned from around 40 people to about 25. In light of these changes, we have already split ourselves into two product groups so we can really focus on making a great product within each area. Within these two product groups, everyone has assumed long-term ownership of the product and by doing that we gain a whole new level of understanding and establish a collective mind without constant context switching.
We call the two groups Wealth Team and Lending Team.
Finalizing a multi-year project during Q4
For almost two years now, the Bricknode Broker core has been going through an immense upgrade where we have changed both database environment and hosting structure of the platform. This has enabled continuous integration and continuous delivery.
These are fancy words for describing a much quicker delivery mechanism. It basically means that a programmer can build a new feature and simply push a button when it is cleared for release by the team, and it will instantly be available for customers to use.
In our newer offerings like Bricknode Lending and Bricknode Investment Manager these mechanisms are built in from the start. But when it comes to such a large system as Bricknode Broker, that has been created over 13 years, it has been a real challenge to make this upgrade which is now being finalized.
This is an immense feat by everyone in the company and will now free our hands when it comes to delivering new features, fast.
Goals for the coming quarter
In the last report we set goals for Q3 including implementation of the savings plan and working on more deals. We are pleased with the development of our pipeline where we see more large companies than we have had in the past and that is a good sign for the future. We would have liked to finalize deals with more customers during the quarter, but the challenging market is dragging things out a bit. We are delighted to have made meaningful progress in all areas and are working efficiently with partners.
The main goals for Q4 are to continue the rollout of the savings plan that will reduce our burn significantly, finalize more deals and partnerships, advance the brokerage license project, and focus on delivering our core products with the huge Bricknode Broker upgrade finishing before the end of the quarter.
Stefan Willebrand and Erik Hagelin will host the third quarter 2022 earnings call & webcast on 17 November at 09:30 CET. Interested parties should register in advance: Webcast registration link.
Contacts
Bricknode
Stefan Willebrand, Founder & CEO
+46 8 122 086 87
Certified Adviser
Amudova AB
+46 8 546 017 58
About Bricknode
Bricknode is a B2B-focused SaaS company that provides scalable, cloud-based software enabling financial companies to launch digital banking products at speed. The platform makes it easy for customers to build or transform almost any financial product with complete software for investment management, funds, lending, deposits and savings. The company also offers outsourcing solutions for back-office administration. Bricknode was founded in 2010 and supports financial companies globally. Find out more at bricknode.com or follow Bricknode on LinkedIn & Twitter.
This is information that Bricknode Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 17 November 2022.