Punktid Technologies
Company Announcement

Punktid Technologies AS group's results for the fourth quarter of 2023

Punktid Technologies AS (hereinafter Punktid) group ended the fourth quarter of 2023 with a profit of over EUR 24,000. Although the sales revenue decreased, the expenses also decreased, due to which we have reached a profit that was planned as a goal by the end of the year.

The sales of Punktid Technologies AS (hereinafter Punktid) in the fourth quarter of 2023 totalled EUR 424 000 and decreased by 56% compared to the fourth quarter of 2022 (the sales of the fourth quarter of 2022 were EUR 973 000). Of this, EUR 292 000 were the gross sum of the mediation service of the Punktid platform, which decreased by 51% compared to the fourth quarter of 2022 (the gross sum of the mediation service in the fourth quarter of 2022 was EUR 597 000).

In addition, in the fourth quarter, the wholesale of HVK Business OÜ decreased by 65% compared to the same period last year (the wholesale of the fourth quarter of 2022 was EUR 376 000 and the wholesale of the fourth quarter of 2023 was EUR 132 000). 

At the same time, in the fourth quarter of 2023, the group's total sales increased by nearly 12% compared to the third quarter of the same year. Of this, 292,000 euros was the gross amount of the mediation service of the Punktid platform, which increased by 14% compared to the third quarter of 2023.

In addition, in the fourth quarter of 2023, the wholesale of HVK Business OÜ increased by 8% compared to the third quarter of the same year

Quarterly comparison:

The goal for the fourth quarter was to continue moving towards profit, which is why various investments were suspended. We worked on cost cutting and essential work, and we also minimized wholesale to keep the main focus on stabilizing the platform. The difference between platform sales in Q3 and Q4 is small but positive. This tells us that platform sales have stabilized. Unfortunately, we do not see a similar increase as we have seen in Q4 of the previous years. One of the main reasons is the reduced purchasing power of people both in the Baltic region and across Europe. We can also conclude this from the fact that website traffic has not decreased, and in the Q4 the number of purchases increased by 12.8% compared to Q3, which is correlated with the turnover growth in the 2023 Q3 vs. the Q4 of the same year, but the average shopping basket amount has decreased. In addition, we are seeing a trend in purchases paid by installments.

As a result of reducing the usual aggressive marketing, our turnover numbers have also fallen, similar to the previous quarter. At the same time, thanks to the new platform and improved SEO (search engine optimization for the homepage), the organic findability of the homepage has increased, which shows that our visibility in search engines is better and the homepage is more stable.

By the end of the fourth quarter, we had stabilized the Punktid platform, and did not observe any factors hindering sales. The existing development work with the Punktid team and the main partner Trinidad Wiseman OÜ focuses mainly on the back-end.

In Q4, LHV granted an additional €25,000 working capital loan, and in addition, owner Hannes Niid bought back shares: https://view.news.eu.nasdaq.com/view?id=b7a31e3222c797d613d384c186e54cdab&lang=en 

We thank all partners and customers who have been understanding and flexible during difficult times. We are getting back on track despite the difficulties of launching the platform and the added economic pressure. Platform performance and sales have stabilized, and we can continue to focus on profit and growth.

Additional information:

Hannes Niid
Management Board Member of Punktid Technologies AS
E-mail: invest@punktid.com