The German-British payment fintech company SumUp has published consolidated business figures for the first time ever – and they read quite impressive (at least at first glance, unfortunately, there was not enough time for more). For example, the payment processor turned over an astonishing $458 million (€387 million) (“gross revenue”) in 2020, according to the consolidated financial statements discovered by “Finanz-Szene” and “Finance Forward” in the Luxembourg commercial register.
Since SumUp also published its financial statements for the two previous years at virtually the same time (these figures were also a closely guarded secret until now), it can still be seen: 2020 revenues were 10% higher than 2019 despite the Corona crisis, which is noteworthy because the mini-terminals on which SumUp’s business model is based are heavily used in the hospitality industry – i.e., restaurants or hotels, for example, which have suffered particularly from the Corona lockdowns. Based on the figures audited by Ernst & Young, SumUp has therefore apparently succeeded in overcompensating for the corresponding losses elsewhere.
Read more about the fintech company SumUp and its latest financial statements with the Born2Invest mobile app. Our companion app brings you the latest financial news so you can stay on top of the market.
The figures show that SumUp can easily compete with some of the largest European fintechs, at least in terms of reported revenues:
UK neobank Revolut, for example, which is reportedly aiming for a valuation of $29.6 billion (€25 billion) in its current funding round, came in at just $263 million (€222 million) in revenues (also on a “gross revenue” basis) in 2020. The British fintech Wise (formerly: Transferwise), which specializes in foreign money transfers and which will reach a market value of $12 billion (€10 billion) in the course of its IPO this week, was also a good deal behind SumUp in terms of 2020 revenues (although the fiscal year ended earlier) with the equivalent of $390.7 million (€330 million).
Only other payment providers such as Adyen and Klarna are clearly ahead of SumUp, each with ten-digit revenues. However, they are both significantly older than SumUp (founded in 2012) (Adyen: 2006; Klarna: 2005).
The Swedes from iZettle are the most comparable in terms of their business model, although they sold out to the US giant Paypal in 2018 and have not reported separate figures since then. At that time (more precisely: in May 2018), it had been said that iZettle was aiming for full-year revenue of $165 million (the equivalent of €140 million at the time, although we are not entirely sure whether the figure referred to “gross revenue” or “net revenue”). Even if iZettle had reached that target, SumUp (revenue in 2018, as we now know: $207 million (€175 million) would have been ahead at the time – at least if “Gross revenue” was meant.
SumUp offers payment processing for credit and debit card payments with its mobile devices
The target group is primarily smaller, stationary merchants and – as already mentioned – restaurants and cafés. Revenues are divided into fees for payment processing and revenues from the sale of mobile devices. In terms of fees for payment processing, SumUp was able to increase revenues by a good 10% to $393 million (€332 million) in 2020 (previous year: $353 million (€298 million). However, the sale of end devices only saw a very small increase of 4% to $64.6 million (€54.6 million) (previous year $62 million (€52.4 million).
The additional fees from payment processing did not have to be bought through reduced fee rates. SumUp was even able to slightly increase the gross margin from payment processing from 56% to 57%. In total, SumUp generated a gross margin (“net revenue”) of $225 million (€190 million). As in previous years, however, this margin was significantly reduced by the loss-making sale of terminal equipment -$60 million (-€51 million ), resulting in a total gross profit of $164 million (€139 million) (previous year: $141 million (€119 million)).
As the additional costs of further business expansion continued unabated (personnel costs were 50% higher than the previous year at $89 million (€75 million), other costs amounted to $166 million (€140 million), SumUp achieved a negative EBIT of $99.5 million (€84 million), compared to $69 million (€58 million) in the previous year. In other words, the fintech, which was founded in Berlin but now operates mainly from London, continues to buy its revenue growth with losses for the time being.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Mozambique/Debt: Credit Suisse Pleads Guilty and Pays $475 million
Credit Suisse bank has pleaded guilty to conspiracy to commit fraudulent financial transfer by paying $475 million in a settlement...
Virtual and Augmented Reality Are Shaking Up the Education Experience
While virtual and augmented reality are making a big impact in all manner of fields, education is one sector that...
MicroStrategy Stock Could Fall 12% after Bitcoin ETF Launch
MicroStrategy's revenue has dropped from more than $513 million in 2017 to more than $480 million in 2020. Profits have...
Atrys Health Increases Sales Fivefold in the First Half of 2021
Atrys Health presents its financial results for the first six months of 2021 while announcing that it has reached an...
Medical Cannabis To Be Sold Freely in Drugstores across Colombia
The Colombian Association of Cannabis Industries, Asocolcanna, indicated that the potential of this market is great since the country went...
Cannabis2 weeks ago
Malta Might Soon Legalize Private Cannabis Consumption
Featured2 weeks ago
Why an Energy Crunch is Most Likely Coming
Featured2 weeks ago
Small Businesses in Colombia Benefit From the Development of the Fintech Sector
Cannabis2 weeks ago
ArgenCann Will Be Part of Expo Cannabis 2021