Topic: Yesterday, Rubean announced to have reached more than € 340k of sales only in January. This represents the highest monthly turnover in the company´s history.

Rubean has realized more than one-third of previous year´s sales in only one month. According to management, the sales-jump is the result of the sharp increase in user numbers as well as one-offs from contract work that should potentially further expand the capabilities of Rubean´s payment platform. Indeed, no. of user quadrupled to c. 25k in FY23 from 6k in FY22 (eNuW). We hence expect that roughly one-third of January revenues are stemming from recurring license fees, while two-third of the revenues are coming from contract works and have a one-off character. As a result, we anticipate Q1 sales to come in at € 0.5-0.6m (eNuW).

Positively, contract works often are initially necessary in order to onboard new customers and hence a precondition for future recurring license fees. This, paired with the recently announced new partnerships with i.e. Correos in Spain and emerchantpay as well as the quadrupling of app users should bode well for Rubean and is seen to become visible in a strongly growing topline. Importantly, with Correos, Rubean is not only earning a monthly license fee per user, but is also participating in every transaction, executed via the software. Note, we consider this highly profitable revenue sharing scheme as blueprint for future partnerships (eNuW).

As Rubean´s leading softPOS product is ready for roll-out, further customer wins and partnerships are clearly in the cards for this year, further driving sales growth. Rubean should already be in advanced discussions with several potential partners. We hence expect positive newsflow from new partnerships within the next couple of weeks and months.

Rubean runs a scalable Saas business model.

With an increasing number of customers (eNuW: several customer wins to come in the short-term), the scalable nature of the group’s set-up should increasingly become visible. While EBIT is still seen to be negative at € -1.6m in FY24e, the operating break-even is likely to be reached in FY25e.

BUY with an unchanged PT of € 8.00, based on our DCF.