Ladies and gentlemen, welcome to the Quickbit Q2 report 2021. For the first part of this call, all participants will be in a listen-only mode, and afterwards there will be a question-and-answer session. I will now hand you over to Hammad. Please begin.
Thank you, Sarah, and good morning, everyone, and welcome to Quickbit earnings call Q2 2021/2022. My name is Hammad Abuiseifan, and I'm the CEO of Quickbit. With me on today's call I have our CFO, Simon Afeworki. As you know, earlier today, we published our second quarter interim report, October to December 2021, and in today's call, we will walk you through the key highlights of the quarter, our products, as well as our financials. We'll wrap up by looking ahead and explain our focus in the coming months and finish with a Q&A session. Throughout these slides, you will get a sense of our brand refresh, our look and feel, and what's coming in terms of our brand. More of that a bit later, and as we go.
With those introductory words, I'd like to start and looking at the next slide. We're now looking at the Q2 highlights. First, revenue in Q2 amounted to EUR 88.2 million, which is a strong increase with 295% versus last year. This is mainly driven by higher ADV, added merchants during the year, and a positive effect from last year's pivot. We continue our focus on optimizing our business mix and reduce our external dependencies. That results in improvement in the gross margin, which comes in at 3.9%, which is close to our communicated ambition of a gross margin of 4% over time. We've had a hectic quarter full of activities addressing our product launches, as well as preparing ourselves for expanding into new geographies.
During the quarter, in line with our previous communication, we launched our Quickbit App in Norway, the Euro account, as well as additional cryptocurrencies. The launch of Euro and sell function in Sweden and Norway is the first step of new value-creating services to our customers. I've also established a leadership team that was announced, including our newly appointed Head of Product, Therese, and Head of Technology, Niklas, which have yielded an improved velocity, agility, and structure, and this further strengthened our evolution of product and execution capabilities. Our product and tech teams are growing, and we are picking up speed in everything we're doing right now. Our leaders in both products and tech have hit the ground running during the quarter and are bringing good, solid leadership into our teams.
We see new interesting products emerging, which are centered around bringing value to our customers and enabling a seamless and trustworthy entry towards crypto and blockchain to our customers. I'm now changing slide, and we are looking at the third slide, which is Quickbit Affiliate. Our average daily volume came in at EUR 1 million, which is a significant increase year-on-year and where we saw an increasing trend during the quarter. The increasing trend in ADV we saw towards the end of the quarter and is a result of us focusing efforts within tech, products, and sales. We continue to build on this positive trend by adding additional merchants and ended the quarter with 74 merchants compared to 46 year-on-year and 67 quarter-to-quarter.
I'm happy to report this progress in onboarding of new merchants in our affiliate product, which is specifically important to us as it enables a solid opportunity in our upcoming Quickbit Merchant platform. It's also an appealing entry point to catalyze the uptake to our consumer platform, which I will illustrate in a few slides from now. I'm changing slides, and we're looking at the Quickbit App. Our teams have spent significant part of the period to launch and prepare for additional launches in new products and new geographies. During the quarter, we initiated additional launches that will enable future expansions in regards to the Quickbit App platform. We managed to release multiple feature sets, which is important to us and a symbol of our ability to increase the velocity from our innovation and R&D into revenues for the company.
We also added Ethereum to our crypto offering, which was a sought-after and appreciated by our users, evidenced by increased user engagement and transaction volume in Quickbit App following the release. Our highly appreciated Euro account was added in both Sweden and Norway, which allows users to smoothly transition between crypto and traditional currencies, both by selling and buying crypto using the Euro account. Putting all this together, it is our view that this puts our platform in a category of its own among peers in the Nordics, both in terms of customer experience and product offering. As mentioned previously, we also released the Quickbit App in Norway, which marks the start of our geographical expansion and looking ahead, we are preparing for new product launches and entering additional geographies.
Our product launches and feature rollout will be characterized, as I've said before, by smaller iterative releases which comes more frequent and gradually improves and enhance our product and customer experience. Simon and I, we're obviously taking a good look and giving hard thought to which metrics we think makes best long-term sense to share with investors in our quarterly report. It's a task that requires us to exercise both foresight and restraint because in the coming months, our product portfolio will dramatically wider and differentiate than it is today and what it was a few months ago. At the same time, we also have a track record of gradually and responsibly increasing our financial and operational disclosures to the market, and we look forward to do so in the next few quarters regarding the Quickbit App as well.
I'm now changing slide and we are now on slide five. This slide looks at our product portfolio and how we consider it to make up an ecosystem. I've talked about our vision of an ecosystem before, but now I will elaborate on this a bit as more pieces are really emerging and coming together. So let's start by a quick recap to illustrate what we have in front of us. To the left, we have the Quickbit Affiliate that offers a simple card-to-crypto solution to e-merchants so they can offer their consumers to buy and pay in crypto at checkout. We have the Quickbit App and the Quickbit Card that really manifest our ambition in the consumer segment. We have the Quickbit Merchant, which is a crypto-to-crypto e-merchant solution.
We're now initiating a work to migrate existing affiliates into our Quickbit Merchant as it evolves and users in the affiliate into our consumer platform, the Quickbit App and Card. When we say that we're building an ecosystem of product, it means we are well-prepared to claim a larger share of users' finances, and I wanna spend a minute explaining our way to do so. Last quarter, we touched on our interest to tap into DeFi features. Today, we feel the comfort in announcing that we are developing a product we call the Quickbit Earn Wallet, and essentially, it allows users to lend their crypto in exchange for earning a yield. We will offer our users not only buying and selling crypto, but also earning yield on their crypto holdings by lending their assets to other crypto investors in a secure and structured fashion.
We are very excited about this, and we will talk more about this as we go and evolve. We have our Quickbit Card, which is a payment card that allows our users to spend their yield, but we're also introducing a stablecoin which allows our customers to reduce their exposure to volatility from time to time. What does it all mean and how does this really tie together? I mean, firstly, it is right down the alley of our ambition to make cryptocurrencies useful in people's everyday lives. Users can spend, invest, sell, and earn on their crypto holdings. Secondly, and equally important, these efforts beautifully tie together our ambition to incentivize our customers to frequently want to use our products regardless of volatility. Essentially, we want a product portfolio that consists of both cyclical and counter-cyclical elements.
This means more stability to our future revenue streams, and it means a healthy balance of correlation between future volatility in the crypto market and volatility in our future revenue base. I'm changing slide, and we're now looking at slide 6, gross profit and margin, and our future outlook. Last quarter, we showed this slide to illustrate our future ambition and outlook with regards to earnings potential in different parts of our product portfolio. I want to take a moment to add to that narrative and expand on my thoughts. We said last time that in the next 9-18 months, the majority of our earnings potential, not in terms of reported revenue, but rather gross profit, lies in Quickbit Affiliate.
We said that as we expand our product portfolio and expand our geographical playing field, that earnings potential will shift to our newer and future products in the coming 24-36 months. These two product segments differs in how their income is reported, but also the gross margin they generate. As we gradually approach our aspirations to generate most of our potential from Quickbit App, Quickbit Card, and Quickbit Merchant, it will dramatically alter the gross margin profile of Quickbit in a positive direction. That is why we have added, for illustrative purpose, an outlook on our total combined gross margin for all our products across the two time frames on this slide. Here, it's important to remember that we finance our operations, we finance our investments and growth ambition, and create value for shareholders with our gross profit.
Essentially, all of our revenue today is generated in the Quickbit Affiliate, for which we have a gross margin target of 4%. On our platforms, Quickbit App, Quickbit Card, and Quickbit Merchant, and obviously the features surrounding them, we will generate significantly higher gross margins. Moving forward for Quickbit App, Quickbit Merchant, and Quickbit Card, we see a gross margin of above 50% compared to 4% on Quickbit Affiliate. With that, I'd like to hand over to Simon to go through the financials for the quarter.
Thank you, Hammad, and good morning to everyone listening in. I will go through the financials for October to December 2021. To those who have joined us on these calls before, you will recognize that we go through our financials in the following sort of sequence. On this first slide, we focus on the top half of our P&L. On the second slide, we focus on the bottom half of our P&L. Lastly, on the third slide, we'll cover our cash and our balance sheet. As usual, I'm on slide seven. As usual, on the left-hand side, we see our revenue development over the last few quarters. Revenue in Q2 amounted to EUR 88 million, a 295% growth year-over-year.
We think this is a figure that cements our decision to pivot our revenue streams back in 2020 as, although a bold one, a correct one as well, especially if you, on the right, also look at gross margins that are now healthy and stable, and capital intensity, which is now light instead of burdening. Similar to last time, I want to spend a few words on ADV, or Average Daily Volume. Last time we mentioned that ADV was largely flat in the previous quarter, in Q1, and that flat level sort of continued into Q2 and even decreased as we walked into Q2. However, looking at the entire Q2, it was marked by an increasing trend for ADV during the quarter, and we feel optimistic about that trend as we entered Q3.
I think, as mentioned before, we will from time to time give you flavors of this kind when we think it is helpful for the market to get a sense of or measure our momentum. I'm now on slide eight. We are going to look at three graphs that I think collectively paint a picture of the development and dynamics of our cost base. Let's go through them together one by one. First, we see our adjusted operating expenses, which essentially consist of all our cost items that get us to adjusted EBITDA. Hence, it is the measure that we use internally to track and monitor the underlying cost development on a like-for-like basis. For example, it excludes depreciation, FX effects, and items affecting comparability, and so on.
We see on the graph that the last three quarters, it has remained stable at EUR 3.2 million and will keep it relatively stable until we accelerate investments in customer growth in Quickbit App and Card and Merchants and so on. Still, the flat cost development that we see on the graph in the recent quarters does not really tell the whole story of what is happening beneath the hood if we look at the different cost components. In the middle of the slide now, we have split all of our operating expenses into two categories. First, non-volume-based costs, shown in purple. These are our salaries to our employees, marketing initiatives, legal fees, or what we have previously coined to the market as growth investments.
We have and we will continue increasing these investments because we believe they are strongly tied to our future growth in Quickbit App and Quickbit Card, et cetera. Secondly, on the same graph, we have volume-based costs, shown in black. I have previously referred to these as reducible costs. They consist of, for example, introducer fees that we've talked about before and transaction costs, and so on. We call them reducible because they have been necessary up to this point, but they won't be helpful in accelerating our future growth. Actually, on the contrary, even they, given that these costs increase proportionally with revenue as they are volume-based, they per definition hamper our scalability.
These costs, as the black columns in the middle graph show, have gone from 45% a few quarters ago to 20% in this quarter. This is the result of 12-18 months work of becoming less dependent on external partnerships. For example, as we talked a lot about before, establishing our own relationships with the acquiring partners. For example, in the previous quarter, as we reported in Q1, we paid EUR 0.5 million in introducer fees, and in this quarter we paid EUR 0.2 million in introducer fees. We have previously said that we expect that figure to decrease. We are now seeing that ambition materialize, and we expect it to decrease even further as we go forward.
In summary, we can sort of conclude that although we've spent the same amount of money the last three quarters, we spent a larger share of that money on investments that we believe are conducive to our growth and our scalability. We're obviously so very proud of all the work our teams have put in to get us here. Lastly, on the right, we see the proportions between staff and consultants among our employees. Staff are full-time employees or in Swedish, heltidsanställda. We see in purple that consultants, as share of total employees, have decreased from 50% a year ago to some 20% in this quarter. This is a dramatic shift and is also the result of several quarters efforts to convert consultants to FTEs, partially because it is more cost efficient.
We consider our ability to continue doing so to be a sign of our more mature organization and of course a stronger employer brand. In short, it means we spend in absolute and relative terms more money on staff while spending less money on consultants, which are two different line items in our P&L, and why we think it helps to get a better understanding of our cost development, which we hope we have done by walking through this slide. I'm now on slide 9, and we have shown this slide before. The left-hand graph shows the development of our net receivables in the balance sheet plus cash. Per end of Q2, that figure totaled some EUR 15 million, of which cash made up EUR 9.4 million.
We've historically had relatively substantial fluctuations in our working capital, driven by payments from the rolling reserves, how we use our accrued income, how we use our accrued expenses, et cetera. For example, we mentioned that in Q2, our ADV or average daily volume was EUR 1 million. Another way of saying that is that on a daily basis, I've tried to explain this before, we in theory make ingoing and outgoing payments totaling around EUR 2 million. In our view, that understanding sort of nuances and explains what kind of impact working capital has on our cash flow and our cash position in any given quarter. Our accrued expenses in Q2 reported on our balance sheet amounts to some EUR 9 million compared to EUR 6 million a quarter ago.
We think that explains the positive but relatively temporary impact on our working capital in the quarter and the increase in our cash position. That is why we are displaying net receivables plus cash to highlight that our financial position without these temporary shifts between our cash and our accruals is largely unchanged. On the right, on the right-hand graph, we see our previously deposited collateral or rolling reserves. Per end of Q2, they amounted to EUR 3.9 million, down from EUR 9.2 million a year ago. We've seen a gradual, if not sequential or expeditious, decrease of our reserves over the last four or five quarters, amounting to some 60%. Quickbit no longer deposits collateral to rolling reserves.
Hence, these previously deposited collaterals will continue decreasing, and even if it hasn't decreased in the pace one would like, I think this graph on the right sort of helps someone to draw a trend line of the direction and pace by which the rolling reserves are repaid to Quickbit. I will now hand over to Hammad for some remarks on what's ahead of us before we go into a Q&A.
Thank you, Simon. Before we go into a Q&A, we normally close the quarterly presentation with providing a sense and a flavor of what's ahead of us, and I'll take a minute or two to do so. We are continuing the rollout of new features, which includes new currencies and a series of smaller and frequent feature rollouts, enhancing the products and customer experience. We have initiated our brand refresh, which will be reflected in the Quickbit App in the coming weeks, and that and continued development of our brand and brand capital will be prioritized before we accelerate our investments in the marketing initiatives.
We are progressing very well and finalizing the launch of the Quickbit Card, which will be physically available end of March for selected users in Sweden before we initiate a broader rollout to new geographies. Initially, this will be connected to our Euro account. We are progressing well with our merchant, and we reiterate our ambition to launch the Quickbit Merchant during the fourth quarter. A few slides ago, I mentioned that we're developing a DeFi functionality in a product we call the Quickbit Earn Wallet and looking at expanding our offering with stablecoins. We now have a very competitive offering towards the consumer segment, and both of these will be launched and available in Q4. We are preparing ourselves to enter a new market. In Finland and Netherlands, the preparations are progressing according to plan, and the entire organization is gearing up for launch.
We're also looking at other European Union countries, and we will update you on that development as we go along. As a final note, I would like to publicly thank all my colleagues for the great work that they put together in delivering a second quarter that has been productive and full of activity. Thank you very much. With that, we will open up for some questions.
Thank you. Ladies and gentlemen, if you would like to ask a question, please press zero one on your telephone keypad to register. If you would like to withdraw your question, that's zero two. Once again, it's zero one on your telephone keypad to register for a question. Our first question comes from Hjalmar Jernström from Erik Penser Bank. Please go ahead. Your line is open.
Hello, Hammad and Simon. Thanks for a great presentation. I have a question regarding this Earn Wallet feature of the app. Perhaps you could elaborate a bit on how this improves your competitiveness and how this positions your app in the market.
Sure. First of all, it really enables a stickiness between our product offerings and the consumer and allowing them to maintain exposure to the crypto, but also earning a yield in conjunction to that. Combining this with the currency sets and the Quickbit Card and with our total offering, we believe that we have a good vehicle to drive growth in the Quickbit App.
All right. Thank you. I was wondering, perhaps you could elaborate on the perception of the Norwegian launch. How has the launch been perceived so far? Perhaps provide some numbers.
We are just in the early days and early phase of those launches, and as previously outlined, we are right now focusing quite a lot on our brand and making sure that the consumer product is enriched before we intensify our marketing. That essentially means that with the Quickbit Card, the Earn Wallet and the new currencies that we are rolling out, we will initiate a much more focused marketing campaign in the countries and the geographies that we're entering. We will come back with numbers, and as I mentioned in a couple of slides ago, we're looking at KPIs that we wanna, you know, build and extract to give a good flavor on our progress.
All right. Thank you very much.
Thank you.
Thank you. Once again, it's zero one on your telephone keypad to register for a question. As we have no more telephone questions registered, I hand back to our speakers.
All right. We have a few dozen questions on the web. We always like to obviously answer as many questions as we can and to make ourselves available in these forums to really take the time to answer questions. However, we probably won't be able to answer all of these. We will select a number of those and then try to take them one by one. Robin here has a question. It says, "I wonder if you can elaborate on the reason behind the large fluctuation in ADV, considering the relatively high increase in the number of affiliates. What would you say is the reason why the revenue is lower than the last quarter?" So there are a number of things I think to take into consideration here.
Our ADV is the same thing as our average daily revenue. Generally, the percentage increase that you see on our revenue year on year is strongly tied to the percentage increase you see on ADV. We measure our revenue development year on year for a number of reasons. It gives a better view of the actual long-term development of our financials, and also because from one quarter to another, it could be a whole host of factors that impact the revenue. It could be matters relating to seasonality, it can be adding merchants, it can be lower demand from some of these merchants' customers and so on.
That's why we and essentially all companies that are listed sort of take a yearly view on their financial development. There are some nuance here that I think is important to highlight. We increased our number of merchants from 46 a year ago to 74 in this quarter. That's a 60% increase. Our revenue increases in the same period from EUR 22 to EUR 88, a 295% increase. I would call that we are leveraging the merchants that we have in our portfolio. We always want to see sort of a higher increase of revenue than a higher increase of number of merchants, and that's what we're seeing here.
I think that's sort of a more healthy view to look at our financial development rather than quarter-over-quarter basis. There is a question here in Swedish that I'll translate. Given that the company is operating in a new and for the public a relatively unknown market, is there a plan from you guys to visit events where you'll present the company and your business model? It could be good for the company to attract more investors and so on.
I think that's a great comment and feedback. We initiated a couple of months ago a series of meetings and events which we're entering, and I think we're signed up for some going forward, and we will intensify that as we grow, both in terms of our product portfolio as well as the organization. This is something we definitely are looking into in conjunction to strengthening and enhancing our brand and the company profile.
Sebastian here asks, "There has been some comments that the working environment in Quickbit is a bit harsh for the employees. Can you please comment?
Yeah, sure. I mean, we first of all, as Simon showed, we showed some of the transformational numbers going from consultants into full-time employees. Majority of that change has been related to, as we say in Swedish, konsultväxla, basically translating from consultants to FTs. We have a very healthy people and culture organization always measuring the temperature on the organization and looking at the engagement index within the company. Those numbers are pretty high, much higher than, I would say, the average, and showing and indicating that a great portion of our organization is very engaged and motivated in the purpose and what we're doing as a company.
We are continuing to make sure that we are a healthy and very appealing working environment by making sure that we continue our focus on evolving products and making sure people are equipped with the right challenges on the right level.
Rickard here is asking, "What are the largest or biggest bottlenecks to increase revenue going forward?
It is of course a balance. It is a challenge to balance top line or revenue with gross margin, but also look at synergies between our portfolio emerging with merchant and the consumer. We are a bit restrictive taking in certain business so we can keep a healthy growth curve, both in terms of revenue, but more importantly right now, gross margin and synergies with our emerging products. I would say that's where we're putting some of the restrictions. We still see this market as unsaturated. As you see, we have onboarded quite a few affiliates and merchants. Now we're going to work harder to monetize them, increasing the activities and adoption for each and every merchant.
Peder is asking, "You, you bought a company in Estonia for 36 million SEK. Now you say the license is withdrawn. What happened to this investment?" Let's try to have some context in the matter in the Estonian matter here that was touched upon in Hammad's CEO letter. We bought a company in 2020, which gave us a license in Estonia, and we haven't even though we've had the license since 2020, we haven't launched in Estonia. One obviously has to conclude that is a reflection of what markets we prioritize and which markets we don't prioritize.
During that time, the Estonian authorities have indicated that they are consolidating the number of crypto licenses that they have provided, and meaning that they are asking those who have licenses to launch in the country using their license within a certain timeframe. We, given that we are prioritizing other markets, for one, because we see a larger earnings potential in them, and secondly, because for example, Norway, you could use a digital sign-in function which you can't in Estonia. We haven't launched in Estonia yet. As we haven't launched in Estonia, the authorities had revoked that license, and we still feel comfortable with our decision to focus on, for example, Norway, Finland, and Netherlands, rather than pivoting over to Estonia to keep that license.
We consider the revocation of the license in Estonia to have a very limited impact on our financials going both now and obviously going forward. I just wanna make sure I answer the question also directly. The purchase price of that acquisition relates to a technical platform to create wallets, digital wallets, not to the license itself. That is what we have on our balance sheet as intangible assets. I hope that answers the question. This is a pretty long question in Swedish. I'll try to translate it. You say that you are going to add a so-called earn wallet. What type of return or yield can a user expect?
Is there a difference depending on which crypto you are using to get on what kind of return you get? Who are those who borrow crypto? Are those private consumers, institutions?
I think we'll split that question into two halves. I mean, first of all, the yield is very much depending on the coin itself, which type of coin you're actually farming. We expect certain currencies, such as stablecoins, potentially to have higher yield than others. It's really supply and demand leading into which yield the consumer should expect. I think in regards to which institutions, Simon, maybe you wanna take a stab at that?
Yeah. I think obviously there are people in and around Quickbit that are better equipped than myself to answer this. Essentially, the ability to borrow crypto allows a user to increase their exposure or increase their portfolio of crypto without having to divest its current portfolio. Hence it allows users to leverage their existing portfolio to increase their portfolio and get a bigger exposure. Our view is that it's appealing both to private users, but also professional investors, meaning institutional investors that trade in different cryptocurrencies.
Jimmy here is wondering how do you foresee that we are going to deklarera to report our crypto trading from a tax perspective? It's important to get to achieve sort of everyday use for cryptocurrencies.
As the rules somehow differentiates between country to country, it's obviously up to each and every person to report that. What we're doing and also somehow correlating with what I mentioned with small minor releases creating value, we are going to create a good way to structure all your trades and investments, illustrating what you need to file for your potential tax returns. That's something we're building into the platform.
Rickard here is asking to you, Hammad, do you have more assignments aside from CEO of Quickbit? If so, how does that affect your ability to focus fully on Quickbit?
Yeah, I mean, I can just confirm that Quickbit really takes 100% of every time I have. I don't have any other day-to-day jobs. I'm obviously a part of the board as well, but that's the Quickbit board. It's a short answer to that question. Quickbit is 100% of my focus.
We have a question here on what kind of margins, and I'm assuming gross margins, that we can expect or that are expected within Merchant, App, and Card. I think we touched on it pretty clearly during the presentation. We said essentially that we have two parts of our product portfolio. We have our Quickbit Affiliate. It finances our investments, our ambitions, and is a sort of scalable product, and makes up essentially all of our revenue today. We have a gross margin target of 4% on that product segment. At the same time, we are developing new products using the finances we get from Quickbit Affiliate. Those are Quickbit App, Card, and Merchants and so on.
Just through the sheer fact that how these products are reported in our books, they will display and generate a completely different gross margin. Hammad today announced that we foresee margins of around or above 50% on these new products. Which essentially means that the entire gross margin profile of the company will change gradually as we earn a larger share of our revenue from these new products. We're obviously very excited to walk down that path of altering our gross margin profile. We think it's healthy for a company to get to higher margins of around those levels.
On what the combined gross margin of the company will be going forward will depend obviously on the share that comes from each of the two product segments. Let's see how. We still have a few dozen questions, but let's walk through a few more of them. Eric here asks, "How active is the board and have you gotten any feedback since your investor meetings in New York?
I'll start with that. I'm obviously a part of the board and very active in the company. We have a great, solid board which acts very professional and are actively supporting us in all our engagements. I think the composition of the people we have is excellent. We're obviously very happy and pleased with their work and the work they're conducting. In regards to the New York question, maybe Simon, do you wanna
Yes. I think that specific question relates to investor meetings that we held in the fall in New York, if I remember correctly. Sort of hard to say if we have gotten any feedback. We are in constant dialogue with all the investors that we meet, whether they intend to act or whether they would like to sort of sit by the side for a while. Our job is to continue updating them on our development and our future outlook. For that, to do so, we make sure we make ourselves available to investors when they want to have dialogues with us.
As we've said before, we consider this to be a part of our day-to-day work. Week in and week out, we meet some existing investors, and we meet new investors. We consider that, like I said, to be part of our ordinary course of work. Philip is asking, "For Quickbit Merchant, do you also foresee that this product will be applicable for merchants outside the gaming industry, such as retailers? Have there been any interest so far from outside the gaming industry?
I mean, the short answer to that is definitely in all levels. We obviously are looking into some of the affiliate business for now because that's the easy way to transform customers into a wider part of our ecosystem. Now, we're also in dialogues with other companies, but it's essentially going to be aligned with our progress in evolving and releasing the product. Yes, we're definitely seeing a great interest from wider segments than just the gaming segment.
Eric here is asking quite, "What is your view on acquiring competitors in Sweden?" For sake of integrity, I won't mention their names, who have a very low share price at the moment. A few reflections. Obviously, acquisitions of larger kinds are sort of driven by a number of factors. It could be from a regulatory point of view, it could be to get our hands on a tech stack, or to get our hands on a consumer base or a product or a portfolio.
To sort of look at Swedish competitors that are only active in Sweden, while we consider ourselves to be the market leader in Sweden, I would, without saying too much, I'll say we would probably see limited value in. If we're gonna make acquisitions of a larger kind, it would probably make sense to get geographies that we don't have access to immediately into our balance sheet. Fred here asks, "In your report, you mentioned Quickbit Card to be released partially to selected customers already in end of March, and then fully in Q4. But on the last slide in the presentation, it says Q3. Can you elaborate and clarify? Thank you.
Yeah. I think we in my report we mentioned end of March to selective users to make sure that everything works according to how it should be. I think this is a very healthy way of introducing products, making sure that we're super safe and sound in those steps. Then obviously launching it as soon as possible to a wider audience and scope. That's really the next step, and coming directly after the end of March date. I cannot give a more narrow date than that, but I can say that we're progressing very well in the establishment of the Quickbit Card.
Good. Can you clarify when launch will happen in Finland and Holland regarding Quickbit app then?
Yeah. Let me just clarify a part of this process where control is somehow not in our hands. I mean, establishing and getting a license in each and every country is quite an extensive amount of work in which the end part of that is really not in our hands to control when it comes to time. When we typically mention these countries, that means that we're progressing well and are in the end of that stage. We really cannot give a date other than that we feel that we are very close to getting those licenses.
Peter is asking: Turnover in quarter two are slightly lower than in quarter one. Could it be that some of the revenue derived from Q2 will end up in Q3? The short answer to the second question is no. But again, on the sort of sequential revenue development, there— If you remember from Q1, we signaled at that presentation that we had seen a flat development during Q1 of our ADV from month to month, meaning from July, August, and September. Right? That's our view of using our alternative performance measure, which average daily volume is, to signal to the market and give you a measure, give you a sense of our momentum, which we feel.
In this one, in this presentation, we sort of suggested that towards the end of the second quarter, in December, we saw an increasing trend in ADV, which we feel optimistic about. We will continue using average daily volume as an alternative performance measure to give you a sense of our momentum and to sort of help you sort of guide on what our short-term track record is. In your report, Quickbit have made a dividend to the parent company of SEK 51 million. What are your obligations to the parent company? To be clear, during the second quarter, our subsidiary, where we generate all our revenue, Quickbit Limited, made a dividend to the parent company of SEK 51 million, which is an intragroup and a non-cash dividend.
There is a debt and receivable dynamic between the parent company and the subsidiary. From time to time, given that we don't generate any earnings in the parent company because we generate those in our subsidiaries, we prop up the equity in the parent company by paying out dividends and then netting them against debts that the parent company has towards its subsidiaries. Adam is asking: Can you give any information on how the third quarter has started, in line above or under this quarter, in terms of revenue, ADV, or affiliate merchants? I think we had a similar question in the last quarter.
We are trying to refrain from commenting on the quarter which we are currently in, as a measure of discipline and to make sure we draw a line that we can stick to on what we guide on and not. Like I said, I think two questions ago, we use ADV as a measure and as a talking point between ourselves and investors to give you a sense of the trends within a quarter. I think that gives sort of investors helpful tools to be able to draw some conclusions on the trends and momentum. There are still a few dozen questions left. I'm looking at our sound technician again. I don't. Do we have time?
Yeah, sure, good.
Okay. We can take a few more, but I think at some point here, we will probably close down. Let's take a few more and see if there is an area we haven't covered. You see, Sixten here is saying: You seem to be stuck at a business with approximately 4% gross margin in already established customer segments. The increase of merchant does not drive top line, it seems, either. To get meaningful profits, you need a massive top line. How is that going to be achieved? Will we see QB established in more widespread e-commerce? How? Maybe I can touch on the gross margin, and then you can talk on the operation and the sort of segments, Hammad.
I think.
I think it's a healthy question to pose, but I also sort of humbly consider that we partially today just gave a view of how the company will transform itself out of a low margin business segment of 4% and heading into higher gross margin territory. We explained that we will do so by having a more diversified product portfolio, we will do so by introducing products that people want to use, not only to make transactions so that we make money not only when customers transact with us, but even when they have idle balances in our on our platforms, which is what Earn Wallet is.
That means when people use Earn Wallet, we are making money not only when they transact with us, but also when they have idle balances on our accounts. I think we've sort of painted a picture of how we will have a diversified gross margin profile going forward. We feel confident that we will do so, but we also are humble about the fact that it takes time to reach a gross margin territories that are significantly higher than where we are today.
Yeah. In regards to the segments, I think there was an earlier question posted where we explained that we have some good traction and interest in other segments than just the gaming industry. Obviously a platform that we're building, the merchant platform is not segment-dependent. It's a platform that really applies to any type of crypto to crypto transaction, as well as crypto to fiat in that regards, and crypto to various stablecoins. The short answer to that question is that we are exploring new segments, and as we introduce our new platform, segments will be emerging, and we will stay focused in the sense that we find and look at synergies between what we have and how we grow that into new areas.
There's definitely no restriction in terms of segments with that platform as it's a platform rather than anything else.
Good. We have tried to answer as many questions as we can, and we've tried to focus on questions that are new in kind or nature. We will continue making ourselves available to answer questions on quarterly presentations or in between quarterly presentations. If we haven't been able to cover your question here today, we have an email for investor relations where you're always welcome to pose those questions. We thank you for your attention today, and if not before, we'll talk to you again when we report our third quarter in May. Thank you.
Thank you very much.