Good morning, everyone, welcome to our earnings call for the third quarter in our 2020-2021 fiscal year. My name is Serod Nasrat, CEO. With me on the call today are Simon Afeworki, Head of Finance, and our Chief Product Officer, Ejub Bicic. I'll start by presenting the quarter. We'll talk about our product development during the period, then Simon will talk about the financials. Following that, we'll have a Q&A. Before we start, when we closed our second quarter, we were the only publicly listed crypto company in Sweden, since then, three companies have joined this small but growing group. Today, Safello's shares begin trading, and Quickbit welcomes and congratulates Safello and all other ones as well. We're competitors to some extent, but also have common interests. We all benefit from an investor community that can better understand and compare investments in our segment.
With more of us publicly listed, we can achieve just that together. Again, congratulations and welcome to the listed environment. Next slide, please. Let me start by giving a summary of Q3. We had revenues of SEK 933 million and recorded historically the strongest gross profit yet of SEK 41 million . We're now seeing the positive results of our decisions during the last year, and I'm proud of the entire team at Quickbit for their hard work in achieving this. At the end of Q3, we also showed a record strong cash position, and this proves our decisions being correct when moving away from our previous capital-intensive model. This positions us better equipped for investments in future growth for Quickbit. During the period, we also launched the beta version of our consumer platform, Quickbit App.
We have received valuable insight from the beta testers, and the one thing in common is the continued praise for how easy our app is to use. We're still, of course, testing different prices and other things to better optimize the platform for a broad launch, which Ejub will cover later on. Next slide, please. Our year-long pivot is completed and the tough decisions we made have yielded positive effects this quarter, and will continue to do so in the upcoming quarters, and I'm going to spend a moment and talk about these changes. Previously, we had a capital-intensive revenue stream with high risk. After a year of completing our pivot, we have increased the quality of revenue streams and tying zero capital as collateral with our acquiring banks.
Before, we had between 10%-15% of revenues deriving from Europe, and after the pivot, we have about 80% European traffic. A year ago, gross margin was approximately 2% and a negative operating cash flow, eroding the company's liquidity. Now it's established around 4% with a positive operating cash flow, equipping us with means for future growth. We also had one planned revenue-generating product a year ago, Quickbit Affiliate. Today we have two products in our portfolio with Quickbit App creating another vertical in revenue and profit for Quickbit, which I'll cover in the coming slide. Next slide, please. I'll take a moment to talk about our growth strategy on a conceptual level. Growth will be driven by the different markets our products are offered in. In the short term, we focus on growing and improving our existing products, and we do so by expanding in existing markets.
Here, our business-to-business offering, Quickbit Affiliate, will be the primary driver by adding more merchants and increasing transaction volumes with existing ones in this unsaturated market of merchants. In the long term, growth is driven by developing and launching new products that users appreciate. Here we consider Quickbit App, Card, Merchant, and even future products to be growth drivers. We aim to grow long-term by entering new markets for both Quickbit Affiliate and new and upcoming products as well. To summarize this, we believe both our B2C and B2B segment to have tremendous potential. Our assessment for growth remains unchanged. The next 12 months, it will mainly be driven by Quickbit Affiliate. We're very excited for Quickbit App, Card, and Merchant for the period beyond 12 months. Next slide, please.
Our strategic priorities, established over a year ago, have guided us through our decisions, and this quarter, we're able to put some of these on the map of accomplished milestones. First priority up is innovative financial services. We delivered our first consumer product, Quickbit App, soon to be launched more broadly, and Quickbit Card soon going into a broad beta launch. Milestones that all my colleagues have worked extremely hard on accomplishing, and again, very proud of the entire team at Quickbit for this. Another priority is sustainable growth. Our year-long pivot and transformation enables us to grow more sustainably. With a strong and positive operating cash flow, we can now fuel our growth ambitions, which Simon will cover during the financials. Thirdly, establishing a market-leading brand. This will always be rooted in developing products, not only easy to use, but that customers want to use.
Therefore, our focus has been on curating great user experiences, which is evidenced by the positive testimonials and feedback we received from beta users. Also, we're planning to propel our marketing and brand initiatives and put Quickbit on the map among our top competitors in both segments, and this is something we're really excited about. Lastly, Quickbit's most important priority and our most valuable asset, our people. We're seeing a great shift towards growing more with talent interested in crypto, and being part of a movement that will forever shape the financial system as we've learned to know it. Our mission is sparking a lot of interest with talented individuals, and we're seeing an uplift in talent lining up, wanting to join Quickbit. This is a milestone we're really proud of. Now I'll pass on to Ejub, that will go over products and share some exciting updates. Next slide, please.
Thank you, Serod. Hi, all. It's a pleasure to be here. First, the app and card that we have all been excited for, an easy-to-use service for buying, selling, swapping, sending, receiving, and paying with cryptocurrency. During the spring, we launched a beta to which we invited pre-registered users. We consider the beta to have been hugely successful. The aim was to receive feedback from our first customers, to learn and to improve the service. We received priceless feedback, mainly focused on the user experience. We're thrilled that customers value the work we have put in to lower the threshold for newcomers, as well as deliver a better experience than our competitors. The beta has also been important for operations and quality assurance, under-the-hood aspects that have all been evaluated during the time.
We now consider the beta to be completed, and preparations for the next step are full ahead as we launch for the Swedish market. The launch will be followed by marketing activities, and also marks the starting point for a platform that will be highly enhanced over time. As the app now goes into launch, we are preparing the upcoming beta of the Quickbit Card and payment account. Selected users will be invited to order their card and open a euro account to which they can sell crypto, purchase crypto, as well as spend using the card. Once we're happy with the results, the card, just as the app, will be launched widely. With this new platform in place, the time has also come for introducing new capabilities by extending the platform.
We are looking into new cryptocurrencies, as well as sought-for features such as tax return support, cryptocurrency graphs, and new payment methods, and a lot of other things. We're getting ready for launching in targeted markets. Those are the Nordic countries, Estonia and Netherlands, with Sweden being the first one. Next slide, please. Quickbit Affiliate, the service that continues to deliver. During the past quarter, the service has had some fundamental improvements made to it. To mention one, we now support customers saving their payment card for a faster crypto purchase, and we see returning customers increasing. Under the hood, the affiliate service got a new transaction routing service, a service that is also used by the app. The routing service is basically what integrates to our acquirers.
With this new routing service, new payment methods can be enabled easier, simplifying the purchase of crypto further, as well as cross-product. As Quickbit Affiliate is now developed in-house, main focus is to enhance the product for further scalability. We are improving customer service, our conversion rates, as well as our onboarding process for end consumers that are buying crypto. All these aspects are important for our service to run smoothly. As we now launch the App, several synergies will also be explored. The affiliate service is intended to act as a driver for user acquisition for the App in the markets where both services are available. When done right, an affiliate customer will be able to get the Quickbit App with a simplified onboarding. As for Quickbit, it is one customer, no matter what services they use. Next slide, please. Quickbit Merchant.
Quickbit Merchant is a crypto payment solution that will allow any merchant to accept crypto in their checkout without exposing themselves to the volatility risk, and settle in fiat traditional currencies. Further details will be shared closer to launch. We aim to provide a simple signup process on Quickbit.com, so merchants can get started quickly. While it will be beneficial for e-merchants with lower transaction fees and quick settlements, for end consumers, we really hope to simplify paying online with crypto. For end consumers, the service will be known as Quickbit Pay. We are now expanding the infrastructure, a work that is highly simplified by the work done for the app, yet still complex from other perspectives, treasury, technical compliance, et cetera.
An example of this is our ability to onboard business customers automatically as far as we can by doing the relevant background checks. We're also staffing up for the future of this service. The first version of Quickbit Merchant will be launched in beta with selected merchants. Swedish e-merchants selling within Sweden or internationally that are interested in solution can, starting today, register their interest on Quickbit.com. Next slide, please. I wish to wrap up with an illustration summarizing the ecosystem, the Quickbit ecosystem that we are building. The affiliate service that continues being a strong revenue stream for Quickbit, but that will also act as a driver for user acquisition for the Quickbit App. The Quickbit App enables consumer to use crypto, emphasis on use, and ultimately enable payments to merchants.
The Quickbit Merchant that will enable merchants to accept cryptocurrency in the checkout, hold crypto, make payouts to customers as for reward or loyalty, or simply for those merchants that wish to exchange the crypto and simply settle in fiat. With this product update, I wish to hand over to Simon Afeworki, Head of Finance. Next slide, please.
Thank you, Ejub. Hi to everyone listening in. Let's go through the financials for January to March 2021. Over the last quarters, Quickbit have added merchants as part of its shift to European focus at a high pace. We are now seeing those merchants generate volume and revenue to Quickbit at normalized levels. That has resulted in revenue in Q3, amounting to SEK 933 million. You see the graph on the left-hand side, an increase of more than 300% versus Q2, the previous quarter. That high percentage increase is driven mainly by, as you know, the weaker than expected revenue in Q2. Adjusted for this, a less volatile and normalized revenue recovery would be seen from the Q1 level of SEK 560 million up until this third quarter of SEK 930 million.
Nevertheless, it's evident, as we have previously said, that we have entered a long-term growth phase, which we, in our view, are only in the beginning of. However, going forward, our top line will develop in a more normalized fashion and measured on a year-on-year basis. On the right-hand side of the same slide, we see that we continue adding merchants to our Quickbit Affiliate product, up to 52 merchants end of the third quarter from 46 merchants a quarter ago. As we've said before, number of merchants is, over time, an indicator of the development of our Quickbit Affiliate product revenue generation. That doesn't necessarily mean that revenue immediately follows the number of merchants on a quarterly basis. Top line also depends on the transaction volume each merchant generates to Quickbit in a given period.
That is why going forward, as we enter a new phase, we will track our top-line development versus the same quarter a year before and not quarter-on-quarter. Our sales and product people are continuously looking at how to further attract more volume and consumers from existing and new merchants. This is why we will continue to invest in our product to provide a better service to the merchants and their end consumers. Next slide, please. I'm now on slide 11. Let's take a moment to walk through our cost base and what can be expected going forward. More specifically, let's look at our cost item, other external costs, [Non-English content] in Swedish. This item includes non-employed staff or consultants, if you will, transaction costs, and legal and financial costs.
In Q2, it amounted to SEK 10 million, which you can see on the left graph, the waterfall graph, and increases to SEK 20 million. On that same graph, we show the components, if you will, behind the increase. Let's walk through some of these. First, some SEK 3.6 million are considered one-offs or extraordinary, and mainly related to amortizations or write-downs due to IFRS 9 principles and refunds. Further, another SEK 4 million are due to commission-based costs to introducers, which Quickbit retains to quickly establish relationships with acquiring banks. This has been an important measure to rapidly grow revenue back to these levels and work with acquirers that don't tie collateral. The effects of which we are seeing in this third quarter's positive operating cash flow. I'll talk more on the one-offs and the introducer costs in a minute.
Lastly, still on the left-hand graph, SEK 4.4 million are transaction-related costs that stem from payment routing, transaction monitoring, and access to IT and merchant platforms that we use. These costs are volume-based, essentially meaning structured as a percentage on revenue. Hence, they are transaction-related, and as such, from Q1 and forward, these will be reclassified as cost of goods sold and impact gross profit rather than operating costs. Calculation-wise, in this third quarter, those transaction costs amount to basically 0.4 percentage points of our gross margin. Let's look at our underlying and sort of recurring cost base. On the right-hand graph, which show these expenses as share of our gross profit in each quarter. We have excluded one-offs and other over time reducible costs from our cost base.
It shows that these expenses are historically around 40%-45% of our gross profit, save for Q2, which has a markedly higher level due to much lower revenue. Essentially, the graph is showing that if we remove the one-offs and we remove the cost that we think that we, over time, will be able to decrease, we are sort of keeping a flat cost base in relation to our gross profit. Gross profit, which is actually what pays and finances our operations and investments. We prefer monitoring our cost base this way, partly because we are a growth company, and partly because it provides us the flexibility to make necessary short-term investments and separate those from our cost base in our decision-making. We believe that flexibility is valuable to our growth, and we will continue to monitor our cost base this way. Earlier I mentioned reducible costs.
One such are fees to acquiring bank introducers, which I talked about before. These are also structured as commission on transaction volume. Hence, they track the development of our volume. That is also why we are hard at work to independently establish relationships with more and more acquiring banks. We are confident we will be successful in these efforts, and consequently, we believe these expenses will gradually decrease over time. I think we have a proven track record of taking on and focusing on structural matters of this kind and resolving them. With that said, we prioritize growth, and as we previously indicated, Quickbit App and Card will gradually demand investments in marketing, branding, and a larger organization, which will gradually increase our cost base.
Naturally, we believe these investments are crucial in order to be market-leading, to secure future growth and create long-term value for both shareholders and users. Next slide, please. The left-hand graph shows the development of our deposited collateral, also known as rolling reserves, reported in the balance sheet item, other receivables. At the end of Q3, the rolling reserves amounted to SEK 54 million, down from SEK 92 million in the last quarter and down from SEK 119 million a year ago. Since same quarter last year, it means we've seen a gradual decrease following payments back to Quickbit from our reserves. Quickbit no longer deposit collateral to rolling reserves. Hence, we expect this decreasing trend to continue going forward. I also just want to spend a minute talking about accrued income and accrued expenses, in Swedish, on our balance sheet. In the last quarter, these were reported net as other receivables.
In Q3, we report these separately on a gross basis as accrued income and accrued expenses since these amounts are now higher given larger revenue and transaction volume in Q3. As we previously explained, these arise as payments following sale and purchase of crypto occurring approximately three days after transaction date. When transaction date is just before end of a quarter and payment occurs on the other side of that quarter, we report them as accrued income or expenses, respectively, in the balance sheet. It's important to note that the accrued income and expenses were paid and received a few banking days after March 31st, just like they were the last quarter and were paid a few banking days after January 1st.
As can be seen, the accruals on both sides of the balance sheet somewhat match in size, which results in minimal effect on our change of working capital in our cash flow which is also visible in our cash flow statement. I also want to point out that obviously these balance sheet items include other things. For example, rent payments or rent accruals, and also expenses and payments to consultants and so on. There are other things in those balance sheet items as well. On right-hand graph, still on the same slide, we see our cash position at the end of Q3, which has never been stronger at SEK 117 million.
Our cash position in the third quarter is not only driven by the proceeds from expiring warrants in January of 66 million SEK, but also from positive operating cash flow in Q3 and the aforementioned returns of deposits from the rolling reserves shown in change in working capital in the cash flow statement. We have a strong cash position. We also have a profitable product in Quickbit Affiliate, as we talked about before. Conceptually, we can invest those profits from profitable Quickbit Affiliate into new and upcoming products and invest ourselves into further growth. All in all, with the successful transformation behind us, with that cash position and with the profitability that Quickbit Affiliate generates to us, we are well equipped to enter a growth phase and invest now to create long-term value. Next slide, please. Now on slide 13.
I think we obviously consider the investments we made during the last year to have yielded positive results, and I think there are two angles maybe that clearly suggest that. One is our gross margin, shown on the left-hand side, and the second is our cash conversion. Let's talk about both of them. To the left, we see the development of our gross margin over the last year. The previous three quarters, we've been around or above 4%. In Q3, we report a gross margin of 4.4%. Hence, we've been displaying a durable gross margin established at a higher level than a year ago. The gross margin and consequent gross profit which, by the way, is the highest gross profit we report in this quarter, is obviously important to us. It finances our operations and future investments, as we said before.
At the same time, we have a strong cash position and a clear focus on top-line growth. Those two things in combination mean that if need be, we can afford to seize on commercial opportunities that arise to expand our top line further, even if it means taking a short-term hit on the margin. We are aiming for a gross margin over time, averaging 4% and above, but we will allow ourselves the flexibility to, from time to time, go below 4% if we think it is conducive to our top-line growth. On the right-hand side, we see our cash conversions since a few quarters back. Cash conversion basically tells us how much of our earnings we are converting into cash. We've defined the calculation on the slide, and I think it highlights a few things.
It shows that a year ago, we found ourselves with a business model that was eroding our liquidity. In Q3 last year, we had a cash conversion of - 32%. The only way to operate at those levels for too long is by basically continuously raise capital and by, for example, issuing new shares or taking on debt. Over the last year, our cash conversion has gradually improved and amounts to 160% in Q3, which is a healthy figure. I think those two angles show why we believe that the investments the last year have yielded positive results for us. In conclusion, it is our view that essentially by every single measure, whether it's earnings, liquidity, or capital structure, Quickbit is today in a stronger position than last year. I think with that said, I'd like to hand over to Serod for some final thoughts. Next slide, please.
Thank you, Simon. Let me give some closing remarks. Our focus in the short term will be to launch our products more broadly, and we will do so by supported marketing initiatives in our target markets in order to attract users to our brand and products. For Quickbit Affiliate, we will continue with product development and even more attractive for all stakeholders, and these enhancements are driven by customers, merchants, and new acquiring partners. I would like to stress that the demand for Quickbit Affiliate is still very high, signaling that we've just scratched the surface of potential in the entire iGaming sector. We also look forward to capitalize on synergies between our different products, such as Quickbit Affiliate and Quickbit App. We're currently testing different approaches for how to create these synergies between our products.
Our goal is, of course, to make all of our affiliate customers to Quickbit App users. Overall, we'll continue to invest in current and future products, but not only product, but also in our organization to create a stronger foundation for future growth. The market we're in is hot as iron, and we'll continue to invest in new talent and scale up Quickbit since our ambitions and the potential in the market requires us to. We'll now move into Q&A and welcome all questions, both through the chat and over the phone. Next slide, please.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press star zero on your telephone keypad now. That is star zero to register for a question. There will be a brief pause while telephone questions are being registered. I remind you that if you want to register for a question, you will have to press star zero on your telephone keypad now. There are no audio questions registered at this time.
We'll take some questions that are written down. Some of them are written in Swedish, but we'll translate them to English and answer them in English. What are your expectations on the app and the card? Will it contribute with a high turnover increase according to your projections or estimates?
Sorry, can you repeat?
What are your expectations on the app and the card? In other words, will they contribute with the high turnover increase according to your projections?
Right. To launch business-to-consumer products and establish a brand takes time, and we're convinced that we will be able to capitalize on the number of customers that the Affiliate service is bringing us, and we'll continuously focus on launching new offerings within these products to make the offering attractive to all types of customers.
We'll take another question in English here, translated. Would Quickbit App also be marketed as a platform to invest long-term in crypto, buy and hold? What is your view on this? Which benefits and downsides would there exist to do this in Quickbit App?
When it comes to Quickbit App, we're not really excluding any types of new verticals to or offerings to build out the product with. We're looking at different offerings such as staking, stablecoins, and using it more as an exchange platform. We're not excluding anything since it all will depend on what our customers demand and what our customers are asking for, and this is what we're going to be focused on when building out our platforms.
Okay, some more product-related questions. How long does it take for Quickbit to integrate a new cryptocurrency, and what are the costs associated with this? As a follow-up on that, when is the beta test of the app expected to be completed? Yeah, I'll start there.
All right. The first one, launch new currencies. Launching new currencies is mainly a technical question and a treasury question. Taking into account testing, it's a process that takes a few weeks. We are planning to introduce Ethereum as well as Stellar Lumens. We are also considering other currencies worth mentioning. The second question, we now consider the beta of the app to be done. We can expect a launch shortly. Shortly after we have launched the app widely to the Swedish market, we will also introduce a beta of the card.
Good. Let's pause for a quick minute with the written questions and see if there are any questions on the phone.
There are no phone questions at this time, so I hand back to the speakers.
Okay. We have a question through the chat here, actually in English from Jörgen. You say that growth will normalize after being very strong sequentially between Q2 and Q3. What is a normalized growth level? There are a number of other questions. Let me take them one by one. Obviously, like we said here during the presentation, that the revenue increase, at least in percentage terms was rather dramatic in this quarter vis-a-vis the second quarter, some 300%. We mentioned that one factor obviously was the lower than expected revenue that we saw in the second quarter. Now we're saying that we're going back to sort of a more normalized growth rate.
While we don't give projections either on the fourth quarter or after that, we do provide what we call a leading indicator of our growth, which is the number of merchants that we add to Quickbit Affiliate. We see that it has been sequentially growing since we started reporting that figure from June 2020 up until March 31st, 2021. We think that is a leading indicator of our growth. I will not disclose how we expect to grow going forward. We have, though, clearly stated a number of things. One is that we've entered a growth phase after a year of investments and consolidation. That is one. Second, as we've sort of come out of that phase, we are now starting to measure ourselves and look at our growth in terms of year-on-year, not quarter-on-quarter.
I understand that you were looking maybe for a specific figure, but unfortunately, I can't provide that. A second question from Jörgen is, how does the growth look for your onboarded operators? Is it an S-curve shape? Do you have 80% that doesn't take off and 20% that drive majority of the growth? What do you anticipate going forward? There are a number of questions baked into that one. We still see a high demand. I think Serod and Ejub mentioned that. We still see a high demand for merchants to use Quickbit Affiliate. We will continue to meet that demand. Obviously we have different sizes of merchants, so we do have a number of merchants that provide plenty of transaction volume and a few merchants that don't, for various reasons.
One could be because some of them sort of are still ramping up, if you like, or are in a ramp-up phase, another because they're just smaller or operate in a smaller or more niche segment. Other merchants have been with us since end of June 2020 and are generating transaction volume at a normalized level according to the potential that we think they could do. That is also why we are seeing these transaction volumes and revenues in the third quarter of SEK 930 million. Then Jörgen's last question, is a product-related question. How will the card business model compare to the current business model? I guess with Quickbit Card and Quickbit Affiliate, and they are two very distinct ones, but maybe, Ejub, you can talk a little bit about that.
Absolutely. When it comes to the card, it is essentially a fairly simple product that we're trying to offer initially, and that is the ability to spend fiat and to spend crypto directly with the card. Obviously, looking at the entire platform, we wish to merge the reality of cryptocurrencies and fiat together, meaning we don't necessarily think at this time whether users are mainly going to focus on the crypto spending or on the fiat spending. We do want to enable one wallet for all these services. In terms of how the business will develop and how this will affect the future growth, it's difficult to say, of course.
If you ask us, the end goal for us would be, of course, that we've managed to offer such a good service that we manage to replace people's payment card, the payment card that you're naturally using today, your main card. I would say that's when we've truly succeeded. That is our aim. The road there is going to be, of course, a long way. For us, it's important that we constantly evaluate the things we're building and improve and add new features and that we, of course, also give excellent customer service and package the product in a way that it's attractive to users. That means that we are always looking into new offerings, whether that will be in the future crypto back or cash back or other reward and loyalty programs. It's difficult to say at this time, but all these things are being explored.
We believe that the app and card will have, of course, as new revenue streams for Quickbit, that they will in the future be very important for us alongside the affiliate service.
Let me pause one minute, just see if there's anything on the phone.
As a final reminder, if you would like to ask a question, press star zero on your telephone keypad now. There are no telephone questions registered.
Okay. We have a question. We'll translate it in Swedish.
A few questions that came in. Oh, sorry. A few questions that came in over the chat as well. I'll take a few of them here. How do you look at potential acquisitions? Would you consider companies like Vopy or Intergiro that have some sort of ties to Quickbit? From our end, it's not about if they have ties or not. It's just we don't exclude any acquisition potential. For Quickbit, we need to focus on what's adding value to our business model and our core business. If there's anything that can propel our plans, it's going to be taken into consideration, of course.
Another question coming in is, after card, app, and merchant, can you tell us more about how you're going to broaden the organization and the business model with new services within crypto, and how does the company look within the next three to five years? I can start from the back here. The crypto space, in general, three to five years is a lifetime in this space, and anything could happen, especially when regulation, which we welcome, is sort of dictating the terms for the players in the market.
How we're going to expand our offerings, like I mentioned before, there's a lot of different things we think is interesting, and they can help us add loyalty and value to all our customers, like offering staking services for people that don't want to spend the crypto they have and more invest it and spend the interest rates earned on it or provide stablecoins as a loyalty program for our card or even expand the business to offer exchange services. For us, it's not about sticking to an idea because we think it's going to drive value. It's looking at the market and our customers and seeing what's being demanded. Another question coming in is, what's your expectations and prognosis for the merchant service?
Merchant service is going to close our ecosystem of products, and we're going to focus on making it simple and possible for merchants in all different segments to accept crypto if they want to do that. When it comes to our prognosis for that offering, we have not yet set any prognoses, but we're going to work towards all our affiliates and push the service to them.
We also have a few product questions that I'd like to answer. If we start with the one about Affiliate service and Merchant service and what the difference is, we can give a simple answer. You could say that the Affiliate service is essentially focused on enabling customers to purchase crypto as part of the online payment flow, whilst the Merchant service is a companion to the App and to basically any other digital wallet out there to enable merchants to receive crypto. basically, Affiliate service to buy crypto to be used online, whilst the Merchant service is intended for users who basically already have crypto to pay with. As we mentioned also in the presentation, we are looking into expanding also other parts of that offering. It can be things such as holding crypto or also making payouts to customers.
Essentially, they're two different products, but they do have similarities, absolutely.
Another product question is about the fees with sending crypto via the Quickbit App. The full fee structure will be communicated with the launch, but just to mention some, sending crypto between Quickbit users is free. It's free no matter if the Quickbit user is in the same country or not. Obviously here, there's reason for us to bring the App to many markets for instant remittance, and the transactions are also instant, should also be mentioned. Buying crypto is associated with a service fee, and there is also a spread set in real-time by our bots that are managing the crypto purchases. We also received a question about the pricing with crypto and how often we update those prices. Those prices are updated in real time. That is the short answer to that.
There is one or two questions on how we, from Simon, I think, meaning a questioner, not myself, how do you interpret today's market reaction? Two other people have asked the same question as Simon here, also asking, should we rather benchmark today's revenue against the last fiscal year, the same quarter last fiscal year, and how do you view that it seems like the market is interpreting that it's shrinking compared to the last fiscal year? We won't comment on the market's reaction to our reports. I don't think it's our place to do so, at least not in this forum. Just to talk a little bit about benchmarking and what is happening between this quarter and the same quarter last fiscal year.
On the one hand, yes, we do believe that given a new product portfolio and given a pivot and given that we're entering a new phase, that we will, like all other companies, start benchmarking ourselves on a year-on-year basis rather than a quarter-on-quarter basis. It could provide value to measure quarter-on-quarter when you're sort of recovering in a phase. We believe that we have exited that phase, and now it's more relevant to compare year-on-year. Also when you look at year-on-year, I think we have some almost SEK 1.3 billion in revenue last fiscal year, and in this one, we have SEK 930 million.
Those who have followed us along the way know that we've been through a journey, since then, where we've, as we've said in the presentation, more or less essentially shifted the entire organization and our business model and our revenue streams, not only geographically but whether or not we tie capital, at what levels our gross margins can stay even as we grow. We've been through a fantastic journey in our view, one that we are proud of. That is not necessarily reflected when you look at year-on-year in this quarter.
I have a question coming in from the email, one from Sebastian, one from Henrik. They're both in line. Well, they're both asking about where we see Quickbit being in the next five years. Like I briefly just touched upon before, five years in this segment is, if you just look five years back, it's been happening a tremendous amount of activity in the whole market space. For Quickbit, it's going to be to expand our current business offering and consumer offerings in the different geographies worldwide and different markets, even troubled economies, if that's a growing segment within this space. For us, it's a matter of providing anything crypto-related, whether it's centrally backed currencies such as e-krona or stablecoins that will be driving demand further down.
Our main goal here is to make crypto easy to use and treat it as a complement to traditional fiat.
All right. We also have a few more product questions. In regards to the beta, to start with, is how many people pre-registered on our website as well as how many people we invited to the beta. We had approximately 10,000 people registering their interest on our website, which has exceeded our expectations. It's really great. We invited enough people to the beta to make the necessary evaluations. That has been ongoing during the entire beta with new invites week over week. We also have a question whether eID will be used in other EU countries, such as BankID in Sweden, the answer to that is yes. Countries that are offering eID solutions for simpler sign-up, we will be integrating to those solutions. There is also a question about customer support and the plan around it.
Have we covered staffing and necessary tools for customer service? The simple answer there is yes. We have obviously customer service is something that we aim to give great customer service, and that takes time to build. We definitely understand the importance of being quick to answer, to be helpful, to be kind, to resolve any issues that our customers have. We have spent a lot of time developing the customer support for the app. For the app, that is an in-app chat where customers can contact our customer service. Obviously, as we scale and go into more markets, this is going to be super important for us to scale as well, the support organization.
All right. Well, can we just check and see if there are any questions on the phone?
There are no telephone questions registered.
Operator, feel free to interrupt us if there are any. If not, we'll just continue going through the written ones. I think it was Peter that asked about accrued expenses and I think a related question to that was whether there are still three days, not delay, but three-day processing of when Quickbit receives payments for card transactions. I think I touched on it briefly in the presentation. One thing is to be clear that essentially all of the accrued expenses and accrued income in our balance sheet relates to either the sale or purchase of crypto. You have a few other things, like I mentioned, whether it's rent accruals or expenses for consultants where you receive an invoice the month after and so on.
Essentially everything is crypto sales that occurred basically at the end of the third quarter and paid out at the beginning of the fourth quarter. These, I think we've said that before, that these are the nature of card transactions. They pose zero source of concern to Quickbit. Just like, I think in the last quarter, we had some SEK 25 million in accrued income that were paid out in the beginning of January. These SEK 50-some million that are in the accrued income were paid to Quickbit in the first few days in April, and the SEK 50-some million in accrued expenses, Quickbit paid at the beginning of April.
These are the sort of ordinary course of business and what's important to us is to actually make sure that our cash management is efficient and that we time the incoming payments with the outgoing payments so we don't hurt our working capital in our cash flow statement. As you can see, that the matching size in this quarter is a reflection of that work in the last few quarters and resulting in a minimal effect on our cash flow statement. I think that was, yeah.
I have a question from Claus, just mailed in. He's asking, what about geographical expansion, and do you prefer product development over geographic expansion? My answer to that is we're going to be able to do both at the same time, and that's why it's important to grow an organization to establish different marketing initiatives and marketing department, at the same time having a compliance department that can reach out and make sure we establish ourselves. Short term for us, it's going to be to expand into markets we're already in with the products we have, and long term, it's going to be entering into new geographies and expand new products and existing ones as well. It's not one or the other. We're going to be able to do both of them.
Okay, there are a few questions on the communication with the market and how and why we communicate. First, I think it's important, obviously, to understand that there are a number of factors or considerations we make when we communicate. Sometimes they are based on a specific release. Most of the time, they take into consideration our own framework and our own guidelines for how we communicate with the market. There are many considerations we obviously need to make. One, not the least, the rules and regulations that we need to adhere to as a listed entity. At the same time, we're also obviously, how do you say [Non-English content] in English, is receptive or we are listening obviously to the feedback and constructive criticism, whether it comes from users or shareholders or even internally, for that matter. We take that to heart.
We also, at the same time, we also very much appreciate and absolutely love the enthusiasm, whether it's criticism or praise that we get from specifically our retail investors. For us, it's extremely exciting to be on this journey with all of them or with all of you. We sort of acknowledge and understand that obviously, of course, we need to get better at communicating with the market. That is also true for every other aspect of the company. Our products need to be better, and our cash management need to be better, and our culture as an employer need to be better. This is the nature of building companies. You build them in pieces, and you improve them by hard work day by day. We try to sort of measure: Are we better off today than we were a year ago?
If the answer is yes, or versus last quarter, if the question is yes, we've done something right, and we continue building that block. That building of business, this is the nature of building businesses or companies, is not just something we do on our own. We do it together with our colleagues, with our consumers, together with our shareholders, and we think it's extremely exciting to be on this journey, all of us together. That's how we look at the feedback that we're receiving. We take it to heart, but we also understand that it's the nature of building companies, that you, at every single point, need to get better at everything you do, and that is our aim and ambition going forward.
There's another question coming in here. Does Quickbit need registrations from [Non-English content], so the Swedish supervisory authority, or is it enough with Gibraltar and the Baltics or the license that Intergiro has? Just trying to conceptualize this a bit. The landscape for registration and requirements from lawmakers is ever-changing. Some countries are further advanced, others are further behind. There's still nowhere in the world where there's a harmonized look at how to regulate crypto. When it comes to Quickbit and our products and our services, we're going to make sure that we have any necessary registrations in those markets we plan to launch our products in. This is something we view as our day-to-day business and nothing extraordinary. It's part of Quickbit and part of our day-to-day operations.
Having adequate registrations in the markets we would plan to offer our products, that is a no-brainer for us. That is a definite as well. Another question is, will you start with KPIs? I would like to follow the development of number of customers report for report. We will, of course, start publishing KPIs tied to our different offerings, both our business-to-consumer offering and our business-to-business offering. We already have taken a step in the right direction here of talking about the number of merchants that are using our Quickbit Affiliate solutions. When it comes to KPIs, we are going to be anchoring these with our new Board and management as well, and we need to make sure that whatever we start reporting on actually brings shareholder value and adds value to the whole investment community.
Okay. One last time, we'll check if there are any questions over the phone. If not, we have answered, I think, some questions, and I think every question that has come over in a written format at least. Operator, are there any questions on the phone?
No, there are no telephone questions registered.
Serod maybe can-
I would like to thank everyone listening in, everyone that took the time in writing down questions, both over email and right after the report was released, and all shareholders and coworkers and Financial Hearings for hosting this. Thank you, everyone.
Thank you.