The sales during Q1 came in a bit higher than expected and the gross profit margin remained high thanks to the increasing share of recurring revenue. In this research update, we put extra focus on Westpay's recurring revenue, which grew annually by roughly 36% during the quarter. We make no significant changes to our projections following the report. The biggest issue that needs to be addressed in the near-term is financial liquidity. We like the long-term growth story of Westpay and have high hopes that the company will succeed in its endeavors, but in the short-term, the market will most likely only focus on the decline in sales. Uncertainty remains high.

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