For Q2 2023, revenue increased 15% to
$19.4 million and customer locations
increased 7% to 124,000. Q2 net loss dropped 75% from $3.9 million in Q2 2022 to $978,000 in Q2 2023, and ARR* for TTM** increased
$11.8 million from $59.3 million as at June
30, 2022 to $71.1 million as
at June 30, 2023, growth of
20%.
TORONTO , July 31,
2023 /CNW/ - Givex Corp. ("Givex") (TSX: GIVX)
(OTCQX: GIVXF), is pleased to present its financial results for the
three-month period and six-month period ending June 30,
2023.
Givex reports in Canadian dollars and in accordance with
International Financial Reporting Standards ("IFRS").
"In Q2 2023, Givex continued to increase adjusted EBITDA by
increasing gross profit and keeping a tight rein on payroll costs,"
said Don Gray, CEO of Givex. "Net loss decreased 75%, from
$3.9 million to $978,000. We are working hard to continue this
trend for the rest of the year."
Second Quarter Financial Highlights
Three-month period ending June 30,
2023 (with comparisons relative to the three-month period
ending June 30, 2022)
- Revenue increased $2.6 million
from $16.8 million to $19.4 million, 15% growth.
- Gross Profit increased $1.9
million from $12.2 million to
$14.1 million, 16% growth.
- Adjusted EBITDA*** increased $0.7
million from $1.0 million to
$1.7 million, 69% growth.
- Net Loss decreased $2.9 million
from $3.9 million to $978,000, 75% decrease.
- Total Gross Transactional Value**** increased approximately
$0.35 billion from $1.77 billion to $2.12
billion, 20% growth.
- POS Gross Transactional Value***** increased approximately
$128 million from $347 million to $474
million, 37% growth.
- Customer Locations****** increased approximately 8,000, from
116,000 to 124,000, 7% growth.
Six-month period ending June 30,
2023 (with comparisons relative to the six-month period
ending June 30, 2022)
- Revenue increased $5.4 million
from $33.2 million to $38.6 million, 16% growth.
- Gross Profit increased $4.2
million from $23.1 million to
$27.3 million, 18% growth.
- Adjusted EBITDA*** increased $0.4
million from $2.3 million to
$2.7 million, 18% growth.
- Net Loss decreased $4.3 million
from $6.5 million to $2.2 million, 66% decrease.
- Total Gross Transactional Value**** increased approximately
$0.65 billion from $3.05 billion to $3.7
billion, 21% growth.
- POS Gross Transactional Value***** increased approximately
$295 million from $584 million to $879
million, 51% growth.
Operational Highlights
- Payroll costs are the key focus to improved EBITDA and positive
net earnings. For the 12-month periods ending June 30, 2023 and 2022, Employee
Compensation******* as a % of Gross Profit was 53% and 54%,
respectively. The company believes that its ability to reduce
Employee Compensation as a % of Gross Profit is an indicator of its
success in managing costs and profitability.
- ARR* (which is both recurring and reoccurring revenue) for
TTM** increased $11.8 million from
$59.3 million as at June 30, 2022 to $71.1
million as at June 30, 2023,
growth of 20%.
More Information
Additional financial information,
such as the audited annual Consolidated Financial Statements,
Management's Discussion and Analysis of Financial Condition and
Results of Operations, and Annual Information Form, is available on
SEDAR+ at www.sedarplus.ca.
More information about Givex, including the Management
Presentation and Overview, are posted on the company's investor
relations website at investors.givex.com.
About Givex
The world is changing. Givex is ready.
Since 1999, Givex has provided technology solutions that unleash
the full potential of engagement, creating and cultivating powerful
connections that unite brands and customers. With a global
footprint of 124,000+ active locations across more than 100
countries, Givex unleashes strategic insights, empowering brands
through reliable technology and exceptional support. Givex's
integrated end-to-end management solution provides Gift Cards,
GivexPOS, Loyalty Programs and more, creating growth opportunities
for businesses of all sizes and industries. Learn more about how to
streamline workflows, tackle complex challenges and transform data
into actionable insights at www.givex.com.
Non-IFRS Measures and Reconciliation of Non-IFRS
Measures
The information presented includes certain
financial measures such as "Adjusted EBITDA" (see below for
definition), which are not recognized measures under IFRS and do
not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing further understanding of our results of operations from
management's perspective. Accordingly, these measures should not be
considered in isolation nor as a substitute for analysis of our
financial information reported under IFRS. These non-IFRS measures
are used to provide investors with supplemental measures of our
operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors,
and other interested parties frequently use non-IFRS measures in
the evaluation of issuers. Our management also uses non-IFRS
measures to facilitate operating performance comparisons from
period to period, to prepare annual operating budgets and forecasts
and to determine components of management compensation.
Forward Looking Statements
This press release contains
forward-looking information. Forward-looking information is
necessarily based on a number of opinions, estimates and
assumptions that we considered appropriate and reasonable as of the
date such statements are made, are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to, the risk
factors described under the "Risk Factors" section in the Annual
Information Form (AIF) dated March 21, 2023, available on
SEDAR+ at www.sedarplus.ca and other filings with the
Canadian securities regulatory authorities. There can be no
assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
prospective investors should not place undue reliance on
forward-looking information, which speaks only as of the date made.
See "Cautionary Note Regarding Forward-Looking Information" in the
Filing Statement.
Additional Notes
*ARR is defined as Annual Recurring
Revenue, which is both recurring and reoccurring revenue.
**TTM is trailing twelve months from the defined period.
***Adjusted EBITDA is defined as net profit (loss) excluding
interest, taxes, depreciation and amortization ("EBITDA") as
adjusted for share-based compensation and related expenses, foreign
exchange gains and losses and transaction-related expenses
including those related to going public and acquisitions.
****Gross transaction volume ("GTV") means the total dollar
value of stored and point-of-sale ("POS") transactions processed
through our cloud-based SaaS platforms in the period, net of
refunds, inclusive of shipping and handling, duty, and value-added
taxes. We believe GTV is an indicator of the success of our
customers and the strength of our platforms. GTV does not represent
revenue earned by us.
*****POS gross transactional volume ("POS GTV") means the total
dollar value point-of-sale ("POS") transactions processed through
GivexPOS, our cloud-based POS SaaS platform, in the period net of
refunds, inclusive of shipping and handling, duty and value-added
taxes. We believe POS GTV is an indicator of the success of our
customers and the strength of our platforms. POS GTV does not
represent revenue earned by us.
******Customer Location means a billing customer location for
which the term of services has not ended, or with which we are
negotiating a renewal contract. It includes both merchant
locations that have transactions processed through our cloud-based
SaaS platform, as well as merchant locations not on our platform
but for which we provide other Givex services. A single unique
customer can have multiple Customer Locations including physical
and eCommerce sites. We believe that our ability to increase the
number of Customer Locations served by our platform and products is
an indicator of our success in terms of market penetration and
growth of our business.
*******Employee Compensation as a % of Gross Profit means the
total employee compensation for a period divided by the gross
profit for the same period. Employee Compensation means total
employee compensation including salaries and benefits, excluding
both government assistance and share-based compensation. Gross
Profit means revenue less direct cost of revenue.
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SOURCE Givex