Lesaka Reports First Quarter 2023 Results
November 08 2022 - 4:05PM
Business Wire
Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today
released results for the first quarter ended September 30, 2022
(“Q1 2023”).
Highlights
Lesaka’s revenue for Q1 2023 exceeds the upper end of our Q1
2023 guidance provided (on constant currency basis) and Segment
Adjusted EBITDA is at the upper end of our Q1 2023 guidance
provided.
The Connect acquisition outperformance continues and we
remain on track to achieve Consumer break-even.
“Our first quarter results demonstrate that Lesaka has
progressed well in its journey of transitioning into a leading and
profitable Financial Technology company, a plan that commenced in
earnest in Q2 of fiscal 2022. The strategic actions previously
communicated have translated into strong financial performance for
the quarter compared to Q1 2022. Strong revenue growth and improved
profitability sets the tone for what is to come, Lesaka is
well-positioned for growth. Importantly, in Q4 2022, we were able
to provide guidance for the first time since Lesaka’s
transformation began, and we delivered results at the upper end of
our guidance on a constant currency basis in Q1 2023. Our principal
focus continues to be growing our significantly expanded Merchant
business while also reaching breakeven in the Consumer business by
the end of Q2 2023,” said Chris Meyer, Lesaka Group CEO.
- Revenue of $124.8 million (ZAR 2.1 billion)1 in Q1 2023,
compared to $34.5 million (ZAR 504 million)1 for the quarter ended
September 30, 2021 (“Q1 2022”), increase driven by the inclusion of
Connect for the full fiscal quarter.
- Segment Adjusted EBITDA for Q1 2023 improved to income of ZAR
111 million ($6.5 million) compared to a loss of ZAR 106 million
($7.3 million) in Q1 2022.
- In our Merchant business, we continue to build a leading
position in a growing and underserved market. Merchant Segment
Adjusted EBITDA for Q1 2023 increased to ZAR 135 million ($7.9
million) compared to ZAR 28 million ($1.9 million) in Q1 2022
predominantly attributable to the inclusion of Connect. The Connect
acquisition outperformance continues and the strong underlying
fundamentals that underpin this business remain unchanged.
- The good progress in transforming our Consumer business
continues, with Consumer Segment Adjusted EBITDA for Q1 2023
improving to a loss of ZAR 24 million ($1.4 million) compared to a
ZAR 137 million ($9.4 million) loss in Q1 2022.
- Along with the significant progress in right-sizing our
Consumer cost base, the active Consumer account base grew by 13%
compared to Q1 2022, while transaction volumes and revenues
improved.
1. The ZAR weakened 17% against the U.S.
dollar during Q1 2023 if compared to Q1 2022, and 10% compared to
the prior quarter being Q4 2022. Translated at the average exchange
rate of ZAR 17.13 to $1 for Q1 2023, ZAR14.61 to $1 for Q1 2022 and
ZAR 15.56 to $1 for Q4 2022.
Full release and webcast details at Investor Relations | Lesaka
Technologies
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version on businesswire.com: https://www.businesswire.com/news/home/20221108006203/en/
Investor Relations Contact : Phillipe Welthagen Email :
phillipe.welthagen@lesakatech.com Mobile: +27 84 512 5393 ICR Email
: LesakaIR@icrinc.com Media Relations Contact: Janine Bester
Gertzen Email: Janine@thenielsennetwork.com
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