Revenue increased 36% to $16.8
million and customer locations increased 25% to 116,000,
compared to the three-month period ending June 30,
2021.
TORONTO, Aug. 9, 2022
/CNW/ - Givex Information Technology Group Limited ("Givex") (TSX:
GIVX) (OTCQX: GIVXF), is pleased to present its financial
results for the three-month period and the six-month period
ending June 30, 2022.
Givex reports in Canadian dollars and in accordance with
International Financial Reporting Standards ("IFRS").
"Revenue grew 36% this quarter, to $16.8 million, along
with a corresponding increase in our number of customer locations
to 116,000," said Givex CEO Don Gray. "POS Gross Transactional
Value also increased by 109% to $584
million, reflecting our continued gains in the POS market.
Customers across the globe continue to be attracted to our
end-to-end solution that offers operational efficiencies and robust
reporting, enabling them to make better business decisions. We are
seeing more customers expand the depth of our relationship to get
the most out of our solutions."
Second Quarter Financial
Highlights
Three-month period ending June 30,
2022 (with comparisons relative to the three-month period
ending June 30, 2021)
- Revenue increased $4.4 million
from $12.4 million to $16.8 million, 36% growth.
- Adjusted EBITDA* was $1.0 million
in 2022 compared to $1.9 million in
2021. (However, 2021 includes $0.4
million received for the Canadian Government's COVID-19 wage
subsidy).
- Total Gross Transactional Value increased approximately
$0.35 billion or 24%, from
$1.44 billion in Q2 2021 to
$1.79 billion in Q2 2022.
- POS Gross Transactional Value increased approximately
$191 million or 122%, from
$156 million in Q1 2021 to
$347 million in Q1 2022.
- Customer Locations increased approximately 23,000 or 25%, from
93,000 in Q2 2021 to 116,000 in Q2 2022.
Six-month period ending June 30,
2022 (with comparisons relative to the six-month period
ending June 30, 2021)
- Revenue increased $7.8 million
from $25.4 million to $33.2 million, 31% growth.
- Adjusted EBITDA was $2.3 million
in 2022 compared to $3.2 million in
2021. (However, 2021 includes $0.5
million received for the Canadian Government's COVID-19 wage
subsidy).
- Total Gross Transactional Value increased approximately
$0.57 billion or 23%, from
$2.47 billion in 2021 to $3.04 billion in 2022.
- POS Gross Transactional Value increased approximately
$305 million or 109%, from
$279 million in 2021 to $584 million in 2022.
Second Quarter Operational
Highlights
- For the six-month periods ending June
30, 2022 and 2021, Employee Compensation as a % of Gross
Profit was 55% and 58% respectively. For the 12-month periods
ending December 31, 2021 and 2020,
Employee Compensation as a % of Gross Profit was 55% and 56%,
respectively. Givex believes that its ability to reduce Employee
Compensation as a % of Gross Profit is an indicator of its success
in managing costs and profitability.
- Costs to support Givex's first full year as a public company
has added $0.7 million to general and
administrative costs for the six months ended June 30, 2022, compared to the same period last
year as a private company. These costs include both professional
fees and investor relations fees, many of which are transitory and
one time in nature and Givex expects to be able to reduce going
forward.
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 Givex's SEDAR profile at
www.sedar.com.
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
Givex (TSX: GIVX;OTCQX: GIVXF) is a global fintech company
providing merchants with customer engagement, point of sale and
payment solutions, all in a single platform. We are integrated with
1000+ technology partners, creating a fully end-to-end solution
that delivers powerful customer insights. Our platform is used by
some of the world's largest brands, comprising approximately
116,000 locations across more than 100 countries. Learn more at
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, including
statements about reducing general and administrative expenses going
forward. 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 Risk Factors
section in the Annual Information Form (AIF) dated March 30, 2022, available on SEDAR at
sedar.com 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
* 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.
**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