Revenues increased by 26% to reach $16.3 million and customer locations increased 26% to 115,000, compared to the three-month period ending March 31, 2021.
TORONTO, May 16, 2022 /PRNewswire/ – Givex Information Technology Group Limited (“Givex”) (TSX: GIVX) (OTCQX: GIVXF), is pleased to report its financial results for the three-month period ending March 31, 2022.
Givex’s reports are in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”).
“Revenue increased by 26% this quarter, for $16.3 millionalong with a corresponding increase in the number of our customer locations, to 115,000,” said Givex CEO Don Gray. “POS gross transaction value also increased by 93% for $237 million, reflecting our gains in the POS market. Compared to the start of 2021, many more of our merchants are now operating at near capacity and their need for our services is greater than ever. Our customer engagement and data solutions are also critical to how companies compete for market share in this post-pandemic landscape.”
“This quarter, our strategic acquisitions of Kalex and Loyalty Lane attracted large customer bases who are not current Givex users, representing a significant opportunity to sell Givex services to them,” added Mr. Gray. “They also brought important in-house IT installation and support services, as well as bolstered our service offerings in the grocery and convenience store verticals.”
First Quarter Financial Highlights
(All comparisons are for the three-month period ending March 31, 2021)
- Revenues have increased $3.3 million from $13 million for $16.3 million26% growth.
- Adjusted EBITDA* was $1.3 million in 2022 compared to $1.3 million in 2021. However, once normalized for the Canadian government’s COVID-19 wage subsidy received in 2021, adjusted EBITDA increased by 4% in 2022 compared to 2021.
- Total gross transaction value** increased by approximately $0.22 billion or 21%, of $1.04 billion in the first quarter of 2021 at $1.26 billion in the first quarter of 2022.
- Point-of-sale gross transaction value*** increased by approximately $114 million i.e. 93%, of $123 million in the first quarter of 2021 at $237 million in the first quarter of 2022.
- Customer locations**** increased by approximately 24,000 or 26%, from 91,000 in Q1 2021 to 115,000 in Q1 2022
First Quarter Operational Highlights
- Launch of the iFood Card in Colombia with Brazilian partner iFood. The program is a success in Brazilwhere it has over 60 million users.
- Boarded our first GivexPay customer
- Completed direct integrations with UberEats, SkipTheDishes, Ritual and DoorDash, eliminating overhead and improving the speed of online ordering service for our customers.
- Launched a gift card program for Maple Leaf Sports & Entertainment (MLSE), adding to our list of Major League team customers.
- Acquisition of Kalex Equipment Services, an IT installation and services company with 15,000 customer sites across Canadaincluding many national restaurant and retail brands.
- Acquired Loyalty Lane, a marketing technology company with 2,000 customers in the grocery and convenience verticals and 11 million registered consumers.
Additional financial information, such as the annual audited consolidated financial statements, the management’s discussion and analysis of financial condition and results of operations and the annual information form, are available on the Company’s SEDAR at sedar.com.
Further information about Givex, including the presentation and management overview, is posted on the company’s investor relations website at investor.givex.com.
Givex (TSX: GIVX; OTCQX: GIVXF) is a global financial technology company that provides merchants with customer engagement, point-of-sale and payment solutions, all on one platform. We are integrated with over 1000 technology partners, creating a complete end-to-end solution that delivers powerful customer insights. Our platform is used by some of the biggest global brands, comprising approximately 115,000 locations in over 100 countries. To learn more, visit 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 not likely to be comparable to similar measures presented by other companies. Rather, these measures are provided as supplemental information to supplement these IFRS measures by providing a better understanding of our results of operations from a management perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analyzing our financial information reported in accordance with IFRS. These non-IFRS measures are used to provide investors with additional measures of our operating performance and thereby highlight trends in our core businesses that may not otherwise be apparent if we rely solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in evaluating 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. .
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 on the date such statements are made, is subject to known and unknown risks, uncertainties , assumptions and other factors that may cause results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, but not limited to , the risk factors described in the “Risk Factors” section of the Risk Factors section of the Annual Information Notice (FAI) dated March 30, 2022, available on SEDAR at sedar.com and other documents filed with Canadian securities regulators. 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, potential investors should not place undue reliance on forward-looking information, which speaks only as of the date of publication. See “Caution Regarding Forward-Looking Information” in the Filing Statement.
*Adjusted EBITDA is defined as net profit (loss) excluding interest, taxes, depreciation and amortization (“EBITDA”) adjusted for stock-based compensation and related expenses, foreign exchange gains and losses and transaction-related expenses, including those related to the Public.
**Gross Transaction Volume (“GTV”) refers to the total dollar value of Stored and Point-of-Sale (“POS”) transactions processed through our cloud-based SaaS platforms during the period, net of refunds, including shipping and handling, customs duties and value added taxes. We believe that GTV is an indicator of the success of our customers and the strength of our platforms. GTV does not represent the revenue we earn.
*** POS Gross Transaction Volume (“POS GTV”) refers to the total dollar value of point-of-sale (“POS”) transactions processed through GivexPOS, our cloud-based SaaS POS platform, during the period net of refunds, including shipping and handling charges, customs duties and value-added taxes. We believe that POS GTV is an indicator of the success of our customers and the strength of our platforms. POS GTV does not represent the revenue we earn.
****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. This includes both merchant locations whose transactions are processed through our cloud-based SaaS platform, as well as merchant locations that are not on our platform but for whom we provide other Givex services. A single unique customer can have multiple customer locations, including physical and e-commerce 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 business growth.
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