TORONTO, May 21, 2024 /CNW/ - Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa'' or the "Company") is pleased to report the third quarter fiscal year 2024 ended March 31st, 2024 ("Q3") unaudited financial results and provides updated FY24 financial guidance. The full results including Management Discussion & Analysis ("MD&A") are available on SEDAR.
Banxa Holdings Inc. (www.banxa.com) (CNW Group/Banxa Holdings Inc.)
Q3 FINANCIAL HIGHLIGHTS (Figures are in AUD and all comparisons are relative to the three-month period ended March 31st, 2023, unless otherwise stated)
61% increase in Total Transaction Volume ("TTV") to $269 million (USD $180 million), up from $167 million (USD $112 million), driven by product innovation, organic growth with partners and addition of new partners, such as Trust Wallet
56% increase in Gross Profit to $8.2 million (USD $5.5 million), up from $5.2 million (USD $3.5 million), due to growth in TTV and Net Take Rate
76% increase in core operations' Gross Profit, excludes integration revenue*, to $7.9 million (USD $5.3 million), up from $5.5 million (USD $3.7 million)
Increase in Net Take Rate ("NTR") to 3.0%, up from 2.7%, due to improved efficiency in processing transactions and enhanced pricing
361% increase in Adjusted EBITDA to $1.3 million (USD $0.9 million), up from ($0.5 million) (USD ($0.3 million)), due to improved TTV and NTR, reduced operating expenses, specifically staffing and legal & compliance costs
187% increase in core operations' Adjusted EBITDA, excludes integration revenue*, to $1.0 million (USD $0.7 million), up from ($1.2 million) (USD ($0.8 million))
Net loss per share on a basic and diluted basis to $0.01 (USD $0.0), compared to $0.01 (USD $0.0)
Cash, Trade Receivables** and Crypto Inventories at $14.7 million (USD $9.8 million), up from $12.9 million (USD $8.6 million) as of December 31st, 2023
*Integration revenue consists of coin and chain listings and does not have any costs attributed to it **Trade Receivables primarily consists of funds with large payment service providers (e.g., Worldpay), from credit card transactions, that are settled in 2 to 4 days
Holger Arians, Chairman and CEO, said: "Under the new leadership of Zafer Qureshi and I, the business has delivered its best quarter in its history and I am incredibly proud of the Banxa team's achievement. Q3 is a reflection of our focus on product and disciplined execution. Combined with our vast regulatory licenses and banking relationships, we are well positioned to deliver on our mission to build the infrastructure to extend the benefits of crypto to every merchant and consumer in the world. For the remainder of calendar year 2024, we will be shifting gears into scaling our crypto rails and embedding deeper with our partners, especially in the wallet segment, while entering new segments, to drive highly profitable growth. The winds in our sails from the beginning of another crypto bull market, I am very excited for our future and have raised guidance for FY24 to reflect that."
Zafer Qureshi, Executive Director and Head, Corporate Affairs, said: "The record March quarter resulted from improved alignment and focus across the business, showcasing the immense scale inherent in the business - I am very proud of the team's accomplishment. Achieving sustainable cashflow positive operations in the quarter in a short time frame is truly exceptional and has positioned the business on a strong footing. Furthermore, the business saw improved performance across all facets and made progress on several key priorities, such as reducing our cost of capital and enhanced cost controls. We are keenly focused on driving shareholder value and are actively expanding the reach of Banxa's story to a broader group of investors. With greater awareness of our story among investors, we feel confident the share price will re-rate higher to reflect a business that has reach to over a billion users globally via its 300+ partners, 40+ licenses, 20+ payment methods and over 5.5 million completed orders."
UPDATED FISCAL YEAR 2024 FINANCIAL GUIDANCE (Figures are in AUD, unless otherwise stated)
Banxa is updating its previously announced financial guidance for the full fiscal year 2024:
Previous Guidance
Updated Guidance
Gross Profit
$26.5 million to $27.5 million
(USD $17.2 million to USD $17.9 million)
$27.8 million to $28.8 million
(USD $18.6 million to USD $19.3 million)
Adjusted EBITDA
($0.8 million) to $0.2 million
(USD ($0.5 million) to USD $0.1 million)
($0.1 million) to $0.9 million
(USD ($0.0 million) to USD $0.6 million)
Q3 FY24 UNAUDITED FINANCIAL RESULTS EARNINGS CALL Banxa will be hosting an earnings call on May 22, 2024 at 8am EST to discuss the Q3 results and all shareholders and investors are encouraged to register for the call here: https://tinyurl.com/BanxaQ3FY24Results
ADJUSTED EBITDA DEFINITION Adjusted EBITDA is a non-IFRS financial measure that we calculate as net profit before tax excluding depreciation and amortization expense, share based compensation expense, unrealized loss on inventory, finance expense, realized/unrealized gain on fair value of deposits & derivative liability, (gain)/loss on fair value of derivative, unrealised exchange (gain)/loss, (gain)/loss on sale of capital asset and listing expenses. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations.
ABOUT BANXA HOLDINGS INC. Banxa is the leading infrastructure provider for enabling embedded crypto - empowering businesses to embed crypto seamlessly into their existing platforms and unlocking new opportunities in the rapidly evolving crypto economy. Through an extensive and growing network of global and local payment solutions and regulatory licenses, Banxa helps businesses provide seamless integration of crypto and fiat for global audiences with lower fees and higher conversion rates. Headquartered in the USA, Europe, and Asia-Pacific, the Banxa team is building for a world where global commerce is run on digital assets. For further information visit www.banxa.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS Per: "Zafer Qureshi" Zafer Qureshi = Executive Director and Head, Corporate Affairs, +1-888-332-2692
Forward-Looking Information
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward–looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions.
These forward–looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
