For Q1 2023, revenue increased 17%
to $19.2 million and customer locations increased 6% to
122,000. Q1 net loss improved 52% from $2.6
million in Q1 2022 to $1.2
million in Q1 2023 before adjusting for non-cash
write-offs
TORONTO, May 2, 2023
/PRNewswire/ - Givex Corp. ("Givex") (TSX: GIVX) (OTCQX: GIVXF), is
pleased to present its financial results for the three-month period
ending March 31, 2023.
Givex reports in Canadian dollars and in accordance with
International Financial Reporting Standards ("IFRS").
"In Q1 2023, Givex continued our consistent growth, in terms of
revenue and customer locations, and further reduced our Q1 net loss
from $2.6 million in 2022 to
$1.2 million in 2023, even before
adjusting for non-cash items," said Don Gray, CEO of Givex.
"We will continue working toward a positive EBITDA by increasing
gross profit in real terms and keeping a tight rein on payroll
costs. Payroll inflation will continue to be a difficult challenge
in the year ahead but I am confident our Givex team productivity
will help us achieve our payroll to gross profit objective."
First Quarter Financial Highlights
Three-month period ending March 31,
2023 (with comparisons relative to the three-month period
ending March 31, 2022)
- Revenue increased $2.8 million
from $16.3 million in Q1 2022 to
$19.2 million in Q1 2023, 17%
growth.
- Adjusted EBITDA* decreased $0.3
million from $1.3 million in
Q1 2022 to $1.0 million in Q1
2023.
- Net Loss decreased $1.3 million
or 52%, from $2.6 million in Q1 2022
to $1.2 million in Q1 2023
- Total Gross Transactional Value** increased approximately
$0.32 billion or 26%, from
$1.26 billion in Q1 2022 to
$1.58 billion in Q1 2023.
- POS Gross Transactional Value*** increased approximately
$168 million or 71%, from
$237 million in Q1 2022 to
$405 million in Q1 2023.
- Customer Locations**** increased approximately 7,000 or 6%,
from 115,000 in Q1 2022 to 122,000 in Q1 2023.
Operational Highlights
- Payroll costs are the key focus to improved EBITDA and positive
net earnings. For the 12-month periods ending March 31, 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.
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
the company's SEDAR at 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)
provides 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
122,000 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. 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 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 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.
*****Cashflows from operating activities means net income (loss)
adjusted for non-cash items, changes in working capital, interest
paid, and income tax paid.
******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