For Q3 2023, revenue increased 7% to
$19.6 million, customer locations
increased 9% to 128,000 and Q3 net loss dropped 71% from
$3.4 million in Q3 2022 to
$1.0 million in Q3 2023
TORONTO, Nov. 1, 2023
/PRNewswire/ - Givex Corp. ("Givex") (TSX: GIVX) (OTCQX: GIVXF), is
pleased to present its financial results for the three-month period
and nine-month period ending September 30, 2023.
Givex reports in Canadian dollars and in accordance with
International Financial Reporting Standards ("IFRS").
In Q3 2023, Givex continued to increase adjusted EBITDA by
growing gross profit and keeping a tight rein on payroll costs,"
said Don Gray, CEO of Givex. "Net
loss for the nine months ending September
30 decreased 68%, from $9.9
million to $3.2 million, while
revenue grew 13% over the same period. We are working hard to
continue these trends and travel on a path towards positive
earnings as the RSU and Option amortizations are substantially
cleared off."
Third Quarter Financial
Highlights
Three-month period ending September 30,
2023 (with comparisons relative to the three-month period
ending September 30, 2022)
- Revenue increased $1.2 million
from $18.4 million to $19.6 million, 7% growth.
- Gross Profit increased $0.6
million from $13.0 million to
$13.6 million, 4% growth.
- Adjusted EBITDA* increased $0.3
million from $1.0 million to
$1.3 million, 30% growth.
- Net Loss decreased $2.4 million
from $3.4 million to $1.0 million, 71% decrease.
- Total Gross Transactional Value** increased approximately
$0.24 billion from $1.34 billion to $1.58
billion, 18% growth.
- POS Gross Transactional Value*** increased approximately
$116 million from $377 million to $493
million, 31% growth.
- Customer Locations**** increased approximately 10,000, from
118,000 to 128,000, 9% growth.
Nine-month period ending September 30,
2023 (with comparisons relative to the nine-month period
ending September 30, 2022)
- Revenue increased $6.6 million
from $51.6 million to $58.2 million, 13% growth.
- Gross Profit increased $4.8
million from $36.1 million to
$40.9 million, 13% growth.
- Adjusted EBITDA* increased $0.7
million from $3.3 million to
$4.0 million, 22% growth.
- Net Loss decreased $6.7 million
from $9.9 million to $3.2 million, 68% decrease.
- Total Gross Transactional Value** increased approximately
$0.9 billion from $4.4 billion to $5.3
billion, 22% growth.
- POS Gross Transactional Value*** increased approximately
$412 million from $960 million to $1.372
billion, 43% growth.
Operational Highlights
- Payroll costs are the key focus to improved EBITDA and positive
net earnings. For the 12-month periods ending September 30, 2023 and 2022, Employee
Compensation as a % of Gross Profit***** was 53% and 55%,
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 SEDAR+ at
www.sedarplus.ca.
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
The world is changing. Givex is ready. Since 1999, Givex has
provided technology solutions that unleash the full potential of
engagement, creating and cultivating powerful connections that
unite brands and customers. With a global footprint of 128,000+
active locations across more than 100 countries, Givex unleashes
strategic insights, empowering brands through reliable technology
and exceptional support. Givex's integrated end-to-end management
solution provides Gift Cards, GivexPOS, Loyalty Programs and more,
creating growth opportunities for businesses of all sizes and
industries. Learn more about how to streamline workflows, tackle
complex challenges and transform data into actionable insights at
www.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 www.sedarplus.ca 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.
*****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