Givex Announces Fiscal Year and Fourth Quarter 2022 Financial Results

Rhea-AI Summary

Givex Corp. (TSX: GIVX; OTCQX: GIVXF) reported a 32% revenue increase for fiscal 2022, reaching $72.9 million, alongside a 22% rise in customer locations to 122,000. The company reduced its Q4 net loss before tax and finance costs significantly to $226,000 from $4.6 million in 2021. POS Gross Transactional Value surged 74% to $1.38 billion. Givex made three strategic acquisitions, contributing to 12% organic revenue growth. Adjusted EBITDA for Q4 was $3.0 million, up 25% year-over-year.

Positive

• Revenue grew 32% to $72.9 million in 2022.
• Q4 revenue increased $6.1 million, marking a 40% growth.
• POS Gross Transactional Value increased 74% to $1.38 billion.
• Company reduced Q4 net loss to $226,000, an improvement of $4.4 million year-over-year.
• Achieved 12% organic revenue growth in 2022.

Negative

• Adjusted EBITDA decreased from $8.3 million in 2021 to $6.6 million in 2022.

For fiscal 2022, revenue increased 32% to $72.9 million and customer locations increased 22% to 122,000. Q4 net loss before tax and net finance costs dropped from $4.6 million in 2021 to $226,000 in 2022 before adjusting for non-cash write-offs

TORONTO, March 22, 2023 /PRNewswire/ - Givex Corp. ("Givex") (TSX: GIVX) (OTCQX: GIVXF), is pleased to present its financial results for the three-month period and fiscal year ending December 31, 2022.

Givex reports in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS").

"Our fourth quarter and fiscal year results confirm our continued growth in revenue and customer locations but, more importantly, it shows we were able to reduce our Q4 net loss before tax and net finance costs from $4.6 million in 2021 to $226,000 in 2022, even before adjusting for non-cash items," said Don Gray, CEO of Givex. "This is significant because without these large RSU and Option amortizations happening in 2023, Givex is well-positioned to start generating positive net earnings as well as positive EBITDA."

Revenue grew 32% in 2022 to $72.9 million, and location count now exceeds 122,000, a 22% increase over 2021. POS Gross Transactional Value for the fiscal year also increased by 74% to $1.38 billion, which highlights Givex's growing footprint in the POS space. In 2022, Givex made three strategic acquisitions and expanded its service offerings and global footprint.

Throughout the year Givex continued to sign new agreements with brand name retailers, restaurant chains and sports teams, and added services to existing merchants where able; this helped the company achieve 12% organic revenue growth in fiscal 2022.

Fourth Quarter Financial Highlights

Three-month period ending December 31, 2022 (with comparisons relative to the three-month period ending December 31, 2021)

• Revenue increased $6.1 million from $15.2 million to $21.3 million, 40% growth.
• Adjusted EBITDA* increased $0.6 million from $2.4 million in 2021 to $3.0 million in 2022 a 25% increase.
• Total Gross Transactional Value** increased approximately $0.5 billion or 17%, from $2.86 billion in Q4 2021 to $3.33 billion in Q4 2022.
• POS Gross Transactional Value*** increased approximately $154 million or 57%, from $269 million in Q4 2021 to $422 million in Q4 2022.
• Customer Locations**** increased approximately 22,000 or 22%, from 100,000 in Q4 2021 to 122,000 in Q4 2022.

Fiscal Year Financial Highlights

12-month period ending December 31, 2022 (with comparisons relative to the 12-month period ending December 31, 2021)

• Revenue increased $17.7 million from $55.2 million to $72.9 million, 32% growth.
• Adjusted EBITDA was $6.6 million in 2022 compared to $8.3 million in 2021. (However, 2021 includes $1.0 million received for the Canadian Government's COVID-19 wage subsidy.
• Cashflows***** provided by operating activities were a positive $5.5 million.
• Total Gross Transactional Value increased approximately $1.25 billion or 19%, from $6.47 billion in 2021 to $7.72 billion in 2022.
• POS Gross Transactional Value increased approximately $589 million or 74%, from $793 million in 2021 to $1.38 billion in 2022.

Operational Highlights

• Payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending December 31, 2022, 2021 and 2020, Employee Compensation****** as a % of Gross Profit was 53%, 55% and 56%, 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.
• Costs to support the company's first full year as a public company added approximately $1.3 million to our general and administrative costs for the 12-month period ending December 31, 2022, compared to the same period last year as a private company. These costs include professional fees and investor relations fees which the company will seek to reduce going forward.
• For the 12-month period ending December 31, 2022, sales and marketing costs are $2.4 million higher than the same period last year because Givex actively re-engaged in global tradeshows, added sales team members and invested in other marketing related initiatives.

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

FAQ

What were Givex's revenue results for fiscal 2022?

Givex reported a revenue increase of 32% to $72.9 million for fiscal 2022.

How did Givex perform in Q4 2022?

In Q4 2022, Givex generated $21.3 million in revenue, up 40% from $15.2 million in Q4 2021.

What is the stock symbol for Givex?

Givex trades under the stock symbols GIVX on TSX and GIVXF on OTCQX.

What was Givex's net loss in Q4 2022?

Givex reported a net loss of $226,000 in Q4 2022, a significant reduction from $4.6 million in Q4 2021.

What growth did Givex achieve in customer locations in 2022?

Givex increased its customer locations by 22% to 122,000 in 2022.