Givex Announces Fiscal Year and Fourth Quarter 2023 Financial Results

Rhea-AI Summary

Givex Corp. reports strong financial performance with annual revenues exceeding $80 million, 132,000 customer locations, and positive EBIT in Q4. Revenue, gross profit, EBIT, and transactional values showed significant growth in both quarterly and annual results.

Positive

• Annual revenues surpassed $80 million, with 11% growth compared to the previous year.
• Customer locations increased to 132,000, showing an 8% growth.
• Positive earnings before income tax and interest (EBIT) were achieved in Q4.
• Quarterly revenue increased by 6% to $22.5 million, with gross profit growing by 5% to $15.1 million.
• EBIT improved by 1,038% to $2.1 million in Q4 compared to the same period last year.
• Total Gross Transactional Value increased by 15% to $3.8 billion annually, with a 23% growth in POS Gross Transactional Value.
• EBITDA showed a significant increase of 356% to $3.5 million in Q4.
• Operational focus on controlling payroll costs to improve EBITDA and net earnings.

Negative

• None.

Annual revenues surpassed $80 million, customer locations increased to 132,000, and positive
earnings before income tax and interest (EBIT) achieved in Q4

TORONTO, March 22, 2024 /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, 2023. Givex reports in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS").

"Our fourth quarter and fiscal year results reflect another period of revenue growth, but importantly, they also mark a return to positive earnings before tax in Q4." said Don Gray, CEO of Givex.

Fourth Quarter Financial Highlights

Three-month period ending December 31, 2023 (with comparisons relative to the three-month period ending December 31, 2022)

• Revenue increased $1.2 million from $21.3 million to $22.5 million, representing 6% growth.
• Gross Profit increased $0.7 million from $14.5 million to $15.1 million, representing 5% growth.
• Income (loss) before income taxes and interest (EBIT¹) improved $2.3 million from a loss of $0.2 million to income of $2.1 million, a 1,038% increase.
• EBITDA² increased $2.7 million from $0.8 million to $3.5 million, a 356% increase.
• Total Gross Transactional Value³ increased approximately $0.5 billion from $3.3 billion to $3.8 billion, representing 15% growth.
• POS Gross Transactional Value⁴ increased approximately $98 million from $422 million to $520 million, representing 23% growth.
• Customer Locations⁵ increased approximately 10,000, from 122,000 to 132,000, representing 8% growth.

Fiscal Year Financial Highlights

12-month period ending December 31, 2023 (with comparisons relative to the 12-month period ending December 31, 2022)

• Revenue increased $7.9 million from $72.9 million to $80.8 million, representing 11% growth.
• Gross Profit increased $4.8 million from $51.3 million to $56.0 million, representing 9% growth.
• Income (loss) before income taxes and interest (EBIT¹) improved $8.7 million from a loss of $9.3 million to a loss of $0.7 million, a 93% decrease.
• EBITDA² increased $8.8 million from negative $4.1 million to positive $4.7 million, representing 213% growth.
• Total Gross Transactional Value³ increased approximately $1.4 billion from $7.7 billion to $9.1 billion, representing 18% growth.
• POS Gross Transactional Value⁴ increased approximately $510 million from $1.4 billion to $1.9 billion, representing 37% growth.

Operational Highlights

• Controlling payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending December 31, 2023 and 2022, Employee Compensation⁶ as a % of Gross Profit was 53.8% and 53.3% respectively. The company believes that its ability to control Employee Compensation as a % of Gross Profit is an indicator of its success in managing costs and profitability.
• Inflation continued to put pressure on payroll costs in all markets. Givex will continue to work towards its goal of payroll costs being 50% or less of Gross Profit through the implementation of tools such as Artificial Intelligence ("AI") enhanced client support flows.

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 132,000+ 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 "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 19, 2024, 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

¹ EBIT is defined as net profit (loss) before interest and taxes.

² EBITDA is defined as net profit (loss) excluding interest, taxes, depreciation and amortization ("EBITDA").

³ Gross Transactional Value ("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.

⁴ POS Gross Transactional Value ("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.

⁵ 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. 

⁶ 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 Corporation

FAQ

What were Givex Corp.'s annual revenues for the fiscal year ending December 31, 2023?

Givex Corp. reported annual revenues exceeding $80 million for the fiscal year ending December 31, 2023.

How many customer locations does Givex Corp. currently have?

Givex Corp. currently has 132,000 customer locations.

Did Givex Corp. achieve positive EBIT in Q4?

Yes, Givex Corp. achieved positive earnings before income tax and interest (EBIT) in Q4.

What was the percentage increase in revenue for the quarterly period ending December 31, 2023?

The quarterly revenue increased by 6% to $22.5 million.

By how much did EBIT improve in Q4 compared to the same period last year?

EBIT improved by 1,038% to $2.1 million in Q4 compared to the same period last year.

What was the percentage increase in Total Gross Transactional Value annually?

Total Gross Transactional Value increased by 15% to $3.8 billion annually.

What is Givex Corp.'s operational focus for improving EBITDA and net earnings?

Givex Corp. is focusing on controlling payroll costs to improve EBITDA and net earnings.