Givex Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

Givex Information Technology Group Limited (TSX: GIVX; OTCQX: GIVXF) reported its Q2 2022 financial results, revealing a 36% revenue increase to $16.8 million and a growth in customer locations to 116,000. The POS Gross Transactional Value surged by 109% to $584 million. Adjusted EBITDA was $1.0 million, down from $1.9 million in Q2 2021, partially due to prior COVID-19 wage subsidies. For the six-month period, revenue grew 31% to $33.2 million, with total Gross Transactional Value rising 23% to $3.04 billion.

Positive

• Q2 revenue increased by 36%, reaching $16.8 million.
• Customer locations grew by 25% to 116,000.
• POS Gross Transactional Value rose by 109% to $584 million.
• Total Gross Transactional Value increased by 23% to $3.04 billion for the six-month period.

Negative

• Adjusted EBITDA decreased to $1.0 million from $1.9 million in Q2 2021.

Revenue increased 36% to $16.8 million and customer locations increased 25% to 116,000, compared to the three-month period ending June 30, 2021.

TORONTO, Aug. 9, 2022 /PRNewswire/ - Givex Information Technology Group Limited ("Givex") (TSX: GIVX) (OTCQX: GIVXF), is pleased to present its financial results for the three-month period and the six-month period ending June 30, 2022.

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

"Revenue grew 36% this quarter, to $16.8 million, along with a corresponding increase in our number of customer locations to 116,000," said Givex CEO Don Gray. "POS Gross Transactional Value also increased by 109% to $584 million, reflecting our continued gains in the POS market. Customers across the globe continue to be attracted to our end-to-end solution that offers operational efficiencies and robust reporting, enabling them to make better business decisions. We are seeing more customers expand the depth of our relationship to get the most out of our solutions."

Second Quarter Financial Highlights

Three-month period ending June 30, 2022 (with comparisons relative to the three-month period ending June 30, 2021)

• Revenue increased $4.4 million from $12.4 million to $16.8 million, 36% growth.
• Adjusted EBITDA* was $1.0 million in 2022 compared to $1.9 million in 2021. (However, 2021 includes $0.4 million received for the Canadian Government's COVID-19 wage subsidy).
• Total Gross Transactional Value increased approximately $0.35 billion or 24%, from $1.44 billion in Q2 2021 to $1.79 billion in Q2 2022.
• POS Gross Transactional Value increased approximately $191 million or 122%, from $156 million in Q1 2021 to $347 million in Q1 2022.
• Customer Locations increased approximately 23,000 or 25%, from 93,000 in Q2 2021 to 116,000 in Q2 2022.

Six-month period ending June 30, 2022 (with comparisons relative to the six-month period ending June 30, 2021)

• Revenue increased $7.8 million from $25.4 million to $33.2 million, 31% growth.
• Adjusted EBITDA was $2.3 million in 2022 compared to $3.2 million in 2021. (However, 2021 includes $0.5 million received for the Canadian Government's COVID-19 wage subsidy).
• Total Gross Transactional Value increased approximately $0.57 billion or 23%, from $2.47 billion in 2021 to $3.04 billion in 2022.
• POS Gross Transactional Value increased approximately $305 million or 109%, from $279 million in 2021 to $584 million in 2022.

Second Quarter Operational Highlights

• For the six-month periods ending June 30, 2022 and 2021, Employee Compensation as a % of Gross Profit was 55% and 58% respectively. For the 12-month periods ending December 31, 2021 and 2020, Employee Compensation as a % of Gross Profit was 55% and 56%, respectively. Givex 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 Givex's first full year as a public company has added $0.7 million to general and administrative costs for the six months ended June 30, 2022, compared to the same period last year as a private company. These costs include both professional fees and investor relations fees, many of which are transitory and one time in nature and Givex expects to be able to reduce going forward.

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 Givex's SEDAR profile at www.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) is a global fintech company providing 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 116,000 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, including statements about reducing general and administrative expenses going forward. 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 Risk Factors section in the Annual Information Form (AIF) dated March 30, 2022, 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.

**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

FAQ

What were Givex's financial results for Q2 2022?

Givex reported Q2 2022 revenue of $16.8 million, a 36% increase compared to Q2 2021.

How many customer locations does Givex serve as of June 30, 2022?

Givex serves 116,000 customer locations, reflecting a 25% increase from the previous year.

What is the POS Gross Transactional Value reported by Givex for Q2 2022?

The POS Gross Transactional Value for Q2 2022 was $584 million, representing a 109% increase.

What was Givex's Adjusted EBITDA for Q2 2022?

Givex's Adjusted EBITDA for Q2 2022 was $1.0 million, down from $1.9 million in Q2 2021.

What is Givex's total Gross Transactional Value for the first half of 2022?

For the six-month period ending June 30, 2022, Givex reported a total Gross Transactional Value of $3.04 billion, a 23% increase.