Lesaka Q1 2025 Results: Lesaka Continues Building Operational Momentum Achieving Revenue and Profitability Guidance
Lesaka Technologies (Nasdaq: LSAK) reported Q1 2025 results with revenue of $145.5 million, meeting mid-point guidance. The company recorded an operating loss of $0.05 million, including $1.7 million in one-off Adumo acquisition costs. Net loss improved 23% to $4.5 million, while Group Adjusted EBITDA grew 12% to $9.4 million. Consumer Division revenue increased 30% to $21.1 million, while Merchant Division revenue remained flat at $125.3 million. The company reaffirmed its FY 2025 guidance, projecting revenue of ZAR 10-11 billion and Group Adjusted EBITDA of ZAR 900 million to 1 billion, implying 37% year-on-year growth.
Lesaka Technologies (Nasdaq: LSAK) ha riportato i risultati del primo trimestre del 2025, con un fatturato di 145,5 milioni di dollari, in linea con le previsioni medie. L'azienda ha registrato una perdita operativa di 0,05 milioni di dollari, compresi 1,7 milioni di dollari per costi una tantum legati all'acquisizione di Adumo. La perdita netta è migliorata del 23% a 4,5 milioni di dollari, mentre l'EBITDA aggiustato del gruppo è aumentato del 12% a 9,4 milioni di dollari. I ricavi della Divisione Consumer sono aumentati del 30% a 21,1 milioni di dollari, mentre i ricavi della Divisione Merchant sono rimasti stabili a 125,3 milioni di dollari. L'azienda ha confermato le previsioni per l'intero anno fiscale 2025, prevedendo un fatturato di 10-11 miliardi di rand sudafricani e un EBITDA aggiustato del gruppo compreso tra 900 milioni e 1 miliardo di rand, con una crescita del 37% anno su anno.
Lesaka Technologies (Nasdaq: LSAK) reportó los resultados del primer trimestre de 2025, con ingresos de 145,5 millones de dólares, cumpliendo con las expectativas a medio plazo. La empresa registró una pérdida operativa de 0,05 millones de dólares, incluyendo 1,7 millones en costos únicos por la adquisición de Adumo. La pérdida neta mejoró un 23% a 4,5 millones de dólares, mientras que el EBITDA ajustado del grupo creció un 12% a 9,4 millones de dólares. Los ingresos de la División de Consumidores aumentaron un 30% a 21,1 millones de dólares, mientras que los ingresos de la División de Comerciantes se mantuvieron estables en 125,3 millones de dólares. La empresa reafirmó sus proyecciones para el año fiscal 2025, anticipando ingresos entre 10 y 11 mil millones de rand sudafricanos y un EBITDA ajustado del grupo de entre 900 millones y 1 mil millones de rand, lo que implica un crecimiento del 37% interanual.
레사카 테크놀로지 (Nasdaq: LSAK)가 2025년 1분기 결과를 보고하며, 매출이 1억 4천5백5십만 달러로 중간 예측에 부합했다고 발표했습니다. 회사는 아두모 인수 비용으로 170만 달러를 포함해 5만 달러의 운영 손실을 기록했습니다. 순손실은 23% 개선되어 450만 달러가 되었고, 그룹 조정 EBITDA는 12% 증가하여 940만 달러에 달했습니다. 소비자 부문 매출은 30% 증가한 2천110만 달러에 이르렀고, 상인 부문은 1억 2천5백30만 달러로 제자리를 유지했습니다. 회사는 2025 회계연도 가이던스를 재확인하며, 매출이 100억에서 110억 남아프리카 랜드, 그룹 조정 EBITDA가 9억에서 10억 랜드에 이를 것으로 예상하며, 이는 연간 37% 성장하는 것을 의미합니다.
Lesaka Technologies (Nasdaq: LSAK) a annoncé ses résultats du premier trimestre 2025, avec un chiffre d'affaires de 145,5 millions de dollars, correspondant aux prévisions intermédiaires. L'entreprise a enregistré une perte opérationnelle de 0,05 million de dollars, y compris 1,7 million de dollars de coûts exceptionnels liés à l'acquisition d'Adumo. La perte nette s'est améliorée de 23 % pour atteindre 4,5 millions de dollars, tandis que l'EBITDA ajusté du groupe a augmenté de 12 % à 9,4 millions de dollars. Le chiffre d'affaires de la Division Consommateurs a augmenté de 30 % pour atteindre 21,1 millions de dollars, tandis que le chiffre d'affaires de la Division Commerçants est resté stable à 125,3 millions de dollars. L'entreprise a réaffirmé ses prévisions pour l'exercice 2025, anticipant un chiffre d'affaires de 10 à 11 milliards de ZAR et un EBITDA ajusté du groupe entre 900 millions et 1 milliard de ZAR, ce qui implique une croissance de 37 % d'une année sur l'autre.
Lesaka Technologies (Nasdaq: LSAK) berichtete über die Ergebnisse des ersten Quartals 2025 mit einem Umsatz von 145,5 Millionen Dollar, was den mittelfristigen Prognosen entspricht. Das Unternehmen verzeichnete einen Betriebsverlust von 0,05 Millionen Dollar, einschließlich einmaliger Kosten in Höhe von 1,7 Millionen Dollar für die Akquisition von Adumo. Der Nettoverlust verbesserte sich um 23% auf 4,5 Millionen Dollar, während das bereinigte EBITDA der Gruppe um 12% auf 9,4 Millionen Dollar wuchs. Der Umsatz der Verbraucherabteilung stieg um 30% auf 21,1 Millionen Dollar, während der Umsatz der Händlerabteilung stabil bei 125,3 Millionen Dollar blieb. Das Unternehmen bestätigte seine Prognosen für das Geschäftsjahr 2025 mit einem Umsatz von 10 bis 11 Milliarden ZAR und einem bereinigten EBITDA der Gruppe von 900 Millionen bis 1 Milliarde ZAR, was ein jährliches Wachstum von 37% impliziert.
- Revenue met guidance at $145.5 million, up from $136.1 million in Q1 2024
- Group Adjusted EBITDA improved 12% to $9.4 million
- Consumer Division revenue grew 30% with 99% increase in Segment Adjusted EBITDA
- Net loss improved by 23% compared to previous year
- Fundamental earnings per share improved to $0.04 from a loss of $0.00
- Operating loss of $0.05 million compared to operating income of $0.2 million in Q1 2024
- Net loss of $4.5 million despite improvement from previous year
- Merchant Division EBITDA contracted 1% year-over-year
- $1.7 million one-off transaction costs for Adumo acquisition
Insights
Lesaka's Q1 2025 results show mixed performance with some positive trends. Revenue reached
The company's forward guidance is optimistic, projecting FY2025 Net Revenue growth of
The fintech landscape in Southern Africa presents significant growth opportunities and Lesaka's strategic positioning is noteworthy. The company's dual-segment approach, with a thriving Consumer Division and stable Merchant Division, provides diversified revenue streams. The
The guidance for FY2025, including Net Revenue of ZAR 5.2-5.6 billion and Group Adjusted EBITDA of ZAR 900 million to 1 billion, suggests management's confidence in scaling operations. The Adumo acquisition could be transformative, though integration costs may impact near-term profitability.
JOHANNESBURG, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the first quarter of fiscal 2025 (“Q1 2025”).
Q1 2025 performance:
- Revenue of
$145.5 million (ZAR 2.6 billion) was at the mid-point of our revenue guidance and compares to$136.1 million (ZAR 2.5 billion) in Q1 2024. - Operating loss of
$0.05 million (ZAR 0.3 million) compares to operating income of$0.2 million (ZAR 4.2 million) in Q1 2024. The current quarter includes$1.7 million (ZAR 30.0 million) of one-off transaction costs relating to the acquisition of Adumo. Excluding the impact of these transaction costs, operating income would have been$1.7 million (ZAR 29.7 million). - Net loss, including
$1.7 million (ZAR 30.0 million) of one-off Adumo transaction costs, improved23% in ZAR, to a net loss of$4.5 million (ZAR 81.0 million) in Q1 2025. - GAAP loss per share improved
24% in ZAR to$0.07 (ZAR 1.26) from$0.09 (ZAR 1.66) in Q1 2024. - Group Adjusted EBITDA (a non-GAAP measure) of
$9.4 million (ZAR 168.1 million) was at the mid-point of our guidance range, improving12% in ZAR from$8.0 million (ZAR 149.5 million) in Q1 2024. - Fundamental earnings per share (a non-GAAP measure) of
$0.04 (ZAR 0.66) improved by$0.04 (ZAR 0.74) compared to a fundamental loss per share of$0.00 (ZAR 0.08) in Q1 2024. - Consumer Division revenue increased
30% in ZAR to$21.1 million (ZAR 378.1 million) and Segment Adjusted EBITDA increased99% in ZAR, to$4.4 million (ZAR 78.7 million). - Merchant Division revenue of
$125.3 million (ZAR 2.3 billion) remained flat in ZAR and Segment Adjusted EBITDA contracted marginally, by1% in ZAR, to$7.9 million (ZAR 142.1 million).
| (1) | Average exchange rates applicable for the quarter: ZAR 17.72 to | |
Lesaka Chairman Ali Mazanderani said: “We continue to invest in building the Lesaka platform and to scale as Southern Africa’s leading independent fintech. We achieved the mid-point of our revenue and Group Adjusted EBITDA guidance for Q1 2025. We have now delivered on our Group Adjusted EBITDA guidance for nine successive quarters and reaffirm our FY 2025 revenue guidance of ZAR 10 billion to ZAR 11 billion and FY2025 Group Adjusted EBITDA guidance of ZAR 900 million to ZAR 1 billion. Our Net Revenue guidance of ZAR 5.2 million to ZAR 5.6 million for FY 2025 implies
Outlook: Second Quarter 2025 (“Q2 2025”) and reaffirming Full Fiscal Year 2025 (“FY 2025”) outlook
While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance accordingly.
We have included guidance for Net Revenue, a non-GAAP measure, for the first time. This primarily eliminates the effect of changes in revenue mix between agency and principal sales of airtime, which can be material. Refer below to “Use of Non-GAAP Measures” for additional information.
For Q2 2025, the quarter ending December 31, 2024 we expect:
- Revenue between ZAR 2.4 billion and ZAR 2.6 billion.
- Net Revenue between ZAR 1.2 billion and ZAR 1.4 billion.
- Group Adjusted EBITDA between ZAR 190 million and ZAR 210 million.
Guidance For FY 2025, the year ending June 30, 2025, we expect:
- Revenue between ZAR 10.0 billion and ZAR 11.0 billion.
- Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion.
- Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion
Our outlook provided:
- Includes the impact of the acquisition of Adumo, which closed in October 2024 (in Q2 2025).
- Excludes the impact of unannounced mergers and acquisitions that we may conclude.
The mid-point of the FY 2025 Group Adjusted EBITDA guidance implies a growth rate of more than
Management has provided its outlook regarding Net Revenue and Group Adjusted EBITDA, which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort.
Earnings Presentation for Q1 2025 Results
Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.
Webcast and Conference Call
Lesaka will host a webcast and conference call to review results on November 7, 2024, at 8:00 a.m. Eastern Time which is 3:00 p.m. South Africa Standard Time (“SAST”). A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the live event.
Presentation webcast via Zoom:
Link to access the results webcast: https://bit.ly/3BB5RHG.
Participants using the webcast will be able to ask questions by raising their hand and then asking the question “live.”
Conference call dial-in:
- US Toll-Free: +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782
- South Africa Toll-Free: +27 21 426 8190 or +27 21 426 8191 or +27 87 550 3946
Participants using the conference call dial-in will be unable to ask questions.
A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the live event.
Our Form 10-Q for the quarter ended September 30, 2024, as filed with the SEC, is available on our company website at www.lesakatech.com.
Use of Non-GAAP Measures
U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of Group Adjusted EBITDA, Group Adjusted EBITDA margin, Net Revenue, fundamental net (loss) income, fundamental (loss) earnings per share, and headline (loss) earnings per share are non-GAAP measures. Refer to Attachment A for a reconciliation of these non-GAAP measures.
Non-GAAP Measures
Group adjusted EBITDA
Group Adjusted EBITDA is net loss before interest, taxes, depreciation and amortization, adjusted for non-operational transactions (including loss on disposal of equity-accounted investments), loss from equity-accounted investments, stock-based compensation charges and once-off items. Once-off items represents non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Group Adjusted EBITDA margin is Group Adjusted EBITDA divided by revenue.
Net Revenue
We generate revenue from the provision of transaction-processing services through our various platforms and service offerings. We use these platforms to (a) sell prepaid airtime vouchers which was held as inventory, and (b) distribute VAS, including prepaid airtime vouchers (which we do not hold as inventory), prepaid electricity, gaming vouchers, and other products, to users of our platforms. We act as a principal when we sell airtime vouchers that were held as inventory and record revenue and cost of sales on a gross basis when sold. We act as an agent in a transaction when we provide VAS products through our various platforms and services offerings because we do not control the good or service to be provided and we recognize revenue based on the amount that we are contractually entitled to receive for performing the distribution service on behalf of our customers using our platform. Our revenue under GAAP can fluctuate materially due to changes in the revenue mix between these revenue categories. Net Revenue is a non-GAAP measure and is calculated as revenue presented under GAAP less (i) the cost of prepaid airtime vouchers sold by us, and (ii) commissions paid to third parties selling all other agency-based VAS products (including pinless airtime, electricity and other products) provided through our distribution channels. We believe that the use of Net Revenue is meaningful to users of financial information because it seeks to eliminate the impact of the change in the revenue mix from the revenue categories over the periods presented.
Fundamental net earnings (loss) and fundamental earnings (loss) per share
Fundamental net earnings (loss) and earnings (loss) per share is GAAP net loss and loss per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.
Fundamental net earnings (loss) and earnings (loss) per share for fiscal 2024 also includes an impairment loss related to an equity-accounted investment, and a reversal of allowance for doubtful loan receivable.
Management believes that the Group Adjusted EBITDA, fundamental net earnings (loss) and fundamental earnings (loss) per share metrics enhance its own evaluation, as well as an investor’s understanding, of our financial performance. Attachment A presents the reconciliation between GAAP net loss attributable to Lesaka and these non-GAAP measures.
Headline (loss) earnings per share (“H(L)EPS”)
The inclusion of H(L)EPS in this press release is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.
H(L)EPS basic and diluted is calculated as GAAP net (loss) income adjusted for the impairment losses related to our equity-accounted investments and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net (loss) income used to calculate (loss) earnings per share basic and diluted and H(L)EPS basic and diluted and the calculation of the denominator for headline diluted (loss) earnings per share.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to Southern Africa’s underserviced consumers (B2C) and merchants (B2B), improving people’s lives and increasing financial inclusion in the markets in which we operate. We offer a wide range of integrated payment solutions including transactional accounts (banking), lending, insurance, payouts, cash management solutions, card acceptance, supplier payments, software services and bill payments. By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,” “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, as filed with the SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Phillipe Welthagen
Email: phillipe.welthagen@lesakatech.com
Mobile: +27 84 512 5393
Media Relations Contact:
Ian Harrison
Email: ian@thenielsennetwork.com
| Lesaka Technologies, Inc. | ||||||||||||||||
| Attachment A | ||||||||||||||||
| Reconciliation of GAAP loss attributable to Lesaka to Group Adjusted EBITDA loss: | ||||||||||||||||
| Three months and year ended September 30, 2024 and 2023 and June 30, 2024 | ||||||||||||||||
| Three months ended | ||||||||||||||||
| September 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | ||||||||||||||
| Loss attributable to Lesaka - GAAP | $ | (4,542 | ) | $ | (5,651 | ) | $ | (5,035 | ) | |||||||
| Loss from equity accounted investments | (27 | ) | 1,405 | (40 | ) | |||||||||||
| Net loss before (earnings) loss from equity-accounted investments | (4,569 | ) | (4,246 | ) | (5,075 | ) | ||||||||||
| Income tax (benefit) expense | 78 | 264 | 1,482 | |||||||||||||
| Loss before income tax expense | (4,491 | ) | (3,982 | ) | (3,593 | ) | ||||||||||
| Reversal of allowance for doubtful EMI loans receivable | - | (250 | ) | - | ||||||||||||
| Unrealized (gain) loss FV for currency adjustments | (219 | ) | 102 | (184 | ) | |||||||||||
| Operating income/(loss) after PPA amortization and net interest (non-GAAP) | (4,710 | ) | (4,130 | ) | (3,777 | ) | ||||||||||
| PPA amortization (amortization of acquired intangible assets) | 3,747 | 3,608 | 3,657 | |||||||||||||
| Operating income/(loss) before PPA amortization after net interest (non-GAAP) | (963 | ) | (522 | ) | (120 | ) | ||||||||||
| Interest expense | 5,032 | 4,909 | 4,620 | |||||||||||||
| Interest income | (586 | ) | (449 | ) | (732 | ) | ||||||||||
| Operating income/(loss) before PPA amortization and net interest (non-GAAP) | 3,483 | 3,938 | 3,768 | |||||||||||||
| Depreciation (excluding amortization of intangibles) | 2,529 | 2,248 | 2,548 | |||||||||||||
| Interest adjustment | (831 | ) | - | - | ||||||||||||
| Stock-based compensation charges | 2,377 | 1,759 | 2,258 | |||||||||||||
| Once-off items | 1,805 | 78 | 1,684 | |||||||||||||
| Group Adjusted EBITDA - Non-GAAP | $ | 9,363 | $ | 8,023 | $ | 10,258 | ||||||||||
| Three months ended | ||||||||||||
| September 30, | Jun 30, | |||||||||||
| 2024 | 2023 | 2024 | ||||||||||
| Once-off items comprises: | ||||||||||||
| Transaction costs | $ | 103 | $ | 78 | $ | 56 | ||||||
| Transaction costs related to Adumo acquisition | 1,702 | - | 1,628 | |||||||||
| $ | 1,805 | $ | 78 | $ | 1,684 | |||||||
Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred significant transaction costs related to the acquisition of Adumo over a number of quarters, and the transactions are generally non-recurring.
| Reconciliation of revenue under GAAP to Net Revenue: | ||||||||||||||
| Three months and year ended September 30, 2024 and 2023 and June 30, 2024 | ||||||||||||||
| Three months ended | ||||||||||||||
| September 30, | June 30, | |||||||||||||
| 2024 | 2023 | 2024 | ||||||||||||
| Revenue - GAAP | $ | 145,546 | $ | 136,089 | $ | 146,046 | ||||||||
| Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products | (86,737 | ) | (87,326 | ) | (91,274 | ) | ||||||||
| Net Revenue (non-GAAP) | $ | 58,809 | $ | 48,763 | $ | 54,772 | ||||||||
| Net Revenue / revenue | 40 | % | 36 | % | 38 | % | ||||||||
| Reconciliation of GAAP net loss and loss per share, basic, to fundamental net earnings (loss) and earnings (loss) per share, basic: | |||||||||||||||||||||||
| Three months ended September 30, 2024 and 2023 | |||||||||||||||||||||||
| Net (loss) income (USD '000) | (L)PS, basic (USD) | Net (loss) income (ZAR '000) | (L)PS, basic (ZAR) | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| GAAP | (4,542 | ) | (5,651 | ) | (0.07 | ) | (0.09 | ) | (81,023 | ) | (105,635 | ) | (1.26 | ) | (1.66 | ) | |||||||
| Intangible asset amortization, net | 2,735 | 2,625 | 49,173 | 49,104 | |||||||||||||||||||
| Stock-based compensation charge | 2,377 | 1,759 | 42,691 | 32,797 | |||||||||||||||||||
| Impairment of equity method investment | - | 1,167 | - | 22,084 | |||||||||||||||||||
| Reversal of allowance for doubtful EMI loans receivable | - | (250 | ) | - | (4,741 | ) | |||||||||||||||||
| Transaction costs | 1,805 | 78 | 31,828 | 1,465 | |||||||||||||||||||
| Fundamental | 2,375 | (272 | ) | 0.04 | - | 42,669 | (4,926 | ) | 0.66 | (0.08 | ) | ||||||||||||
| Attachment B | ||||||||
| Unaudited Condensed Consolidated Financial Statements | ||||||||
| LESAKA TECHNOLOGIES, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||
| Unaudited | ||||||||
| Three months ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| (In thousands) | ||||||||
| REVENUE | $ | 145,546 | $ | 136,089 | ||||
| EXPENSE | ||||||||
| Cost of goods sold, IT processing, servicing and support | 110,887 | 107,490 | ||||||
| Selling, general and administration | 26,726 | 22,515 | ||||||
| Depreciation and amortization | 6,276 | 5,856 | ||||||
| Transaction costs related to Adumo acquisition | 1,702 | - | ||||||
| OPERATING (LOSS) INCOME | (45 | ) | 228 | |||||
| REVERSAL OF ALLOWANCE FOR DOUBTFUL EMI LOAN RECEIVABLE | - | 250 | ||||||
| INTEREST INCOME | 586 | 449 | ||||||
| INTEREST EXPENSE | 5,032 | 4,909 | ||||||
| LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) | (4,491 | ) | (3,982 | ) | ||||
| INCOME TAX EXPENSE (BENEFIT) | 78 | 264 | ||||||
| NET LOSS BEFORE EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS | (4,569 | ) | (4,246 | ) | ||||
| EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS | 27 | (1,405 | ) | |||||
| NET LOSS ATTRIBUTABLE TO LESAKA | $ | (4,542 | ) | $ | (5,651 | ) | ||
| Net loss per share, in United States dollars: | ||||||||
| Basic loss attributable to Lesaka shareholders | $ | (0.07 | ) | $ | (0.09 | ) | ||
| Diluted loss attributable to Lesaka shareholders | $ | (0.07 | ) | $ | (0.09 | ) | ||
| LESAKA TECHNOLOGIES, INC. | |||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||
| Unaudited | |||||||||
| Three months ended | |||||||||
| September 30, | |||||||||
| 2024 | 2023 | ||||||||
| (In thousands) | |||||||||
| Cash flows from operating activities | |||||||||
| Net loss | $ | (4,542 | ) | $ | (5,651 | ) | |||
| Depreciation and amortization | 6,276 | 5,856 | |||||||
| Movement in allowance for doubtful accounts receivable and finance loans receivable | 1,499 | 1,525 | |||||||
| Movement in interest payable | 1,693 | 1,764 | |||||||
| Fair value adjustment related to financial liabilities | 190 | (34 | ) | ||||||
| (Gain) Loss from equity-accounted investments | (27 | ) | 1,405 | ||||||
| Reversal of allowance for doubtful loans receivable | - | (250 | ) | ||||||
| Profit on disposal of property, plant and equipment | (27 | ) | (36 | ) | |||||
| Facility fee amortized | 69 | 227 | |||||||
| (Profit)/loss on disposal of business | |||||||||
| Stock-based compensation charge | 2,377 | 1,759 | |||||||
| Decrease (Increase) in accounts receivable and other receivables | 7,692 | (2,345 | ) | ||||||
| Increase in finance loans receivable | (1,590 | ) | (488 | ) | |||||
| (Increase) Decrease in inventory | (889 | ) | (479 | ) | |||||
| (Decrease) Increase in accounts payable and other payables | (17,177 | ) | 375 | ||||||
| Increase in taxes payable | 765 | 308 | |||||||
| Decrease in deferred taxes | (446 | ) | (562 | ) | |||||
| Net cash (used in) provided by operating activities | (4,137 | ) | 3,374 | ||||||
| Cash flows from investing activities | |||||||||
| Capital expenditures | (3,965 | ) | (2,809 | ) | |||||
| Proceeds from disposal of property, plant and equipment | 850 | 284 | |||||||
| Acquisition of intangible assets | (173 | ) | (135 | ) | |||||
| Net change in settlement assets | 3,570 | (11,237 | ) | ||||||
| Net cash provided by (used in) investing activities | 282 | (13,897 | ) | ||||||
| Cash flows from financing activities | |||||||||
| Proceeds from bank overdraft | 23,893 | 59,574 | |||||||
| Repayment of bank overdraft | (31,028 | ) | (62,793 | ) | |||||
| Long-term borrowings utilized | 774 | 2,471 | |||||||
| Repayment of long-term borrowings | (5,472 | ) | (2,629 | ) | |||||
| Proceeds from issue of shares | - | 21 | |||||||
| Net change in settlement obligations | (3,648 | ) | 10,696 | ||||||
| Net (used in) cash provided by financing activities | (15,481 | ) | 7,340 | ||||||
| Effect of exchange rate changes on cash | 3,226 | (443 | ) | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (16,110 | ) | (3,626 | ) | |||||
| Cash, cash equivalents and restricted cash – beginning of period | 65,919 | 58,632 | |||||||
| Cash, cash equivalents and restricted cash – end of period | $ | 49,809 | $ | 55,006 | |||||
| LESAKA TECHNOLOGIES, INC. | |||||||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||||||
| Unaudited | (A) | ||||||||||
| September 30, | June 30, | ||||||||||
| 2024 | 2024 | ||||||||||
| (In thousands, except share data) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS | |||||||||||
| Cash and cash equivalents | $ | 49,687 | $ | 59,065 | |||||||
| Restricted cash | 122 | 6,853 | |||||||||
| Accounts receivable, net of allowance of - September: | 29,825 | 36,667 | |||||||||
| Finance loans receivable, net of allowance of - September: | 47,017 | 44,058 | |||||||||
| Inventory | 20,194 | 18,226 | |||||||||
| Total current assets before settlement assets | 146,845 | 164,869 | |||||||||
| Settlement assets | 20,469 | 22,827 | |||||||||
| Total current assets | 167,314 | 187,696 | |||||||||
| PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - September: | 34,481 | 31,936 | |||||||||
| OPERATING LEASE RIGHT-OF-USE | 7,411 | 7,280 | |||||||||
| EQUITY-ACCOUNTED INVESTMENTS | 245 | 206 | |||||||||
| GOODWILL | 146,577 | 138,551 | |||||||||
| INTANGIBLE ASSETS, net of accumulated amortization of - September: | 114,052 | 111,353 | |||||||||
| DEFERRED INCOME TAXES | 3,734 | 3,446 | |||||||||
| OTHER LONG-TERM ASSETS, including equity securities | 78,075 | 77,982 | |||||||||
| TOTAL ASSETS | 551,889 | 558,450 | |||||||||
| LIABILITIES | |||||||||||
| CURRENT LIABILITIES | |||||||||||
| Short-term credit facilities for ATM funding | - | 6,737 | |||||||||
| Short-term credit facilities | 9,895 | 9,351 | |||||||||
| Accounts payable | 12,815 | 16,674 | |||||||||
| Other payables | 45,923 | 56,051 | |||||||||
| Operating lease liability - current | 2,600 | 2,343 | |||||||||
| Current portion of long-term borrowings | 3,841 | 3,878 | |||||||||
| Income taxes payable | 1,488 | 654 | |||||||||
| Total current liabilities before settlement obligations | 76,562 | 95,688 | |||||||||
| Settlement obligations | 19,899 | 22,358 | |||||||||
| Total current liabilities | 96,461 | 118,046 | |||||||||
| DEFERRED INCOME TAXES | 39,345 | 38,128 | |||||||||
| OPERATING LEASE LIABILITY - LONG TERM | 4,968 | 5,087 | |||||||||
| LONG-TERM BORROWINGS | 144,679 | 139,308 | |||||||||
| OTHER LONG-TERM LIABILITIES, including insurance policy liabilities | 2,790 | 2,595 | |||||||||
| TOTAL LIABILITIES | 288,243 | 303,164 | |||||||||
| REDEEMABLE COMMON STOCK | 79,429 | 79,429 | |||||||||
| EQUITY | |||||||||||
| LESAKA EQUITY: | |||||||||||
| COMMON STOCK | |||||||||||
| Authorized: 200,000,000 with | |||||||||||
| Issued and outstanding shares, net of treasury: September: 64,301,943; June: 64,272,243 | 83 | 83 | |||||||||
| PREFERRED STOCK | |||||||||||
| Authorized shares: 50,000,000 with | |||||||||||
| Issued and outstanding shares, net of treasury: September: -; June: - | - | - | |||||||||
| ADDITIONAL PAID-IN-CAPITAL | 346,016 | 343,639 | |||||||||
| TREASURY SHARES, AT COST: September: 25,563,808; June: 25,563,808 | (289,733 | ) | (289,733 | ) | |||||||
| ACCUMULATED OTHER COMPREHENSIVE LOSS | (177,830 | ) | (188,355 | ) | |||||||
| RETAINED EARNINGS | 305,681 | 310,223 | |||||||||
| TOTAL LESAKA EQUITY | 184,217 | 175,857 | |||||||||
| NON-CONTROLLING INTEREST | - | - | |||||||||
| TOTAL EQUITY | 184,217 | 175,857 | |||||||||
| TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’ EQUITY | $ | 551,889 | $ | 558,450 | |||||||
| (A) | Derived from audited consolidated financial statements. | |
| Lesaka Technologies, Inc. | ||||||
| Attachment C | ||||||
| Reconciliation of net loss used to calculate loss per share basic and diluted and headline loss per share basic and diluted: | ||||||
| Three months ended September 30, 2024 and 2024 | ||||||
| 2024 | 2023 | |||||
| Net loss (USD’000) | (4,542 | ) | (5,651 | ) | ||
| Adjustments: | ||||||
| Impairment of equity method investments | - | 1,167 | ||||
| Profit on sale of property, plant and equipment | (27 | ) | (36 | ) | ||
| Tax effects on above | 7 | 10 | ||||
| Net loss used to calculate headline loss (USD’000) | (4,562 | ) | (4,510 | ) | ||
| Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss (‘000) | 64,293 | 63,805 | ||||
| Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss (‘000) | 64,293 | 63,805 | ||||
| Headline loss per share: | ||||||
| Basic, in USD | (0.07 | ) | (0.07 | ) | ||
| Diluted, in USD | (0.07 | ) | (0.07 | ) | ||
| Calculation of the denominator for headline diluted loss per share | |||||||
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP | 64,293 | 63,805 | |||||
| Denominator for headline diluted loss per share | 64,293 | 63,805 | |||||
Weighted average number of shares used to calculate headline diluted loss per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully diluted shares outstanding to calculate headline diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.
FAQ
What was Lesaka's (LSAK) revenue in Q1 2025?
How did Lesaka's (LSAK) Consumer Division perform in Q1 2025?
What is Lesaka's (LSAK) FY 2025 revenue guidance?
Did Lesaka (LSAK) report a profit or loss in Q1 2025?
