POSaBIT Reports First Quarter 2021 Financial Results

Rhea-AI Summary

POSaBIT Systems Corporation (CSE:PBIT, OTC:POSAF) has reported record financial results for Q1 2021, marking its largest revenue quarter ever. Revenue soared by 276% to $3.55 million, with gross profit jumping 1,170% to $890 thousand. The adjusted EBITDA reached $71 thousand, signaling three consecutive profitable quarters. Transactional sales for card services surged 308% to $64 million. POSaBIT forecasts total revenue between $14.5 million and $16 million for FY 2021, with transaction sales estimated at $275 million to $300 million.

Positive

• Record revenue of $3.55 million in Q1 2021, up 276% year-over-year.
• Gross profit increased to $890 thousand, representing a 1,170% growth from Q1 2020.
• Adjusted EBITDA profitability of $71 thousand, marking three consecutive positive quarters.
• Transactional sales for card services reached $64 million, up 308% compared to Q1 2020.
• 2021 revenue guidance set between $14.5 million and $16 million.

Negative

• Net loss of $514 thousand in Q1 2021, though reduced from a loss of $555 thousand in Q1 2020.

POSaBIT Systems Corporation (CSE:PBIT, OTC:POSAF), a leading financial technology company delivering unique payment processing and point-of-sale (POS) systems for cash-only businesses with a focus on the cannabis industry, is pleased to report its financial results for the three months ended March 31, 2021.

POSaBIT announced its largest revenue quarter in company history and also achieved adjusted EBITDA profitability during the first quarter of 2021. Revenue grew by 276% and gross margin dollars grew 1,170% in Q1 2021 compared to Q1 2020. Revenue for the quarter increased to $3.55 million compared to $942 thousand in Q1 2020. Adjusted EBITDA profitability was $71 thousand for the quarter, representing its third consecutive positive adjusted EBITDA quarter.

Ryan Hamlin, CEO/co-founder of POSaBIT, commented, “2021 is off to a great start. Revenue has nearly quadrupled, operating margins expanded significantly, compared to Q1 of 2020, and we recorded our third consecutive positive adjusted EBITDA quarter. We expect rapid growth to continue in 2021 as we further build out a team, develop best in class technology, and expand our geographic footprint.”

First Quarter 2021 Financial Highlights

• Transactional sales for POSaBIT’s card services business totaled $64 million, representing an increase of 308% compared with $15.7 million in the first quarter of 2020.
  
• Total revenue was $3.55 million, up 276% compared with $942 thousand in the first quarter of 2020.
  
• Gross profit was $890 thousand, or 25% of revenue, up 1,170% compared with a gross profit of $71 thousand, or 7.5% of revenue, in the first quarter of 2020.
  
• Loss for the quarter was $514 thousand compared with a loss of $555 thousand in the first quarter of 2020.
  
• Adjusted EBITDA was $71 thousand compared to an Adjusted EBITDA loss of $436 thousand in the first quarter of 2020.

Adjusted EBITDA is a non-IFRS measure used by management that does not have any prescribed meaning by IFRS and that may not be comparable to similar measures presented by other companies. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization, and is further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company believes this is a useful metric to evaluate its core operating performance.

Operational Highlights

• On February 23, 2021, the Company completed a strategic investment private placement of units, receiving gross proceeds of $2 million USD.
  
• On March 30, 2021, the Company announced a partnership with I Heart Jane, the premier online ordering and menu platform for marijuana retailers.

Subsequent Events

• On April 21, 2021, the Company announced the appointment of Don Tringali to the Board of Directors. Mr. Tringali previously served as Chairman of the Board of Directors of two NASDAQ listed companies.
  
• On May 13, 2021, the Company announced that Matt Fowler has been appointed Chief Financial Officer of POSaBIT USA.

2021 Outlook

• POSaBIT provides the following revenue and gross margin guidance for the full year 2021.

		FY 2021
2021 Total Revenue		$14.5M - $16M
Transaction sales for card services		$275M - $300M
Gross Profit Margin		28% - 32% <

FAQ

What were POSaBIT's financial results for Q1 2021?

POSaBIT reported a record revenue of $3.55 million for Q1 2021, a 276% increase from the previous year.

How much did POSaBIT's gross profit increase in Q1 2021?

Gross profit in Q1 2021 rose to $890 thousand, up 1,170% compared to Q1 2020.

What is POSaBIT's guidance for total revenue in FY 2021?

POSaBIT anticipates total revenue in the range of $14.5 million to $16 million for the full year 2021.

What was the adjusted EBITDA for POSaBIT in Q1 2021?

Adjusted EBITDA for Q1 2021 was $71 thousand, marking the third consecutive positive quarter.

How much did POSaBIT's transactional sales for card services increase?

Transactional sales for POSaBIT's card services reached $64 million, a 308% increase from Q1 2020.