POSaBIT Reports Second Quarter 2024 Financial Results
POSaBIT Systems (CSE: PBIT, OTC: POSAF), a leading cannabis industry payments and point-of-sale provider, reported Q2 2024 financial results. Highlights include:
- Achieved adjusted EBITDA profitability and positive free cash flow
- Q2 Adjusted Gross Profit of $3M (59% margin), up 31% from Q1
- Q2 Adjusted Revenue Growth of 11% over Q1 2024
- Increased cash on hand by ~$200K to $1.1M
- Launched POSaBIT Pay app and redesigned eCommerce Menu
- On track to process over $1B in annual gross sales in Washington State
The company aims for continued adjusted EBITDA profitability and cash reserve growth while maintaining steady growth in Point-of-Sale and Payments businesses.
POSaBIT Systems (CSE: PBIT, OTC: POSAF), un fornitore leader nel settore dei pagamenti e dei punti vendita per l'industria della cannabis, ha riportato i risultati finanziari del secondo trimestre 2024. I punti salienti includono:
- Raggiunta la redditività dell’EBITDA rettificato e flusso di cassa libero positivo
- Profitto lordo rettificato del Q2 di $3M (margine del 59%), in aumento del 31% rispetto al Q1
- Crescita dei ricavi rettificati del Q2 dell'11% rispetto al Q1 2024
- Aumento della liquidità di circa $200K fino a $1.1M
- Lanciata l’app POSaBIT Pay e riprogettato il menu eCommerce
- In pista per elaborare oltre $1B in vendite lorde annuali nello Stato di Washington
La società mira a mantenere la redditività dell’EBITDA rettificato e la crescita delle riserve liquide, continuando al contempo la crescita stabile nei settori dei Punti di Vendita e dei Pagamenti.
POSaBIT Systems (CSE: PBIT, OTC: POSAF), un proveedor líder en la industria de pagos y puntos de venta para la industria del cannabis, informó los resultados financieros del segundo trimestre de 2024. Los aspectos destacados incluyen:
- Alcanzó rentabilidad ajustada de EBITDA y flujo de efectivo libre positivo
- Ganancia bruta ajustada del Q2 de $3M (margen del 59%), un aumento del 31% con respecto al Q1
- Crecimiento de ingresos ajustados del Q2 del 11% en comparación con el Q1 2024
- Aumento de efectivo disponible de aproximadamente $200K a $1.1M
- Lanzada la aplicación POSaBIT Pay y rediseñado el menú de comercio electrónico
- En camino de procesar más de $1B en ventas brutas anuales en el estado de Washington
La empresa tiene como objetivo mantener la rentabilidad ajustada de EBITDA y el crecimiento de las reservas de efectivo, al mismo tiempo que mantiene un crecimiento constante en los negocios de Puntos de Venta y Pagos.
POSaBIT Systems (CSE: PBIT, OTC: POSAF)은 캘리포니아에서 선도적인 결제 및 판매 시점 제공업체로서 2024년 2분기 재무 결과를 보고했습니다. 주요 내용은 다음과 같습니다:
- 조정된 EBITDA 수익성 및 긍정적인 자유 현금 흐름 달성
- 2분기 조정된 총 이익 $3M(59% 마진), 1분기 대비 31% 증가
- 2024년 1분기 대비 2분기 조정된 수익 성장률 11%
- 현금 보유액 약 $200K 증가하여 $1.1M에 도달
- POSaBIT Pay 앱 출시 및 전자상거래 메뉴 리디자인
- 워싱턴주에서 연간 총 매출 $1B 초과 처리할 예정
회사는 조정된 EBITDA 수익성과 현금 비축의 성장을 지속함과 동시에 판매 시점 및 결제 비즈니스의 안정적 성장을 유지하는 것을 목표로 하고 있습니다.
POSaBIT Systems (CSE: PBIT, OTC: POSAF), un fournisseur de premier plan dans l'industrie des paiements et des points de vente pour le secteur du cannabis, a publié ses résultats financiers pour le deuxième trimestre 2024. Les faits saillants comprennent :
- Rentabilité de l'EBITDA ajusté et flux de trésorerie libre positif atteints
- Bénéfice brut ajusté du T2 de 3 millions $ (marge de 59 %), en hausse de 31 % par rapport au T1
- Croissance des revenus ajustés du T2 de 11 % par rapport au T1 2024
- Augmentation de la trésorerie d'environ 200 000 $ pour atteindre 1,1 million $
- Lancement de l'application POSaBIT Pay et refonte du menu eCommerce
- En bonne voie pour traiter plus d'un milliard $ de ventes brutes annuelles dans l'État de Washington
L'entreprise vise à maintenir la rentabilité de l'EBITDA ajusté et la croissance de ses réserves de trésorerie tout en maintenant une croissance stable dans les secteurs des points de vente et des paiements.
POSaBIT Systems (CSE: PBIT, OTC: POSAF), ein führender Anbieter von Zahlungs- und Point-of-Sale-Lösungen für die Cannabisbranche, hat die finanziellen Ergebnisse für das 2. Quartal 2024 vorgelegt. Die Highlights sind:
- Erzielung von adjustierter EBITDA-Rentabilität und positivem Free Cash Flow
- Adjustierter Bruttogewinn des Q2 von $3M (59 % Marge), das ist ein Anstieg um 31 % im Vergleich zum Q1
- Adjustiertes Umsatzwachstum des Q2 von 11 % im Vergleich zum Q1 2024
- Erhöhung der liquiden Mittel um ca. $200K auf $1.1M
- Einführung der POSaBIT Pay-App und Neugestaltung des E-Commerce-Menüs
- Auf Kurs, jährlich über $1B an Bruttoumsätzen im Bundesstaat Washington zu verarbeiten
Das Unternehmen zielt darauf ab, die adjustierte EBITDA-Rentabilität und das Wachstum der Barreserven fortzusetzen, während es gleichzeitig ein stetiges Wachstum im Bereich Point-of-Sale und Zahlungen aufrechterhält.
- Achieved adjusted EBITDA profitability and positive free cash flow in Q2
- Q2 Adjusted Gross Profit increased 31% sequentially to $3M (59% margin)
- Q2 Adjusted Revenue grew 11% over Q1 2024
- Increased cash on hand by ~$200K to $1.1M
- Launched new products: POSaBIT Pay app and redesigned eCommerce Menu
- On track to process over $1B in annual gross sales in Washington State
- Reduced hosting costs, partner revenue sharing, and overall processing fees
- Year-over-year revenue decreased 69% from $13.6M in Q2 2023 to $4.3M in Q2 2024
- Reported a net loss of $454K for Q2 2024, though improved from $1.6M loss in Q2 2023
POSaBIT achieves adjusted EBITDA profitability and positive free cash flow
Q2 Adjusted Gross Profit of
Q2 Adjusted Revenue Growth of
POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the “Company” or “POSaBIT”), a leading provider of payments and point-of-sale infrastructure in the cannabis industry, today announced its financial results for the three months ended June 30, 2024.
“We are pleased to report adjusted EBITDA profitability and positive free cash flow in the second quarter, marked by significant achievements across all key metrics. During the second quarter, POSaBIT increased revenue and gross margins, while decreasing overall operating expenses. POSaBIT increased cash on hand by
Hamlin continued, “As we look ahead to the next six months, our primary focus is on continued adjusted EBITDA profitability and growing our cash reserves while still achieving a steady rate of growth in our Point-of-Sale and Payments lines of business. Our commitment to our investors is to position POSaBIT for long-term, sustainable success, ensuring that we not only meet our immediate objectives but also lay a solid foundation for enduring profitability and free cash flow.”
Recent Operational Highlights
- Launched POSaBIT Pay and new Apple and Android phone app
- Successful eCommerce Menu beta – broad rollout in process in Q3 and Q4
-
On track to process over
$1B Washington State through the POSaBIT Point-of-Sale system - Substantially reduced hosting costs, partner revenue sharing and overall processing fees
Balance Sheet
As of June 30, 2024, the Company increased cash on hand and cash equivalents to
Financial Results
Three Months ended, year over year |
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in US Dollars |
June 30, 2024 |
June 30, 2023, re-presented |
% Chg. |
Revenue |
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(69)% |
Cost of goods sold |
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Gross profit |
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(22)% |
Gross profit margin |
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Operating costs |
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Operating income (loss) |
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Other (expenses) income |
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(90)% |
Income Taxes |
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Income (loss) |
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The following table reconciles Adjusted Revenue to Revenue, Quarter over Quarter.
Three Months ended, quarter over quarter |
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in US Dollars |
June 30, 2024 |
March 31, 2024 |
% Chg. |
Revenue, as reported |
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Add: Cash Receipts from Licensing contracts |
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(33)% |
Add: Current Period Asset Receivable |
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Deduct: Licensing Support Revenue |
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- |
Adjusted Revenue |
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The following table reconciles Adjusted Gross Profit to Gross Profit, Quarter over Quarter.
Three Months ended, quarter over quarter |
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in US Dollars |
June 30, 2024 |
March 31, 2024 |
% Chg. |
Gross Profit, as reported |
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Add: Cash Receipts from Licensing Contracts |
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(33)% |
Add: Current Period Asset Receivable |
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Deduct: Licensing Support Revenue |
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- |
Adjusted Gross Profit |
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Adjusted Gross Profit margin* |
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- |
*As a percentage of Adjusted Revenue |
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The following table reconciles Adjusted EBITDA to Loss, Quarter over Quarter.
Three Months ended, quarter over quarter |
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in US Dollars |
June 30, 2024 |
March 31, 2024 |
Loss, as reported |
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Add/Deduct: Foreign Exchange, as reported |
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Add: Share-based Comp, as reported |
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Add: Amortization and Depreciation, as reported |
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Add/Deduct: Bad Debts (or Recoveries) and Change in Expected Credit Loss, as reported |
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Add: Finance Costs, as reported |
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Add: Interest Accretion, as reported |
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Add: Transaction Costs, as reported |
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Deduct: License Support Revenue and Interest Income, as reported |
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Add: Cash Receipts from Licensing agreement and Current Period Asset Receivable |
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Adjusted EBITDA |
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Run Rate Guidance
For the quarter ending June 30, 2024, POSaBIT generated Adjusted Revenue of
Conference Call Information
Date: August 27, 2024
Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 865942
Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/51181
Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 51181
Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/51181
Financial Reports
Full details of the financial and operating results are described in the Company’s consolidated financial statements for the period ended June 30, 2024, with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR+ at www.sedarplus.ca.
Non-IFRS Measures
Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.
Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s forecasted Adjusted Revenue and Adjusted Gross Profit for the 12 months to be ended December 31, 2024, and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements” herein. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward-Looking Statements” herein, it should not be relied on as necessarily indicative of future results.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding margin improvements and annualized Adjusted Revenue and Adjusted Gross Profit; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSaBIT is an early-stage company with a short operating history; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations.
Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.
Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.
ABOUT POSABIT
POSaBIT (CSE: PBIT, OTC: POSAF) is a FinTech, working exclusively within the cannabis industry. We provide a best-in-class Point-of-Sale solution and are the leading cashless payment provider for cannabis retailers. We work tirelessly to build better financial services and transaction methods for merchants. We bring cutting-edge software and technology to the cannabis industry so that all merchants can have a safe and compliant set of services to solve the problems of a cash-only industry. For additional information, visit www.posabit.com.
Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827039347/en/
Investor Relations:
investors@posabit.com
Media Relations:
Oscar Dahl
855-767-2248
hello@posabit.com
Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
855-767-2248
investors@posabit.com
Source: POSaBIT Systems Corporation
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