Usio Announces Record Fourth Quarter and Full Year 2022 Financial Results

Rhea-AI Summary

Usio, a leading FinTech company, reported a 12% increase in full-year revenues, totaling $69.4 million, marking the sixth consecutive year of record revenue. The fourth quarter revenue hit $18.7 million, a 7% rise year-over-year, fueled by strong growth in Output Solutions and Prepaid services. Despite challenges in 2022, including the cryptocurrency market's impact on ACH revenues, Usio anticipates 18-20% growth in fiscal 2023, alongside positive operating cash flow and Adjusted EBITDA. The company ended the year with approximately $5.7 million in cash and no significant debt.

Positive

• Revenue for FY 2022 reached $69.4 million, a 12% increase from $61.9 million in FY 2021.
• Fourth quarter revenue was $18.7 million, up 7% year-over-year, driven by Output Solutions and Prepaid services.
• ACH business transaction volume grew 46% without cryptocurrency market disruption.
• Positive Adjusted EBITDA of $1 million in Q4, up from a loss in the previous year.

Negative

• Operating loss of $5.2 million for FY 2022, compared to a $0.2 million loss the previous year.
• Gross profit decreased 7% to $14.6 million for FY 2022 due to customer loss and macroeconomic factors.
• ACH revenue fell 4% year-over-year due to the impact of the cryptocurrency market.

Full Year Revenues up 12%; Sixth Consecutive Year of Record Revenue

Strong Momentum Expected to Drive 18-20% Growth in Revenue and Positive Operating Cash Flow and Adjusted EBITDA in Fiscal 2023

SAN ANTONIO--(BUSINESS WIRE)-- Usio, Inc. (Nasdaq:USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the fourth quarter and year 2022, which ended December 31, 2022.

Louis Hoch, Chairman and Chief Executive Officer of Usio, said, “Usio ended the year on a high note, as revenue in the fourth quarter was a record, as well as our tenth consecutive quarter of quarterly revenue growth, which led to our sixth consecutive year of record revenue. Revenue for the year also met our guidance. For the quarter, revenue growth accelerated sequentially from the third quarter in our ACH, Prepaid, and Output Solution businesses as we generate strong momentum that we expect will propel accelerated revenue growth. We also posted record gross profits in the fourth quarter, in part due to the success of our prepaid business, which generated strong residual revenues from large, completed contracts. This led to $1.0 million of positive Adjusted EBITDA in the quarter.¹"

Mr. Hoch continued, "Growth in both our Prepaid and Output Solutions businesses was very strong in both the quarter and the year. We expect Output Solutions to continue to generate attractive growth in 2023 as we potentially implement one of our largest contracts, expand capacity and implement new technology that will enable our services and solutions to be more efficient and effective. We expect that prepaid revenues and margins should almost double in the upcoming year as we anticipate generating approximately $10-12 million in revenue on programs where we have fulfilled our contractual obligations. The Card business grew, albeit slowly, in 2022 due to customers delaying the start of new implementations, many of which appear to be now ramping up. Our Credit Card business segment is also being integrated into prepaid and ACH programs, a feature that is being well received by many of our customers. Our ACH business was adversely impacted by disruption in the cryptocurrency market in 2022, which began affecting a large customer in the second quarter and continued throughout the remainder of the year. Our business has recovered from this disruption, with strong growth in our returned checks business, and plans to capitalize on any economic weakness that increases activity in lending markets, which will help resume growth in the second half of the year. Absent the ACH business generated from the cryptocurrency market, our ACH business transaction volume grew 46%, dollars processed grew 18%, and returned checks processed went up 45%."

"Despite a number of headwinds throughout 2022, we grew the business, maintained our financial strength, and invested in strengthening the organization in preparation of what we see as another year of outstanding growth and opportunity. The year is already off to a great start, with new customers like the County of Los Angeles, MoviePass and tremendous returns expected from the success of large prepaid programs, where much of our economics were delayed until the contracts were completed. We are extremely excited by the prospect of further growth as we continue to build value for our shareholders."

The Company ended the year in a strong financial position, with positive cash flow achieved once again during the fourth quarter. During the year, the company repurchased approximately 507,000 of its own shares under its Board approved buyback program, which primarily accounts for the change in the company's cash position over the course of 2022. Usio intends to continue to utilize its financial strength to enhance its growth initiatives and maintain its strong business momentum across all business segments, both in terms of enhancing its leading technology as well as expanding its marketing initiatives.

Processing and Transaction Volumes

For the Fourth Quarter, total payment dollars processed through all payment channels were $1.2 billion, down compared to 2021's fourth quarter, mainly attributable to our exit from the cryptocurrency market, which also resulted in a decrease in total payment transactions processed to 9.5 million.

In our Card segment, dollars processed were up 3% and transactions processed were up 49% from the 2021 quarter. Prepaid Card Load Volume was down 23%, transactions processed were down 44%, and purchase dollars processed were down 17% from the same quarter in 2021, as government assistance programs for the COVID-19 pandemic have essentially wound down from their record highs in 2021. ACH electronic check transaction volume was down 32%, electronic check dollars processed were down 67%, and return check transactions processed were down 5% compared to 2021. Absent the ACH business generated from the cryptocurrency market in Q4 of 2022, our ACH business transaction volume grew 35%, dollars processed grew 4%, and returned checks processed went up 10% as compared to 2021. Transactions/pieces processed at Output Solutions were up 32% from the same period in 2021.

For the year, total dollars processed were $7.2 billion, down 24% due to our exit from crypto. Total transactions processed for the year 2022 were 40.8 million, a new full year record and up 16% from full year 2021.

Card dollars processed were up 10% and transactions processed were up 44% over 2021. Compared to the previous year, prepaid card load volumes were up 14%, transactions processed were up 39%, and purchase volume was up 23%. Full year load volumes, transactions, and purchase volumes were records. ACH electronic check transaction volume was down 6%, electronic check dollars processed were down 30%, and returned check transactions processed were up 31% for the year. Absent the ACH business generated from the cryptocurrency market in 2022, our ACH business transaction volume grew 46%, dollars processed grew 18%, and returned checks processed went up 45% as compared to 2021. Transactions/pieces processed at Output Solutions were up 28% over 2021 and equated to over 28.5 million pieces processed in the year.

Share Repurchase Program

For the quarter, the company repurchased approximately 181,000 shares at a cost of approximately $340,000, with an average per share cost of $1.88. Since the initiation of the program on May 13, 2022, the Company has purchased approximately 507,000 shares at a cost of approximately $1,115,000, with an average per share cost of $2.20.

Fiscal 2023 Guidance

The Company continues to expect strong 18-20% growth in revenue in 2023 while also anticipating positive operating cash flows and Adjusted EBITDA¹. Guidance is conditioned on no appreciable deterioration in economic conditions.

Fourth Quarter 2022 Financial Summary

Revenues were $18.7 million for the fourth quarter, up 7% compared to $17.4 million in the same period last year.

		Three Months Ended December 31,
		(in millions, except percentages)
		2022				2021				$ Change				% Change
ACH and complementary service revenue		$	3.8			$	4.6			$	(0.8	)			(18	)%
Credit card revenue			6.6				6.4				0.2				4	%
Prepaid card services revenue			3.4				2.6				0.8				31	%
Output solutions revenue			4.9				3.9				1.0				27	%
Total Revenue		$	18.7			$	17.4			$	1.3				7	%

Revenue growth was primarily attributable to a 27% increase in Output solutions revenues, and a 31% increase in Prepaid revenues compared to the same period last year.

Gross profits were $4.7 million, a quarterly record, and up 3% from $4.6 million for the same period last year. Gross margins were 25.1% compared to 26.2% in the same period last year. Gross margins in the quarter primarily reflect a shift to a higher proportion of revenues from our less profitable business lines and a decline in our most profitable business unit, ACH and complementary services.

The Company was nearly breakeven for the quarter, with an operating loss of $(90,814), compared to an operating loss of $(1,497), largely unchanged from the same period last year.

Adjusted EBITDA¹ was a positive $1.0 million in the quarter, up approximately $1.6 million on a sequential basis, but down $0.2 million from $1.3 million in the same period a year ago.

Net loss for the fourth quarter of 2022 was $0.15 million, or $(0.01) per share, compared to net income of $0.04 million or $0.00 per share for the same period last year.

Usio continues to be in solid financial condition with $5.7 million in cash and cash equivalents and no significant debt at December 31, 2022.

¹ See reconciliation of non-GAAP financial measures below

Financial Results for Full Year 2022

Revenues for 2022 were $69.4 million, up 12% from $61.9 million for the same period last year.

		Year Ended December 31,
		(in millions, except percentages)
		2022				2021				$ Change				% Change
ACH and complementary service revenue		$	14.8			$	15.4			$	(0.7	)			(4	)%
Credit card revenue		27.1					25.2				1.9				8	%
Prepaid card services revenue			9.1				6.5				2.6				39	%
Output solutions revenue			18.4				14.8				3.6				24	%
Total Revenue		$	69.4			$	61.9			$	7.5				12	%

Revenue growth was primarily attributable to a $3.6 million, or 24%, increase in Output Solutions revenues, attributable primarily to the success of cross-selling efforts and the conversion of pipeline opportunities into programs. In addition, prepaid revenues were up 39%, driven by the success of our disbursement program partnership, including the significant increase in revenues recognized in one of its largest programs.

Gross profit for the year ended December 31, 2022 was $14.6 million, down 7% from $15.6 million for the same period in 2021. Gross margins were 21.0% for the year ended December 31, 2022 compared to 25.2% in the same period in 2021, generally reflecting a shift in business mix over the year.

Profitability for the full year 2022 was adversely impacted by the loss of one of the Company's largest customers, the disruption to efficiency caused thereby, as well as other macroeconomic factors. The Company reported a $5.2 million operating loss for the year ended December 31, 2022 compared to a $0.2 million operating loss for the same period of 2021, due to the decline in gross profits and increases in SG&A expense. The Company reported an Adjusted EBITDA¹ loss of $0.4 million for the year ended December 31, 2022, compared to a positive $4.0 million for the same period in the prior year. Net loss for the year ended December 31, 2022 was $5.5 million or $0.27 per share compared to a net loss of $0.3 million or $0.02 per share in the same period last year.

Conference Call and Webcast

Usio, Inc.'s management will host a conference call with a live webcast Wednesday, March 8, 2023 at 4:30 pm Eastern time to provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at www.usio.com/invest.

A replay of the call will be available approximately one hour after the end of the call through March 22, 2023. The replay can be accessed via the Company’s website or by dialing +1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 1930892.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), is a leading Fintech that operates a full stack of proprietary, cloud-based integrated payment and embedded financial solutions in a single ecosystem to a wide range of merchants, billers, banks, service bureaus and card issuers. The Company operates credit/debit and ACH payment processing platforms, as well as a turn-key card issuing platform to deliver convenient, world-class payment solutions and services to their clients. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has a development office in Austin, Texas.

Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles. The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions. The Company defines adjusted operating cash flow as net cash provided (used) by operating activities, less changes in prepaid card load obligations, customer deposits, merchant reserves and net operating lease assets and obligations. These adjustments to net cash provided (used) by operating activities are not inclusive of any regular expense items, and only include changes in our assets and liabilities accounts on the balance sheet. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA, adjusted EBITDA, and adjusted operating cash flows as indicators of the Company's operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations.

Management believes EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows are helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded.

EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided (used) by operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow have limitations as analytical tools and you should not consider these Non-GAAP measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.

¹ See reconciliation of non-GAAP financial measures below

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "should," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the realization of opportunities from the IMS acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2022. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

USIO, INC. CONSOLIDATED BALANCE SHEETS
		December 31, 2022				December 31, 2021
ASSETS
Cash and cash equivalents		$	5,709,117			$	7,255,321
Accounts receivable, net			4,371,640				4,979,493
Settlement processing assets			49,737,068				63,824,646
Prepaid card load assets			20,170,761				36,590,893
Customer deposits			1,554,122				1,364,193
Inventory			507,355				434,532
Prepaid expenses and other			450,389				426,963
Current assets before merchant reserves			82,500,452				114,876,041
Merchant reserves			4,909,501				6,381,153
Total current assets			87,409,953				121,257,194
Property and equipment, net			3,222,816				3,607,157
Other assets:
Intangibles, net			2,625,360				4,163,894
Deferred tax asset			1,504,000				1,504,000
Operating lease right-of-use assets			2,795,483				2,802,113
Other assets			355,357				345,357
Total other assets			7,280,200				8,815,364
Total Assets		$	97,912,969			$	133,679,715
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	858,622			$	1,400,100
Accrued expenses			3,721,108				2,325,665
Operating lease liabilities, current portion			617,319				504,027
Equipment loan, current portion			56,429				54,760
Settlement processing obligations			49,737,068				63,824,646
Prepaid card load liabilities			20,170,761				36,590,893
Customer deposits			1,554,122				1,364,193
Deferred revenues			—				17,647
Current liabilities before merchant reserve obligations			76,715,429				106,081,931
Merchant reserve obligations			4,909,501				6,381,153
Total current liabilities			81,624,930				112,463,084
Non-current liabilities:
Equipment loan, non-current portion			14,994				71,434
Operating lease liabilities, non-current portion			2,338,947				2,476,291
Total liabilities			83,978,871				115,010,809
Stockholders' Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares issued and outstanding in 2022 and 2021			—				—
Common stock, $0.001 par value, 200,000,000 shares authorized; 27,044,900 and 26,807,145 issued and 25,097,963 and 25,473,453 outstanding in 2022 and 2021			195,471				195,235
Additional paid-in capital			94,048,603				93,100,129
Treasury stock, at cost; 1,946,937 and 1,333,692 shares in 2022 and 2021			(3,749,027	)			(2,404,458	)
Deferred compensation			(5,697,900	)			(6,842,195	)
Accumulated deficit			(70,863,049	)			(65,379,805	)
Total stockholders' equity			13,934,098				18,668,906
Total Liabilities and Stockholders' Equity		$	97,912,969			$	133,679,715

USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended (unaudited)								Twelve Months Ended
		December 31, 2022				December 31, 2021				December 31, 2022				December 31, 2021
Revenues		$	18,705,496			$	17,426,465			$	69,428,285			$	61,942,316
Cost of services			14,015,833				12,862,258				54,835,069				46,309,706
Gross profit			4,689,663				4,564,207				14,593,216				15,632,610
Selling, general and administrative:
Stock-based compensation			531,666				501,409				2,072,041				1,489,976
Other expenses			3,677,161				3,304,888				15,000,487				11,654,340
Depreciation and Amortization			571,650				759,407				2,735,118				2,643,675
Total operating expenses			4,780,477				4,565,704				19,807,646				15,787,991
Operating (loss)			(90,814	)			(1,497	)			(5,214,430	)			(155,381	)
Other income:
Interest income			10,762				1,240				15,237				7,643
Other income (expense)			—				279				—				279
Interest expense			(807	)			(1,350	)			(4,051	)			(4,314	)
Other income and (expense), net			9,955				169				11,186				3,608
(Loss) before income taxes			(80,859	)			(1,328	)			(5,203,244	)			(151,773	)
Federal income tax (benefit)			—				(110,000	)			—				(110,000	)
State income tax expense			70,000				69,861				280,000				279,861
Income taxes			70,000				(40,139	)			280,000				169,861
Net Income (Loss)		$	(150,859	)		$	38,811			$	(5,483,244	)		$	(321,634	)
Earnings (Loss) Per Share
Basic (loss) per common share:		$	(0.01	)		$	0.00			$	(0.27	)		$	(0.02	)
Diluted (loss) per common share:		$	(0.01	)		$	0.00			$	(0.27	)		$	(0.02	)
Weighted average common shares outstanding
Basic			20,548,742				20,156,562				20,379,386				20,028,850
Diluted			20,548,742				20,156,562				20,379,386				20,028,850

USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
		December 31, 2022				December 31, 2021
Operating Activities
Net (loss)		$	(5,483,244	)		$	(321,634	)
Adjustments to reconcile net (loss) to net cash provided (used) by operating activities:
Depreciation			1,196,584				771,808
Amortization			1,538,534				1,871,867
Bad Debt			—				151,951
Deferred federal income tax			—				(110,000	)
Non-cash stock-based compensation			2,072,041				1,489,976
Amortization of stock warrant costs			20,963				35,940
Changes in operating assets and liabilities:
Accounts receivable			607,853				(2,267,806	)
Prepaid expenses and other			(23,426	)			(125,208	)
Operating lease right-to-use assets			6,630				(130,847	)
Other assets			(10,000	)			22,721
Inventory			(72,823	)			(258,066	)
Accounts payable and accrued expenses			853,965				1,410,472
Operating lease liabilities			(24,052	)			137,522
Prepaid card load obligations			(16,420,132	)			28,980,651
Merchant reserves			(1,471,652	)			(1,884,402	)
Customer deposits			189,929				58,897
Deferred revenue			(17,647	)			(48,925	)
Net cash provided (used) by operating activities			(17,036,477	)			29,784,917
Investing Activities
Purchases of property and equipment			(812,242	)			(1,273,039	)
Net cash (used) by investing activities			(812,242	)			(1,273,039	)
Financing Activities
Proceeds from PPP Loan Program			—				165,996
Forgiveness of PPP Loan			(54,771	)			(39,802	)
Proceeds from private offering			—				1,000,000
Purchases of treasury stock			(1,344,569	)			(238,737	)
Net cash provided by financing activities			(1,399,340	)			887,457
Change in cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves			(19,248,059	)			29,399,335
Cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves, beginning of year			51,591,560				22,192,225
Cash, Cash Equivalents, Prepaid Card Load Assets, Customer Deposits and Merchant Reserves, End of Year		$	32,343,501			$	51,591,560
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest		$	4,314			$	4,314
Income taxes			269,500				116,204
Non-cash transactions:
Issuance of deferred stock compensation			166,330				2,164,361

USIO, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
		Common Stock								Additional Paid- In				Treasury				Deferred				Accumulated				Total Stockholders'
		Shares				Amount				Capital				Stock				Compensation				Deficit				Equity
Balance at December 31, 2020			26,260,776			$	194,692			$	89,659,433			$	(2,165,721	)		$	(5,926,872	)		$	(65,058,171	)		$	16,703,361
Issuance of common stock under equity incentive plan			536,878				535				2,750,204				—				(2,168,347	)			—				582,392
Warrant compensation cost			—				—				35,940				—				—				—				35,940
Cashless warrant exercise			39,745				39				(39	)			—				—				—				—
Reversal of deferred compensation amortization that did not vest			(173,111	)			(173	)			(345,267	)			—				241,295				—				(104,145	)
Issuance of common stock, private offering			142,857				142				999,858				—				—				—				1,000,000
Deferred compensation amortization			—				—				—				—				1,011,729				—				1,011,729
Purchase of treasury stock			—				—				—				(238,737	)			—				—				(238,737	)
Net (loss) for the year			—				—				—				—				—				(321,634	)			(321,634	)
Balance at December 31, 2021			26,807,145			$	195,235			$	93,100,129			$	(2,404,458	)		$	(6,842,195	)		$	(65,379,805	)		$	18,668,906
Issuance of common stock under equity incentive plan			369,755				368				1,182,939				—				(166,329	)			—				1,016,978
Warrant compensation cost			—				—				20,963				—				—				—				20,963
Reversal of deferred compensation amortization that did not vest			(132,000	)			(132	)			(255,428	)			—				145,498				—				(110,062	)
Deferred compensation amortization			—				—				—				—				1,165,126				—				1,165,126
Purchase of treasury stock			—				—				—				(1,344,569	)			—				—				(1,344,569	)
Net (loss) for the year			—				—				—				—				—				(5,483,244	)			(5,483,244	)
Balance at December 31, 2022			27,044,900			$	195,471			$	94,048,603			$	(3,749,027	)		$	(5,697,900	)		$	(70,863,049	)		$	13,934,098

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
		Three Months Ended (unaudited)								Twelve Months Ended
		December 31, 2022				December 31, 2021				December 31, 2022				December 31, 2021
Reconciliation from Operating (Loss) to Adjusted EBITDA:
Operating (Loss)		$	(90,814	)		$	(1,497	)		$	(5,214,430	)		$	(155,381	)
Depreciation and amortization			571,650				759,407				2,735,118				2,643,675
EBITDA			480,836				757,910				(2,479,312	)			2,488,294
Non-cash stock-based compensation expense, net			531,666				501,409				2,072,041				1,489,976
Adjusted EBITDA		$	1,012,502			$	1,259,319			$	(407,271	)		$	3,978,270
Calculation of Adjusted EBITDA margins:
Revenues		$	18,705,496			$	17,426,465			$	69,428,285			$	61,942,316
Adjusted EBITDA			1,012,502				1,259,319				(407,271	)			3,978,270
Adjusted EBITDA margins			5.4	%			7.2	%			(0.6	)%			6.4	%

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
		December 31, 2022				December 31, 2021
Reconciliation from net cash provided (used) by operating activities to Non-GAAP Adjusted Operating Cash Flow (used):
Net cash provided (used) by operating activities		$	(17,036,477	)		$	29,784,917
Operating cash flow (used) adjustments:
Prepaid card load obligations			16,420,132				(28,980,651	)
Customer deposits			(189,929	)			(58,897	)
Merchant reserves			1,471,652				1,884,402
Operating lease right-of-use assets			(6,630	)			130,847
Operating lease liabilities			24,052				(137,522	)
Total adjustments to net cash provided (used) by operating activities		$	17,719,277			$	(27,161,821	)
Adjusted operating cash flows (used)		$	682,800			$	2,623,096

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230308005680/en/

Paul Manley

Senior Vice President, Investor Relations

Paul.Manley@usio.com

612-834-1804

Source: Usio, Inc.

FAQ

What were Usio's revenues for FY 2022?

Usio's revenues for FY 2022 were $69.4 million, a 12% increase from the previous year.

How much did Usio earn in the fourth quarter of 2022?

In the fourth quarter of 2022, Usio earned $18.7 million, up 7% year-over-year.

What is Usio's guidance for revenue growth in 2023?

Usio expects revenue growth of 18-20% in fiscal year 2023.

What was the Adjusted EBITDA for Usio in Q4 2022?

Usio reported a positive Adjusted EBITDA of $1 million in Q4 2022.

How did Usio's ACH business perform without cryptocurrency disruption?

Without cryptocurrency disruption, Usio's ACH business transaction volume grew 46%.