WonderFi Reports Third Quarter 2024 Results

Rhea-AI Summary

WonderFi Technologies reported strong Q3 2024 results with $8.2 million in revenue and interest income, contributing to a total of $41 million for the nine months ended September 30th, marking a 153% increase year-over-year. The company's cash and digital assets reached $42 million, up from $37.3 million in December 2023. Trading volumes hit $2.3 billion in the nine-month period, a 212% increase from 2023. Bitbuy and Coinsquare achieved consolidated revenues of $35 million and $14.6 million in adjusted EBITDA. The company reduced corporate expenses by 22% and launched several initiatives including WonderFi Labs and Bitbuy APAC.

Positive

• 153% YoY revenue growth to $41 million for nine months
• Cash and digital assets increased to $42 million from $37.3 million
• 212% increase in trading volumes to $2.3 billion
• $14.6 million in adjusted EBITDA from Bitbuy and Coinsquare
• 22% reduction in corporate expenses
• 38% revenue increase in October 2024 vs Q3 monthly average

Negative

• Share dilution through outstanding warrants despite cancellations

Achieved $41 million in revenue and interest income during the nine-month period ended September 30^th, a 153% increase during the same period in 2023.

Cash and digital assets of $42 million, and total investments of $9 million as of September 30, 2024.

Facilitated $2.3 billion in crypto trading volumes during the nine-month period ended September 30^th.

Toronto, Ontario--(Newsfile Corp. - November 5, 2024) - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) ("WonderFi" or the "Company"), a global leader in centralized and decentralized financial services and products, today announced its financial results for the third quarter ("Q3'24") and nine-month period ended September 30, 2024. All financial references are in Canadian dollars unless otherwise noted.

Key Third Quarter and Nine-Month 2024 Financial Highlights:

• Achieved $8.2 million in revenue and interest income in Q3'24, for a total of $41 million for the nine-months ended September 30^th. This represents a 153% increase over the first nine months of 2023.

• Cash and digital assets at $42 million as of September 30^th, up from $37.3 million on December 31, 2023.

• The Company has private investments totalling $9 million as of September 30, 2024, this includes the Company's investment in digital asset custodian Tetra Trust Company and investments in crypto-native investment funds.

• Bitbuy and Coinsquare have achieved consolidated revenues of $35 million and $14.6 million of adjusted EBITDA during the nine-month period ended September 30, 2024.

• During the nine-month period ended September 30, 2024, the Company re-purchased and cancelled 5.4 million common shares, and 11.4 million warrants were delisted and cancelled.

• Reduced corporate and administrative expenses by 22% in the nine-month period ended September 30, 2024, as compared to the same period in 2023.

Key Third Quarter and Nine-Month 2024 Operating Highlights:

• Bitbuy and Coinsquare facilitated $480 million in trading volumes in Q3'24, and over $2.3 billion in trading volume in the nine-months ended September 30, 2024, representing a 212% increase as compared to the same nine-month period ended September 2023.

• Launched WonderFi Labs, an innovation and development arm, to develop, incubate and invest in centralized and EVM-compatible decentralized products and protocols with a global reach.

• Initiated a strategic Bitcoin and Ethereum buying program in Q3'24, to strengthen and diversify treasury assets. The program increased the Company's total Bitcoin and Ethereum Treasury holdings by $1.4 million during the quarter. The Company's Bitcoin holdings in its treasury increased in value by approximately 30% as at October 29, 2024.

• Launched Bitbuy APAC, a first step in WonderFi's international expansion plan; commencing operations and servicing clients in the Asia-Pacific region.

• Launched new versions of the Coinsquare and Bitbuy mobile applications for the Canadian market.

Subsequent to Q3 2024:

• For the month of October 2024, Bitbuy and Coinsquare achieved a 38% increase in revenue, and a 45% increase in registrations compared to the monthly averages during Q3 2024.

• During the month of October 2024, the Company re-purchased and cancelled 2.5 million common shares.

• Entered into a partnership with Tom Lee and Fundstrat, to provide exclusive access to crypto research and insights to Bitbuy and Coinsquare users.

• WonderFi also reported that a total of 6,760,002 common share purchase warrants (WNDR.WT.B) have expired, reducing the Company's fully-diluted outstanding securities by this amount.

"We're extremely pleased with the progress we have made in the third quarter," said Dean Skurka, President and CEO of WonderFi. "Our strong performance throughout the year has allowed us to focus on our strategic priorities and make substantial investments in the areas that will drive long-term material growth."

"As we look to 2025, we plan to leverage these investments to accelerate our growth path even further," added Mr. Skurka. "We're in a strong position to develop and launch a number of new products and features to our global customer base, driving greater volumes in our target markets."

ABOUT WONDERFI
WonderFi is the largest regulated crypto trading platform in Canada and a global leader in centralized and decentralized financial services and products.

With over $1.275B in assets under custody, WonderFi is well-positioned to service crypto participants on a global scale with trading, payments and decentralized products, including purpose-built blockchains and non-custodial wallet applications.

Designed to provide investors with diversified investment exposure across the global digital asset ecosystem, the Company has a proven track record of launching new products and obtaining applicable licenses. It is also the owner of market-leading brands, including Bitbuy, Coinsquare, SmartPay and Tetra Trust.

As the world continues to move on-chain, WonderFi is strategically placed to capture both market and wallet share through ongoing innovation within the digital asset space.

For more information, visit www.wonder.fi

For additional information, please contact:

Investor Relations
Charlie Aikenhead
WonderFi
Invest@wonder.fi

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the beliefs of WonderFi Technologies Inc. ("WonderFi" or the "Company") regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such "could", "intend", "expect", "believe", "will", "projected", "planned", "estimated", "soon", "potential", "anticipate" or variations of such words.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: taxation, controls or regulations and/or changes in the administration of laws, policies and practices and political or economic developments in Canada and other jurisdictions in which the Company carries on business or in which the Company may carry on business in the future; and material adverse changes in general economic, business and political conditions, including changes in the financial markets and compliance with extensive government regulation, decisions to modify, pause or discontinue certain treasury management strategies. These risks are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and the Company's future decisions and actions will depend on management's assessment of all information at the relevant time. A more fulsome description of risk factors that may impact business, financial condition and results of operation with respect to WonderFi is set out in its management's discussion and analysis and financial statements for the period ended September 30, 2024, available on its SEDAR+ profile at www.sedarplus.ca.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice. All financial amounts referenced herein are in Canadian dollars unless otherwise expressly identified.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228985

FAQ

What was WonderFi's (WONDF) revenue for Q3 2024?

WonderFi reported revenue and interest income of $8.2 million for Q3 2024.

How much trading volume did WonderFi (WONDF) process in the first nine months of 2024?

WonderFi facilitated $2.3 billion in trading volume during the nine-month period ended September 30, 2024.

What was WonderFi's (WONDF) cash position as of September 30, 2024?

WonderFi had $42 million in cash and digital assets as of September 30, 2024.

How did WonderFi's (WONDF) revenue grow in the first nine months of 2024?

WonderFi's revenue grew 153% to $41 million in the nine months ended September 30, 2024, compared to the same period in 2023.