Increased revenue 9% to $21 million;
generated net profit of $500,000 for
first time since going public
TORONTO, May 2, 2024
/CNW/ - Givex Corp. ("Givex") (TSX: GIVX) (OTCQX: GIVXF),
is pleased to present its financial results for the three-month
period ending March 31, 2024. Givex reports in Canadian
dollars and in accordance with International Financial Reporting
Standards ("IFRS").
"Achieving net profit alongside revenue growth is a milestone
we've been working towards since going public," said Don Gray,
CEO of Givex. "Givex continues to entrench itself as a top player
in the gift card and loyalty sectors while emerging as a trusted
provider of POS and Payment solutions."
First Quarter Financial Highlights
Three-month period ending March 31, 2024 (with
comparisons relative to the three-month period ending March
31, 2023)
- Revenue of $20.8 million,
representing 8.6% growth.
- Gross Profit of $14.0 million,
representing 6.3% growth.
- Net Income of $492,000, versus a
loss in Q1, 2023.
- EBITDA1 of $1.7
million, a 3,361% increase.
- Total Gross Transactional Value2 of
$1.74 billion, a 10% increase.
- POS Gross Transactional Value3 of $472 million, a 17% increase.
- Customer Locations4 of 132,000, an 8%
increase.
- As at March 31, 2024, Givex
had $23.7 million in cash and cash
equivalents.
Operational Highlights
- Continued product optimization leading to the delisting of
low-margin gift card resales, with expected long-term improvements
to gross profit.
- Improved operational efficiencies achieved with completion of
Hong Kong data centre migration to
Givex technology platform; expected to deliver estimated annual
savings in excess of $350,000.
- Payroll costs are the key focus to improved EBITDA and positive
net earnings. For the 12-month periods ending March 31,
2024 and 2023, Employee Compensation5 as a %
of Gross Profit was 54% and 54%, respectively. The company believes
that its ability to control Employee Compensation as a % of Gross
Profit is an indicator of its success in managing costs and
profitability.
More Information
Additional financial information, such as the Q1, 2024 interim
and the audited Fiscal 2023 financial statements, Management's
Discussion and Analysis of Financial Condition and Results of
Operations, and Annual Information Form, is available on the
company's SEDAR at sedar.com.
More information about Givex, including the Management
Presentation and Overview, are posted on the company's investor
relations website at investors.givex.com.
About Givex
The world is changing. Givex is ready. Since 1999, Givex has
provided technology solutions that unleash the full potential of
engagement, creating and cultivating powerful connections that
unite brands and customers. With a global footprint of 132,000+
active locations across more than 100 countries, Givex unleashes
strategic insights, empowering brands through reliable technology
and exceptional support. Givex's integrated end-to-end management
solution provides Gift Cards, GivexPOS, Loyalty Programs and more,
creating growth opportunities for businesses of all sizes and
industries. Learn more about how to streamline workflows, tackle
complex challenges and transform data into actionable insights at
www.givex.com.
Non-IFRS Measures and Reconciliation of Non-IFRS
Measures
The information presented includes certain financial measures
such as "EBITDA" (see below for definition), which are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. These non-IFRS measures are used to provide
investors with supplemental measures of our operating performance
and thus highlight trends in our core business that may not
otherwise be apparent when relying solely on IFRS measures. We also
believe that securities analysts, investors, and other interested
parties frequently use non-IFRS measures in the evaluation of
issuers. Our management also uses non-IFRS measures to facilitate
operating performance comparisons from period to period, to prepare
annual operating budgets and forecasts and to determine components
of management compensation.
Forward Looking Statements
This press release contains forward-looking information.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that we considered appropriate
and reasonable as of the date such statements are made, are subject
to known and unknown risks, uncertainties, assumptions and other
factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to, the risk factors described under the "Risk
Factors" section in the Annual Information Form (AIF)
dated March 22, 2024, available on
SEDAR+ at www.sedarplus.ca and other filings with the
Canadian securities regulatory authorities. There can be no
assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
prospective investors should not place undue reliance on
forward-looking information, which speaks only as of the date made.
See "Cautionary Note Regarding Forward-Looking Information" in the
Filing Statement.
Additional Notes
1 EBITDA is defined as net profit (loss)
excluding interest, taxes, depreciation and amortization
("EBITDA").
2 Gross Transactional Value ("GTV") means the
total dollar value of stored and point-of-sale ("POS") transactions
processed through our cloud-based SaaS platforms in the period, net
of refunds, inclusive of shipping and handling, duty, and
value-added taxes. We believe GTV is an indicator of the success of
our customers and the strength of our platforms. GTV does not
represent revenue earned by us.
3 POS Gross Transactional Value ("POS GTV")
means the total dollar value point-of-sale ("POS") transactions
processed through GivexPOS, our cloud-based POS SaaS platform, in
the period net of refunds, inclusive of shipping and handling, duty
and value-added taxes. We believe POS GTV is an indicator of the
success of our customers and the strength of our platforms. POS GTV
does not represent revenue earned by us.
4 Customer Locations means a billing customer
location for which the term of services has not ended, or with
which we are negotiating a renewal contract. It includes both
merchant locations that have transactions processed through our
cloud-based SaaS platform, as well as merchant locations not on our
platform but for which we provide other Givex services. A single
unique customer can have multiple Customer Locations including
physical and eCommerce sites. We believe that our ability to
increase the number of Customer Locations served by our platform
and products is an indicator of our success in terms of market
penetration and growth of our business.
5 Employee Compensation as a % of Gross Profit
means the total employee compensation for a period divided by the
gross profit for the same period. Employee Compensation means total
employee compensation including salaries and benefits, excluding
both government assistance and share-based compensation. Gross
Profit means revenue less direct cost of revenue.
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SOURCE Givex Corporation
