Givex Announces First Quarter 2023 Financial Results
For Q1 2023, revenue increased 17% to $19.2 million and customer locations increased 6% to 122,000. Q1 net loss improved 52% from $2.6 million in Q1 2022 to $1.2 million in Q1 2023 before adjusting for non-cash write-offs
TORONTO (May 2, 2023) – Givex Corp. (“Givex”) (TSX: GIVX) (OTCQX: GIVXF), is pleased to present its financial results for the three-month period ending March 31, 2023.
Givex reports in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”).
“In Q1 2023, Givex continued our consistent growth, in terms of revenue and customer locations, and further reduced our Q1 net loss from $2.6 million in 2022 to $1.2 million in 2023, even before adjusting for non-cash items,” said Don Gray, CEO of Givex. “We will continue working toward a positive EBITDA by increasing gross profit in real terms and keeping a tight rein on payroll costs. Payroll inflation will continue to be a difficult challenge in the year ahead but I am confident our Givex team productivity will help us achieve our payroll to gross profit objective.”
First Quarter Financial Highlights
Three-month period ending March 31, 2023 (with comparisons relative to the three-month period ending March 31, 2022)
- Revenue increased $2.8 million from $16.3 million in Q1 2022 to $19.2 million in Q1 2023, 17% growth.
- Adjusted EBITDA* decreased $0.3 million from $1.3 million in Q1 2022 to $1.0 million in Q1 2023.
- Net Loss decreased $1.3 million or 52%, from $2.6 million in Q1 2022 to $1.2 million in Q1 2023
- Total Gross Transactional Value** increased approximately $0.32 billion or 26%, from $1.26 billion in Q1 2022 to $1.58 billion in Q1 2023.
- POS Gross Transactional Value*** increased approximately $168 million or 71%, from $237 million in Q1 2022 to $405 million in Q1 2023.
- Customer Locations**** increased approximately 7,000 or 6%, from 115,000 in Q1 2022 to 122,000 in Q1 2023.
- Payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending March 31, 2023 and 2022, Employee Compensation****** as a % of Gross Profit was 53% and 54%, respectively. The company believes that its ability to reduce Employee Compensation as a % of Gross Profit is an indicator of its success in managing costs and profitability.
Additional financial information, such as the audited annual Consolidated 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.
Givex (TSX: GIVX; OTCQX: GIVXF) provides merchants with customer engagement, point of sale and payment solutions, all in a single platform. We are integrated with 1000+ technology partners, creating a fully end-to-end solution that delivers powerful customer insights. Our platform is used by some of the world’s largest brands, comprising approximately 122,000 locations across more than 100 countries. Learn more at givex.com.
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
The information presented includes certain financial measures such as “Adjusted 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 21, 2023, available on SEDAR at sedar.com 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.
*Adjusted EBITDA is defined as net profit (loss) excluding interest, taxes, depreciation and amortization (“EBITDA”) as adjusted for share-based compensation and related expenses, foreign exchange gains and losses and transaction-related expenses including those related to going public and acquisitions.
**Gross transaction volume (“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.
***POS gross transactional volume (“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.
****Customer Location 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.
*****Cashflows from operating activities means net income (loss) adjusted for non-cash items, changes in working capital, interest paid, and income tax paid.
******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.