TORONTO, Nov. 28, 2024 /CNW/ - Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa'' or the "Company") is pleased to report the unaudited financial results for the first quarter of fiscal year 2025, being the period ended September 30th, 2024 ("Q1"). The full results including Management Discussion & Analysis ("MD&A") are available on SEDAR.
Q1 FINANCIAL HIGHLIGHTS
(Figures are in AUD and all comparisons are relative to the three-month period ended September 30th, 2023, unless otherwise stated)
- 25% increase in Total Transaction Volume ("TTV") to $252 million (USD $164 million), up from $202 million (USD $131 million), driven by product innovation, organic growth with partners and addition of new partners
- 10% increase in Gross Profit to $7.3 million (USD $4.7 million), up from $6.6 million (USD $4.3 million), due to growth in TTV and Net Take Rate
- 16% increase in Gross Profit on TTV, excludes integration revenue*, to $7.0 million (USD $4.5 million), up from $6.1 million (USD $3.9 million)
- Net Take Rate ("NTR") was down to 2.8% from 3.0% due to a softer market
- 67% improvement in Adjusted EBITDA to ($0.3 million) (USD ($0.2 million)), up from ($0.8 million) (USD ($0.5 million)), due to improved TTV, reduced operating expenses, specifically legal & compliance costs
- 62% increase in Adjusted EBITDA on TTV, excludes integration revenue*, to ($0.5 million) (USD ($0.3 million), up from ($1.4 million) (USD ($0.9 million))
- Net loss per share on a basic and diluted basis to $0.00 (USD $0.00), compared to ($0.05) (USD ($0.03))
- Cash, Trade Receivables** and Crypto Inventories at $11.1 million (USD $7.2 million), down from $11.5 million (USD $7.5 million) as of June 30th, 2024 due to expunging of short term debt and legacy tax liabilities
*Integration revenue consists of coin and chain listings and does not have any costs attributed to it |
**Trade Receivables primarily consists of funds with large payment service providers (e.g., Worldpay), from credit card |
Zafer Qureshi, Executive Director and Co-CEO, commented: "Despite a softer market, we achieved strong top-line growth while strategically optimizing the business. Our team enhanced pricing strategies to capture a greater share of wallet, launched new features for partners, reduced high-cost debt facilities, and maintained disciplined cost management—all contributing to robust bottom-line performance."
Zafer continued: "As we close out the year, we are solidifying our infrastructure in key markets: completed the license application for the Markets in Crypto Asset Regulations in Europe, preparing to go live with our Money Transmission Licenses in the US in the coming weeks, and launching operations in the UK under the FCA registration. With a stronger-than-ever foundation, we are now focused on driving sustainable growth by expanding into new segments and enhancing our product offerings to deliver greater value to our partners. We remain steadfast in realizing our vision of embedded crypto solutions that will transform traditional finance. With improving market sentiment, Holger and I are more energized than ever as we look ahead to an exciting 2025."
Q1 UNAUDITED FINANCIAL RESULTS EARNINGS CALL
Banxa will host a conference call on November 28, 2024 at 8am EST to discuss the September Quarter results and all shareholders and investors are encouraged to register for the call here: https://tinyurl.com/BanxaQ1FY25Results
ADJUSTED EBITDA DEFINITION
Adjusted EBITDA is a non-IFRS financial measure that we calculate as net profit before tax excluding depreciation and amortization expense, share based compensation expense, unrealized loss on inventory, finance expense, realized/unrealized gain on fair value of deposits & derivative liability, (gain)/loss on fair value of derivative, unrealised exchange (gain)/loss, (gain)/loss on sale of capital asset and listing expenses. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations.
ABOUT BANXA HOLDINGS INC.
Banxa is the leading infrastructure provider for enabling embedded crypto - empowering businesses to embed crypto seamlessly into their existing platforms and unlocking new opportunities in the rapidly evolving crypto economy. Through an extensive and growing network of global and local payment solutions and regulatory licenses, Banxa helps businesses provide seamless integration of crypto and fiat for global audiences with lower fees and higher conversion rates. Headquartered in the USA, Europe, and Asia-Pacific, the Banxa team is building for a world where global commerce is run on digital assets. For further information visit www.banxa.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "Zafer Qureshi"
Zafer Qureshi = Executive Director and Head, Corporate Affairs, +1-888-332-2692
Forward-Looking Information
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
SOURCE Banxa Holdings Inc.
CONTACTS: Investors: Zafer Qureshi, [email protected]
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