Cannabis Fintech Company POSaBIT Reports 232% YoY Spike In Q2 Revenue, Raises 2021 Guidance

Cannabis-focused financial technology company POSaBIT Systems Corporation PBIT POSAF announced Thursday that its total revenue amounted to $5 million in the second quarter of 2021, representing a 232% year-over-year increase.

The Toronto-headquartered company also reported that transactional sales for payment processing totaled $87.3 million, a 331% spike compared to the results from the same period of 2020.

“We delivered another quarter of exceptionally strong revenue growth and are increasingly enthusiastic about the trajectory of our business for the remainder of 2021 and beyond,” Ryan Hamlin, CEO and co-founder of POSaBIT said. “In just six months, we have already exceeded our 2020 full-year revenue, and all indicators point towards a doubling of revenue for the second year in a row in 2021.“

Here’s a breakdown of what the second-quarter earnings report showed:

• Gross profit amounted to $1.3 million, accounting for 27% of revenue, up by 350% year-over-year.
• Net loss totaled $878 000, compared to a $242 000 net loss in the corresponding quarter of 2020.
• Adjusted EBITDA, a non-IFRS measure, came in positive at $185 000, compared to a $240 000 loss in the same period of last year.
• As of June 30, the company had roughly $5 million in cash.

The company revised its guidance for the full year 2021 and now expects the total revenue to range between $17.5 million and $19 million. Transaction sales for card services are expected to range between $350 million and $375 million.

“We are raising our top-line guidance by more than 20% for the full year 2021, given our accelerating momentum and our plans for further expansion,” Hamlin explained.

Photo: Courtesy of Elsa Olofsson on Unsplash