POSaBIT's Revenue Skyrockets In 2022, Rakes In $24.9M In Q4/22

POSaBIT Systems Corporation PBITPOSAF released earnings for the three and 12 months ended December 31, 2022.

The provider of payments infrastructure in the cannabis industry achieved record-level revenue in 2022 and has doubled or nearly doubled its revenues "for five consecutive years," according to Ryan Hamlin, CEO and Co-founder of POSaBIT.

“We met our core financial guidance metrics, signed our first point-of-sale royalty licensing agreement, added eight new states to our geographic coverage as promised, and ended the year with a strong balance sheet," Hamlin said.

Q4/22 And Full Year 2022 Financial Highlights

• Transactional GMV sales for payment services totaled $143.5 million, up 36% compared with $105.6 million in the fourth quarter of 2021, and up 1% compared with $142 million in Q3 2022
• Total revenue was $24.9 million, up 141% compared with $6.4 million in the fourth quarter of 2021
• Gross profit was $16.2 million, or 65% of revenue, up 459% on a dollar basis compared with $2.9 million, or 28% of revenue, in the fourth quarter of 2021.
• Operating income was $11.1 million, inclusive of a $0.6 million non-cash change in the fair value of foreign currencies, compared with an operating loss of $(1.0) million, inclusive of a $(83,000) non-cash change in the fair value of foreign currencies, in the fourth quarter of 2021
• Net income was $9.4 million, inclusive of a $(1.3) million non-cash change in fair value of derivative liabilities, compared with a net loss of $(2.0) million, inclusive of a $(0.5) million non-cash change in fair value of derivative liabilities in the fourth quarter of 2021
• Adjusted EBITDA was $12.3 million, or 50% of revenue, compared with $(0.9) million, or (14)% of revenue, in the fourth quarter of 2021

In 2022, the company's transactional GMV sales for payment services totaled $517 million, a 43% increase from 2021.

The company's total revenue was $49.8 million, up 134% from $21.3 million in 2021, while gross profit was $22.6 million, representing a 302% increase on a dollar basis.

Moreover, the company reported an operating income of $5.2 million, compared with an operating loss of $(129,000) in 2021, and a net income of $8.0 million, compared with a net loss of $(10.6) million in 2021.

Adjusted EBITDA was $10.4 million, representing 21% of revenue, compared with $(1.3) million, or (6)% of revenue, in 2021.

"We are focused on continuing to grow our business organically by adding new merchants and driving same-store sales growth at existing locations by fully integrating both our point-of-sale and payments platforms. This includes our fully compliant PIN debit, B2C, and B2B ACH payments,” continued Hamlin.

In 2022, the company also acquired certain assets from Hypur Inc. in a cash and equity transaction valued at up to US $7.5 million, received a notice of termination from Akerna for its acquisition of MJ Freeway, Leaf Data Systems, and Amply Organics, and strengthened its C-suite with new appointments. As of December 31, 2022, the company had cash and cash equivalents of $3.1 million.

“Integration of the Hypur assets that we acquired earlier this month is progressing as expected. We are raising our 2023 guidance to include our expectations for these assets. We expect to grow 2023 revenue to $60 million and gross profit to $13.5 million, each at the midpoint, that is a 62% increase in revenue from our guidance in 2022, after adjusting for the updated accounting treatment,” concluded Hamlin.

Price Action: POSAF shares were trading 0.47% lower on Wednesday evening, closing at $0.72 per share.

Photo: Courtesy Of Kenny Eliason On Unsplash