POSaBIT Q1 FY23 Revenue Grows 82% YoY, What About Profit?

POSaBIT Systems Corporation POSAF PBIT released its financial results for the three months ended March 31, 2023, revealing total revenue of $11.5 million, up 82% compared with $6.3 million in the first quarter of 2022.

Q1 2023 Financial Highlights

• Gross profit was $2.3 million, or 20% of revenue, up 56% on a dollar basis compared with $1.5 million, or 24% of revenue, in the first quarter of 2022.

• Net loss was $3.0 million, inclusive of a $100,000 non-cash change in fair value of derivative liabilities, compared with a net loss of $500,000, inclusive of a $1.6 million non-cash change in fair value of derivative liabilities in the first quarter of 2022.

• Adjusted EBITDA was negative $1.9 million, or (17)% of revenue, compared with negative $1 million, or (20)% of revenue, in the first quarter of 2022.

• As of March 31, 2023, the company had cash and cash equivalents of $7.3 million compared to $3.1 million as of December 31, 2022.

“We delivered solid results in the first quarter that were in-line with our expectations,” stated Ryan Hamlin, co-founder and CEO of POSaBIT. “Our team continues to build out exciting new features and products for our merchants while gaining market share. We are seeing strong demand for our products and services from both new and existing customers. We believe this demand is being driven by the structural trend to cashless PIN Debit payments and our focus on customer experience, support, and compliance. During a tumultuous period in the industry, POSaBIT remains in a strong position.”

Hamlin continued, “Based on our current visibility, we are reaffirming our full-year 2023 revenue guidance of between $58.5 and $61.5 million, which represents growth of more than 62% at the midpoint compared to 2022, gross profit of between $12.5 and $14.5 million, and adjusted EBITDA of slightly negative.”

Photo: Benzinga edit with photo by Kindel Media on Pexels

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