Revenue increased 79% to $6.4 Million
Exited First Quarter with Largest Monthly Transactional Sales Volume
Reiterates Full Year 2022 Revenue Guidance of $37 to $40 Million
POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF), the leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three months ended March 31, 2022.
“We continued to onboard new merchants during the first quarter, primarily higher volume stores that, when coupled with anticipated same-store growth from our existing store footprint, reinforces our optimism for another year of exponential growth in 2022,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “Transactional sales volume began accelerating again towards the end of the first quarter with March transactional volume representing the largest month in our corporate history and that trend continued into the second quarter. To further drive growth, we unified our sales, marketing and customer support teams under the leadership of our new CRO, Julie Solomon, an experienced and accomplished executive in the fintech space. We are thrilled to add an executive of Julie’s caliber who will help us grow sales with existing retailers, add new retailers and expand into new markets.”
Hamlin continued, “Based on our current visibility, we are reaffirming our full-year 2022 revenue guidance of between $37 and $40 million, which represents growth of more than 80% at the midpoint compared to 2021.”
Recent Operational Highlights
- Onboarded 44 of the 100+ newly booked stores since the May 3, 2022 public Q&A call
- Increased count of contracted stores by additional 20% since the May 3, 2022 public Q&A call
- Increased same store sales of top 20 locations by volume by 11% (Q1 2022 vs. Q1 2021)
- Completed largest processing day in company’s history and sixth consecutive year of 100% uptime on 4/20/2022
- Expanded leadership team with the appointment of Julie Solomon to the role of Chief Revenue Officer
First Quarter 2022 Financial Highlights
- Transactional sales for payment Services totaled $103 million, up 61% compared with $64.0 million in the first quarter of 2021
- Total revenue was $6.4 million, up 79% compared with $3.5 million in the first quarter of 2021
- Gross profit was $1.5 million, or 24% of revenue, up 70% on a dollar basis compared with $900,000, or 25.4% of revenue in the first quarter of 2021
- Net loss was $(470,000), inclusive of a $1.6 million non-cash change in fair value of derivative liabilities, compared with a net loss of $(514,000), inclusive of a $(322,000) non-cash change in fair value of derivative liabilities in the first quarter of 2021.
- Adjusted EBITDA was $(1) million, or (16%) of revenue, compared with $71,000, or 20.0% of revenue, in the first quarter of 2021
Warrants and Cash Update
As of March 31, 2022, the company had cash of approximately $3.2 million compared to approximately $4.4 million as of December 31, 2021.