FINANCIAL RESULTS / TRAFFIC RESULTS/ M&A

Givex Announces First Quarter 2024 Financial Results

Increased revenue 9% to $21 million; generated net profit of $500,000 for first time since going public

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Increased revenue 9% to $21 million; generated net profit of $500,000 for first time since going public

 Givex Corp., is pleased to present its financial results for the three-month period ending March 31, 2024. Givex reports in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”).

“Achieving net profit alongside revenue growth is a milestone we’ve been working towards since going public,” said Don Gray, CEO of Givex. “Givex continues to entrench itself as a top player in the gift card and loyalty sectors while emerging as a trusted provider of POS and Payment solutions.”

First Quarter Financial Highlights

Three-month period ending March 31, 2024 (with comparisons relative to the three-month period ending March 31, 2023)

• Revenue of $20.8 million, representing 8.6% growth.
• Gross Profit of $14.0 million, representing 6.3% growth.
• Net Income of $492,000, versus a loss in Q1, 2023.
• EBITDA¹ of $1.7 million, a 3,361% increase.
• Total Gross Transactional Value² of $1.74 billion, a 10% increase.
• POS Gross Transactional Value³ of $472 million, a 17% increase.
• Customer Locations⁴ of 132,000, an 8% increase.
• As at March 31, 2024, Givex had $23.7 million in cash and cash equivalents.

Operational Highlights

• Continued product optimization leading to the delisting of low-margin gift card resales, with expected long-term improvements to gross profit.
• Improved operational efficiencies achieved with completion of Hong Kong data centre migration to Givex technology platform; expected to deliver estimated annual savings in excess of $350,000.
• Payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending March 31, 2024 and 2023, Employee Compensation⁵ as a % of Gross Profit was 54% and 54%, respectively. The company believes that its ability to control Employee Compensation as a % of Gross Profit is an indicator of its success in managing costs and profitability.

More Information

Additional financial information, such as the Q1, 2024 interim and the audited Fiscal 2023 financial statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Annual Information Form, is available on the company’s SEDAR at sedar.com.

More information about Givex, including the Management Presentation and Overview, are posted on the company’s investor relations website at investors.givex.com.

About Givex

The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 132,000+ active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex’s integrated end-to-end management solution provides Gift Cards, GivexPOS, Loyalty Programs and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, tackle complex challenges and transform data into actionable insights at www.givex.com. 

Non-IFRS Measures and Reconciliation of Non-IFRS Measures

The information presented includes certain financial measures such as “EBITDA” (see below for definition), which are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

Forward Looking Statements

This press release contains forward-looking information. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, the risk factors described under the “Risk Factors” section in the Annual Information Form (AIF) dated March 22, 2024, available on SEDAR+ at www.sedarplus.ca and other filings with the Canadian securities regulatory authorities. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made. See “Cautionary Note Regarding Forward-Looking Information” in the Filing Statement.

Additional Notes

¹ EBITDA is defined as net profit (loss) excluding interest, taxes, depreciation and amortization (“EBITDA”).

² Gross Transactional Value (“GTV”) means the total dollar value of stored and point-of-sale (“POS”) transactions processed through our cloud-based SaaS platforms in the period, net of refunds, inclusive of shipping and handling, duty, and value-added taxes. We believe GTV is an indicator of the success of our customers and the strength of our platforms. GTV does not represent revenue earned by us.

³ POS Gross Transactional Value (“POS GTV”) means the total dollar value point-of-sale (“POS”) transactions processed through GivexPOS, our cloud-based POS SaaS platform, in the period net of refunds, inclusive of shipping and handling, duty and value-added taxes. We believe POS GTV is an indicator of the success of our customers and the strength of our platforms. POS GTV does not represent revenue earned by us.

⁴ Customer Locations means a billing customer location for which the term of services has not ended, or with which we are negotiating a renewal contract. It includes both merchant locations that have transactions processed through our cloud-based SaaS platform, as well as merchant locations not on our platform but for which we provide other Givex services. A single unique customer can have multiple Customer Locations including physical and eCommerce sites. We believe that our ability to increase the number of Customer Locations served by our platform and products is an indicator of our success in terms of market penetration and growth of our business. 

⁵ Employee Compensation as a % of Gross Profit means the total employee compensation for a period divided by the gross profit for the same period. Employee Compensation means total employee compensation including salaries and benefits, excluding both government assistance and share-based compensation. Gross Profit means revenue less direct cost of revenue.

SOURCE Givex Corporation

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