XTM Announces Q2 2023 Earnings, Reports Strongest Revenue Since Company’s Inception
Last Updated: 5.9.2023 14:24
XTM Reported a 26% Increase in Revenue and a 47% Rise in Gross Dollar Value (GDV) in the Second Quarter of 2023
XTM Inc. (CSE: PAID) (OTCQB: XTMIF) (FSE: 7XT), a Miami and Toronto-based Fintech creator of disruptive payment innovations including fully certified Earned Wage Access (EWA) through its QRails AnyDay™ product announced the filing of its quarterly unaudited condensed consolidated Financial Statements and Management Discussion and Analysis (MD&A) for Q2 2023 which shows, among other things, a 47% increase in Gross Dollar Value (GDV) over Q2 2022.
Q2 2023 Earnings Highlights:
- Gross dollar value (GDV) loads on the company’s platform were just under $170.8 million for the quarter. This is the highest quarter in the company’s history, surpassing $143 million in Q1 2023 and an increase of 47% from $116.5 million in Q2 2022;
- Revenue of just under $1.6 million for the quarter ending Q2 2023. This was the strongest quarter for revenue since the company’s inception, increasing $333K or 26% compared to Q2 2022 and $191K or 13% compared to Q1 2023. Of note, in accordance with IFRS-15, the company started to recognize card revenue over the remaining life of the customer contract, starting in Q4 2022. On a comparative basis, revenue would have been up 46% year-over-year.
- To reflect the mix of full and part-time Today employees, the company is using a single member/user metric, “Total Active Users” (defined as a Today wallet holder with at least one transaction in the past six months). The company’s Total Active User count was 119K as at the end of Q2 2023 from 83K at the end of Q2 2022;
- Gross Profit was $130K or 8% of revenue for the quarter; this compares to $297K or 23% of revenue for Q2 2022, with the lower percentage as a result of one-time fees associated with the QRails transaction;
- Operating expenses were $2.218 million for the quarter, an increase of 5% or $144K compared to $2,104K for Q2 2022, with the main driver being an increase in professional fees to support the acquisition of QRails, offset by the reduction in contract engineering resourcing and investor relations.
- Net loss was $2,425K for the quarter. The current quarter net loss increased compared to a net loss of $1,871K for Q2 2022, mainly due to an increased focus on security, increases in fraud monitoring and cyber protection.
- Cash totalled $0.4 million as of June 30, 2023, down -$0.7 million from the prior year-end total of $8.4 million, with the decrease attributable to funding operational requirements and investments into new products, including platform improvements to support new verticals, Earned Wage Access (EWA) and Tip and Gratuity allocation and distribution solution.
- After June 30, 2023, the company received a CAD $2,000,000 short-term bridge loan for the purpose of supporting the company’s working capital requirements until the close of the Convertible Debt Financing.
Also Read: XTM Closes Transformational Acquisition of World-Class Earned Wage Access Company QRails
Q2 2023 Subsequent Events:
- The company brought to market several new products over the past six months, including Today Goals: The company launched an in-app financial planning and insights tool, using artificial intelligence for predictability and gamification to assist members in building financial wellness.
Today Wellness: Through its partnership with CloudMD Software & Services Inc., the company launched virtual healthcare access to its Today Program members. The company began piloting the program on August 1, 2023, with plans for a full rollout before the end of Q4 2023. - On August 18, 2023, the company completed its transaction to acquire all the issued and outstanding securities of QRails Inc. (QRails). The securities of QRails were acquired from its current shareholders for a total consideration of USD $3,500,000, consisting of USD $100,000 in cash, with the remaining USD $3,400,000 to be paid through the issuance of common shares.
- The company is in final negotiations for a USD $70 million Debt Facility to be released initially in a USD $30 million tranche, followed by tranches of USD $20 million for Earned Wage Access (EWA) lending. This will represent one of the largest debt facilities for EWA lending in North America and will allow the company to rapidly scale its EWA product. The company expects to close on the facility in Q3 2023.
- The company is in final negotiations for a USD $70 million Debt Facility to be released initially in a USD $30 million tranche, followed by tranches of USD $20 million for Earned Wage Access (EWA) lending. This will represent one of the largest debt facilities for EWA lending in North America and will allow the company to rapidly scale its EWA product. The company expects to close on the facility in Q3 2023.
¹In accordance with IFRS-15, the company started to recognize card revenue over the remaining life of the customer contract, starting in Q4 2022. On a comparative basis, revenue would have been up 46% year-over-year.
Shares of XTM closed today’s trading session at $0.15 per share, down -3.23% on the day. YTD, PAID stock is up +36.36%.
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Read More:
XTM Posts Year-End 2022 Earnings, Revenue Climbs 111%
XTM Reports 3X EWA Growth in the United States
This 15 Cent Earned Wage Access Company is Eating the Lunch of its Much Larger Fintech Competitors
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