XTM Posts Year-End 2022 Earnings, Revenue Climbs 111%

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 through its QRails AnyDay™ solution, announced the filing of the following financial statements:

• audited annual financial statements for the year ended December 31, 2022, management’s discussion & analysis relating to the audited annual financial statements and related officer certifications for the year ended December 31, 2022;
• interim financial statements for the period ended March 31, 2023, management’s discussion & analysis relating to the interim financial statements and related officer certifications for the year for the period ended March 31, 2023.

XTM is currently subject to a failure-to-file cease trade order (FFCTO) issued by the Ontario Securities Commission (OSC) on July 18, 2023, as a result of the company’s failure to file the required filings in accordance with National Instruments 51-102 – Continuous Disclosure Obligations. The company remedied the default that led to the FFCTO by filing the Required Documents on August 3, 2023, and copies are available under XTM’s SEDAR profile. It is expected that because of the filing of the Required Documents, the OSC, as the company’s principal regulator, will revoke the FFCTO in accordance with National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions (collectively, the Legislation).

Upon the revocation of the FFCTO, trading in the common shares of the company through the facilities of the Canadian Securities Exchange (CSE) is expected to resume. XTM is working with the CSE in this respect, and the revocation of the FFCTO and the resumption of trading will be confirmed in a further press release.

Audited Annual Financial Statements and Management Discussion and Analysis for the year show, among other things, a more than 111% increase in annual revenue over the year ending December 31, 2021.

Year End 202 Earnings Highlights:

• Net Revenue for the year ending 2022 was $ 4,733,727 compared to revenue of $2,262,938 for the year ending 2021, an increase of $2,470,789 or 111%.
• Gross dollar value (GDV) loaded on the company’s platform grew 200% to almost half a billion dollars to $462.1 million for the year, with the company trending upward with its highest 2022 single-month load totalling $50.4 million in December. GDV is a key performance indicator as the company generates revenue when money is spent from the Today Wallet at a point-of-sale in-store or online. XTM’s revenue is derived mainly from interchange fees, which are earned when a user of a Today™ wallet uses their VISA or branded card at a point-of-sale. A higher GDV will generally result in higher revenues from interchange fees.
• Gross Profit for the year ending 2022 increased to $930,408 for a Gross Margin percentage of 19.7%, compared to Gross Profit of $60,909 or 2.7% Gross Margin percentage for the year ending 2021.
• Loss for the year was $7,266,150, or a loss per share of $0.04, compared to a loss of $5,450,042 or a loss per share of $0.04 in 2021.
• XTM experienced increased velocity in new customer acquisitions, signing up 655 unique locations from across the US and Canada in 2022 for total locations at the year ending of 1,996 and current locations to date at 2,809.
• Active users on the XTM’s Today platform increased by 64% from the year ending 2021. The company classifies an active user as one who has made transactions through their Today wallet within a 30-day period.

Also Read: XTM Signs Definitive Agreement to Acquire World-Class Earned Wage Access Company QRails

Q1 2022 Subsequent Events:

XTM brought to market several new products over the past six months, the most significant being fully SAP-certified Earned Wage Access (EWA). The acquisition of QRails and, subsequently, the AnyDay product sets XTM apart as the only provider of a fully certified SAP EWA solution in North America, opening the way for established Fortune 100 companies to confidently extend the offering of on-demand earned wages to their employees.

• XTM is launching the QRails AnyDay™. AnyDay is a Payday solution delivering a fully compliant, embedded, single source, EWA solution for employers looking to add EWA as a retention, recruitment and added benefits feature.
• In the US, XTM’s fully owned subsidiary, QRails, is onboarding a rapidly growing user base to its EWA solution to some of the world’s largest employers through clients that include Alight.
• The company launched Today Wellness, a value-added virtual healthcare and mental wellness support tool in-app for its Today members through its relationship with CloudMD. A convenient option for users, Today Wellness, creates an ancillary Company revenue stream and increases monthly revenue-per-user.
• The company was able to bring to market a workforce management platform specifically tailored to the needs of hospitality and staffing organizations Timely, through its partnership with BookJane, announced on December 19, 2022. Breakaway Staffing with People 2.0 began piloting the platform in July 2023, with further onboardings planned before the end of Q3 2023.
• A subscription-based savings tool, Today Goals, launched in January 2023, is embedded in the Today app. Today Goals uses AI and gamification to drive insights, track habits and support multiple savings goals to which users can allocate earnings.
• Bundled with other high-value products, Today Boost was piloted to enable a $50 advance when needed to assist in managing a user’s cash flow. The program, which charges a nominal bundled monthly subscription fee, launched the pilot in April 2023 with robust uptake. There are plans for a full rollout upon securing a third-party lender for the micro-loans in Q4 2023.
• upon securing a third-party lender for the micro-loans in Q4 2023.
  The company moved its enabling enterprise fintech platform to be offered as a paid subscription from the previous free model. The company began signing new clients to the tiered subscription model in February 2023 while renewing existing client contracts on the paid model beginning in May 2023.

Paul Dowdall, the company’s former Chief Financial Officer, is no longer with the company and has been replaced by an interim CFO, Michael Li. Prior to joining XTM in April of 2023 as SVP, Operations and now Chief Operating Officer, Michael’s most recent post was with Ontario Lottery Gaming Commission, and before that, he oversaw operations for an early-stage time and attendance technology company.  Michael holds a CPA designation and has spent the past 17 years as an Operations and Finance Executive. The company is executing an executive search for a finance leader, a competent CFO familiar with the payments space, and one with the experience to consolidate and oversee the financials of both XTM and our US-based subsidiary, QRails.

XTM’s full financial position and results of operations are provided in the Audited Annual Consolidated Financial Statements, and a discussion of those results can be found in the Company’s MD&A for years ending December 31, 2022, and 2021, filed on SEDAR.

Shares of XTM last traded at $0.16 per share. YTD, PAID stock is up +40.91%.

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