exceeded annual sales $80 millioncustomer locations increased to 132,000, positive
Earnings before tax (EBIT) achieved in the fourth quarter
Toronto, March 22, 2024 /CNW/ – Givex Corp. (“Givex”) (TSX: GIVX) (OTCQX: GIVXF) is pleased to announce its financial results for the three months ended December 31, 2023. Givex reports in Canadian dollars. Compliant with International Financial Reporting Standards (“IFRS”).
“Our fourth quarter and fiscal year results reflect a new period of revenue growth, but importantly, we also returned to positive pre-tax earnings in the fourth quarter.” CEO of Givex Don Gray says:
Fourth quarter financial highlights
3 month period ends December 31, 2023 (Comparison with 3 months at end) December 31, 2022)
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increase in revenue $1.2 million from $21.3 million to $22.5 millionrepresenting a growth of 6%.
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Increase in gross profit $700,000 from $14.5 million to $15.1 millionrepresenting a growth of 5%.
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Pre-tax profit (loss) and interest (EBIT)1) has been improved $2.3 million from the loss of $200,000 to the income of $2.1 millionIncreased by 1,038%.
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EBITDA2 increased $2.7 million from $800,000 to $3.5 millionan increase of 356%.
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Total transaction amount3 increased about 500 million dollars from $3.3 billion to $3.8 billionrepresenting a growth of 15%.
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POS total transaction amountFour increased about $98 million from $422 million to $520 millionrepresenting a growth of 23%.
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Customer locationFive increased by approximately 10,000 from 122,000 to 132,000, representing an 8% increase.
Financial highlights for the fiscal year
12 month period ends December 31, 2023 (Comparison with 12 months to end) December 31, 2022)
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increase in revenue $7.9 million from $72.9 million to $80.8 millionrepresenting a growth of 11%.
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Increase in gross profit $4.8 million from $51.3 million to $56 millionrepresenting a growth of 9%.
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Pre-tax profit (loss) and interest (EBIT)1) has been improved $8.7 million from the loss of $9.3 million to the loss of $700,000decreased by 93%.
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EBITDA2 increased $8.8 million from negative $4.1 million be positive $4.7 millionrepresenting a growth of 213%.
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Total transaction amount3 increased about $1.4 billion from 7.7 billion dollars to $9.1 billionrepresenting a growth of 18%.
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POS total transaction amountFour increased about $510 million from $1.4 billion to $1.9 billionrepresenting a growth of 37%.
Operational highlights
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Managing labor costs is a key focus for improving EBITDA and increasing net income.For the ending 12 month period December 31, 2023 and 2022, Employee Compensation.6 Their percentages of total profit were 53.8% and 53.3%, respectively. The company believes that being able to control the ratio of employee compensation to gross profit is an indicator of successful cost and profitability management.
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Inflation continued to weigh on payroll costs in all markets. Givex will continue to work towards its goal of bringing labor costs below 50% of gross profit through the introduction of tools such as client support flows powered by artificial intelligence (“AI”).
For more information
Additional financial information, including our audited annual consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and our annual information form is available on SEDAR+ at www.sedarplus.ca.
Further information about Givex, including its management presentation and overview, can be found 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 unlock the full potential of engagement and build and foster powerful connections between brands and customers. With a global reach of his 132,000+ active locations in over 100 countries, Givex unlocks strategic insights and empowers brands through reliable technology and superior support. Givex's integrated end-to-end management solution offers gift cards, GivexPOS, loyalty programs, and more, creating growth opportunities for businesses of all sizes and industries. To learn more about how to streamline your workflow, tackle complex challenges, and transform data into actionable insights, visit www.givex.com.
Reconciliation of non-IFRS measures and non-IFRS measures
Although the information presented includes certain financial measures such as 'EBITDA' (see below for definition), these are not measures recognized under IFRS and are It has no standardized meaning and is therefore unlikely to be comparable to similar metrics presented by other companies. . Rather, these measures are provided as additional information to complement the IFRS measures by providing a better understanding of our results of operations from a management perspective. Accordingly, these measures should not be considered in isolation or as a substitute for the analysis of the Company's financial information as reported under IFRS. These non-IFRS measures are used to provide investors with a supplementary measure of our performance and may highlight trends in our core business that are not apparent when relying solely on IFRS measures. can. We also believe that securities analysts, investors, and other stakeholders frequently use non-IFRS measures in evaluating issuers. Our management also uses non-IFRS measures to facilitate comparisons of our performance from period to period, to prepare our annual operating budgets and forecasts, and to determine the components of our management's 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 believe to be appropriate and reasonable on the date such statements are made and are subject to known and unknown risks. , are subject to uncertainties, assumptions and other factors that may cause actual events to occur. that results, levels of activity, performance or achievements may differ materially from those expressed or implied by such forward-looking information, including, without limitation, the risk factors described in the “Risk Factors” section of the Annual Information Form (AIF); . Available on SEDAR+ (www.sedarplus.ca) and other filings with Canadian securities regulators dated March 19, 2024. There can be no assurance that such forward-looking information will prove to be accurate, as actual results or 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 Statements” in the filing.
Other notes
1 EBIT is defined as net income (loss) before interest and taxes.
2 EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization (“EBITDA”).
3 Gross Transaction Value (“GTV”) means the total amount of storage and point-of-sale (“POS”) transactions processed through our cloud-based SaaS platform during the Period, excluding shipping, handling fees, and duties. This refers to the amount excluding refunds. , and VAT. We believe GTV is an indicator of our customers' success and the strength of our platform. GTV does not represent revenue earned by us.
Four Gross POS Transaction Value (“POS GTV”) means Point of Sale (“POS”) transactions processed through GivexPOS, our cloud-based POS SaaS platform, during the period, including shipping and handling charges, but excluding refunds. means the total amount of the transaction. , customs duties and value added taxes. We believe POS GTV is an indicator of our customers' success and the strength of our platform. POS GTV does not represent revenue earned by us.
Five Customer Location means the location of a billing customer whose Service Term has not ended or whose renewal agreement is being negotiated. This includes both merchant locations where transactions are processed through our cloud-based SaaS platform and merchant locations where we provide other Givex services not on our platform. . One unique customer can have multiple customer locations, including physical sites and e-commerce 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.
6 Employee compensation as a percentage of gross profit means total employee compensation for a period divided by gross profit for the same period. Employee Compensation means an Employee's total compensation, including salary and benefits, excluding government assistance and stock-based compensation. Gross profit means revenue minus cost of revenue directly.
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