Toronto, Ontario--(Newsfile Corp. - October 14, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), a North American leader in consumer Fintech Software-as-a-Service (SaaS) that provides a platform that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse consumer cash as required to discharge obligations. The Company is pleased to provide its fourth quarter and year end financial results for the period ending June 30, 2022.
FINANCIAL HIGHLIGHTS
- Revenue for the fourth quarter ended June 30, 2022, grew 27% year over year to $1,479,074;
- Annual Average Gross margins remain strong at 88.95%;
- Total revenue grew 22% to $5,342,765 for the year ending June 30, 2022, versus $4,369,347 in 2021;
- Revenue grew 7% over previous quarter as the Company continues to benefit from the recovery in the auto markets;
- $1,200,000 of annualized corporate overhead cost savings executed in Q4 and fully realized post year end leading to reduced cash burn without affecting growth;
- Cash balance of $803,146 at year end.
KEY PERFORMANCE INDICATORS:
|
2022 |
|
- Increase in users managing mortgage payments since the beginning of the pandemic (March-2020)
|
57% |
|
- Increase in users managing multiple payments since the beginning of the pandemic (March-2020)
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91% |
|
- Increase in Contract liability (deferred revenue) over the twelve-month period ended June 30, 2022
|
8% |
|
|
|
|
- Active SME Channel Users as of June 30, 2022
|
42,175 |
|
|
2022 |
2021 |
- Monthly Recurring Revenue (MRR) per User (excluding enrollment fees) in CAD
|
$5.29 |
$5.13
|
|
|
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- Cash Collected from Fees in the Period
|
$5,049,882 |
$4,626,471 |
OPERATING AND STRATEGIC MATTERS
Monthly Recurring Revenue per user ("MRR") has experienced a cumulative annual average growth rate of 7% over the past two years and will continue to rise as new users are enrolled at a higher price for recurring monthly fees, including additional products and features subscribed for.
The Average Annual Revenue Per User ("ARPU"), described as total fee revenue earned divided by the total users as at year end, is $118.42 per user as at June 30, 2022.
Year end adjusted loss from operations was $3,072,184 with Q4 adjusted loss from operations of $677,672, which included one-time restructuring charge of $227,862. As previously announced in its August 8, 2022, press release, during the fourth quarter, Hank executed operating costs efficiencies amounting to savings of over $100,000 a month ($1,200,000 annualized). The complete benefits of these efficiencies were fully realized beginning in the month of September, 2022.
ARPU is expected to be upsized for subscription users acquired through Enterprise Channels, with virtually no upfront cost of acquisition ("CAC"). Enterprise channels are expected to enroll much larger user base over a short period of time following engagement. Fee proposals include fees being charged to either of the Enterprise client or the consumer and at times a combination of both.
Michael Hilmer, Chairperson and CEO commented, "Our data is revealing important positive trends in usage, MRR and ARPU along with the cash flow pressures consumers are coming under. Due to price and interest rate increases, we now see auto monthly payments up 36% over the past two years or approximately $200 for a total of $647 per month. Average auto interest rates for users on the Hank platform, have climbed to an average of 11.5% and mortgages and other loans are following suit." He added, "Hank Payments is well positioned to help consumers through our SME and Enterprise marketplace as these economic factors drive demand for our platform. We expect growth in calendar 2023 to be driven in part by these economic conditions as we access the consumer through efficient Enterprise and SME channels that already have the consumers that need our services."
A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the three and 12 month periods ending June 30, 2022, filed on SEDAR.
About Hank Payments Corp.
Hank Payments Corp (the Company or "Hank") is a North American leader in consumer Fintech Software-as-a-Service (SaaS) that provides a platform that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the "Users"). The Company acquires Users through various channels including (i) small to medium sized enterprises (the "SME Partners") and (ii) large enterprise businesses (the "Enterprise Partners"). The Company does not take balance sheet risk when managing loan and other household payments for Users as it does not lend funds or bridge cash shortfalls. All of Hank's current revenues are derived from usage fees.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company's business. Financial performance figures in Canadian Dollars unless otherwise indicated by "U" representing United States Dollars.
The forward-looking statements in this news release are based on certain assumptions, including, without limitation, the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company's website at www.hankpayments.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/140658
