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Banxa Q3 Financials - TTV up 93% for the qtr to $205m!

Posted by Justin Rosenberg on 27-May-2021 04:35:45
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 Further to our blog post in Jan 2021 regarding our investment in Banxa in its IPO at CAD $1, we're very pleased Banxa announced today the following Q3 results. Banxa's share price flew from $1 to $8 within 3 months of its listing. Banxa took the opportunity to raise another CAD$15m at CAD$4 four months after listing. The recent crypto correction brought Banxa down to $4, presenting an attractive entry opportunity for those who didn't get enough in the placement. Please contact me if you would like a seamless way to trade any of the Canadian exchanges.
 
Please feel free to attend the Zoom Investor Presentation tomorrow at 6.30 am AEST, details below.
 
For further background, here is an article written about Banxa today.
 
And here is the latest research report with a $15 target price.
 
---------- Forwarded message ---------
From: Banxa Holdings Inc. <investor@banxa.com>
Date: Wed, May 26, 2021 at 10:43 AM
Subject: BANXA Reports March Quarter Financial Results, Maiden Adjusted EBITDA and Record-setting Revenue

Canada NewsWire

BANXA Reports March Quarter Financial Results, Maiden Adjusted EBITDA and Record-setting Revenue

Highlights:

  • Total Transaction Value (TTV) of $396m for the nine months ended March 31, 2021 , an increase of 1,470% from $25m for the same period in 2020

  • Revenue of $21m for the three months ended March 31, 2021 , an increase of 1,479% from $1.3mfor the same period in 2020

  • Adjusted EBITDA Profit increased to $1m for the three months ended March 31 2021, up from Adjusted EBITDA Loss of $480,170 for the same period in 2020

  • March 2021 Quarter TTV of $205m , an increase of 93% from $107m from the prior quarter

  • Over $25m in cash and cash equivalents based on today's date.

TORONTO and MELBOURNE , May 26, 2021 /CNW/ - BANXA Holdings Inc (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("BANXA" or "The Company") a Payment Service Provider (PSP) focused on providing clients safe, compliant access to the digital assets market, is pleased to announce it has recorded its maiden adjusted EBITDA profit since listing. The Company anticipates continued revenue growth and recognizes that in volatile markets, increased interest in cryptocurrencies from both individuals and institutions, confirms the resilience of the Company's business model, growing transaction volumes as crypto currencies rise and fall.

BANXA Holdings (CNW Group/Banxa Holding Inc)

Banxa had its initial public listing on January 6, 2021 , and is the only Payment Service Provider (PSP) serving the digital asset industry that is publicly traded anywhere in the world.

Founder & Chairman Domenic Carosa stated, "I am pleased to see the financial performance of the business improving across all key metrics. I am confident that moving forward we will continue to demonstrate to our loyal stakeholders that we are steadfast in our mission to build the bridge between the existing financial systems and the emerging, expanding digital asset world."

Banxa CEO Holger Arians said "We are very happy to announce these results. Over the previous three months we have been focused on improving the service and experience for our customers and expanding our capacity to service the rapidly growing demand. The industry is maturing, with greater infrastructure and interest. Our aim is to be at the forefront of this new stage of development."

The Company is also announcing a Zoom Investor Event on Thursday, May 27 at 4:30 ET detail below

Topic: Banxa Investor Call
Time: May 27, 2021 04:30 ET

Join Zoom Meeting
https://us02web.zoom.us/j/85058227028?pwd=WGFOaWVNbCsvV1RaY3VlcEZIeDN4UT09

Meeting ID: 850 5822 7028
Passcode: 038456
One tap mobile
+16465588656,,85058227028#,,,,*038456# US ( New York )
+16699009128,,85058227028#,,,,*038456# US (San Jose)

Meeting ID: 850 5822 7028
Passcode: 038456
Find your local number: https://us02web.zoom.us/u/kek0pQHOvA

Summary of financial results

  • Revenue for the three months ended March 31, 2021 , was AUD $21.0 M compared with AUD $1.3 Mfor the same period in 2020, an increase of 1,479%. Revenue for the nine months ended March 31, 2021 , was AUD $ 28.4 M compared with AUD $4.6 M for the same period in 2020, an increase of 512%.
  • Gross profit for the three months ended March 31, 2021 , was AUD $6.0 M compared with AUD $0.8 M for the same period in 2020, an increase of 686%. Gross profit for the nine-months ended March 31, 2021 , was AUD $ 8.2 M compared with AUD $1.5 for the same period in 2020, an increase of 454%.
  • Adjusted earnings before interest, taxes, depreciation and amortization for the three months endedMarch 31, 2021 , totalled AUD $1 M compared with a negative EBITDA of AUD $0.5 M for the same period in 2020.
  • Net loss for three months ended March 31, 2021 totalled AUD $1.4 M compared with net loss of AUD $0.6 M for the same period in 2020. Net loss for nine months ended March 31, 2021 , was AUD$2.3 M , compared with net loss of AUD $2.5 M for the same period in 2020.

Adjusted EBITDA is a non-IFRS financial measure that we calculate as net income (loss) before tax excluding depreciation and amortization expense, share based expense, unrealized gain on inventory, finance expense and listing expense. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations. The following table shows a reconciliation of adjusted EBITDA to net income (loss) before tax, the most comparable IFRS financial measure, for the three and nine months ended 31 March 2021 and 2020:

   
 

Nine months ended

31 March 2021

Nine months ended
31 March 2020

Three months ended
31 March 2021

Three months ended
31 March 2020

Loss before tax

$(1,079,542)

$(2,173,576)

$(171,497)

$(635,039)

Depreciation and amortization

25,418

464,608

9,243

154,869

Share based expense

1,218,501

-

1,117,860

-

Gain on fair value of inventory

(2,744,986)

-

(380,364)

-

Finance expense

580,826

-

399,123

-

Listing expense

2,690,513

-

-

-

Adjusted EBITDA

690,730

(1,708,968)

974,365

(480,170)

   

Click here for the full announcement.

ON BEHALF OF THE BOARD OF DIRECTORS

Per:  "DOMENIC CAROSA"
Domenic Carosa
Chairman (1-888-218-6863)

About BANXA

BANXA - Banxa Holdings Inc. (TSX-V:BNXA/OTCQX:BNXAF/FSE:AC00) is a Payment Service Provider (PSP) with a mission to build the bridge between traditional financial systems, regulation and the digital asset space. Our goal is to onboard the general public to digital currency by building a fully compliant payment infrastructure that enables simple and secure conversion of fiat currency to digital currency (eg. USD/CAD to BTC/ETH). Banxa has offices in Australia , the Netherlands and Lithuania . For further information go to www.banxa.com

 
Justin Rosenberg
Corporate Finance - Executive Director
Gleneagle Securities (Aust) Pty Limited
Whatsapp: +61 414 450 154
Mob: +1 437 522 6354 (Toronto, CA)
Level 27, 25 Bligh Street, Sydney NSW 2000
Ph: +612 8277 6683
 
Justin Rosenberg is an Authorised Representative (No. 1265414) of Gleneagle Securities (Aust) Pty Limited, an Australian Financial Services Licensee (AFSL No. 337985) and Global Prime Pty Limited, an Australian Financial Services Licensee (AFSL No. 385620).
 
 
 

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