Givex announces financial results for the second quarter of 2024

Achieves positive net income for second consecutive quarter and generates 6-month EBITDA of $3.6 million, a 470% year-over-year improvement

TORONTO, July 29, 2024 /PRNewswire/ — Givex Corp. (“Givex”) (TSX: GIVX) (OTCQX: GIVXF) is pleased to report its financial results for the six-month period ended June 30, 2024. Givex reports in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”).

“By maintaining our strategic focus on profitable growth, we delivered another quarter of year-over-year improvement across all key metrics, including revenue, gross profit and net income,” said Don Gray, CEO of Givex. “We are optimistic that this trend will continue through the end of 2024, given the new business opportunities we are actively pursuing.”

Key financial data for the second quarter

Three-month period ending 30 June 2024 (with comparisons to the three-month period ending 30 June 2023)

Revenues amounted to $20.9 million, up 7%.
Gross profit was $15.2 million, up 8%.
Net income of $0.2 million compared to a loss of $1.0 million in Q2 2023
EBITDA¹ of $1.9 million, an increase of 224%.
Total gross transaction value² $2.29 billion, an increase of 8%.
Gross POS Transaction Value³ of $529 million, an increase of 12%.
Customer locations⁴ 133,000, an increase of 7%.
As of June 30, 2024, Givex had $24.2 million in cash and cash equivalents.

Six-month period ending June 30, 2024 (with comparisons to the six-month period ending June 30, 2023)

Revenues amounted to $41.7 million, up 8%.
Gross profit was $29.2 million, up 7%.
Net income of $0.7 million compared with a loss of $2.2 million in the six months ended June 30, 2023.
EBITDA¹ of $3.6 million, an increase of 470%.
Total gross transaction value² of $4.04 billion, an increase of 9%.
Gross POS Transaction Value³ of $1.0 billion, an increase of 14%.

Operational Highlights

Payroll costs are a key factor in driving EBITDA improvement and positive net profits. In the 12-month periods ending June 30, 2024 and 2023, employee salaries⁵ as a % of gross profit was 53% for both periods. The Company believes that its ability to control employee compensation as a % of gross profit is an indicator of its success in managing costs and profitability.

More information
Additional financial information, such as the company’s Q2 2024 and fiscal 2023 audited financial statements, management’s discussion and analysis of financial condition and results of operations and annual information form, are available on the company’s SEDAR filing system at sedar.com.

More information about Givex, including a 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 been delivering technology solutions that unlock the full potential of engagement, creating and nurturing powerful connections that unite brands and customers. With a global presence of over 133,000 active locations in over 100 countries, Givex unlocks strategic insights, strengthening brands with reliable technology and exceptional support. Givex’s integrated end-to-end management solution delivers gift cards, GivexPOS, loyalty programs and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, address complex challenges and transform data into actionable insights at www.givex.com.

Non-IFRS-compliant assets and reconciliation of non-IFRS-compliant assets

The information presented includes certain financial measures, such as “EBITDA” (defined below), that are not recognized measures under IFRS and do not have a uniform meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Instead, these measures are provided as additional information that supplements these IFRS measures by providing a better understanding of our operating results from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analyzing our financial information reported in accordance with IFRS. These non-IFRS measures are used to provide investors with additional measures of our operating results and thereby highlight trends in our core business that may not otherwise be apparent if we relied solely on IFRS measures. We also believe that securities analysts, investors and other interested parties often use non-IFRS measures in evaluating issuers. Our management also uses non-IFRS measures to facilitate comparisons of operating results from period to period, the preparation of annual operating budgets and forecasts, and the determination of the components of executive 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 considered appropriate and reasonable as of the date such statements were made and is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, the risk factors described in the “Risk Factors” section of the Annual Information Form (AIF) dated March 22, 2024, available on SEDAR+ at www.sedarplus.ca and other documents filed with Canadian securities regulatory authorities. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and 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 hereof. See “Notes Regarding Forward-Looking Information” in the principal’s disclosure statement.

Additional remarks

¹ EBITDA is defined as net earnings (loss) excluding interest, taxes, depreciation and amortization (“EBITDA”).

² Gross Transaction Value (“GTV”) means the total dollar value of stored and point-of-sale (“POS”) transactions processed through our cloud SaaS platforms during a given period, net of refunds, including shipping and handling, duties, and value-added taxes. We believe GTV is an indicator of the success of our customers and the strength of our platforms. GTV does not represent the revenue we have earned.

³ POS Gross Transaction Value (“POS GTV”) means the total dollar value of point-of-sale (“POS”) transactions processed through GivexPOS, our cloud-based POS SaaS platform, during the net refund period, including shipping and handling, customs and value-added taxes. We believe POS GTV is an indicator of the success of our customers and the strength of our platforms. POS GTV does not represent revenue earned by us.

⁴ Customer Locations means a billing customer location for which the service term has not expired or with which we are negotiating a renewal agreement. This includes both merchant locations where transactions are processed through our cloud SaaS platform and merchant locations that are not on our platform but for which we provide other Givex services. A single unique customer may have multiple customer locations, including physical and eCommerce 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 business growth.

⁵ Employee Compensation as a % of Gross Profit means the total compensation of an employee for a given period divided by the gross profit for the same period. Employee Compensation means the total compensation of an employee, including salaries and benefits, and excluding both government assistance and stock-based compensation. Gross Profit means revenue less the direct cost of revenue.

SOURCE Givex Corporation