Hank Payments Announces Financial Results for the Fourth Quarter and Year Ending June 30, 2022; Fourth quarter revenue up 27% year over year


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 in an automated way using proprietary algorithms that collect, store and disburse consumer money as needed to meet their 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 increased 27% year over year to $1,479,074;

  • Annual average gross margins remain solid at 88.95%;

  • Total revenue increased 22% to $5,342,765 for the year ending June 30, 2022 from $4,369,347 in 2021;

  • Revenues were up 7% from the prior quarter as the company continued to benefit from the recovery in automotive markets;

  • $1,200,000 of annualized corporate overhead savings executed in the fourth quarter and fully realized after year-end, resulting in reduced cash burn without affecting growth;

  • Cash balance of $803,146 at year end.

KEY PERFORMANCE INDICATORS:

2022

57%

91%

8%

42,175

2022

2021

$5.29

$5.13

$5,049,882

$4,626,471

OPERATIONAL AND STRATEGIC ISSUES

Monthly Recurring Revenue per User (“MRR”) has grown at a CAGR of 7% over the past two years and will continue to grow as new users sign up at a higher price for recurring monthly charges, including additional products and features. subscribed.

Average annual revenue per user (“ARPU”), described as total royalty revenue earned divided by the total number of users at the end of the year, is $118.42 per user as of June 30, 2022.

The year-end adjusted operating loss was $3,072,184 with an adjusted operating loss of $677,672 in Q4, which included a one-time restructuring charge of $227,862. As previously announced in its August 8, 2022 press release, during the fourth quarter, Hank achieved operating cost savings amounting to savings of over $100,000 per month ($1,200,000 annualized ). All the benefits of these efficiencies have been fully realized from September 2022.

ARPU should be increased for subscription users acquired through Enterprise Channels, with virtually no upfront acquisition cost (“CAC”). Enterprise channels are expected to recruit a much larger user base within a short period of time after engagement. Fee proposals include fees charged to the Enterprise customer or the consumer and sometimes a combination of both.

Michael Hilmer, President and CEO, said, “Our data reveals significant positive trends in usage, MRR and ARPU, as well as cash pressures consumers are experiencing. Due to rising prices and interest rates, we are now seeing a 36% increase in automatic monthly payments. over the past two years, or about $200 for a total of $647 per month. Average auto interest rates for Hank Platform users 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 SMB and enterprise market as these economic factors are driving demand for our platform. Enterprise and SMB channels that already have the consumers who need our services.”

A detailed discussion of Hank’s financial condition 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 software as a service (SaaS) consumer Fintech that provides a platform that manages consumer cash flows and budgets in an automated way to using proprietary algorithms that collect, store and disburse the money needed to fulfill its obligations in a timely manner. The Company operates exclusively in the United States, with certain leadership and technology functions in Toronto. Hank is home to the complex technology, banking, treasury, customer service, sales and operations teams that acquire and serve consumers. Hank currently charges an initial sign-up/setup fee and monthly recurring fee based on the types and quantity of payments Hank Payments administers for the consumer (“Users”). The Company acquires Users through various channels, including (i) small and medium-sized enterprises (the “SME Partners”) and (ii) large enterprises (the “Company Partners”). The Company does not take balance sheet risk when servicing loans and other household payments for Users, as it does not lend funds or fill cash shortfalls. All of Hank’s current income comes from user fees.

Forward-looking statements

This press release may contain forward-looking statements (within the meaning of applicable securities laws) that 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, but are not limited to, statements regarding the future success of the Company’s business. Financial performance figures in Canadian dollars, unless otherwise indicated by “U” representing US dollars.

The forward-looking statements contained in this press release are based on certain assumptions, including, without limitation, the shares commencing trading on the TSXV. 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. Accordingly, readers should not place undue reliance on these forward-looking statements. Further, these forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether due to new information, future events or otherwise.

FOR MORE INFORMATION, PLEASE CONTACT:

For more information about Hank Payments Corp., please contact: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations, please contact [email protected] 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

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