Fintech
Hank Payments Provides Corporate Update
Second Quarter Margins of 87% on 25% Revenue Growth
Toronto, Ontario–(Newsfile Corp. – January 25, 2022) – Hank Payments Corp. (TSXV: HANK) (“Hank” or the “Company”), a North American financial technology company that acts as a consumer’s financial concierge, using powerful technology to automate the complexities of personal cash flow management, is pleased to announce continued quarter over quarter organic revenue and margin growth.
- Revenue for the second quarter ended December 31, 2021, grew 25% year over year to US$1.05 million.
- Revenue quarter over quarter grew 12%.
- Gross margins improved to 87%, from 85% the previous quarter.
Historically low automotive inventories, bottomed out in calendar Q4 2021 according to Cox Automotive Inc, a leading provider of insights and outlooks in the automotive sector. “Vehicle demand will remain robust, especially through the first half,” was Cox’s Chief Economist, Jonathon Smoke’s number one prediction for 2022 in their January 13th, Cox Automotive 2022 Industry and Insights Webcast, with new and used retail sales forecasted to exceed 35M vehicles.
Automotive dealers account for 75% of Hank’s customer originations which are expected to grow organically as the market supply returns to normal. In order to expand its consumer reach, Hank is also scaling, as planned, its digital investment under newly added executive team members. The expansion of digital platform is showing early promise. Hank has begun directing capital towards scaling this functional customer acquisition team and will advance its technology as trends and conversions dictate, in order to maximize CLTV “Consumer Lifetime Value” to CAC “Customer Acquisition Cost” ratios.
A recent Q4, 2021, Ipsos survey conducted for Country Financial, entitled the “Country Financial Security Index Report,” revealed: About nine in ten Americans say they are concerned about inflation (88%). This high level of concern about inflation is held across all age groups, racial and ethnic groups, and income levels. This concern has started Americans to think of what actions they will take to pay for the things they need. Hank technology can help Americans manage their cash flow better and improve their financial wellness amid consumers growing concerns about their finances.
“While I am pleased with the predicable growth and the expected recovery in auto, I am very excited about the early activity we are seeing in digital and other strategic opportunities for diversified, cash efficient and profitable growth. We welcome the buoyancy returning to auto and look forward to scaling other channels,” commented Jeff Guthrie, President & COO.
About Hank Payments Corp.
Hank is a financial technology company. The Hank software platform (the “Hank Platform“) acts as a consumer’s personal, financial concierge using a powerful technology to automate the complexities of personal cash flow management. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the United States, Hank helps consumers in every state find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform debits consumers when they have cash, stores the cash with partner banks, then automatically instructs partner banks to pay bills and loans as they come due, and often sooner than required. Approximately half of Hank’s customers are financially sound and use the Hank Platform for convenience, while the other half improve their payment performance through the use of the Hank Platform. One hundred percent of Hank’s customers are in the USA and pay setup and ongoing monthly processing fees while remaining on the Hank Platform for an average of three years. Hank continues to innovate and anticipates launching more expansive features to its expected growing customer base that will provide greater visibility into their cash flow, credit performance, and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Corporation’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 Corporation’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Corporation’s business.
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. A number of 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 Corporation assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Investor Relations, 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/111516