Fintech
Hank Payments Reports Third-Quarter Financial Results with Revenue Growth of 24% Year over Year, Record Gross Margins Approaching 90% and Continued Strong ARR and LUM
Toronto, Ontario–(Newsfile Corp. – May 30, 2022) – Hank Payments Corp. (TSXV: HANK) (“Hank” or the “Company”), a North American leader in consumer FinTech Software-as-a-Service (SaaS) announced today record quarter-over-quarter organic revenue growth, record gross margins, continued strong ARR and LUM (defined below) and, in addition to the B2C application of personal financial wellness through automating payments management resulting in improved household cash flow and debt management and overall financial hygiene, acceleration of its B2B go-to-market strategy to become the industry-leading Enterprise SaaS payments platform.
Headquartered in Canada with operations in the United States, Hank is on a mission to transform outmoded personal financial wellness and consumer financial technology through offering a best-in-class payments platform and payment management capabilities. Hank’s modern, elegant and proprietary cloud-based solution is revolutionizing the way both consumers and lenders alike manage payments with speed, automation, ease-of-use and best-in-class service as well as B2B SaaS Enterprise solutions that allow Hank to power bank, lender, originator, debt settlement companies and gig-worker platforms.
FINANCIAL HIGHLIGHTS – CONTINUED STRONG FINANCIAL FUNDAMENTALS
- Revenue for the third quarter ended March 31, 2022, grew 24% year over year to $1,378,598. (Nine month $3,863,691, 21%)
- Gross margins grew to an unprecedented 89.2% in keeping with our historical trajectory.
- Revenue quarter over quarter grew 6% as the Company benefits from the recovery in the auto industry.
- Annual Recurring Revenue (ARR) and Liabilities under Management (LUM) continue to remain strong.
OPERATING AND STRATEGIC MATTERS – EVOLUTION TO THE ENTERPRISE AND FEALTY TO SHAREHOLDER VALUE
The Company’s historical B2C sales channel, being the SME auto dealer channel, continues to perform well and has resulted in predictable consumer growth, consumer loan payment performance and related analytics, generating for the Company stable and predictable revenue growth and providing the resources and expertise necessary to win larger contracts in that channel and allowing the Company to focus on the additional goal of advancing its B2B SaaS Enterprise customer opportunities.
The Company is pleased with the exceptional level of interest and demand it has received in the Enterprise SaaS space. As a result, the Company is, as a natural progression in its evolution, pivoting its head count, other resource and expense base focus from B2C retail customer digital sales strategies in favor of negotiating potentially significant revenue generating (and expense efficient) B2B Enterprise SaaS licensing contracts that allow Hank to power bank, lender, originator, debt settlement companies and gig-worker platforms.
On the expense side of the ledger, operating expenses in the quarter grew in part due to investments in digital marketing and related overhead, public company expenses, technology platform advancements to support Enterprise SaaS proposals as well as costs associated with evaluating potential strategic transactions.
The Company has in a prudent manner addressed this by identifying and acting on several cost reduction measures post-quarter end, namely the elimination of various roles not directly contributing to the B2B Enterprise SaaS strategy, which will result in significant ongoing cost savings as Hank now focusses on the execution of highly accretive SaaS Enterprise licensing deals and strategic partnerships that will when finalized enable the penetration of mass markets, with markedly lower customer acquisition costs and lower relative customer service costs as scale is achieved.
On the M&A front, the Company has conducted a top-to-bottom analysis of its in-process acquisitions funnel with a laser focus on the amount of accretion of Hank shareholder value resulting from said acquisitions in relation to the amount of dilution that Hank shareholders will incur from said acquisitions and has determined that it will not be proceeding with the two transactions identified, including the previously announced mortgage servicing transaction. On balance, the organic growth the Company is currently enjoying and anticipated to enjoy from its current opportunities funnel will bring more users to the Hank platform than proceeding with the two proposed acquisitions, without the Company incurring the execution and integration risks and costs associated with said acquisitions. The Company is open to evaluating accretive transactions, however, strategically the Company has determined that expenditure of its resources is best suited to support the near-term demand from Enterprise SaaS accounts.
GENERAL CORPORATE MATTERS
The Company has granted a total of 150,000 stock options of Hank under its Stock Option Plan, with an exercise price of $0.15 and an expiry date of May 30, 2024. The options are subject to the standard provisions of the Hank’s Stock Option Plan. Jeff Guthrie President & COO will be leaving the Company for personal reasons to attend to a family member illness effective May 31, 2022. The Company and its Board of Directors wishes him and his family member best wishes during this challenging personal period. 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 nine-month periods ending March 31, 2022, filed on SEDAR.
Commenting on the quarter and year to date results, Michael Hilmer, Chairperson and CEO comments: “I am very pleased with the work the team has done to grow the SME channels business while evaluating transactions and related planning for our Enterprise SaaS funnel. I personally want to thank Jeff for his dedication to Hank and offer my heartfelt good wishes for a speedy resolution of his family health situation. I would also like to thank our other existing and departing team members for their exceptional hard work as we qualified opportunities and set Hank on a strong and disciplined expense and growth path. I am most excited about the magnitude and economics of the Enterprise SaaS funnel which continued to build in many strategic verticals, as well as key partnerships we look forward to announcing through summer in conjunction with lower operating costs and expected increases in gross dollar margin.”
About Hank Payments Corp.
Hank is a SaaS based consumer Fintech company. The industry leading Hank cloud-based software platform (the “Hank Platform“) acts as a consumer’s financial budget manager using powerful technology to automate a consumer’s personal cash flow and payments. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the U.S., Hank helps consumers in all 50 States find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform instructs its banking partners to debit consumers when they have cash, store the money in FDIC insured accounts, then automatically pay bills and loans as they come due; 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 Hank Platform. Hank’s customers 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 state of the art features to its expected growing customer base to 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 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 1-833-HANKPAY. 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.
Fintech
Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Fintech
SPAYZ.io prepares for iFX EXPO Dubai 2025
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Fintech
Airtm Enhances Its Board of Directors with Two Strategic Appointments
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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