Fintech

Tenet Reports 143% Year-Over-Year Growth for the Q1 2022 with Revenue of $34.7M: Updates Guidance for 2022

Published

3 years ago

May 31, 2022

Toronto, Ontario–(Newsfile Corp. – May 30, 2022) – Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) (“Tenet” or the “Company”), an innovative AI service provider and operator of the Business Hub™, today announced its financial results and operating highlights for the three-month period ended March 31, 2022. Tenet reported revenue of $34.7M, adjusted EBITDA of ($568,202) and a net loss of $3.36M for the quarter. The Company continued to expand its offerings in China that led to the increase in revenue. Expenses related to the preparation for the launch of Tenet’s Canadian Business Hub™ and Canadian operations led to the negative adjusted EBITDA and the net loss for the period. All amounts expressed are in Canadian dollars.

Q1 Financial Highlights:

Total Revenue of $34.7M
Adjusted EBITDA of ($568,202)
Net Loss of ($3.36M)

Summary of Quarterly Evolution of Revenue, Adjusted EBITDA and Net Income (Loss)

	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Revenue	$34,741,460	$33,048,247	$25,695,570	$30,649,179	$14,239,776
Expenses¹	$35,309,662	$33,226,492	$22,672,271	$29,411,980	$14,118,039
Adjusted EBITDA²	($568,202)	($178,245)	$3,023,299	$1,237,199	$121,737
Net Income (Loss)³	($3,359,601)	($49,994,623)	$1,526,286	$296,071	($389,702)

Expenses, for the calculation of Adjusted EBITDA, do not include finance costs, interest, taxes, depreciation (including impairment of intangible assets) loss on settlement of debt, gain on bargain purchase and amortization.
Adjusted EBITDA equals net income (loss) before finance costs, taxes, depreciation, amortization and impairment of intangible assets, loss on extinction of debt, gain on bargain purchase and amortization. Adjusted EBITDA is provided as a supplementary earnings measure to assist readers in determining the Company’s ability to generate cash flows from operations and to cover finance charges. Adjusted EBITDA and EBITDA are also widely used for business valuation purposes. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
The net loss for Q4 2021 included a total of $53,364,705 in impairment charges related to the Company’s acquisition of Cubeler for which forecasted revenues shifted by almost a year due to the delayed launch of the Company’s Canadian Business Hub™. Part of the impairment charges may be reversed in the future following the launch of the Company’s Canadian operations.

Q1 Operating Highlights:

Partnership agreement with eHi Auto Services
Launch of Yun Fleet shipping and transportation platform
Collaboration with China Energy Engineering Corporation on two clean energy pilot projects

ABOUT FIRST QUARTER FINANCIAL AND OPERATING RESULTS SUMMARY

It was essentially business as usual for Tenet in Q1 when it comes to the continued expansion of its services in China. The benefits of the Company’s participation in two major shopping festivals in China in the fourth quarter of 2021 spilled over into the first quarter of 2022 as new consumer-goods supply-chain clients acquired during the events contributed to Tenet’s revenue growth for the quarter. Helping consumer goods retailers and distributors manage their cash flows, become more efficient and take advantage of new opportunities once again constituted the bulk of Tenet’s operations in China. Activities in the oil & gas and raw materials verticals also contributed to the Company’s revenue growth during the period.

While its operations in established verticals were expanding, Tenet took steps during the quarter to begin servicing new verticals and to create more synergy between its offerings throughout the Business Hub™. Believing China’s clean energy sector to be one of the most promising in the world, Tenet is focused on making entry into the space a priority for 2022 and continued to develop relationships in the sector during the quarter by collaborating with China Energy Engineering Corporation (“CEEP”) on two separate solar-energy pilot projects. The launch of the Company’s Yun Fleet shipping platform and its partnership agreement with eHi Auto Services (“eHi”) in Q1 2022 will not only help Tenet better service the automotive/transportation vertical but should also serve to create more synergy between the Company’s offerings. For instance, the agreement with eHi will essentially provide an additional 5,000 service outlets located in more than 400 cities where insurance policies offered through Tenet’s Heartbeat insurance brokerage platform will be sold. And while Heartbeat was originally focused on insurance products aimed at the auto industry, Tenet began to work with its insurance partners to design products specifically suited to some of the transactions facilitated on the Hub and to begin offering policies along with the transactions. Similarly, the Company plans to offer shipping and logistics services with each transaction for which such services would be applicable through the Yun Fleet platform.

As for its Canadian operations, Tenet once again spent the quarter taking the necessary steps to launch the Canadian portion of its Business Hub™ in the second half of 2022. Most of the activities naturally were focused on the adaptation of the platform for Canada, but the Company also became more active during the quarter on relationship-building and awareness initiatives ahead of the anticipated launch.

In summary, the Company generated $34,741,460 in revenue for the quarter ended March 31, 2022 compared to $14,239,776 for the same period in 2021. Total expenses for the quarter amounted to $38,101,061, compared to $14,327,501 for the same period in 2021. The net loss for the three-month period ending March 31, 2022 was $3,359,601 compared to a $389,702 net loss for the same period of 2021.

Full details of the Company’s first quarter 2022 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) for the three-month periods ended March 31, 2022 and 2021, which are available at www.sedar.com.

REVISED GUIDANCE FOR 2022

Tenet also announced today that it has revised its guidance for 2022. The Company is now forecasting revenue for the year of $210.0M (down from $345.0M), EBITDA of $6.5M (down from $81.8M) and a net loss of $11.3M (down from net income of $51.4M).

“Although the demand for the services offered through our Business Hub™ continues to grow as expected in China, a combination of events that have occurred over the past seven months have dramatically altered our fundraising plans, causing delays in the launch of our operations in Canada and our activities in the insurance vertical in China,” commented Tenet President and CEO Johnson Joseph. “Add to that China’s zero Covid policy, which led to some of the country’s major economic hubs being locked down for just about the entire second quarter so far, and it became impossible for us to meet our previously forecasted numbers, so we had to go back to the drawing board with a new plan. The good news is that we now have a capital markets plan that doesn’t depend on the US capital markets and which will allow us to continue to fuel our growth in China and expand the Business Hub™ to other markets around the world.”

Tenet will host an investor webinar on Tuesday, May 31^st at 8:00 am ET, where President and CEO Johnson Joseph, Tenet China CEO Liang Qiu and CFO Jean Landreville will discuss the Q1 2022 financial results and the Company’s revised 2022 guidance. Those who would like to attend the webinar can register for the event at: https://tinyurl.com/TenetQ12022.

About Tenet Fintech Group Inc.:

Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this news release, unless explicitly specified, includes Tenet and all its subsidiaries. Tenet’s subsidiaries provide various analytics and AI-based services to businesses and financial institutions through various Business Hubs™ to create a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. Please visit our website at: http://www.tenetfintech.com

For more information, please contact:

CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext.: 251
[email protected]

MZ Group – MZ North America
Mark Schwalenberg, CFA
312-261-6430
[email protected]

Follow Tenet Fintech Group Inc. on social media:

Twitter: @Tenetfintech
Facebook: @Tenetfintech
LinkedIn: Tenet Fintech
YouTube: Tenet Fintech

Forward-Looking Statements / Information:

This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth and listing plans, using words including “anticipate”, “believe”, “could”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “seek”, “should”, “will”, “would” and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125893

Fintech

Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)

Published

1 week ago

December 19, 2024

Peter Tolan

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.

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Fintech

SPAYZ.io prepares for iFX EXPO Dubai 2025

Published

1 week ago

December 19, 2024

Adrienn Sarkany

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.

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Fintech

Airtm Enhances Its Board of Directors with Two Strategic Appointments

Published

1 week ago

December 19, 2024

Adrienn Sarkany

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.

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