Fintech
Tenet Reports 143% Year-Over-Year Growth for the Q1 2022 with Revenue of $34.7M: Updates Guidance for 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 31st 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.
Fintech
Fintech Latvia Association Releases Fintech Pulse 2024: A Guide to Latvia’s Growing Fintech Hub
The Fintech Latvia Association has launched the latest edition of its annual publication, Fintech Pulse 2024, unveiling insights and resources that position Latvia as a thriving hub for European fintech.
Announced at this year’s Fintech Forum, the magazine is now available in digital format, offering a comprehensive guide for fintech professionals and entrepreneurs navigating the Latvian market and exploring its advantages.
This issue covers essential topics, from support tools provided by Latvijas Banka and newcomer roadmaps to Riga’s investor resources and fintech education opportunities. Readers will find the latest fintech news from Latvia, coverage of this year’s key industry events, and member insights on the future of fintech. The Fintech Landscape section provides a comprehensive overview of the Latvian fintech ecosystem.
Tina Lūse, Managing Director of Fintech Latvia Association, expressed excitement about the ecosystem’s growth: “We are excited to unveil the third annual edition of Fintech Pulse. This year has been pivotal for our ecosystem, and together with public sector stakeholders, we are enhancing financial inclusion, democratizing investments, and driving innovation throughout the sector. This is a testament to Latvia’s emergence as a fintech hub, establishing itself as an equal partner in innovation and support within the Baltic region.”
Minister of Finance Arvils Ašeradens highlighted Latvia’s fintech potential in the magazine, stating: “Latvia has already made strides in adapting its regulatory framework to support a stable financial system. Now, we encourage financial market players to invest in modern technologies to meet the growing demand for inclusive financial services and solidify Latvia’s position in the fintech landscape. We are confident that with the combined offer of the government, Latvijas Banka and Riga city, we are a great place to start your next scalable European FinTech!”
Minister of Economics Viktors Valainis expressed Latvia’s ambition in the magazine, stating: “Latvia wants to become a WEB 3.0. innovation hub and solidify itself as one of the leaders of a newly regulated EU crypto-asset market. We welcome international companies to choose Latvia, a flexible and fast-paced country, where you can obtain a MICA license in just 3 months. Open your office in Latvia, receive a MICA license and serve the whole EU market!”
The Fintech Latvia Association brings together fintech and non-banking financial service providers to represent their interests at both the national and international levels. It promotes sustainable development in Latvia’s financial sector by fostering reliable, responsible, and long-term industry practices that earn trust from consumers and regulatory authorities. The association is committed to supporting innovation and growth opportunities within the fintech landscape.
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The World Economic Forum (WEF) has released a pivotal white paper in collaboration with the Financial Conduct Authority (FCA), titled “Quantum Security for the Financial Sector: Informing Global Regulatory Approaches”. This January 2024 publication underscores the urgent need for global cooperation as the financial sector transitions from a digital economy to a quantum economy, highlighting both the immense opportunities and cybersecurity challenges posed by quantum computing.
Quantum: A Double-Edged Sword for Finance
Quantum computing offers transformative benefits for the financial sector, such as accelerated portfolio optimization, enhanced fraud detection, and improved risk management. Yet, it simultaneously threatens the very foundation of cybersecurity. With quantum’s ability to break traditional encryption methods, sensitive data and financial transactions face significant risks. The white paper warns that such vulnerabilities could erode trust in the financial system and destabilize global markets.
The urgency to prepare is evident, with some quantum threats, such as “Harvest Now, Decrypt Later” attacks, already emerging. Governments and regulators, including the United States with its National Security Memorandum on Quantum (2022), have begun advocating for quantum security readiness by 2035. However, as noted in the paper, transitioning to a quantum-secure infrastructure is a monumental task requiring unprecedented coordination between regulators, industry leaders, and technology providers.
A Collaborative Framework: Four Guiding Principles
To address the complex challenges posed by quantum technologies, the WEF and FCA have proposed four guiding principles to inform global regulatory and industry approaches:
- Reuse and Repurpose: Leverage existing regulatory frameworks and tools to address quantum risks, rather than creating entirely new systems.
- Establish Non-Negotiables: Define baseline requirements for quantum security, ensuring consistency and interoperability across organizations and jurisdictions.
- Increase Transparency: Foster open communication between regulators and industry players to share best practices, strategies, and knowledge.
- Avoid Fragmentation: Prioritize global collaboration to harmonize regulatory efforts and avoid inconsistencies that could burden multinational organizations.
These principles aim to create a unified, forward-looking strategy that balances innovation with security.
A Four-Phase Roadmap for Quantum Security
The white paper introduces a phased roadmap to help the financial sector transition toward quantum security:
- Prepare: Raise awareness of quantum risks, assess cryptographic infrastructure, and build internal capabilities.
- Clarify: Formalize engagement between stakeholders, map current regulations, and model the cost and complexities of transitioning to quantum-safe systems.
- Guide: Address regulatory gaps, translate technical standards into actionable frameworks, and develop industry-wide best practices.
- Transition and Monitor: Implement cryptographic management modernization and adopt iterative, adaptable regulatory approaches to remain resilient in the quantum economy.
This roadmap emphasizes adaptability, encouraging stakeholders to continuously refine their strategies as quantum technologies evolve.
The Path Forward: Collaboration as a Catalyst
The transition to a quantum-secure financial sector is not merely a technological shift but a comprehensive rethinking of how industries and regulators approach cybersecurity. The interconnected nature of global finance means that collaboration between mature and emerging markets is crucial to avoid vulnerabilities that could undermine the entire system.
Regulators and financial institutions must act with urgency. As Sebastian Buckup, Head of Network and Partnerships at the World Economic Forum, notes in the report:
“The quantum economy era is fast approaching, and we need a global public-private approach to address the complexities it will introduce. We welcome this opportunity to collaborate with the FCA to chart the roadmap for a seamless and secure transition for the financial services sector.”
Similarly, Suman Ziaullah, Head of Technology, Resilience, and Cyber at the FCA, emphasizes:
“Quantum computing presents considerable opportunities but also threats. The financial sector relies heavily on encryption to protect sensitive information, the exposure of which could cause significant harm to consumers and markets. Addressing this requires a truly collaborative effort to transition to a quantum-secure future.”
Global Impact: Ensuring Resilience in an Evolving Landscape
As quantum technologies mature, they will redefine the landscape of cybersecurity. The financial sector, as one of the most sensitive and interconnected industries, must prioritize preparedness to ensure stability, protect consumers, and maintain trust.
The Quantum Security for the Financial Sector: Informing Global Regulatory Approaches white paper offers an essential foundation for continued dialogue and action. By adhering to the guiding principles and roadmap outlined in the report, stakeholders can navigate this transformation with foresight and cooperation.
The full report, published by the World Economic Forum, highlights the need for a unified global approach to quantum security, serving as a rallying call for industry and regulatory leaders alike.
Source: World Economic Forum, “Quantum Security for the Financial Sector: Informing Global Regulatory Approaches”, January 2024.
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The fintech landscape continues to redefine itself, driven by innovation, partnerships, and groundbreaking strategies. Today’s roundup focuses on the latest digital wallet offerings, evolving payment trends, strategic collaborations, and notable funding achievements. This editorial explores the broader implications of these developments, casting light on how they shape the future of fintech and beyond.
Beacon’s Digital Wallet for Immigrants: A Gateway to Financial Inclusion
Beacon Financial, a leading player in financial technology, recently launched a digital wallet tailored to meet the unique needs of immigrants moving to Canada. This offering bridges a critical gap, enabling seamless financial integration for newcomers navigating a foreign system.
By combining intuitive technology with user-centric features, Beacon aims to empower immigrants with tools for payments, savings, and remittances. This aligns with the growing demand for tailored financial products that resonate with specific demographics.
Op-Ed Insight:
Financial inclusion is more than just a buzzword; it’s a moral imperative in the fintech space. Products like Beacon’s digital wallet highlight the industry’s potential to create tangible change. As global migration trends increase, such offerings could inspire similar initiatives worldwide.
Source: Fintech Futures.
Juniper Research Highlights 2025’s Payment Trends
Juniper Research’s latest report unveils pivotal payment trends poised to dominate in 2025. Central themes include the adoption of instant payment networks, a surge in embedded finance solutions, and the rise of crypto-backed financial products.
The research underscores the rapid adoption of real-time payment systems, fueled by increasing consumer demand for speed and efficiency. Meanwhile, embedded finance promises to blur the lines between traditional banking and non-financial services, delivering personalized and context-specific solutions.
Op-Ed Insight:
As the lines between financial services and technology continue to blur, these trends emphasize the industry’s shift toward convenience and personalization. The growing role of crypto-based solutions reflects an evolving consumer mindset, where decentralization and digital-first experiences gain precedence.
Source: Juniper Research.
MeaWallet and Integrated Finance Partner to Revolutionize Digital Wallets
MeaWallet, a prominent fintech solutions provider, has partnered with Integrated Finance to advance digital wallet capabilities and secure card data access for fintech companies. This collaboration focuses on empowering fintechs to deliver better, safer digital payment experiences.
MeaWallet’s role as a technology enabler aligns seamlessly with Integrated Finance’s goal of simplifying complex financial infrastructures. Together, they aim to create scalable, robust platforms for secure payment solutions.
Op-Ed Insight:
Partnerships like this underscore the importance of collaboration in driving innovation. As security concerns grow in tandem with digital payment adoption, solutions addressing these challenges are essential for maintaining consumer trust. The fintech ecosystem thrives when synergy and innovation coalesce.
Source: MeaWallet News.
Nucleus Security Among Deloitte’s Fastest-Growing Companies
Nucleus Security has achieved a remarkable milestone, ranking 85th on Deloitte’s 2024 Technology Fast 500 list. This achievement is attributed to its robust cybersecurity solutions, which cater to the increasingly digital fintech environment.
With cyberattacks becoming more sophisticated, fintech companies are under immense pressure to safeguard their platforms. Nucleus Security’s growth reflects the rising demand for comprehensive, scalable security solutions that protect sensitive financial data.
Op-Ed Insight:
In a digital-first world, robust cybersecurity isn’t optional—it’s fundamental. The recognition of companies like Nucleus Security signals the growing importance of protecting fintech infrastructure as the industry scales globally.
Source: PR Newswire.
OpenYield Secures Funding to Transform the Bond Market
OpenYield has announced a successful funding round, aiming to revolutionize the bond market through innovative technology. The platform promises greater transparency, efficiency, and accessibility in fixed-income investments.
This funding underscores the growing appetite for digitizing traditionally opaque financial markets. By leveraging cutting-edge technology, OpenYield seeks to democratize bond investments, making them accessible to a broader audience.
Op-Ed Insight:
The bond market, long viewed as complex and inaccessible, is ripe for disruption. OpenYield’s efforts to modernize this space highlight fintech’s transformative potential to democratize finance and empower individual investors.
Source: PR Newswire.
Key Takeaways: Shaping the Future of Fintech
Today’s developments underscore several critical themes in the fintech landscape:
- Personalization and Inclusion: Products like Beacon’s wallet highlight the importance of understanding and addressing specific user needs.
- Collaborative Ecosystems: Partnerships, like that of MeaWallet and Integrated Finance, emphasize the power of collaboration in solving industry challenges.
- Emerging Technologies: Juniper Research’s predictions affirm the continued influence of blockchain, embedded finance, and instant payment networks.
- Security at the Core: The recognition of Nucleus Security underscores the essential role of cybersecurity in fintech.
- Market Transformation: OpenYield’s funding signifies the ongoing disruption of traditional financial markets, paving the way for broader accessibility.
The post Fintech Pulse: Daily Industry Brief – A Dive into Today’s Emerging Trends and Innovations appeared first on News, Events, Advertising Options.
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