Marijuana Fintech Co. POSaBIT Reports 67% YoY Drop In Q1 Revenue, Renews Focus On Sustainable Profitability And Growth

Author: Jelena Martinovic | June 14, 2024 09:13am

Cannabis-focused provider of payments infrastructure POSaBIT Systems Corporation (CSE:PBIT) (OTC:POSAF) reported its financial results on Thursday for the three months ended March 31, 2024. The company reported a 67% year-over-year drop in revenue to $33.8 million in the first quarter.  

Ryan Hamlin, co-founder and CEO of POSaBIT, said the company faced "market challenges" with its payments business at the end of 2023 and in early 2024.

However, Hamlin added the struggles are "now behind us and POSaBIT is poised for long-term profitability and growth through our recurring inflow of cash from our licensing contracts, increased Adjusted Gross Profit margins and a re-factored cost structure pushing us to profitability."

See also: POSaBIT’s 2023 Revenue Drops 7% YoY, Core Business Grows As It Seeks To List Its Shares On TSX

Q1 2023 Financial Highlights

• Gross profit was $1.5 million, down 38% year-over-year.
• Gross profit margin was 39% compared to 21% in the prior year's period.
• Operating costs totaled $3.4 million, representing a 35% year-over-year improvement.
• Loss was $1.9 million, down from $2.8 million in the prior year's period, representing a 30% year-over-year improvement.
• Adjusted EBITDA came in negative at $801,043.
• As of March 31, 2024, the company had cash and cash equivalents of $0.9 million compared to $1.5 million as of Dec. 31, 2023.

Recent Operational Highlights

• Recently launched its revised Apple and Android POSaBIT Pay application;
• Received settlement from an outstanding claim due to POSaBIT from a prior processing partner;
• Closed its fastest growth month in March for our point-of-sale installs, with over 25 new locations across Washington, Oregon, Colorado and Massachusetts.
• Finalized banking and software requirements to be ready to support full credit card processing if rescheduling occurs and credit cards are allowed.

POSAF Price Action

POSaBIT's shares traded 8.34% higher at $0.1 per share after the market close on Thursday afternoon.

Now read: POSaBIT Aims To Enhance Trading Liquidity In Cannabis After Hypur Deal, CEO Calls It ‘A Natural Continuation Of Plan’

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Posted In: CSE:PBIT POSAF