Clip Money Inc. Reports 2024 Year End Results

Rhea-AI Summary

Clip Money Inc. (CLPMF) reported significant financial growth for fiscal year 2024, with revenue surging 308% year-over-year to $2,360,309, compared to $577,919 in 2023. The growth was driven by a 147% increase in new deposit users and a 32% increase in revenue per user.

Q4 2024 revenue reached $1,151,862, showing a 121% quarter-over-quarter increase from Q3's $521,316, with approximately 19% attributed to holiday seasonality. Operating expenses increased moderately by 5% YoY to $6,688,824, while Cost of Revenues rose 37% to $3,449,743.

The company expanded its network to 444 ClipDrop deposit units in Q4 2024, partnering with major mall operators. The company secured $2.8M through convertible notes, with PeoplesBank contributing $2M and NCR Atleos subsidiary Cardtronics providing $800,000. Their ClipChange solution now serves 16 customers across 673 locations.

Positive

• Revenue grew 308% YoY to $2.36M in 2024
• Strong Q4 performance with 121% QoQ revenue growth
• 147% increase in new deposit users
• 97% customer retention rate
• Operational efficiency with only 37% increase in Cost of Revenue vs 308% revenue growth
• Secured $2.8M in convertible note financing
• Network expansion to 444 ClipDrop units

Negative

• Net loss of $9.34M in 2024
• Operating expenses increased to $6.69M
• Continued dependency on external financing
• Significant portion (19%) of Q4 revenue attributed to seasonal effects

TORONTO, March 31, 2025 (GLOBE NEWSWIRE) -- Clip Money Inc. (TSX-V: CLIP; OTCQB: CLPMF) (“Clip Money” or the “Company”), a company that operates a multi-bank self-service deposit system for businesses, is pleased to announce its financial results for the fiscal year ended December 31, 2024. The Company reported record revenue growth in 2024, up over 300% from 2023. Whereas, Cost of Revenues were up only 37% during the same time period, demonstrating strong operating leverage that is expected to continue in 2025.

2024 Financial Highlights

• Revenue for 2024 was $2,360,309, compared to $577,919 in 2023, representing 308% growth year-over-year (“YoY”). YoY revenue growth for 2024 was driven by a 147% increase in new deposit users, and a 32% increase in revenue per user, supplemented by revenue from new products. Revenue for Q4 2024 was $1,151,862 compared to $521,316 in Q3 2024, which represents a 121% quarter-over-quarter (“QoQ”) increase. Q4 is heavily impacted by seasonality from holiday shopping. The Company estimates the seasonality lift in Q4 2024 was approximately 19% of total revenue. Excluding the impact of seasonality, revenue grew 78% QoQ.
  
  
• Operating expenses for 2024 were $6,688,824, compared to $6,376,857 in 2023, representing a 5% YoY increase. Net loss for 2024 was ($9,338,779), compared to ($9,316,567).
  
  
• Revenue growth continues to outpace changes in costs of revenue (“COR”). COR for 2024 was $3,449,743 compared to COR of $2,516,166 in 2023, representing a 37% YoY increase, relative to 308% YoY revenue growth.
  

2024 Corporate Highlights

• On September 17, 2024, the Company closed a non-brokered private placement of unsecured convertible notes (the “2024 Unsecured Notes”) for aggregate gross proceeds of $2,800,000. The financing was led by PeoplesBank who subscribed for $2,000,000 in aggregate principal amount of the 2024 Unsecured Notes. The remaining $800,000 in aggregate principal amount of the 2024 Unsecured Notes was subscribed for by Cardtronics, Inc., a subsidiary of NCR Atleos.
  

2024 Network & Customer Highlights

• Clip Money grew its leading shopping center network to 444 ClipDrop deposit units in Q4 2024, adding locations with prestigious mall operators like: Pacific Retail, CBL, Westfield, Preit, Brookfield Properties, and Taubman.  
  
  
• Continued organic growth from existing customers led to the addition of 962 new, active depositing users in Q4 2024. Our base of enterprise customers remain engaged and active customers, with ~29 average monthly deposits relying on the Clip network for critical cash deposits.
  
  
• Clip’s innovative change order delivery solution, ClipChange, experienced strong growth and endorsement from Clip customers. ClipChange is a complementary solution to Clip’s cash deposit network, delivering on-demand notes and coin directly to businesses for their use in conducting cash transactions. The burden of visiting bank branches for everyday cash needs requires a holistic approach to cash management and Clip’s ClipChange solution delivered change to 16 customers across 673 unique store locations.
  

"2024 was a transformative year for Clip Money. We doubled our user base, tripled our revenue over 2023, and delivered record-breaking Q4 growth—over 120% quarter-over-quarter and over 225% year-over-year. Our customers are deeply engaged, with near-daily usage and a strong 97% retention rate, even factoring in store closures. We also expanded and diversified our offerings with the successful launch of ClipChange. Additionally, our partnership with NCR Atleos brought our ATM solution to market, reinforcing our position as the most convenient and scalable cash deposit network in North America.

As we head into 2025, we’re building on this momentum, and our strong value proposition has been validated by some of our largest and most sophisticated customers. This gives us even greater confidence that we are well positioned for the year ahead and poised for growth, especially as we anticipate more retailers will be looking for cost-saving solutions."

— Joe Arrage, CEO and cofounder, Clip Money Inc.

	Year ended
		2024			2023			2022
Total revenue	$	2,360,309		$	577,919		$	27,687
Net loss	$	(9,338,779	)	$	(9,316,567	)	$	(12,135,800	)
Net loss per share – basic and diluted	$	(0.09	)	$	(0.11	)	$	(0.22	)

	Year ended
		2024		2023		2022
Total assets	$	9,587,521	$	13,861,664	$	9,857,842
Total liabilities	$	17,523,428	$	13,013,477	$	7,796,656
Distribution or cash dividends	$	-	$	-	$	-

Additional Information

The Company’s audited consolidated financial statements, notes to financial statements, and management’s discussion and analysis for the year ended December 31, 2024 are available on the Company’s SEDAR+ profile at www.sedarplus.ca. Unless otherwise indicated, all references to “$” in this press release refer to U.S. dollars.

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.

The forward-looking statements in this news release are based on certain assumptions. 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 Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

About Clip Money Inc.

Clip operates a multi-bank self-service deposit system for businesses through the Clip Money network that gives users the capability of making deposits outside of their bank branch at top retailers and shopping malls. Rather than having to go to their personal bank branch or using a cash pickup service, businesses can deposit their cash at any ClipDrop Box or ClipATM located near them. After being deposited, the funds will automatically be credited to the business’ bank account, usually within one business day. The Company combines functional hardware, an intuitive mobile app and an innovative cloud-based transaction engine that maximizes business-banking transactions. Combined with mobile user applications, Clip offers a cost-effective and convenient solution for business banking deposits in metropolitan statistical areas across Canada and the United States. For more information about the Company, visit www.clipmoney.com.

For further information, please contact:

Joseph Arrage
Chief Executive Officer
tel: 844-593-2547

FAQ

What was Clip Money's (CLPMF) revenue growth in 2024?

CLPMF's revenue grew 308% year-over-year, reaching $2,360,309 in 2024 compared to $577,919 in 2023.

How many ClipDrop deposit units did CLPMF have in Q4 2024?

Clip Money operated 444 ClipDrop deposit units in Q4 2024, expanding across major mall operators.

What was the size of CLPMF's convertible note financing in September 2024?

CLPMF secured $2.8M in convertible notes, with PeoplesBank contributing $2M and Cardtronics providing $800,000.

How did CLPMF's Q4 2024 performance compare to Q3 2024?

Q4 2024 revenue was $1,151,862, showing 121% growth from Q3's $521,316, with 19% attributed to seasonal effects.

What was the user growth for CLPMF in 2024?

CLPMF experienced 147% growth in new deposit users, with customers averaging 29 monthly deposits.