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Usio Announces Second Quarter 2024 Financial Results

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Usio, Inc. (Nasdaq: USIO) reported Q2 2024 financial results, highlighting a 29% increase in total payment dollars processed across all channels compared to the previous year. Despite strong volume growth, the company lowered its revenue guidance to 3-7% growth and EPS expectations to $0.0-$0.03 per share due to slower implementation of contracted PayFac ISVs. However, Usio raised its fiscal 2024 Adjusted EBITDA expectations to between $4.25 and $5.0 million.

Key highlights include:

  • Q2 revenues of $20.1 million, down 6% year-over-year
  • Net income of $0.1 million, or $0.00 per share
  • Adjusted EBITDA of $0.8 million
  • Record-breaking volumes in Prepaid card load, processing, and transactions
  • Strong financial position with $7.5 million in cash and cash equivalents

Usio, Inc. (Nasdaq: USIO) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando un aumento del 29% dei dollari totali pagati elaborati attraverso tutti i canali rispetto all'anno precedente. Nonostante una forte crescita del volume, l'azienda ha abbassato le sue previsioni di fatturato, prevedendo una crescita tra il 3% e il 7% e le aspettative sugli utili per azione a $0,00-$0,03 per azione a causa di una più lenta attuazione degli ISV PayFac contrattualizzati. Tuttavia, Usio ha innalzato le sue aspettative per l'Adjusted EBITDA fiscale 2024 a un intervallo compreso tra $4,25 e $5,0 milioni.

I punti salienti includono:

  • Fatturato del secondo trimestre di $20,1 milioni, in calo del 6% rispetto all'anno precedente
  • Utile netto di $0,1 milioni, ossia $0,00 per azione
  • Adjusted EBITDA di $0,8 milioni
  • Volumi record nella ricarica di carte Prepagate, elaborazione e transazioni
  • Solida posizione finanziaria con $7,5 milioni in contante e equivalenti di contante

Usio, Inc. (Nasdaq: USIO) reportó los resultados financieros del segundo trimestre de 2024, destacando un aumento del 29% en el total de dólares de pago procesados a través de todos los canales en comparación con el año anterior. A pesar de un fuerte crecimiento en el volumen, la compañía redujo su guía de ingresos a un crecimiento del 3% al 7% y las expectativas de EPS a $0.00-$0.03 por acción debido a una implementación más lenta de los ISV PayFac contratados. Sin embargo, Usio aumentó sus expectativas de EBITDA ajustado fiscal 2024 a un rango entre $4.25 y $5.0 millones.

Los aspectos más destacados incluyen:

  • Ingresos del segundo trimestre de $20.1 millones, una disminución del 6% interanual
  • Ingreso neto de $0.1 millones, o $0.00 por acción
  • EBITDA ajustado de $0.8 millones
  • Volúmenes récord en carga de tarjetas precargadas, procesamiento y transacciones
  • Fuerte posición financiera con $7.5 millones en efectivo y equivalentes de efectivo

Usio, Inc. (Nasdaq: USIO)는 2024년 2분기 재무 결과를 발표하며, 지난해에 비해 총 결제 금액 처리에서 29% 증가를 강조했습니다. 높은 거래량에도 불구하고, 회사는 계약된 PayFac ISV의 도입 속도가 느려짐에 따라 매출 가이드를 3~7% 성장으로 낮추고 주당 순익을 $0.00-$0.03으로 예상했습니다. 그러나 Usio는 2024 회계연도 조정 EBITDA 기대치를 $4.25에서 $5.0 백만으로 상향 조정했습니다.

주요 하이라이트는:

  • 2분기 수익 $20.1 백만, 전년 대비 6% 감소
  • 순이익 $0.1 백만, 즉 주당 $0.00
  • 조정된 EBITDA $0.8 백만
  • 선불 카드 적재, 처리 및 거래 기록적인 볼륨
  • 현금 및 현금 등가물이 $7.5 백만으로 강력한 재무 상태

Usio, Inc. (Nasdaq: USIO) a publié ses résultats financiers pour le deuxième trimestre 2024, soulignant une augmentation de 29 % des montants totaux de paiement traités par tous les canaux par rapport à l'année précédente. Malgré une forte croissance des volumes, la société a abaissé ses prévisions de revenus à une croissance de 3 à 7 % et ses attentes en matière de bénéfice par action à 0,00 $ - 0,03 $ par action en raison de la mise en œuvre plus lente des ISV PayFac sous contrat. Cependant, Usio a augmenté ses attentes pour l'EBITDA ajusté pour l'exercice 2024 entre 4,25 et 5,0 millions de dollars.

Les points saillants incluent :

  • Des revenus de 20,1 millions de dollars pour le deuxième trimestre, en baisse de 6 % par rapport à l'année précédente
  • Un résultat net de 0,1 million de dollars, soit 0,00 $ par action
  • EBITDA ajusté de 0,8 million de dollars
  • Des volumes record dans le chargement de cartes prépayées, le traitement et les transactions
  • Une solide position financière avec 7,5 millions de dollars en espèces et équivalents

Usio, Inc. (Nasdaq: USIO) berichtete über die Finanzzahlen für das 2. Quartal 2024 und hob einen 29%igen Anstieg der insgesamt verarbeiteten Zahlungssummen über alle Kanäle im Vergleich zum Vorjahr hervor. Trotz eines starken Volumenwachstums senkte das Unternehmen die Umsatzprognose auf 3-7% Wachstum und die Gewinnprognose auf $0.00-$0.03 pro Aktie aufgrund langsamerer Implementierungszeiten der vertraglich gebundenen PayFac ISVs. Usio erhöhte jedoch die Erwartungen für das bereinigte EBITDA im Geschäftsjahr 2024 auf einen Bereich zwischen $4,25 und $5,0 Millionen.

Wichtige Highlights:

  • Umsätze im 2. Quartal von $20,1 Millionen, ein Rückgang um 6% im Jahresvergleich
  • Nettoeinkommen von $0,1 Millionen oder $0,00 pro Aktie
  • Bereinigtes EBITDA von $0,8 Millionen
  • Rekordvolumen bei der Aufladung von Prepaid-Karten, Verarbeitung und Transaktionen
  • Starke finanzielle Position mit $7,5 Millionen in Bargeld und Äquivalenten
Positive
  • 29% increase in total payment dollars processed across all channels
  • Raised fiscal 2024 Adjusted EBITDA expectations to between $4.25 and $5.0 million
  • Record-breaking volumes in Prepaid card load (up 55%), processing, and transactions
  • Credit card segment saw 10% increase in dollars processed and 19% increase in transactions
  • ACH electronic check transaction volume up 10%, dollars processed up 36%
  • Strong financial position with $7.5 million in cash and cash equivalents
  • Generated $1.0 million in Adjusted Operating Cash Flows over first six months of fiscal year
Negative
  • Lowered revenue guidance to 3-7% growth
  • Reduced EPS expectations to $0.0-$0.03 per share
  • Q2 revenues down 6% year-over-year to $20.1 million
  • Net income decreased to $0.1 million from $0.2 million in the same quarter last year
  • Adjusted EBITDA declined to $0.8 million from $1.3 million a year ago
  • Operating loss of $0.2 million compared to $0.2 million operating income in Q2 2023
  • Gross profit decreased to $4.8 million from $5.2 million in Q2 2023

Insights

Usio's Q2 2024 results present a mixed picture. While total payment dollars processed increased by 29%, revenues declined 6% to $20.1 million. The company's growth is being hampered by the wind-down of a large NYC COVID Incentive Prepaid program. However, excluding this program, revenues would have shown growth.

The company has lowered its revenue guidance to 3-7% growth, with EPS expectations at $0.00-$0.03 per share. On a positive note, Adjusted EBITDA expectations have been raised to $4.25-$5.0 million. The backlog of contracted PayFac integrated software vendors with over $1.4 billion in potential processing dollars is promising, but slower implementation is affecting short-term projections.

Investors should monitor the company's ability to convert its backlog into revenue and improve gross margins, which could drive future profitability.

Usio's performance reflects broader trends in the fintech sector. The 29% growth in payment processing volume aligns with the increasing shift towards digital payments. However, the company's revenue decline highlights the challenges of transitioning from legacy programs to new growth areas.

The company's focus on PayFac (Payment Facilitator) model is strategic, as this segment showed 22% revenue growth. This aligns with the industry trend of integrated payments solutions. The record-breaking performance in Prepaid card load volumes (up 55%) also indicates strong demand in this segment.

Investors should watch for Usio's ability to capitalize on these growth areas while managing the transition from older programs. The company's success in implementing its $1.4 billion backlog will be important for future performance and market positioning.

Usio's technological strategy appears sound, focusing on high-growth areas like PayFac and integrated software vendors (ISVs). The 24% increase in total payment transactions processed indicates strong platform scalability. However, the slower-than-expected implementation of contracted ISVs highlights potential challenges in onboarding or integration processes.

The company's diverse payment processing capabilities across credit cards, ACH and prepaid services demonstrate a robust tech stack. The reclassification of interest revenue earned on merchant funds to top-line revenue reflects a maturing business model that leverages its payment infrastructure.

Looking forward, Usio's ability to accelerate ISV implementations and leverage its full-stack payment solutions will be crucial. Investors should monitor the company's tech investments and any innovations that could streamline client onboarding or open new revenue streams.

Total payment dollars processed through all payment channels up 29% versus the prior year period

SAN ANTONIO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Usio, Inc: (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the second quarter, which ended June 30, 2024.

Louis Hoch, President and Chief Executive Officer of Usio, said, “Momentum remains strong, with a backlog of contracted PayFac integrated software vendors, "ISVs", still to implement with more than $1.4 billion in potential processing dollars. Total payment dollar processing volume growth accelerated to 29% in the second quarter, with all of our electronic transaction processing businesses generating double-digit growth across all of their key processing metrics. However, based on first half revenues, and anticipated future volumes respective to our initial projections due to PayFac's contracted ISVs implementing slower than we had previously forecasted, we are lowering our revenue guidance to 3-7% growth, and our EPS expectations to $0.0-$0.03 per share. However, we are raising our expectations for fiscal 2024 Adjusted EBITDA1 to be between $4.25 and $5.0 million, as gross margins are expected to improve."

Revenues for the quarter were once again in line with our expectations for the quarter and were down from a year ago, primarily due to the continued managed wind down of a large Prepaid program related to the NYC COVID Incentive program. Excluding that single program, revenues would have been up for both the quarter and the first half of the year compared to a year ago. Revenues in the quarter were led by Credit card, specifically in our Payfac division, where revenues were up 22% on a 25% increase in volumes, overcoming the attrition in our legacy portfolios to increase total credit card revenues 2%. Prepaid card services, despite the decline in revenues, has a positive growth trajectory, with card load volume growing 55% from the comparable quarter of 2023, to a record $133 million, and exceeded $100 million for the fourth consecutive quarter. ACH & Complementary Services also had strong processing volume growth, although revenues were down marginally for the quarter, due to the presence of some one-time revenues in the prior year period, while up over the first half of the year. Revenues for Output Solutions were down for the quarter, though underlying volumes were up sequentially versus the first quarter of 2024. The decrease was due to the comparison with a strong second quarter 2023 and delays with some new customer implementations.

We have also reclassified interest revenue earned on merchant funds held for payment processing, merchant reserves and prepaid balances to top line revenue. This change reflects a shift in how the Company reports this income, which was previously categorized as non-operating income. This reclassification highlights that this revenue is integral to these core business segments, aligning it with the Company’s primary revenue streams. Interest income earned on operating cash continues to be reported below the line. This adjustment provides greater transparency into the company's operational performance and the main drivers of revenue within its key business lines.

For the quarter ended June 30, 2024, margins were up sequentially from the first quarter, although gross profit and margins were down marginally from a year ago due to a slightly less favorable sales mix, including the runoff of the NYC COVID Incentive Prepaid Card Program. Other selling, general and administrative expenses increased modestly from the same period last year and, on an annual basis, are expected to be nominally higher versus the prior year to support the anticipated revenue growth. The Company reported net income of $0.1 million, or $0.00 per share, compared to net income of $0.2 million, or $0.01 per share, a year ago. Adjusted EBITDA1 was $0.8 million, a $0.5 million decline from the $1.3 million Adjusted EBITDA1 a year ago. The Company’s financial position remains strong as the Company generated $1.0 million in Adjusted Operating Cash Flows1 over the first six months of this fiscal year with cash at quarter end up over $1.0 million compared to the same point a year ago.

Mr. Hoch concluded, “The Company is in an extremely strong position, with a growing portfolio of recurring revenues, a best-ever financial position, and signed contracts that will be adding incremental revenue as they come online. Though the timing of when these large incremental deals will ramp up remains uncertain, we are confident that it is simply a question of timing. We believe that this should elevate Usio to a new level of revenue and earnings while further strengthening our franchise and creating new opportunities for growth.”

Quarterly Processing and Transaction Volumes

Total payment transactions processed in the second quarter of 2024 were 11.1 million, an increase of 24% over the same quarter of last year. Total payment dollars processed through all payment channels in the second quarter of 2024 were $1.7 billion, an improvement of 29% over last year's second quarter $1.3 billion in volume. 

We set all-time records in Prepaid card load, processing and transaction volumes in our Prepaid business unit. Prepaid card load volume was up 55%, transactions processed were up 58% and purchase volume were up 39%, in each case, from the same quarter a year ago. In our Credit card segment, dollars processed were up 10% and transactions processed were up 19% from a year ago. ACH electronic check transaction volume was up 10%, electronic check dollars processed were up 36% and return check transactions processed was up 13%, all compared to the same quarter a year ago.

Second Quarter 2024 Revenue Detail

Revenues for the quarter ended June 30, 2024 were $20.1 million, down 6% compared to the prior year quarter, primarily reflecting a decrease in Prepaid revenues due to the continued wind-down of the NYC COVID Incentive program. Similarly, revenues for the six months ended June 30, 2024 were down 4% compared the prior year period attributable to the decrease in Prepaid revenues.

 Three Months Ended June 30, 
 2024  2023  $ Change  % Change 
                
ACH and complementary services$3,894,330  $4,079,157  $(184,827)  (5)%
Credit card 7,261,268   7,115,884   145,384   2%
Prepaid card services 3,673,418   5,217,468   (1,544,050)  (30)%
Output Solutions 4,686,869   4,849,197   (162,328)  (3)%
Interest - ACH and complementary services 190,233   40,361   149,872   371%
Interest - Prepaid card services 334,624   125,058   209,566   168%
Interest - Output Solutions 39,146   9,447   29,699   314%
Total Revenue$20,079,888  $21,436,572  $(1,356,684)  (6)%


 Six Months Ended June 30, 
 2024  2023  $ Change  % Change 
                
ACH and complementary services$7,776,064  $7,419,879  $356,185   5%
Credit card 14,822,002   14,455,782   366,220   3%
Prepaid card services 7,014,642   10,024,872   (3,010,230)  (30)%
Output Solutions 10,224,792   10,807,417   (582,625)  (5)%
Interest - ACH and complementary services 401,873   43,306   358,567   828%
Interest - Prepaid card services 737,365   186,018   551,347   296%
Interest - Output Solutions 73,536   15,568   57,968   372%
Total Revenue$41,050,274  $42,952,842  $(1,902,568)  (4)%
 

Gross profit for the second quarter of 2024 was $4.8 million compared to $5.2 million for the second quarter of 2023, while gross margins were 23.9%, which was 0.3% lower than the same period a year ago. This decrease in gross margins reflects the impact of lower residual revenues generated from prepaid card breakage and spoilage. Sequentially, margins were up compared to the first quarter of 2024, as there was lower prepaid card breakage and spoilage revenues in the second quarter.

Gross profits for the six months ended June 30, 2024 were $9.7 million, down $0.5 million, from the same time period last year. This was primarily attributable to lower overall revenues, while gross margins were only down a nominal 0.1% to 23.5%, with second quarter profitability having improved as we replaced lower margin revenues from the first quarter of 2024 with more profitable business. These improvements stem for the growth of new customers in our Prepaid card services business, and improvements in Output Solutions as customer mix shifted in the second quarter.

Other selling, general and administrative expenses were $4.0 million for the quarter ended June 30, 2024, up slightly compared to $3.9 million in the prior year period. The increase was primarily attributable to nominal increases in general salary and benefits. While we expect full year expenses to be nominally higher from a year ago to support our anticipated growth in revenues and implementations, we are committed to achieving our goal to improve operating leverage as a means to accelerate profitable growth

Other selling, general and administrative expenses were $8.1 million for the six months ended June 30, 2024, compared to $7.7 million in the prior year period, the increase being primarily attributable to some one-time increases in professional fees and marketing, including increased sales-related travel, in the first quarter of 2024. 

For the quarter, we reported an operating loss of $0.2 million compared to positive $0.2 million in operating income for the same quarter a year ago. Adjusted EBITDA1 was $0.8 million for the quarter, compared to Adjusted EBITDA1 of $1.3 million a year ago. Net income for the quarter ended June 30, 2024 was $0.1 million, or $0.00 per share, compared to net income of $0.2 million, or $0.01 per share, for the same period in the prior year. 

For the six months ended June 30, 2024, our operating loss was $0.5 million compared to operating income of $0.3 million in the same period a year ago, with a net loss of $0.2 million, or ($0.01) per share, versus net income of $0.2 million in the six months ended June 30, 2023. Adjusted EBITDA1 was $1.6 million in the six months ended June 30, 2024, a decrease of $0.8 million, from $2.4 million a year ago.

Adjusted Operating Cash Flows1 (excluding merchant reserve funds, prepaid card load assets, customer deposits and net operating lease assets and obligations) was $1.0 million for the six months ended June 30, 2024. Cash flows used in operating activities was $3.1 million for the six months ended June 30, 2024, compared to cash flows used in operating activities of $27.8 million in the same period a year ago, with the difference driven primarily by the decrease in accounts payable and accrued expenses, alongside lower prepaid card load obligations, as funds are loaded and spent on our prepaid cards.

We continue to be in solid financial condition with $7.5 million in cash and cash equivalents as of June 30, 2024, a $0.3 million increase in cash balances over the first six months of the year, and an improvement of $1.0 million from June 30, 2023.

Please see reconciliation of GAAP to Non-GAAP Financial Measures

Conference Call and Webcast

Usio, Inc.'s management will host a conference call on Wednesday, August 14, 2024, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors.

A replay of the call will be available approximately one hour after the end of the call through August 28, 2024. The replay can be accessed via the Company’s website or by dialing +1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 4975978.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

Comparisons

Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business.

  • The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles.
  • The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions.
  • The Company defines adjusted EBITDA margins as adjusted EBITDA, as defined above, divided by total revenues.
  • The Company defines adjusted operating cash flow as net cash provided by (used in) operating activities, less changes in prepaid card load obligations, customer deposits, merchant reserves and net operating lease assets and obligations. These adjustments to net cash provided by (used in) operating activities are not inclusive of any regular expense items, and only include changes in our assets and liabilities accounts on our consolidated balance sheet. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows as indicators of the Company's operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations. 

Management believes EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows are helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. 

EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.

1 See reconciliation of non-GAAP financial measures below

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy and any guidance for future periods. These forward-looking statements are identified by the use of words such as "believe," "should," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2023. One or more of these factors have affected, and in the future could affect, the Company’s businesses and financial results and could cause actual results to differ materially from plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements included in this press release are reasonable, the Company can give no assurance such assumptions will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

Contact:

Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804


USIO, INC.
CONSOLIDATED BALANCE SHEETS
 
 June 30, 2024  December 31, 2023 
 (Unaudited)     
ASSETS       
Cash and cash equivalents$7,498,256  $7,155,687 
Accounts receivable, net 5,494,539   5,564,138 
Settlement processing assets 51,122,984   44,899,603 
Prepaid card load assets 28,056,918   31,578,973 
Customer deposits 1,808,006   1,865,731 
Inventory 407,013   422,808 
Prepaid expenses and other 819,163   444,071 
Current assets before merchant reserves 95,206,879   91,931,011 
Merchant reserves 4,851,839   5,310,095 
Total current assets 100,058,718   97,241,106 
        
Property and equipment, net 3,427,109   3,660,092 
        
Other assets:       
Intangibles, net 1,317,370   1,753,333 
Deferred tax asset, net 1,504,000   1,504,000 
Operating lease right-of-use assets 2,184,415   2,420,782 
Other assets 340,285   355,357 
Total other assets 5,346,070   6,033,472 
        
Total Assets$108,831,897  $106,934,670 
        
LIABILITIES AND STOCKHOLDERS' EQUITY       
Current liabilities:       
Accounts payable$968,217  $1,031,141 
Accrued expenses 3,214,518   3,801,278 
Operating lease liabilities, current portion 442,668   633,616 
Equipment loan, current portion 192,206   107,270 
Settlement processing obligations 51,122,984   44,899,603 
Prepaid card load obligations 28,056,918   31,578,973 
Customer deposits 1,808,006   1,865,731 
Current liabilities before merchant reserve obligations 85,805,517   83,917,612 
Merchant reserve obligations 4,851,839   5,310,095 
Total current liabilities 90,657,356   89,227,707 
        
Non-current liabilities:       
Equipment loan, net of current portion 597,176   718,980 
Operating lease liabilities, net of current portion 1,863,147   1,919,144 
Total liabilities 93,117,679   91,865,831 
        
Stockholders' equity:       
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at June 30, 2024 (unaudited) and December 31, 2023, respectively     
Common stock, $0.001 par value, 200,000,000 shares authorized; 29,764,435 and 28,671,606 issued, and 27,331,969 and 26,332,523 outstanding at June 30, 2024 (unaudited) and December 31, 2023, respectively 198,179   197,087 
Additional paid-in capital 99,222,467   97,479,830 
Treasury stock, at cost; 2,366,947 and 2,339,083 shares at June 30, 2024 (unaudited) and December 31, 2023, respectively (4,511,919)  (4,362,150)
Deferred compensation (7,681,660)  (6,907,775)
Accumulated deficit (71,512,849)  (71,338,153)
Total stockholders' equity 15,714,218   15,068,839 
        
Total Liabilities and Stockholders' Equity$108,831,897  $106,934,670 



USIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
 Three Months Ended June 30,  Six Months Ended June 30, 
 2024  2023  2024  2023 
                
Revenues$20,079,888  $21,436,572  $41,050,274  $42,952,842 
Cost of services 15,280,074   16,250,988   31,396,765   32,795,417 
Gross profit 4,799,814   5,185,584   9,653,509   10,157,425 
                
Selling, general and administrative expenses:               
Stock-based compensation 460,061   577,869   959,334   1,082,443 
Other SG&A 4,000,845   3,854,022   8,061,070   7,727,241 
Depreciation and amortization 547,849   522,999   1,124,003   1,041,028 
Total selling, general and administrative 5,008,755   4,954,890   10,144,407   9,850,712 
                
Operating income (loss) (208,941)  230,694   (490,898)  306,713 
                
Other income and (expense):               
Interest income 107,270   43,978   222,624   66,880 
Other income 261,413      261,413    
Interest expense (14,250)  (533)  (27,835)  (1,195)
Other income, net 354,433   43,445   456,202   65,685 
                
Income (loss) before income tax expense 145,492   274,139   (34,696)  372,398 
Income tax expense 70,000   69,098   140,000   152,524 
                
Net income (loss)$75,492  $205,041  $(174,696) $219,874 
                
Income (Loss) Per Share               
Basic income (loss) per common share:$0.00  $0.01  $(0.01) $0.01 
Diluted income (loss) per common share:$0.00  $0.01  $(0.01) $0.01 
Weighted average common shares outstanding               
Basic 26,534,407   26,413,329   26,454,848   26,410,340 
Diluted 26,534,407   26,413,329   26,454,848   26,410,340 



USIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
  
 Six Months Ended June 30, 
 2024  2023 
Operating Activities       
Net income (loss)$(174,696) $219,874 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:       
Depreciation 688,039   605,095 
Amortization 435,964   435,933 
Employee stock-based compensation 959,334   1,082,443 
Non-cash revenue from returned common stock    (156,162)
Changes in operating assets and liabilities:       
Accounts receivable 69,599   (850,132)
Prepaid expenses and other (375,092)  (176,728)
Operating lease right-of-use assets 236,367   114,956 
Inventory 15,795   25,185 
Accounts payable and accrued expenses (649,684)  136,401 
Operating lease liabilities (246,945)  (134,979)
Prepaid card load obligations (3,522,055)  26,227,715 
Merchant reserves (458,256)  231,539 
Customer deposits (57,725)  9,070 
Net cash provided by (used in) operating activities (3,079,355)  27,770,210 
        
Investing Activities       
Purchases of property and equipment (455,057)  (388,628)
Net cash (used in) investing activities (455,057)  (388,628)
        
Financing Activities       
Payments on equipment loan (36,868)  (28,215)
Proceeds from issuance of common stock 10,510   - 
Purchases of treasury stock (149,769)  (19,036)
Net cash (used in) financing activities (176,127)  (47,251)
        
Change in cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves (3,710,539)  27,334,331 
Cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves, beginning of year 45,910,486   32,343,501 
        
Cash, Cash Equivalents, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period$42,199,947  $59,677,832 
        
Supplemental disclosures of cash flow information       
Cash paid during the period for:       
Interest$27,835  $1,195 
Income taxes    312,158 
Non-cash financing activity:       
Issuance of deferred stock compensation 1,497,300   2,478,506 



USIO, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
 
 Common Stock  Additional
Paid- In
  Treasury  Deferred  Accumulated  Total
Stockholders'
 
 Shares  Amount  Capital  Stock  Compensation  Deficit  Equity 
                            
Balance at December 31, 2023 28,671,606  $197,087  $97,479,830  $(4,362,150) $(6,907,775) $(71,338,153) $15,068,839 
                            
Issuance of common stock under equity incentive plan 107,600   107   153,118            153,225 
Deferred compensation amortization             346,047      346,047 
Purchase of treasury stock costs          (44,823)        (44,823)
Net (loss) for the period                (250,188)  (250,188)
                            
Balance at March 31, 2024 28,779,206  $197,194  $97,632,948  $(4,406,973) $(6,561,728) $(71,588,341) $15,273,100 
                            
Issuance of common stock under equity incentive plan 994,049   994   1,610,320      (1,497,300)     114,014 
Issuance of common stock under employee stock purchase plan 6,180   6   10,504            10,510 
Reversal of deferred compensation amortization that did not vest (15,000)  (15)  (31,305)     31,320       
Deferred compensation amortization             346,048      346,048 
Purchase of treasury stock costs          (104,946)        (104,946)
Net income for the period                75,492   75,492 
                            
Balance at June 30, 2024 29,764,435  $198,179  $99,222,467  $(4,511,919) $(7,681,660) $(71,512,849) $15,714,218 
                            
Balance at December 31, 2022 27,044,900  $195,471  $94,048,603  $(3,749,027) $(5,697,900) $(70,863,049) $13,934,098 
                            
Issuance of common stock under equity incentive plan 1,421,250   1,421   2,638,529      (2,444,054)     195,896 
Deferred compensation amortization             308,676      308,676 
Purchase of treasury stock costs          (8,529)        (8,529)
Net income for the period                14,833   14,833 
                            
Balance at March 31, 2023 28,466,150  $196,892  $96,687,132  $(3,757,556) $(7,833,278) $(70,848,216) $14,444,974 
                            
Issuance of common stock under equity incentive plan 111,456   111   354,199      (34,452)     319,858 
Reversal of deferred compensation amortization that did not vest (115,000)  (115)  (188,088)     103,091      (85,112)
Deferred compensation amortization             343,123      343,123 
Purchase of treasury stock costs          (10,507)        (10,507)
Non-cash return of common stock          (156,162)        (156,162)
Net income for the period                205,041   205,041 
                            
Balance at June 30, 2023 28,462,606  $196,888  $96,853,243  $(3,924,225) $(7,421,516) $(70,643,175) $15,061,215 



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
 
 Three Months Ended June 30,  Six Months Ended June 30, 
 2024  2023  2024  2023 
                
Reconciliation from Operating income (Loss) to Adjusted EBITDA:               
Operating income (Loss)$(208,941) $230,694  $(490,898) $306,713 
Depreciation and amortization 547,849   522,999   1,124,003   1,041,028 
EBITDA 338,908   753,693   633,105   1,347,741 
Non-cash stock-based compensation expense, net 460,061   577,869   959,334   1,082,443 
Adjusted EBITDA$798,969  $1,331,562  $1,592,439  $2,430,184 
                
                
Calculation of Adjusted EBITDA margins:               
Revenues$20,079,888  $21,436,572  $41,050,274  $42,952,842 
Adjusted EBITDA$798,969  $1,331,562  $1,592,439  $2,430,184 
Adjusted EBITDA margins 4.0%  6.2%  3.9%  5.7%



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
 
 June 30, 2024  June 30, 2023 
        
Reconciliation from net cash (used in) operating activities to Non-GAAP Adjusted Operating Cash Flow:       
Net cash provided by (used in) operating activities$(3,064,283) $27,770,210 
Operating cash flow adjustments:       
Prepaid card load obligations 3,522,055   (26,227,715)
Customer deposits 57,725   (9,070)
Merchant reserves 458,256   (231,539)
Operating lease right-of-use assets (236,367)  (114,956)
Operating lease liabilities 246,945   134,979 
Total adjustments to net cash provided by operating activities$4,048,614  $(26,448,301)
Adjusted operating cash flows provided$984,331  $1,321,909 

FAQ

What was Usio's total payment processing growth in Q2 2024?

Usio reported a 29% increase in total payment dollars processed across all channels in Q2 2024 compared to the same period last year.

How did Usio's Q2 2024 revenue compare to the previous year?

Usio's Q2 2024 revenue was $20.1 million, down 6% compared to the same quarter in the previous year.

What is Usio's updated revenue guidance for fiscal 2024?

Usio lowered its revenue guidance to 3-7% growth for fiscal 2024.

How much did Usio's Prepaid card load volume increase in Q2 2024?

Usio's Prepaid card load volume increased by 55% in Q2 2024 compared to the same quarter a year ago.

What was Usio's net income for Q2 2024?

Usio reported a net income of $0.1 million, or $0.00 per share, for Q2 2024.

Usio, Inc.

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37.49M
27.36M
36.19%
21.3%
0.09%
Software - Infrastructure
Functions Related to Depository Banking, Nec
Link
United States of America
SAN ANTONIO