Lesaka Reports First Quarter 2023 Results

About this update from Lesaka Technologies, Inc.

[{"type":"text","content":"JOHANNESBURG, South Africa, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the first quarter ended September 30, 2022 (“Q1 2023”). Highlights: Our revenue for Q1 2023 exceeds the upper end of our Q1 2023 guidance provided (on constant currency basis) and Segment Adjusted EBITDA is at the upper end of our Q1 2023 guidance provided. The Connect acquisition outperformance continues and we remain on track to achieve Consumer break-even. Performance for Q1 2023 Revenue of $124.8 million (ZAR 2.1 billion)1 in Q1 2023, compared to $34.5 million (ZAR 504 million)1 for the quarter ended September 30, 2021 (“Q1 2022”), increase driven by the inclusion of Connect for the full fiscal quarter.Segment Adjusted EBITDA for Q1 2023 improved to income of ZAR 111 million ($6.5 million) compared to a loss of ZAR 106 million ($7.3 million) in Q1 2022.Our operating loss of $4.7 million (ZAR 80 million)1 in Q1 2023 improved significantly from an operating loss of $11.2 million (ZAR 164 million)1 for Q1 2022.In our Merchant business, we continue to build a leading position in a growing and underserved market. Merchant Segment Adjusted EBITDA for Q1 2023 increased to ZAR 135 million ($7.9 million) compared to ZAR 28 million ($1.9 million) in Q1 2022 predominantly attributable to the inclusion of Connect. The Connect acquisition outperformance continues and the strong underlying fundamentals that underpin this business remain unchanged.The good progress in transforming our Consumer business continues, with Consumer Segment Adjusted EBITDA for Q1 2023 improving to a loss of ZAR 24 million ($1.4 million) compared to a ZAR 137 million ($9.4 million) loss in Q1 2022.Along with the significant progress in right-sizing our Consumer cost base, the active Consumer account base grew by 13% compared to Q1 2022, while transaction volumes and revenues improved. Revenue in our Consumer business increased to ZAR 257 million ($15 million) in Q1 2023 compared to ZAR 244 million ($16 million) in the sequential quarter, or Q4 2022, and ZAR 251 million ($17 million) in Q1 2022.Cost optimization initiatives and restructuring the operations of our Consumer business in 2022 translated into actual cost saving of approximately ZAR 112 million ($6.5 million) in Q1 2023. Rightsizing of teams and operational changes ...

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