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Hank Payments Announces Third Quarter Financial Results for Quarter Ending March 31, 2024
Toronto, Ontario--(Newsfile Corp. - May 31, 2024) - Hank Payments Corp. (TSXV: HANK) ( "Hank" ...
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[{"type":"text","content":"Hank Payments Announces Third Quarter Financial Results for Quarter Ending March 31, 2024Toronto, Ontario--(Newsfile Corp. - May 31, 2024) - Hank Payments Corp. (TSXV: HANK) (\"Hank\" or the \"Company\"), an emerging North American leader in the Banking-as-a-Service (BaaS) market with a platform that modernizes budgets and payments for enterprises and consumers is pleased to provide its third quarter financial results for the period ending March 31, 2024. All figures are in CAD. FINANCIAL HIGHLIGHTS FOR FISCAL Q3, 2024Revenue for the quarter of $1.9 mm, an increase of 31% over the March 2023 quarter;Revenue for the nine-month period ending March 31, 2024, grew 20% year over year to $5.4 mm;Gross margins remain strong at 91%;Short term expansion of adjusted loss from operations to accommodate new product and business development. This is expected to materially reduce in the following quarters as the Company benefits from growth in Auto and related margin, and lower operating costs.Consistent with previous quarter, Hank continued to experience strong revenues for the quarter ending March 31, 2024. The recent growth in revenue is primarily due to the Company beginning to recognize revenue from its Canadian licensing agreement starting in the first quarter of fiscal 2024. The licensing agreement has an initial term of three years with opportunity to both increase the revenue over time as well as renew and lengthen the term of the agreement. This agreement is expected to deliver minimum revenues of approximately $500,000 per quarter through first quarter of fiscal 2028.Overall operating expenses increased by 7% this quarter in comparison to the previous quarter and increased by 26% in comparison to the same quarter the previous year primarily due to the investment in sales and marketing related to the Hank EDU platform and preparation and design work for the Equity Builder Product. With additional schools joining the Hank EDU platform, increasing revenues are expected to offset the increase in costs in the coming quarters and with the recently announced Hank Equity Builder partnership, the Company expects to earn back its investment in product development as those two channels scale.The Company continues to prudently monitor expenses while supporting its revenue growth in the auto and EDU channels and now the Equity Builder Product.Y...