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Hank Payments Announces Year End June 30, 2023, Financial Results
Toronto, Ontario--(Newsfile Corp. - October 30, 2023) - Hank Payments Corp.  (TSXV: HANK) (...
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[{"type":"text","content":"Hank Payments Announces Year End June 30, 2023, Financial ResultsToronto, Ontario--(Newsfile Corp. - October 30, 2023) - 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 fourth quarter and year end financial results for the period ending June 30, 2023.FINANCIAL HIGHLIGHTSAdjusted loss declines materially to $1,814,056 ($3,072,185 for 2022) and loss from operations declines to $2,567,169 ($11,553,567 for 2022) for the year;SMB Revenue grew 11% to $5,909,372 for the year ending June 30, 2023, versus $5,342,765 in 2022;Annual Average Gross margins remain strong at 89%; andMRR increases by 11% for SMB sector.OPERATING AND STRATEGIC MATTERSYear end adjusted loss from operations improved to $1,814,056 from $3,072,185 for prior year. As previously announced, this was primarily due to operating cost efficiencies undertaken by the Company over the year. The Q4-2023 adjusted loss from operations was $680,878 in comparison to $677,672 for Q4-2022 and $318,779 for Q3-2023. The Average Annual Revenue Per User (\"ARPU\"), described as total fee revenue earned divided by the total users as at year end, is $127.04 per user as at June 30, 2023 ($118.42 for 2022).ARPU is expected to grow for users acquired through Enterprise Channels, with virtually no upfront cost of acquisition (\"CAC\"). Enterprise channels are expected to enroll a much larger user base over a short period of time following engagement. Platforms such Hank EDU were launched in Q4 of 2023 and expected to generate material revenue in the upcoming quarters.Monthly Recurring Revenue per user (\"MRR\") has grown 11% over the past year and will continue to rise as new users continue to be enrolled at a higher price for recurring monthly fees, including additional products and features subscribed for. Michael Hilmer, Chairperson and CEO, commented, \"We are very pleased with the significant narrowing of losses and the continued performance of our SMB channels, and we are excited to announce new revenue streams from previously announced deals that will be recognized imminently. As expected, our investment in the Hank EDU platform has started to show results through contracts, endorse...