Business
Usio Announces Third Quarter 2022 Financial Results
Ninth Consecutive Quarter of Revenue Growth Company's Card Segment - including PayFac - achieves all-time quarterly record for dollars and transactions
About this update from Usio, Inc.
[{"type":"text","content":"\nNinth Consecutive Quarter of Revenue Growth\n\nCompany's Card Segment - including PayFac - achieves all-time quarterly record for dollars and transactions processed, continuing strong growth trajectory\n\nActivity at Output Solutions up 35% from year ago quarter\n\n SAN ANTONIO--(BUSINESS WIRE)--\nUsio, Inc: (Nasdaq:USIO), a leading cloud-based FinTech integrated payment solutions provider, today announced financial results for the third quarter, which ended September 30, 2022.\n\nLouis Hoch, President and Chief Executive Officer of Usio, said, “I am pleased to report our ninth consecutive quarter of revenue growth on the strength of record quarterly processing performance in our Card segment, where PayFac continues to generate outstanding growth, and record quarterly revenues in Output Solutions resulting from ongoing success cross-selling the installed Usio customer base. We also experienced rapid growth in our high-margin ACH returned check transactions processed services, offsetting lower overall ACH volumes compared to a year ago attributable to last year's strong cryptocurrency market, which we have now almost entirely wound down. In our prepaid business, many of our larger pandemic relief and similar programs are entering their breakage and spoilage phase, where there is an estimated $18 million of potential future revenue sitting on cards which we expect to generate significant revenue and margin in the fourth quarter and over the next two years. These programs are now being augmented with new recurring revenue prepaid programs in both our traditional markets as well as in new markets, including healthcare, guaranteed income and commercial, such as MoviePass, where our unique technology and capabilities have proven a winning formula.\n\n“I am also pleased to note that, on a sequential basis compared to the second quarter, our temporary cash burn was reduced in the third quarter. With the substantial cash expected to be collected from the breakage and spoilage in our prepaid business, as well as what we expect to be significant sequential revenue growth, we anticipate generating strong positive cash flow in the fourth quarter and in 2023. I am very excited to see the strength of our business model allowing for us to recover so quickly from the loss of our largest customer due to its bankruptcy in July of 2022. Our selli...