Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — Investor Presentation (February 2019)
21 slides from Usio's investor presentation, Feb 25, 2019
Slide 1: Investor Presentation
Investor Presentation 2/21/19 Payment Data Systems | paymentdata.com 1
Slide 2: Forward Looking Statements
Forward Looking Statements These slides and any accompanying oral presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. These forward-looking statements are identified by the use of words such as
Slide 3: Who we are
Who we are Payments is our DNA We are FinTech experts providing innovative solutions and platforms by way of a leveraged distribution model in the fastest growing segment of the payments sector. ACH Processing Credit/Debit Card Processing PrePaid Card Issuance
Slide 4: Enormous Opportunity to Solve Pain Points
Enormous Opportunity to Solve Pain Points “Payments remains one of the brightest spots in the financial services universe. Propelled by…continuing technological advances, payments businesses globally are on track to add $1 trillion in new revenue through 2027. That outlook presents enormous opportun
Slide 5: Volume & Transactions Per Year; Revenue Run Rate
Volume & Transactions Per Year $3500 16 $3,300 $3,400 $3000 $2,978 $2,916 14 $2,830 $2500 12 $2000 Transactions 10 Volume ($millions) $1500 8 (millions) 1 $1000 Over $3.4 Billion 6 dollars processed in $630 $500 2018 and over 13 4 million transactions $0 processed in 2018. Payment Data Systems | pay
Slide 6: Intentionally Investing in Organic Growth
Intentionally Investing in Organic Growth PAYMENT FACILITATION ACH PROCESSING growth engine Enhancing the Our cash cow funds high- value of our growth initiatives, including Payment Facilitation platform and and Pre-paid. partnerships. PRE-PAID CARD ISSUANCE growth engine
Slide 7: ACH Line of Business
ACH LINE OF BUSINESS ACH Services Record Processing Volume $3.4bn in volume annually Six Consecutive quarters of sequential ACH growth Multiple Originating Depository Financial Institutions Only Broad-Industry focused NACHA Certified sender More Funding Control Same Day Funding & Late Cutoff
Slide 8: PrePaid Card Services
PrePaid Card Services CUSTOM DIGITAL CONSUMER Custom Prepaid Incentive, Promotional Akimbo: Consumer Program & Disbursement Cards Card Program Launch your own A fully digital way to Allows consumer to next-generation send cards instantly by share money instantly prepaid card solution email or text,
Slide 9: Innovative Digital Platform in Action
Innovative Digital Platform in Action
Slide 10: Yes, There's a Prepaid Card for That
Yes, There’s a Prepaid Card for That Refunds, Rebates, Claims – Disperse funds prior to the liability associated with escheatment responsibilities. Per Diems, Corporate Expense Management, Contractor Payments Sales Incentives, Employee Appreciation, Rewards Programs Loan/Funds Disbursements, Insuran
Slide 11: We address the pain points of accepting, processing & reporting payments
We address the pain points associated with accepting, processing & reporting payments inside software platforms. Reseller Sales Organization Payment Gateway Bank All merchants must sort through gateway options Talk to several sales people 4-6 Recruit & identify processor Week long Process Negotiate
Slide 12: How we do it
How we do it Payment Platform 4-5 Merchant Data Days Software to enter payment Company revenue cycle API Integration Layer Payment Platform
Slide 13: Our Technology is the Key
Our Technology is the Key that opens the door to meaningful Payments Revenues From account creation to payment processing and funds disbursement, the entire process is streamlined behind the scenes, requiring no up front investment from software partners. Payment Data Systems
Slide 14: Path to Revenue - Illustration
Path to Revenue -Illustration Traditional Approach– 1:1 PDS Leveraged Distribution – 1:Many Cash Impact to Payment Data Systems One Software $60,000,000 $100.00 One Software Company Company = 1,000 at net spread of .45% x 2.79% Merchants x 2.79% One Transaction = $2.79 Annually = $1,674,000 Annually
Slide 15: Fastest Growing Segment
Fastest Growing Segment Stripe Valuation Doubles to $20 Adyen aims for a $1B IPO, Valuing the Billion With No IPO in Sight Payments Startup at up to $8.3B when it lists on June 13 We are participating in the fastest growing segment of the payments industry Global Payments to Acquire Heartland Paymen
Slide 16: How we Differentiate
How we Differentiate Tech Enabled Payments Platform Offering Extensive API Libraries with Sample Code Scale Through Leveraged Distribution Breadth of Products & Services Offered Through a Single Vendor Operating Environment Quick & Efficient Path to Revenue for Downstream Integration Partners
Slide 17: Appendix
APPENDIX
Slide 18: Investor Highlights
Investor Highlights Share Price $3.02 02/21/2019 52-week $1.38 range $3.82 Debt $ 0 Shares outstanding 16.7*m Cash $ 4.5*m Market Cap m *Following the closing of a $2mm registered direct offering $50.4 on February 14, 2019
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights as of 9/30/2018 USD Millions Cash $4.5* Restricted cash & Settlement funds $48.4 Total Assets $60.2 Short term/long term debt $0 Total Liabilities & Equity $60.2 *Following the closing of a $2mm registered direct offering on February 14, 2019 ~$41 million in unused tax NOL c
Slide 20: Income Statement Highlights
Income Statement Highlights USD Millions Annual 2017 YTD 2018 Revenues $14.6 $18.6 Cost of sales 10.8 14.5 Gross Profit $3.7 $4.05 SG&A 4.3 5.6 Depreciation & Amortization 1.3 1.4 Income tax benefit (expense) (0.3) 0 Net Loss $(3.0) $(2.9) Adjusted EBITDA $(0.6) $(0.6) See Non-GAAP Reconciliation in
Slide 21: Non-GAAP Reconciliation
> Non - GAAP “ERPAYMENT Pv0s Non-GAAP Reconciliation Twelve Months Ended Three Months Ended Nine Months Ended. B1Dect7 31-Dec-16 30-Sep-18 30-Sep-17 30-Sep-18 30-Sep-17 {Values in Millions) Reconeiliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) S$ 28) $ 14) $ aS 99S
Payment Data Systems — Investor Presentation (February 2019) on 6ix