Usio, Inc. · NASDAQ:USIO
Usio — Investor Presentation (August 2019)
22 slides from Usio's investor presentation, Aug 19, 2019
Slide 1: Investor Presentation
investor PRESENTATION usio.com 8/19/2019 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: Our Timeline
le Our Timeline © usio Bi Ww 2003 2008 2017 2018 Started Payment Data Systems Launched first Prepaid Card a Received NACHA Certification - changed stock symbol to PYDS & solution & founded FiCentive porate catia demonstrating the highest Processed first payment in August ‘2003 Launched advanoed acqu
Slide 4: Intro Video
I> Intro Video © usiO
Slide 5: Our Story
Our Story Fusion Our name, Usio, represents the f”usio”n of many products, many services, many incredible people and the infinite possibilities created through our innovative payments technology. Evolution The evolution of our business into a leading FinTech platform has vastly accelerated over the
Slide 6: Volume & Transactions Per Year; Revenue
Volume & Transactions Per Year $3500 14 $3,300 $3,400 $3000 12 $2,978 $2,916 Over $3.4 billion dollars $2,830 $2500 10 and 13 million transactions $2000 8 processed in 2018. $1500 6 Transactions Volume (Volume in millions) in (Volume $1000 4 (transactions in millions) in (transactions $630 $500 2 $0
Slide 7: Investing in Growth Opportunities
Investing in Growth Opportunities PAYMENT FACILITATION ACH PROCESSING growth engine Enhancing the Our cash cow funds high- value of our growth initiatives, including Payment Facilitation platform and and Prepaid. partnerships. PREPAID CARD ISSUANCE growth engine 7
Slide 8: Growth Strategies
GrowthStrategies Organic Strategic M&A Customer acquisition achieved through the execution of the Opportunistically seek acquisition candidates that meet following strategies: any or all of the following criteria: 1. ACH – Continue to expand reach in niche verticals for ACH 1. Acquire companies that
Slide 9: ACH Platform
ACH Platform Record Processing Volume Highest annual volume in 2018 Multiple Originating Depository Financial Institutions Only Broad-Industry focused NACHA Certified sender More Funding Control Same Day Funding & Late Cutoff 9
Slide 10: Prepaid Card Services
Prepaid Card Services Per Diems, Corporate Expense Management, Contractor Payments Sample of Current Customers Sales Incentives, Employee Appreciation, Rewards Programs Loan/Funds Disbursements, Insurance Payments, Unique Forms of Compensation (medical trials, etc.) Refunds, Rebates, Claims – Disper
Slide 11: Innovative Digital Platform in Action
Innovative Digital Platform in Action 11
Slide 12: Evolution of payments: paper to payment facilitation
S U 201 8 70's 90s Te 1a the growing number af meron FRAOFTHEISO crvparicemckingt woe tar Ss ACH IS BORN Poperts roe enn aa ss PAPER CURRENCY inten to dri ohne 80s ee oe 2015+ shock reemaning oe ergy = ‘ Semquanttentert PLASTICCARDS (Simetensetm pAvMENT FACILITATION meretaitaaninente EE (@ ) poesia
Slide 13: Payment Facilitation Challenges
Payment Facilitation TIME CONSUMING Becoming a PayFac can take years to develop It requires a significant FINANCIAL INVESTMENT EXPERTISE in financial technology and payments is required RISK & COMPLIANCE fraud detection, legal & the regulatory issues, data security and other complexities have to Cha
Slide 14: Pain points of accessing merchant services
We address the pain points associated with accessing merchant services through our leveraged distribution model. Step 1 – Remove the many players Reseller Sales Organization Payment Gateway Bank Step 2 – Eliminate friction Pick a gateway This can and control outcome Pick a processor take up to Engag
Slide 15: We participate in the fastest growing segment of payments
We participate in the fastest growing segment of the payments sector *According to Boston Consulting Group’s “Global Payments: The Interactive Edition” 15
Slide 16: PayFac-in-a-Box Solution
PayFac-in-a-BoxTM Solutionthe SPEED We streamline the entire process, allowing software companies to start 1 monetizing payments in a meaningful way within 30 Days EASE We provide the most direct, and shortest path to revenue through our 2 PayFac-in-a-Box Integration Layer. EXPERTISE Our software pa
Slide 17: Entering the Payment Revenue Cycle
Entering the Payment Revenue Cycle < 30 Leverage Usio Days Operational to enter payment Infrastructure revenue cycle Integration Layer ISV - Contracting - Onboarding Card ACH Prepaid Data & - Underwriting Processing Processing Services Reporting - Access Account 17
Slide 18: Path to Revenue - Illustration
Path to Revenue -Illustration 1,000 Merchants = $60,000,000 volume Sample ISV = 10 ISV’s = $600,000,000 volume 1,000 Merchants Top Line Revenue @ 2.79% $16.7mm Net Revenue @ .50% Spread - $3mm Assumptions: Annual Merchant Volume: $60,000 ISV Annual Merchant Volume: $60mm Processing Fee: 2.79% 18
Slide 19: Appendix
APPENDIX
Slide 20: Investor Highlights
Investor Highlights Share Price $2.61 08/16/2019 52-week $1.38 range $3.82 Cash $ 3.3m Shares outstanding 16.85 m Debt $ 0 Market Cap $44.0m 20
Slide 21: Income Statement Highlights
Income Statement Highlights Annual Revenue 2017 $14.6 MILLION Annual Revenue 2018 $5.6 Adjusted EBITDA Gross Profit 2018 2018 $(0.6) $25.0 2017 $(0.6) MILLION $3.8 Gross Profit 2017 21
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Twelve Months Ended Three Months Ended _—Six Months Ended 31-Dec-18 31-Dec-17 31-Mar-19 Mar 31,2018 30-Jun-19 30-Jun-18 (Values in Millions) Revenues $ 250 $ 146 $ 6.6 $ 58 $ 13.7 $ 121 Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $