Usio, Inc. · NASDAQ:USIO
Usio — Payment Data Systems — Investor Presentation (May 2019)
20 slides from Usio's investor presentation, May 22, 2019
Slide 1: Investor Presentation
Investor Presentation 5/22/2019 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: Who we are
Who we are 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. Core Lines of Business ACH Issuing (PrePaid) Merchant Acquiring (Payment Facilitation) 3
Slide 4: Volume & Transactions Per Year
Volume & Transactions Per Year $3500 14 Over $3.4 billion dollars $3,300 $3,400 $3000 $2,978 $2,916 12 and 13 million transactions $2,830 $2500 10 processed in 2018. $2000 8 $1500 6 Transactions Volume (Volume in millions) in (Volume $1000 4 (transactions in millions) in (transactions $630 $500 2 $0
Slide 5: 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 5
Slide 6: ACH Platform for Merchants
ACH Platform for Merchants Record Processing Volume $3bn in annual volume (2018) Seven 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 6
Slide 7: 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 8: Innovative Digital Platform in Action
Innovative Digital Platform in Action 8 8
Slide 9: Payment Facilitation
Payment Facilitation TIME CONSUMING Becoming a PayFac can take a year or more to develop It requires a significant FINANCIAL INVESTMENT EXPERTISE in financial technology and payments is required RISK & COMPLIANCE, fraud detection, legal issues and the data security rules have to be Cha enge addresse
Slide 10: We address the pain points associated with accessing merchant services
We address the pain points associated with accessing merchant services through our leveraged distribution model. Reseller Sales Organization Payment Gateway Bank Merchants must sort through gateway options This can Traditional 1:1 Model Then find processors take as The deal with salespeople long as
Slide 11: Payment Facilitation Services Solution
Payment Facilitation Services Solutionthe SPEED We streamline the entire process, allowing software companies to start 1 monetizing payments in a meaningful way within 30 Days EASE We unlock true earnings potential for our software partners by way of 2 substantial and meaningful revenue share, and p
Slide 12: Entering the Payment Revenue Cycle
Entering the Payment Revenue Cycle < 30 Leverage PYDS Days Operational to enter payment Infrastructure revenue cycle Integration Layer ISV - Contracting - Onboarding Card ACH Prepaid Data & - Underwriting Processing Processing Services Reporting - Access Account 12
Slide 13: Path to Revenue - Illustration
Path to Revenue -Illustration 1,000 Merchants = $60,000,000 volume 10 ISV’s = $600,000,000 volume Assumptions: 1 ISV = 1,000 Merchants Annual Merchant Volume: $60,000 Gross Revenue - ISV Annual Merchant Volume: $60mm $16.7mm Processing Fee: 2.79% Net Revenue - $2.7mm 13
Slide 14: 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 15: 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 Focuse
Slide 16: Core Differentiator
Core Differentiator Them Focus on an integrated solution to get the next new software user who comes onto the system. Us Create an integrated solution and strategy focused on the proper and much more substantial and meaningful monetization of payments across all users of the software, new and existi
Slide 17: Appendix
APPENDIX
Slide 18: Investor Highlights
Investor Highlights Share Price $2.37 05/17/2019 52-week $1.38 range $3.82 Cash $ 4.5m Shares outstanding 16.85 m Debt $ 0 Market Cap m $40.0 18
Slide 19: 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 19
Slide 20: Non-GAAP Reconciliation
Non - Twelve Months Ended Three Months Ended 31-Dec-18 31-Dec-17 31-Mar-19 31-Mar-18 Non-GAAP Reconciliation (Values in Millions) Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $ (3.8) $ (2.8) $ (1.1) $ (1.1) Depreciation and Amortization $ 19 $ 13005 05 $ 0.
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