Lesaka continues strong growth trajectory and achieves upper end of revenue guidance

About this update from Lesaka Technologies, Inc.

JOHANNESBURG, South Africa, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the first quarter ended September 30, 2023 (“Q1 2024”). Performance Highlights for Q1 2024: Revenue of $136.1 million (ZAR 2.5 billion)1 in Q1 2024, compared to $124.8 million (ZAR 2.1 billion)1 for the first quarter ended September 30, 2022 (“Q1 2023”). In South African Rand (“ZAR”) revenue grew 19%, driven by strong year-on-year growth in both the Merchant and Consumer Divisions.A return to operating profitability with an operating income of $0.2 million (ZAR 4.2 million) for the quarter, improving from an operating loss of $4.7 million (ZAR 80.0 million) in Q1 2023, driven by the turnaround in the Consumer Division and growth in the Merchant Division.The net loss continued to narrow, at $5.7 million (ZAR 105.6 million)1. This compares to a net loss of $10.7 million (ZAR 183.2 million)1 in Q1 2023 and represents a 42% improvement in ZAR.Group Adjusted EBITDA, a non-GAAP measure and reconciled in Attachment B, of $8.7 million (ZAR 162.5 million)1 representing an improvement of 108% compared to the Q1 2023 Group Adjusted EBITDA of $4.2 million (ZAR 71.9 million)1. In ZAR Group Adjusted EBITDA increased by 126%.Continued year-on-year growth in profitability in the Merchant Division, delivering Segment Adjusted EBITDA of $8.1 million (ZAR 150.2 million)1 in Q1 2024 compared to $7.9 million (ZAR 135.2 million) in Q1 2023, an increase of 11% in ZAR. The outlook remains positive as the Merchant business extends its footprint in Southern Africa’s informal market.The Consumer Division reported its fourth consecutive quarter of profitability, delivering Segment Adjusted EBITDA of $2.5 million (ZAR 46.6 million)1 in Q1 2024, compared to a loss of $1.4 million (ZAR 23.9 million)1 in Q1 2023. With the divisional turnaround complete, initiatives to grow the Consumer Division are yielding positive results with revenue increasing 13% in ZAR, off a reduced cost base and in a challenging operating environment.Continued momentum in achieving positive net cash provided by operating activities of $3.4 million (ZAR 63.2 million) in Q1 2024, compared to net cash used in operating activities of $7.7 million (ZAR 131.2 million) in Q1 2023.Guidance for fiscal 2024 re-affirmed. Lesaka Group CEO Chris Meyer said: “It has been yet another encou...

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