Lesaka Reports Second Quarter 2023 Results and Outperforms the Upper End of Guidance

About this update from Lesaka Technologies, Inc.

JOHANNESBURG, South Africa, Feb. 07, 2023 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the second quarter ended December 31, 2022 (“Q2 2023”). Company Generates Positive Cash from Operations; Re-affirms Guidance for Fiscal 2023 Highlights: Successful execution against a carefully crafted transformation strategy. Performance for Q2 2023: Revenue of $136.1 million (ZAR 2.4 billion)1 in Q2 2023, compared to $31.1 million (ZAR 478.5 million)1 for the quarter ended December 31, 2021 (“Q2 2022”), exceeding the upper end of guidance by 4%, driven predominantly by strong outperformance in the Merchant Division.Significant improvement demonstrated with an operating loss of $2.2 million (ZAR 38.4 million)1 in Q2 2023, representing a 74% improvement from an operating loss of $9.4 million (ZAR 145.0 million)1 reported for Q2 2022.Net loss narrowed to $6.6 million, or $0.11 per diluted share, compared to a net loss of $12.4 million or, $0.22 per diluted share last year.Excellent performance from Merchant Division, exceeding guidance and delivering Segment Adjusted EBITDA of $9.1 million (ZAR 159.7 million)1 in Q2 2023. Growth and momentum expected to continue, driven by secular trends underpinning financial inclusion, cash management and digitization for MSMEs (“Micro, Small and Medium Enterprises”) in Southern Africa.Return to profitability in the Consumer Division, with Segment Adjusted EBITDA of $0.6 million (ZAR 10.1 million)1 in Q2 2023, compared to a loss of $4.4 million (ZAR 67.2 million)1 in Q2 2022. Turnaround in the Consumer Division largely complete, with the business on a strong and stable footing, poised for profitable growth.Group Adjusted EBITDA of $7.4 million (ZAR 130.4 million)1 exceeds the upper end of guidance of ZAR 123 million in Q2 2023 by 6%. This represents a substantial improvement compared to the prior quarter (Q1 2023: $4.2 million; ZAR 71.9 million) and compared to Q2 2022 when Lesaka reported a Group Adjusted EBITDA loss of $5.4 million (ZAR 83.6 million)1.Major milestone in achieving positive net cash provided by operating activities of $3.4 million (ZAR 59.9 million) in Q2 2023, compared to an outflow of $13.8 million (ZAR 212.0 million) in Q2 2022.Lesaka re-affirms previous guidance provided for fiscal 2023. Lesaka Group CEO Chris Meyer said: “We are proud of our performance in the s...

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