Usio(USIO)2025-05-14 20:01Revenue Growth - In Q1 2025, revenues increased by 5% to 21.0 million in Q1 2024, driven by strong growth in ACH and complementary services [119]. - Total revenue for the quarter ended March 31, 2025, increased by 5% to 21.0 million for the same period in 2024, driven primarily by a 30% growth in ACH and complementary services [155]. - The company reported revenues of 20,970,386 in Q1 2024 [151]. Transaction Growth - Credit card transactions processed increased by 65% in Q1 2025 compared to Q1 2024, with credit card dollar volume up by 17% [126]. - ACH transaction counts rose by 36% in Q1 2025 compared to Q1 2024, with electronic check dollars processed increasing by 42% [127]. - ACH and complementary services revenue growth was attributed to a 42% increase in ACH check dollar volume, a 36% increase in transactions, and a 24% increase in returned check transactions [155]. Financial Performance - Adjusted EBITDA for Q1 2025 was 0.8 million in the same period last year, with Adjusted EBITDA margins at 3.0% compared to 3.8% [149]. - Gross profit decreased by 1% to 0.2 million, an improvement from a net loss of 1.4 million for the three months ended March 31, 2025, compared to 0.3 million for the three months ended March 31, 2025, primarily due to capital expenditures associated with software development and other investments [177]. - Cash provided by financing activities was 6.8 million in the same period in 2024, driven by an increase in assets held for customers [178]. Expenses Management - The company has a focus on managing selling, general, and administrative expenses, maintaining them at 17.2 million for the quarter ended March 31, 2025, due to increased revenues driving similar increases in processing and transactional expenses [157]. - Stock-based compensation expenses decreased to 0.5 million in the prior year [160]. Strategic Initiatives - The company adopted a "One Usio" strategy to unify brand and sales approach, enhancing client onboarding and customer management [106]. - The company aims to assimilate current and future acquisitions to enhance its suite of payment technologies, with past acquisitions contributing significantly to current revenues [123]. - The company continues to invest in technology for faster payment methods, including expansion into Real Time Payments (RTP) in 2023 [105]. Market Position and Risks - The company holds NACHA certification for Third-Party Senders, being one of only nine companies to do so, enhancing its credibility in the market [108]. - Concerns about a potential recession increased during Q1 2025 due to geopolitical risks and changes in international trade policies [132]. - The Federal Reserve's interest rate cuts in late 2024 have led to lower interest earnings on cash accounts, impacting future income [131]. Prepaid Card Performance - The company’s prepaid card offerings include customizable options for expense management and disbursements, supporting various payment methods [113]. - Prepaid card load volumes decreased by 15% in Q1 2025 compared to Q1 2024, while transaction counts increased by 5% [128]. Processing Losses - The reserve for processing losses was 897,116 at December 31, 2024 [138]. - Interest earnings from cash balances amounted to 0.4 million recognized as revenue [131].