Usio reports net loss of $5.5M for 2022, processing 40.8M transactions & focused on expanding electronic bill presentment services
Mar 8th 2023, 9:01 pm
Performance Analysis: Usio, Inc. reported a net loss of $5.5 million for the year ended December 31, 2022, compared to $0.3 million in 2021. The company recorded an accumulated deficit of $70.9 million at December 31, 2022. The company processed $7.2 billion for all payment types, a decrease of 24% from the prior year due to its exit from the cryptocurrency space. The total transaction processed was a record of 40.8 million, up by 16% from the prior year, while ACH transactions volumes decreased by 6%. The company has lost a significant customer due to the bankruptcy of Voyager Digital, which resulted in a meaningful loss of revenue, and a downturn in its ACH and complementary services business segment, which contributes substantial gross profit to the company. Competitive Position: Usio’s business model is focused on payment processing services to merchants and businesses, including all types of ACH processing, credit, prepaid card and debit card-based processing services, statement preparation, presentment and mailing services, and offers customizable prepaid cards for expense management, incentives, and disbursements. With its recent acquisition of IMS, Usio is focused on electronic bill presentment and mailing services, serving hundreds of customers representing a wide range of industry verticals, including utilities and financial institutions. The company’s notable payment processing services include its PIN-less debit product, which allows merchants to debit and credit accounts in real-time, UsioCard platform that supports Apple Pay, Samsung Pay, and Google Pay, and prepaid cards for consumers to manage allowances and share money with family and friends. The company is also focused on growing its ACH merchants, adding new software integrators, and incremental services to existing merchants, with a strategy to drive growth through a leveraged, one-to-many distribution model in the software development marketplace. Management’s Quotes: Usio’s management stated that the company will continue to invest in its sales force and technology platforms to drive revenue growth, with a focus on growing its electronic bill presentment, document composition, document decomposition, printing, and mailing services business. The company is also looking to provide incremental services to existing merchants while expanding its payment processing and mail and printing capabilities without significantly increasing its operating costs. Forward-Looking Analysis: Usio’s future performance is likely to be impacted by the risks associated with the cryptocurrency space and its exit from this market, which resulted in a meaningful loss of revenue, along with a downturn in its ACH and complementary services business segment. The company’s financial performance is also dependent on its ability to grow revenues, manage its operating expenses, and meet evolving customer requirements while adapting to technological changes in an emerging market. With its recent acquisition of IMS, the company aims at expanding its document design, print and electronic delivery services, improving efficiencies, and reducing postage costs. The company is also focused on leveraging and optimizing the infrastructure of the organization, allowing expansion of its payment processing and mail and printing capabilities without significantly increasing its operating costs. Finally, Usio’s success also relies on its ability to assimilate current and future acquisitions of companies and customer portfolios, further extending its customer base and market reach.