XTM Files First Quarter 2022 Quarterly Financial Results
MIAMI AND TORONTO–(BUSINESS WIRE)–XTM, Inc. (“XTM” or the “Company”) (QB: XTMIF / CSE:PAID / FSE:7XT), a Miami and Toronto-based Fintech innovator broadcasting earned wages and providing access to tips for service workers in the hospitality and personal care space , announced the filing of its unaudited quarterly condensed consolidated Financial Statements and MD&A (“Management report”) for Q1 2022 which shows, among other things, a 214% increase in revenue compared to Q1 2021.
The gross dollar value (“GDV”) loaded on the company’s platform was just under $70 million for the quarter with a month of full hospitality openings. This is the highest quarter in the company’s brief history, and a 313% increase from just under $17 million for the first quarter of 2021;
Active users on the Company’s Today™ program platform were just under 49,000, an increase of 37,000 or 323% from 12,000 at the end of fiscal 2021 (an active user is classified as a user who has made a transaction on his card in the last thirty (30 days);
During the quarter, the company successfully onboarded 224 new locations for its Tipstoday™ program;
Revenue of $797,000 for the quarter ending Q1 2022 represents an increase of +$543,000 or 214% compared to Q1 2021; this despite the strict confinement of indoor dining in January and February due to Covid-19 restrictions and the seasonality of business, with the first quarter generally being the slowest quarter in the hospitality industry;
Gross profit was $114,000 or 14.4% of revenue increased by 56% or $41,000 from $73,000 or 28.8% of revenue for the first quarter of 2021;
Operating expenses were $1,576,000, an increase of 64% or $612,000 from $964,000 in Q1 2021, the main driver being increased personnel and consulting costs to support the Company’s growth initiatives and expansion into the United States;
Cash totaled $6.4 million as of March 31, 2022, down -$2 million from the prior year-end total of $8.4 million, the decrease being attributable to funding needs operations and the issuance of a short-term promissory note with repayment due June 30, 2022 of $651,265 from a strategic partner.
Events subsequent to the first quarter of 2022:
In May 2022, the Company participated in the Restaurant Canada Show held in Toronto, Ontario, which is considered “the hotel event of the year”, and the largest show of its kind in Canada. The company presented the topics of “Recruiting and Retaining the Workforce” with a panel featuring its Business Development Manager as well as other industry experts and “Engage and Retain Employees with same-day pay and access to rewards” facilitated by its vice president and senior sales executive. ;
In April 2022, the Company appointed Veer Siddiqui as Chief Operating Officer (“COO”) and General Counsel. The establishment of the COO role and the provision of in-house guidance represents an important turning point in the company’s maturity cycle and further strengthens the strong management foundation it has created to help generate significant growth as it enters the US market and continues to sign global hotel organizations. on its Today platform;
In April 2022, the Company terminated negotiations relating to a strategic acquisition it was pursuing due to the inability of the objectives to 1) meet due diligence requirements and 2) agree on a financing structure in light of market conditions that were acceptable to the Company and the investment community. The company pivoted, through integrations of alternative partners, to develop solutions to meet the market that this acquisition would have targeted.
“We’re here to earn it,” said Marilyn Schaffer, CEO of XTM. “Our goal is to weather this market correction bigger, better and stronger, demonstrating our strategic use of resources to deliver the best return on investment to our financiers and shareholders.”
A detailed discussion of XTM’s financial condition and results of operations is provided in the unaudited condensed consolidated financial statements and MD&A for the periods ending March 31, 2022 and 2021, filed on SEDAR.
XTM, www.xtminc.com, is a Miami and Toronto-based fintech innovator in the neo-banking space, helping businesses and service workers in the hospitality and personal care space to spread and access salaries and rewards earned. XTM’s Today™ solution, consisting of a free mobile app and a Visa or Mastercard debit card with free banking features, is used by thousands of restaurants, salons and employees in Canada and the United States. United. XTM is a global card issuer and real-time payment specialist, and our technology is used for free by restaurants and salons to automate and accelerate worker payments and eliminate cash from their ecosystems. XTM’s Today solution drives business value with efficiency and a tailored user experience designed specifically for foodservice and personal care services.
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws (the “forward-looking statements”), within the meaning of applicable Canadian securities laws, including the expected performance of XTM, the expectation that companies with which XTM does business or has committed to do business will do so within the expected time frame, the continued trend towards electronic payment methods, the success of geographic and business expansions planned by XTM , the success of XTM’s new market relationships, and XTM’s terms and conditions and revenues. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”. , “potential”, “schedule”. “, “expect”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “could”, “could”, “should” or “could” occur. All such forward-looking statements are based on the beliefs and estimates of management as of the date such statements are made. Such forward-looking statements are made as of the date of this release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, results or results anticipated or implied by such forward-looking statements will occur or that the plans, intentions or expectations upon which is based on the forward-looking statements are based will occur.
CSE has not approved or disapproved of the contents of this press release, and CSE accepts no responsibility for the adequacy or accuracy of this release.