Smartpay (SPY) AGM presentation 2024 summary

Key financial performance highlights

• Revenue reached $96.5m in FY24, up 24% year-over-year, with operating cash flow of $19.4m and EBITDA of $22.3m (normalized for a cyber incident).

• Profit before tax was $9.8m (normalized), up 29% from the previous year, and net cash increased to $2.2m.

• Free cash flow used to repay debt was $1.7m, down 65% year-over-year.

• Over 48,000 terminals and 35,000+ merchants were active, processing 174m+ transactions worth $6.2bn annually.

• Revenue per employee rose to $539k, and operating cost to revenue ratio improved to 34.9%.

Strategic initiatives and business development

• Continued to grow market share in Australia, focusing on customer growth and retention.

• Launched Phase 2 in New Zealand, including Android terminal certification and a new agreement with Cuscal.

• Preparing for expanded product offerings and business launch in New Zealand.

• Emphasized the "Network Effect" to deliver additional solutions and value to Australasian customers.

• Smartpay positions itself as a resilient, innovative Trans-Tasman payments provider with potential for sustained growth.

Operational and market metrics

• As of May 2024, terminals in market increased to 48,900+, with 19,100+ transacting terminals and 35,500+ merchants.

• Monthly transaction value reached $549m, up 21% year-over-year, and monthly acquiring revenue was $7.2m, up 24%.

• In Australia, terminal rental plus transactional revenue averaged $400 per month per terminal; in New Zealand, terminal rental was $40 per month.

• EBITDA to revenue ratio was 23.1%, and operating cost to revenue ratio improved from 37.1% to 34.9%.

• Workforce totaled 179 employees at the end of FY24.