Usio (USIO) Q2 2024 earnings summary

Executive summary

• Total payment processing volume rose 29% year-over-year to $1.7 billion, with all electronic transaction businesses posting double-digit growth in key metrics.

• Q2 2024 revenue decreased 6% year-over-year to $20.1 million, mainly due to the wind-down of the NYC COVID Incentive Prepaid program; excluding this, revenues would have increased.

• Net income for Q2 2024 was $0.1 million ($0.00 per share), down from $0.2 million in Q2 2023; net loss for the six months ended June 30, 2024 was $0.2 million.

• Adjusted EBITDA for Q2 2024 was $0.8 million (4.0% margin), down from $1.3 million (6.2% margin) in Q2 2023; full-year guidance raised to $4.25M–$5M.

• Cash and cash equivalents at June 30, 2024 were $7.5 million, up $1.0 million year-over-year, with continued share repurchases.

Financial highlights

• Q2 2024 revenue: $20.1 million (down 6% year-over-year); six-month revenue: $41.1 million (down 4%).

• Gross profit for Q2 2024 was $4.8 million (23.9% margin), down 7% from Q2 2023.

• Adjusted EBITDA margin for Q2 2024 was 4.0%, down from 6.2% in Q2 2023.

• Cash increased by $400,000 in Q2, bringing available cash to $7.5 million.

• Repurchased $149,769 in stock in the first half of 2024.

Outlook and guidance

• Revenue growth for 2024 now projected at 3%–7%, below initial guidance, due to slower-than-expected PayFac ISV implementations.

• Adjusted EBITDA guidance for 2024 raised to $4.25M–$5M, reflecting expected gross margin improvements.

• Full-year EPS expected between $0.00 and $0.03.

• Management expects available cash and internally generated funds to be sufficient for at least the next 12 months.

• Large ISV implementation expected to ramp in 2025, with some early adopters possible in late 2024.