Usio (USIO) The MicroCap Rodeo Fall Conference 2024 summary

Key business highlights

• Achieved 19% revenue growth in 2023, with 2024 projected at 3%-7% growth, replacing $12M in one-time revenue with recurring transactions.

• Majority of revenue is now recurring, with revenue growing sevenfold over the past eight years.

• Four operating divisions: payment facilitation, ACH processing, card issuing, and Output Solutions.

• Largest-ever deal signed with a software company, potentially doubling payment facilitation division revenue.

• Projected to exceed $100M in revenue next year based on deals already sold.

Technology and product innovation

• Operates a proprietary tech stack, enabling easy integration and strong customer service.

• Unique ability to push cards directly into digital wallets for targeted promotions and geolocation offers.

• Real-time external authorization technology used for clients like MoviePass.

• Output Solutions integrates print, mail, and electronic delivery with payment capabilities.

• ACH processing volume is so high that the company has its own Federal Reserve terminal.

Market positioning and customer base

• Serves diverse industries, including government, healthcare, utilities, and fintech.

• Clients include over 200 cities and counties, State of California, OpenTable, top universities, and major pharmaceutical companies.

• Revenue-sharing model with software vendors enhances client retention and value.

• Output Solutions supports major brands with check printing and bankruptcy distributions.

• Competes with Stripe and Marqeta, differentiating through customer service and revenue sharing.