Hank Payments Achieves Strong First Quarter; Income increases by 25% year on year; Gross profit reaches 85%
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Toronto, Ontario – (Newsfile Corp. – November 29, 2021) – Hank Payments Corp. (TSXV: HANK) (“Hank” or the “Society”), a North American financial technology company that acts as a financial concierge to consumers, using powerful technology to automate the complexities of managing personal cash flow, has announced the filing of its financial statements and discussions and management reviews (“MD&A”) for the three months ending September 30, 2021, his last quarter as a private company.
The company significantly exceeded gross profit in the quarter and with the capital raised through its RTO with Nobelium in October, Hank is aggressively pursuing its growth plans.
Financial and business highlights:
- Revenue increased 25.3% from same period last year to $ 936,866
- Cost of sales only increased 6.9% from same period last year to $ 136,700
- Gross margin percentage increased from 2.5% to 85% compared to same period last year
- Cash used in operations was reduced to $ 36,606 from $ 193,240, an improvement of 81%
Execution of key performance indicators:
- Hank users handling mortgage payments increased 22% since pandemic began – March 1, 2020
- Hank users handling multiple payments have increased 68% since the start of the pandemic and 17% since the start of the 2021 schedule
- Multi-payment customers’ processing fees are up 67% from their original built-in monthly loan processing fees
- Over 25% of Hank customers, with more than one loan on the platform, have at least one credit card on the platform, signaling a willingness to reduce high yield debt
- On average, customers with multiple payments and loans on the platform use Hank for 2.81 household payments
Despite marginal investment in digital marketing, Hank’s marketing team has provided strong evidence that the platform’s multiple loan and payment management features are highly sought after and lucrative. Hank acquires car loan customers, arranges their payments, and then, once customers are used to the platform, Hank remarket them over time to add additional payments. Multi-Loan Consumer Lifetime Value (“LTV”) currently averages over $ 1,000, with power users of the platform offering a lifetime value of between $ 1,300 and $ 1,700, with the best sector margins. The financial life of clients is greatly facilitated by the management of their liabilities and their cash flow on the Hank platform.
As Hank closes deals, Hank’s marketing team will leverage Hank’s advanced platform and digital capabilities to cross-sell to both existing and previous customers to gain insight. additional loans. The Company expects that over time, the period of time that clients stay on the platform will lengthen considerably and, as a result, that the already high LTV of these clients will increase in the same way as that of those clients. Hanks’ multiple loan clients.
“I am delighted with these results in the face of the double-digit decline in vehicle sales in the United States due to chip shortages. Our automotive vertical continues to operate despite industry weakness, which analysts are now seeing reversing from early 2022, and we are doing well Our technological advances are paying off in the form of more consumers using the platform for multiple payments and we will increase our marketing and technology investments in line with internal return models, in part due to the exceptional statistics we are seeing. in this category of clients, ”commented Michael Hilmer, President and CEO.
Jeff Guthrie, President and COO of Hank, added, “We are delighted that our resilient platform continues to operate as pressure continues in certain market segments, and we are extremely excited about the pricing opportunities. transaction and value creation at our doorstep. the short-term market setup is ideal for us as we seek to seize short-term opportunities and capitalize on the growth of multiple footprints in many diverse channels across America. that we are in tune with the needs of consumers in the marketplace, and my confidence is very high that these trends will continue to grow as we deliver value in the form of financial well-being to consumers. ”
- The Company has completed its qualifying transaction with Nobelium Tech Corp. on October 13, 2021, which included subscription receipt financing in the amount of C $ 3.1 million. The proceeds will be used to implement Hank’s growth strategy and further develop the Hank platform to create value for consumers and shareholders.
A complete analysis of Hank’s financial condition and results of operations is provided in the financial statements and MD&A for the first quarter ended September 30, 2021, filed on SEDAR.
Hank also granted a total of 20,000 options with an exercise price of $ 1.00 and an expiration date of November 29, 2031.
About Hank Payments Corp.
Hank is a financial technology company. The Hank software platform (the “Hank platform“) acts as the consumer’s personal financial concierge using powerful technology to automate the intricacies of personal cash flow management. Through its Federal Deposit Insurance Corporation (FDIC) insured banking partners in the United States, Hank helps consumers in every state find funds in their existing treasury and speed up debt repayment. Hank platform debits consumers when they have money, stores money with partner banks, then automatically requests partner banks to pay bills and loans as they fall due and often sooner than necessary.Half of Hank’s clients are financially strong and use the Hank platform for convenience, while the other half improve performance of payment through the use of the Hank platform. on the Hank platform for an average of three years. Hank continues to innovate e t plans to launch more expa Innovative features to its expected growing customer base that will provide greater visibility into their cash flow, credit performance and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) that reflect the Company’s current expectations regarding future events. Forward-looking statements are identified by words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “plan”, “will”, “may”, ” estimate ”and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company’s business.
The forward-looking statements contained in this press release are based on certain assumptions, including, without limitation, the shares commencing to trade on the TSXV. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether at following new information, future events or the like.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105725