Marijuana Fintech Co. POSaBIT Reports First Quarter Revenue Drop 67% YoY, Renews Focus on Sustainable Profitability and Growth – POSaBIT Systems (OTC:POSAF)

Cannabis-focused payment infrastructure provider POSaBIT Systems Corporation PBIT POSAF on Thursday reported its financial results for the three months ended March 31, 2024. The company reported a 67% year-over-year revenue decline to $33.8 million in the first quarter.

Ryan Hamlin, co-founder and CEO of POSaBIT, said the company faced “market challenges” with its payments business in late 2023 and early 2024.

However, Hamlin added that the challenges are “now behind us and POSaBIT is poised for long-term profitability and growth through our recurring influx of cash from our licensing agreements, increasing adjusted gross profit margins and a refactored cost structure that pushes us towards profitability.”

See also: POSaBIT Revenues in 2023 Fall 7% YoY, Core Business Grows as It Seeks to List Its Shares on TSX

First Quarter 2023 Financial Highlights

• Gross profit was $1.5 million, down 38% year over year.
• Gross profit margin was 39% compared to 21% in the prior-year period.
• Operating costs totaled $3.4 million, a 35% improvement over the prior year.
• The loss was $1.9 million, down from $2.8 million in the same period last year, an improvement of 30% year-over-year.
• Adjusted EBITDA was negative at $801,043.
• As of March 31, 2024, the Company had cash and cash equivalents of $0.9 million compared to $1.5 million as of December 31, 2023.

Recent operational aspects

• It recently launched its revised POSaBIT Pay application for Apple and Android;
• Received compensation from a pending claim owed to POSaBIT from a previous processing partner;
• March marked the fastest-growing month for our store installations, with more than 25 new locations across Washington, Oregon, Colorado and Massachusetts.
• Finalized banking and software requirements to be ready to support full credit card processing in the event of rescheduling and whether credit cards are permitted.

POSAF Price Action

POSaBIT shares traded up 8.34% at $0.1 per share after the market closed Thursday afternoon.

Now read: POSaBIT aims to increase cannabis trading liquidity after Hypur deal, CEO calls it ‘a natural continuation of the plan’

To learn more about cannabis stocks, come and join us Spotlight on the cannabis market Benzinga in New Jersey on June 17th! Grow your business, raise funds, and take advantage of New Jersey’s thriving recreational market. Don’t miss this unmissable event in New Brunswick. Secure your tickets now. There are very few places left. Use code “JAVIER20” for 20% off!

Market news and data powered by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source