LESAKA TECHNOLOGIES, INC. Q3 FY24
Results Presentation
9 May 2024
FY24 Q3 Results | 2
Safe harbor statement
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward- looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information.
The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "project", "intend", "future", "potential" or "continue", and other
similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from the forward-looking statements.
These risks and uncertainties may include those discussed in the Company's annual report on Form 10-K for the year ended June 30, 2023, and in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2024, on file with the Securities and Exchange Commission, and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
As a domestic filer in the US, we report results in US dollars under US GAAP as evident in our 10 -Q filing. It is important to note that our operational currency is South African Rand and as such we analyze our performance
in South African Rand. The company's results reported in US dollars can be significantly affected by the currency fluctuation s between the US dollar and the South African Rand and thus we refer investors to results reported in ZAR in analyzing the company's performance. Please refer to appendix for information presented in this presentation in US dollars.
Agenda
Overview
Merchant Division
Consumer Division
Financial Performance and Outlook
FY24 Q3 Results | 3
Ali Mazanderani - Chairman
Steven Heilbron - Head of Merchant Division & Corporate Development
Lincoln Mali - CEO Southern Africa
Naeem Kola - Group CFO
FY24 Q3 Results | 4
GAAP Income Statement for the quarter (FY24 Q3 and FY23 Q3)
ZAR'000 | $'000 | |||||
% Growth | % Growth | |||||
Q3 - ended 31 March | FY24 Q3 | FY23 Q3 | YoY | FY24 Q3 | FY23 Q3 | YoY |
Average exchange rate for conversion from ZAR to $ | R18.88 | R17.93 | 5% | R18.88 | R17.93 | 5% |
Revenue | 2 609 913 | 2 402 288 | 9% | 138 194 | 133 968 | 3% |
Expense | (2 594 921) | (2 435 516) | (7%) | (137 400) | (135 821) | (1%) |
Cost of goods sold, IT processing, servicing & support | (2 036 881) | (1 888 201) | (8%) | (107 854) | (105 299) | (2%) |
Selling, general and administration | (436 746) | (440 172) | 1% | (23 124) | (24 547) | 6% |
Depreciation and amortization | (109 379) | (107 143) | (2%) | (5 791) | (5 975) | 3% |
Transaction costs related to Adumo acquisition | (11 915) | - | - | (631) | - | - |
Operating income/(loss) | 14 992 | (33 228) | >100% | 794 | (1 853) | >100% |
Net loss on disposal of equity-accounted investments | - | (5 900) | - | - | (329) | - |
Interest income | 11 861 | 8 410 | 41% | 628 | 469 | 34% |
Interest expense | (86 504) | (89 372) | 3% | (4 581) | (4 984) | 8% |
Loss before income taxes | (59 651) | (120 090) | 50% | (3 159) | (6 697) | 53% |
Income tax (expense) benefit | (17 575) | 15 422 | (>100%) | (931) | 860 | (>100%) |
Net loss before equity-accounted investments | (77 226) | (104 668) | 26% | (4 090) | (5 837) | 30% |
Income from equity-accounted investments | 811 | 305 | >100% | 43 | 17 | >100% |
Net loss attributable to the company | (76 415) | (104 363) | 27% | (4 047) | (5 820) | 31% |
Earnings (loss) per share | ZAR | ZAR | |
Basic loss per share attributable to Lesaka shareholders | (1.19) | (1.64) | 27% |
Diluted loss per share attributable to Lesaka shareholders | (1.20) | (1.63) | 27% |
Fundamental1 earnings (loss) per share attributable to shareholders | |||
0.45 | (0.35) | >100% |
$ | $ | |
(0.06) | (0.09) | 30% |
(0.06) | (0.09) | 30% |
0.02 | (0.02) | >100% |
As a domestic filer in the US, we report results in US dollars, under US GAAP, as evident in our 10 -Q filing. It is important to note that our operational currency is South African Rand and as such we analyze our performance in South African Rand. The company's results reported in US dollars can be significantly affected by the currency fluctuation s between the US dollar and the South African Rand and thus we refer investors to results reported in ZAR in analyzing the company's performance.
- FY24 Q3: Lesaka uses actual monthly exchanges rates to convert amounts presented in ZAR, from USD to ZAR.
-
FY23 Q3: Lesaka uses average quarterly exchanges rates to convert its quarterly amounts presented from USD to ZAR and an annu al average exchange rate to convert annual amounts presented. Average exchange rates: : FY24 Q3 at ZAR18.88 to $1 | FY24 Q2 at ZAR 18.71 to $1 | FY23 Q3 at ZAR 17.93 to $1.
1. Fundamental earnings (loss) per share is a non-GAAP measure. Refer to Appendix for a full reconciliation of non-GAAP measures.
Overview
FY24 Q3 Results | 6
FY24 Q3 | Continuation of our strong & consistent performance
YTD performance
Nine months ended 31 March
Revenue
Group Adjusted EBITDA¹
Quarterly performance
Three months ended 31 March
Revenue
Group Adjusted EBITDA¹
Operating (loss) income
Fundamental (loss) earnings per share²
Net debt / Group Adjusted EBITDA³
FY23 Q3 | FY24 Q3 | Growth | ||||
R6 871 million | R7 842 million | 14% | ||||
R296 million | R501 million | 69% | ||||
FY23 Q3 | FY24 Q3 | Growth | ||||
R2 402 million | R2 610 million | 9% | ||||
R125 million | R183 million | 47% | ||||
(R33 million) | R15 million | >100% | ||||
(0.35 cents) | 0.45 cents | >100% | ||||
4.2 times | 2.6 times | Improved 62% | ||||
"R" = South African Rands, ZAR.
-
Group Adjusted EBITDA is a non-GAAP measure. Refer to Appendix for a reconciliation of non-GAAP measures including a full reconciliation of Net income to Group Adjusted EBITDA.
Lease expenses which were previously excluded from the calculation of Group Adjusted EBITDA have now been included in the calculation of Group Adjusted EBITDA.
This change is in response to comments received from the staff of the SEC in March 2024 regarding our non -GAAP financial reporting. Comparative information has been adjusted to conform with the updated presentation. - Fundamental earnings (loss) per share is a non-GAAP measure. Refer to Appendix for a full reconciliation of non-GAAP measures.
- A non-GAAP measure, refer to slide 29 for calculation and reconciliation.
FY24 Q3 Results | 7
Our operations and immediate opportunity are greater than just South Africa
South Africa | Lesaka's coverage |
GDP | Agg. GDP | |
$381bn | $176bn | |
Population | Agg. population | |
62 million | South Africa | 78 million |
OVERVIEW
MERCHANT | DIVISION |
CONSUMER | DIVISION |
FINANCIAL | PERFORMANCE |
OUTLOOK | |
APPENDIX |
Notes: All values quoted to 2023. Source: IMF World Economic Outlook Database, October 2023
FY24 Q3 Results | 8
The Lesaka platform serves consumers and merchants across the spectrum
3 300+ employees1
1.7+ million Customers1 | 119 000+ Merchants1 | R250+ billion in Throughput annually1 | |||||||
CONSUMER1 | MICRO MERCHANT1 | MERCHANT1 | ENTERPRISE1 |
1.7 million | R60 bn+ throughput | R133bn+ throughput | R74bn+ throughput |
customers | 89 300+ merchants | 29 000+ merchants | 600+ corporate clients |
1. In May 2024 Lesaka announced the acquisition of Adumo which is subject to shareholder and regulatory approvals. The information presented on this slide is presented on a pro -forma basis to reflect the impact
OVERVIEW
MERCHANT | DIVISION |
CONSUMER | DIVISION |
FINANCIAL | PERFORMANCE |
OUTLOOK | |
APPENDIX |
of the acquisition.
Merchant Division
FY24 Q3 Results | 10
Merchant MSME revenue drivers | VAS, supplier payments and card acquiring
Holistic offering and innovative solutions to merchants
OVERVIEW |
Value-Added Services & supplier payments
Devices1 deployed 80 250+ | ▲12% (yoy)
Throughput (ZAR)2
36% yoy
R7.8bn | |||||||
R5.7bn | |||||||
R3.5bn | |||||||
R2.2bn | R1.8bn | R0.5bn | |||||
FY22 Q3 | FY23 Q3 | FY24 Q3 | |||||
VAS throughput excluding IMT | IMT throughput |
Card Acquiring
Devices1 deployed 50 200+ | ▲20% (yoy)
Throughput (ZAR)
22% yoy
R3.9bn
R3.2bn
R1.7bn
FY22 Q3 | FY23 Q3 | FY24 Q3 |
MERCHANT | DIVISION |
CONSUMER | DIVISION |
FINANCIAL | PERFORMANCE |
OUTLOOK |
APPENDIX
"R" = South African Rands, ZAR. | 1. | Total devices in deployment at quarter end. |
IMT = International Money Transfers. | 2. | Merchant throughput includes money to bank transfers in the supplier payments business. |
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Disclaimer
Lesaka Technologies Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 21:06:19 UTC.
