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POSaBit boosts Q3 2021 revenue, incurs higher loss

Image courtesy of POSaBit Systems Corp.

December 1, 2021

POSaBit Systems Corp., a provider of payments infrastructure in the cannabis industry, reported a major revenue gain for Q3 2021 over the prior year's third quarter as well as a significantly larger loss, according to an earnings release.

Revenue jumped 173% from $2.33 million in Q3 2020 to $6.36 million for the quarter ending Sept. 20, 2021, driven by merchant same store sale growth, increased customer penetration and onboarding of new merchants.

Net loss jumped 6,800% from $100,475 to $6.9 million in the comparative quarters, primarily attributable to the accounting treatment of the outstanding warrants. This resulted in the company recognizing a non-cash expense of $7.8 million due to the strong share price performance during the quarter.

Transactional sales volume for Card Services totaled $106 million, up 151% compared with $42.2 million in the third quarter of 2020.

Shares traded at $1.33 today against a 52-week range of 11 cents to $2.12.

"Based on this strong performance and our visibility into year end, we are once again raising our guidance for full year 2021 revenue to a range of $19 million to $20.5 million," Ryan Hamlin, CEO and co-founder, said in the press release. "At the mid-point, this represents an expectation for full-year 2021 growth of more than 158% and will continue our track record of doubling revenue every year since 2017.

"We also continue to invest in new product offerings, such as 'POSaBit Kiosk,' and 'POSaBit Cash Advance' that complement our best-in-class payments and point of sale offering and are partnering with industry leaders to increase digital payment penetration and enter new markets."

The company unveiled a kiosk for cannabis dispensaries in October.