iSignthis released Q2 2019 results; Q2 Revenues UP 240% from Q1 2019
iSignthis has issued an announcement to present Q2 2019 results. Below is the announcement as it is published:
- Q2 Revenues : $6.3m UP↑ 240 % from $1.85m (from Q1 2019)
- 1H2019 Revenues : $8.173m
- Cash Receipts : $6.01m UP↑ 329% from $1.4m (from Q1 2019)
- Operating Cashflow Positive (Q2) : $1.357m turnaround from minus ($1,663)
- Cash at Bank (End Q2) : $9.99m UP ↑38% $7.222m (from Q1 2019 – Does not include additional $3.1m received in early July from exercise of unlisted options)
- The past quarter illustrates the opportunity before iSignthis, and how teh Company’s Paydentity™ merchant ecosystem differentiates iSignthis® from conventional banks and neobanks.
Further highlights include:
- Executive team enhanced with new CFO (to be announced) and a number of further C-level appointments imminent
- ISXPay Annualised GPTV $690m (19/7/19) UP↑ 81% from end Q1 GTPV of $380m (based on actual weekly run rate)
- ISXPay MSF% (average) greater than 125bps
The quarter has seen continued growth in sales and customer approvals, with many of our in-house built systems continuing to be proven under real volumes. This quarter is proving out that the foundations we have set will allow the Company to continue to monetise its CORE and transactional banking systems, and aim for profitability during FY 2019 (ending 31st Dec).
ISX has demonstrated to Central Banks and banking partners that our SEPA Core Credit Transfer system, EBICS integrations, and SWIFT inflow capability can scale as required. These systems are in turn connected to our EMA’s, which started to see significant volumes from about early June. These volumes are now increasing appreciably, with residual client funds in EMA’s growing. Money In and outflows continue to grow and are tracking in accordance with our budget expectations.
We continue to see opportunities opening up in our target sectors, especially in the EU. On the 22nd May, Canada’s Nuvei successfully bid USD$899 for Safecharge Ltd (AIM : SCH), a rival of ISX. Nuvei is an reseller or Independent Sales Organisation (ISO) of a number of US retail banks, with predominantly a retail sector offering . In our view, it will be difficult for Nuvei to allow Safecharge to continue to service high brand risk (HBR) merchants, as Nuvei may in turn risk its ISO agreements with its US Banks, who are generally not predisposed to HBR merchants being linked to their ISO’s.
We have built and started to verify our own Merchant Settlement System (MSS) that allows us to automatically match transactions between ISXPay and the schemes, and calculate fees and charges due to each merchant, on a per currency basis. Once this system is activated fully, we will be able to process, settle, acquire, charge and reconcile received funds ex card schemes automatically. This is a complex and voluminous task that we have been conducting manually alongside our systems since early this year, in order to verify results.
The number of active merchants being processed by ISXPay has remained relatively steady this pas quarter whilst we have been working on the MSS.The MSS is anticipated to be fully automated by mid August, which will allow us to ramp up the onboard of approved merchants and process them without any further bottlenecks. Additional merchants have been onboard since late June whilst the MSS has been deployed.
We continued work on Diners, Discover and AMEX Tier 1, which have slipped a few months as a consequence of SEPA, EBICS and MMS taking priority. Diners and Discover should be processing merchants during September or early October.
Australia sees the rise of further neobanks, including the recent licensing of Volt, Judo and 86400. Thus far, we have not seen any evidence of any of the neobanks having any capability of their own or any interest in the technically and operationally complex areas of payments, transactional and/or custodial banking.
Whilst we cannot anticipate exact timing of any licenses, recent interactions with the Reserve Bank of Australia and APRA have been encouraging.