Hank Payments Reports Second-Quarter Financial Results with Revenue Growth of 20% Year over Year Gross Profit Climbs to 88%
Toronto, Ontario--(Newsfile Corp. - March 1, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), a North American financial technology company that uses powerful technology to automate the complexities of personal cash flow management on one centralized platform, is pleased to announce the filings of its financial statements and management discussion and analysis ("MD&A") for the three and six months periods ending December 31, 2021. All figures are in CAD.
- Financial and Business Highlights: Revenue for the second quarter ended December 31, 2021, grew 20% year over year to $1,304,643
- Revenue quarter over quarter increased by 11%
- Gross margins improved to 88%, from 85% the previous quarter
- Hank deployed its upgraded consumer portals, providing customers with several new features and enhancements.
- Hank completed the integration of its credit score reporting feature in its consumer portal and will begin to provide customers with access to their scores in the coming quarters.
Many of Hank's customers have shared that their credit scores have improved over time, and this new feature will enable all Hank customers to easily track their credit scores as part of their financial wellness goals. By aggregating and anonymizing this data, Hank will provide consumers with insights and offerings to further enhance their financial well-being.
"The need for Hank's services has never been greater." stated Jeff Guthrie, President & Chief Operating Officer, adding, "During 2021, the average size of an automotive payment on the Hank platform grew by 16%, whereas the average lease payment grew by 8%. These increases signal that consumers have started to bear the brunt of inflation on vehicle costs, which will only be exasperated by raising interest rates. We are already seeing an increased demand for Hank through our auto dealer channels and expect this demand to build as new vehicle inventories return to pre-pandemic levels. Demand for our mortgage and other payment products also continue to climb, and we are investing in these high margin growth channels. My focus in the coming quarters is to advance strategic transactions and partnerships and further build awareness in the market of our compelling platform."
A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the three and six month periods ending December 31, 2021, filed on SEDAR.
About Hank Payments Corp.
Hank is a financial technology company. The Hank software platform (the "Hank Platform") acts as a consumer's financial concierge using a powerful technology to automate the complexities of personal cash flow management. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the United States, Hank helps consumers in every state find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform debits consumers when they have cash, stores the cash with partner banks, then automatically instructs partner banks to pay bills and loans as they come due, and often sooner than required. Approximately half of Hank's customers are financially sound and use the Hank Platform for convenience, while the other half improve their payment performance through the use of the Hank Platform. One hundred percent of Hank's customers are in the USA and pay setup and ongoing monthly processing fees while remaining on the Hank Platform for an average of three years. Hank continues to innovate and anticipates launching more expansive 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 news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "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 in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. The 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. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115205