BANXA Holdings Inc (TSX-V:BNXA, OTCQX:BNXAF) has reported a strong rise in third-quarter 2023 revenue as it prepares for its shares to resume trading on the TSX Ventures Exchange (TSX-V) following delays in its audit process which resulted in a Trade Cessation Order (CTO).
The Web3 payments and on-and-off ramp solutions provider grew total transaction volume by 12% to A$167 million (US$109 million) in the three months to March 31, 2023, from the prior quarter, with revenue growing 21% to A$21.1 million. Operating income rose 141% quarter-over-quarter to A$0.6 million, mainly due to a A$2.1 million write-back of share-based expenses, and it reported an adjusted EBITDA loss of A$0.9 million.
“I am thrilled to be able to share these latest quarterly results, which demonstrate how far we have come as a business over the last year,” BANXA CEO Holger Arians said in the earnings statement.
“Banxa has emerged as the premier on/off ramp solution globally. The company’s fundamentals are as strong as ever, with a far more diversified revenue base that continues to grow. Our operating profit has also grown thanks to new products and aggressive cost-cutting. Impressively, we have achieved all of this even as the crypto industry remains challenging.”
Operational highlights
Operationally, BANXA highlighted the integration with MetaMask, the largest non-custodial wallet with over 30 million users, saying it continues to work with the company on deeper integration opportunities.
Over the quarter, it also launched direct and local payment methods in Chile, Colombia, Mexico and Thailand; integrated with top-tier partners BitMart and TheGraph; capitalised on the growing DeFi and Wallet segment which now represents 48% of total transaction volume (TTV); and collected A$0.71 million in paid services gross profit.
The company also noted the appointment of Ari Last as its chief business officer over the quarter.
With the release of its 3Q results, the company said it had made a submission for the CTO to be lifted.
“The imminent relisting of the BNXA stock on the TSX Ventures Exchange marks a significant milestone for Banxa and its shareholders,” chairman Domenic Carosa added.
“The CTO has been painful for shareholders and I recognize the situation has damaged shareholder trust in the company. We have been working non-stop to re-list and resume trading as soon as possible. We also made much-needed improvements to Banxa’s financial reporting and controls so we can emerge as a more mature company.”
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