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Usio reports record revenue growth, positive EBITDA forecast

EditorEmilio Ghigini
Published 13/03/2024, 12:14 am
© Reuters.
USIO
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SAN ANTONIO - Usio, Inc. (NASDAQ:USIO), a provider of integrated electronic payment solutions, has announced expectations of a record revenue increase for the fiscal year 2023, forecasting an 18-20% rise from the previous year. This projection is buoyed by a robust performance in the fourth quarter, which saw a 21% surge in electronic payments processing volume, excluding cryptocurrency transactions.

The company's president and CEO, Louis Hoch, expressed confidence in the growth trajectory, attributing the success to the strength of the company's Prepaid and PayFac (Payment Facilitator) services. The Prepaid business witnessed a 65% increase in purchase volume, with over $100 million loaded onto prepaid cards for the second consecutive quarter. Similarly, the PayFac business experienced a 17% year-over-year increase in volume.

Usio's ACH (Automated Clearing House) business also reported positive movement in the fourth quarter, reversing earlier declines with increases in both transaction volume and dollars processed. These results come after the company's decision to cease processing for cryptocurrency companies in late 2022.

In addition to payment processing, Usio's Output Solutions division achieved a significant milestone, delivering more electronic documents than paper for the first time. The division processed over 37.3 million electronic documents in 2023, contributing to improved gross margins.

Despite the exit from the crypto industry, which led to a 26% decrease in total dollars processed and a 9% decrease in total transactions processed for the full year, Usio's overall performance remained strong. The company processed $5.3 billion in total and handled 37.2 million transactions in 2023.

Usio's forward momentum is expected to continue into 2024, with a focus on expanding into the Electronic Bill Presentment and Payment market and leveraging the recent capacity expansion in the Output Solutions business.

This report is based on a press release statement from Usio, Inc. and reflects the company's financial performance and projections. The content has been presented factually, without endorsement of the company's claims.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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