The following is a summary of the Banxa Holdings Inc. (BNXAF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• After financial difficulties in 2022 and 2023, Banxa has optimized its cost base leading to improved gross profit and adjusted EBITDA for FY '24.

• A large turnaround was seen whereby the business could report a profit of over $5 million if repeating its November 2021 total transaction volume of $250 million due to extensive internal changes.

• The total transaction volume (TTV) for FY '22 surpassed $1.4 billion, and despite a reduction in FY '23, the half-yearly TTV for December '23 showed promising progress.

• Gross profit rose by 39% year-on-year as attempts were made to maximize operational efficiency.

• Operating loss saw a significant reduction from Q2 to Q3, largely due to efforts around TTV and gross margin percentage.

• The company's net loss position was positively influenced by a decrease in capital costs.

• Fluctuations due to foreign exchange impacted the net loss position.

Business Progress:

• Banxa is strengthening its business foundation by focusing on driving the core performance of its product and expanding into the areas of wallets, Web3 gaming, and NFTs.

• The company has forged key partnerships with Trust Wallet, Sui, and Backpack Exchange to widen its reach.

• It holds licenses across multiple local markets and is the first crypto business to be registered with the U.K. Financial Conduct Authority.

• By the end of 2024, Banxa aims to operate in 45 U.S. states while also investing in core markets like Canada, Europe, and Australia.

• They have made substantial investments to improve compliance and expand the team.

• They have implemented a payment orchestration platform to boost the success rate of transactions, already leading to a 15-20% increase in new customer card conversion.

• Partnerships with MetaMask and Trust comprise 30% to 40% of transaction volumes.

• They anticipate future profitability starting from January 2024, and are working towards reducing their cost of capital.

• Strategies are underway to increase shareholder value, risk-profile improvements, visibility, and investor interest.

More details: ArrowMark Financial IR

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