Mr. Don Gray reports

GIVEX ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Givex Corp. has presented its financial results for the three-month period and six-month period ended June 30, 2023.

Givex reports in accordance with international financial reporting standards.

"In [second quarter] 2023, Givex continued to increase adjusted [earnings before interest, taxes, depreciation and amortization] by increasing gross profit and keeping a tight rein on payroll costs," said Don Gray, chief executive officer of Givex. "Net loss decreased 75 per cent from $3.9-million to $978,000. We are working hard to continue this trend for the rest of the year."

Second quarter financial highlights

Three-month period ended June 30, 2023 (with comparisons relative to the three-month period ended June 30, 2022):

• Revenue increased $2.6-million from $16.8-million to $19.4-million, 15-per-cent growth.
• Gross profit increased $1.9-million from $12.2-million to $14.1-million, 16-per-cent growth.
• Adjusted EBITDA increased $700,000 from $1.0-million to $1.7-million, 69-per-cent growth.
• Net loss decreased $2.9-million from $3.9-million to $978,000, 75-per-cent decrease.
• Total gross transactional value increased approximately $350-million from $1.77-billion to $2.12-billion, 20-per-cent growth.
• POS gross transactional value increased approximately $128-million from $347-million to $474-million, 37-per-cent growth.
• Customer locations increased approximately 8,000 from 116,000 to 124,000, 7-per-cent growth.

Six-month period ended June 30, 2023 (with comparisons relative to the six-month period ended June 30, 2022):

• Revenue increased $5.4-million from $33.2-million to $38.6-million, 16-per-cent growth.
• Gross profit increased $4.2-million from $23.1-million to $27.3-million, 18-per-cent growth.
• Adjusted EBITDA increased $400,000 from $2.3-million to $2.7-million, 18-per-cent growth.
• Net loss decreased $4.3-million from $6.5-million to $2.2-million, 66-per-cent decrease.
• Total gross transactional value increased approximately $650-million from $3.05-billion to $3.7-billion, 21-per-cent growth.
• POS gross transactional value increased approximately $295-million from $584-million to $879-million, 51-per-cent growth.

Operational highlights:

• Payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ended June 30, 2023, and 2022, employee compensation as a percentage of gross profit was 53 per cent and 54 per cent, respectively. The company believes that its ability to reduce employee compensation as a percentage of gross profit is an indicator of its success in managing costs and profitability.
• ARR (which is both recurring and reoccurring revenue) for TTM increased $11.8-million from $59.3-million as at June 30, 2022, to $71.1-million as at June 30, 2023, growth of 20 per cent.

More information

Additional financial information, such as the audited annual consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and annual information form, is available on SEDAR+.

About Givex Corp.

The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 124,000-plus active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex's integrated end-to-end management solution provides gift cards, GivexPOS, loyalty programs and more, creating growth opportunities for businesses of all sizes and industries.

We seek Safe Harbor.