Mr. Don Gray reports

GIVEX ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

Givex Corp. has released its financial results for the three-month period and nine-month period ending Sept. 30, 2023.

Givex reports in Canadian dollars and in accordance with international financial reporting standards (IFRS).

In Q3 2023, Givex continued to increase adjusted EBITDA by growing gross profit and keeping a tight rein on payroll costs," said Don Gray, chief executive officer of Givex. "Net loss for the nine months ending Sept. 30 decreased 68 per cent, from $9.9-million to $3.2-million, while revenue grew 13 per cent over the same period. We are working hard to continue these trends and travel on a path towards positive earnings as the RSU and option amortizations are substantially cleared off."

Third quarter financial highlights

Three-month period ending Sept. 30, 2023 (with comparisons relative to the three-month period ending Sept. 30, 2022):

• Revenue increased $1.2-million from $18.4-million to $19.6-million, a 7-per-cent growth.
• Gross profit increased $600,000 from $13.0-million to $13.6-million, a 4-per-cent growth.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) increased $300,000 from $1.0-million to $1.3-million, a 30-per-cent growth.
• Net loss decreased $2.4-million from $3.4-million to $1.0-million, a 71-per-cent decrease.
• Total gross transactional value (2) increased approximately $240-million from $1.34-billion to $1.58-billion, an 18-per-cent growth.
• POS (point-of-sale) gross transactional value (3) increased approximately $116-million from $377-million to $493-million, a 31-per-cent growth.
• Customer locations (4) increased approximately 10,000, from 118,000 to 128,000, a 9-per-cent growth.

Nine-month period ending Sept. 30, 2023 (with comparisons relative to the nine-month period ending Sept. 30, 2022):

• Revenue increased $6.6-million from $51.6-million to $58.2-million, a 13-per-cent growth.
• Gross profit increased $4.8-million from $36.1-million to $40.9-million, a 13-per-cent growth.
• Adjusted EBITDA (1) increased $700,000 from $3.3-million to $4.0-million, a 22-per-cent growth.
• Net loss decreased $6.7-million from $9.9-million to $3.2-million, a 68-per-cent decrease.
• Total gross transactional value (2) increased approximately $900-million from $4.4-billion to $5.3-billion, a 22-per-cent growth.
• POS gross transactional value (3) increased approximately $412-million from $960-million to $1.372-billion, a 43-per-cent growth.

Operational highlights:

• Payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending Sept. 30, 2023, and Sept. 30, 2022, employee compensation as a percentage of gross profit (5) was 53 per cent and 55 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.

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+.

More information about Givex, including the management presentation and overview, are posted on the company's investor relations website.

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 over 128,000 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.

Non-IFRS measures and reconciliation of non-IFRS measures

The information presented includes certain financial measures such as adjusted EBITDA, which are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable with similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of the company's operating performance and thus highlight trends in the company's core business that may not otherwise be apparent when relying solely on IFRS measures. The company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation.

Additional notes

(1) Adjusted EBITDA is defined as net profit (loss) excluding interest, taxes, depreciation and amortization as adjusted for share-based compensation and related expenses, foreign exchange gains and losses, and transaction-related expenses, including those related to going public and acquisitions.

(2) Gross transaction volume (GTV) means the total dollar value of stored and point-of-sale transactions processed through the company's cloud-based SaaS (software-as-a-service) platforms in the period, net of refunds, inclusive of shipping and handling, duty, and value-added taxes. The company believes GTV is an indicator of the success of its customers and the strength of its platforms. GTV does not represent revenue earned by the company.

(3) POS gross transactional volume (POS GTV) means the total dollar value point-of-sale transactions processed through GivexPOS, the company's cloud-based POS SaaS platform, in the period net of refunds, inclusive of shipping and handling, duty, and value-added taxes. The company believes POS GTV is an indicator of the success of its customers and the strength of its platforms. POS GTV does not represent revenue earned by the company.

(4) Customer location means a billing customer location for which the term of services has not ended or with which the company is negotiating a renewal contract. It includes both merchant locations that have transactions processed through the company's cloud-based SaaS platform as well as merchant locations not on the company's platform but for which the company provides other Givex services. A single unique customer can have multiple customer locations, including physical and e-commerce sites. The company believes that its ability to increase the number of customer locations served by its platform and products is an indicator of its success in terms of market penetration and growth of its business.

(5) Employee compensation as a percentage of gross profit means the total employee compensation for a period divided by the gross profit for the same period. Employee compensation means total employee compensation, including salaries and benefits, excluding both government assistance and share-based compensation. Gross profit means revenue less direct cost of revenue.

We seek Safe Harbor.