Mr. Don Gray reports

GIVEX ANNOUNCES FISCAL YEAR AND FOURTH QUARTER 2023 FINANCIAL RESULTS

Givex Corp. has released its financial results for the three-month period and fiscal year ending Dec. 31, 2023. Givex reports in Canadian dollars and in accordance with international financial reporting standards (IFRS).

"Our fourth quarter and fiscal year results reflect another period of revenue growth, but importantly, they also mark a return to positive earnings before tax in Q4," said Don Gray, chief executive officer of Givex.

Fourth quarter financial highlights

Three-month period ending Dec. 31, 2023 (with comparisons relative to the three-month period ending Dec. 31, 2022):

• Revenue increased $1.2-million from $21.3-million to $22.5-million, representing 6-per-cent growth.
• Gross profit increased $700,000 from $14.5-million to $15.1-million, representing 5-per-cent growth.
• Income (loss) before income taxes and interest (EBIT) improved $2.3-million from a loss of $200,000 to income of $2.1-million, a 1,038-per-cent increase.
• EBITDA (earnings before interest, taxes, depreciation and amortization) increased $2.7-million from $800,000 to $3.5-million, a 356-per-cent increase.
• Total gross transactional value increased approximately $500-million from $3.3-billion to $3.8-billion, representing 15-per-cent growth.
• POS (point-of-sale) gross transactional value increased approximately $98-million from $422-million to $520-million, representing 23-per-cent growth.
• Customer locations increased approximately 10,000, from 122,000 to 132,000, representing 8-per-cent growth.

Fiscal year financial highlights

12-month period ending Dec. 31, 2023 (with comparisons relative to the 12-month period ending Dec. 31, 2022):

• Revenue increased $7.9-million from $72.9-million to $80.8-million, representing 11-per-cent growth.
• Gross profit increased $4.8-million from $51.3-million to $56-million, representing 9-per-cent growth.
• Income (loss) before income taxes and interest (EBIT) improved $8.7-million from a loss of $9.3-million to a loss of $700,000, a 93-per-ent decrease.
• EBITDA increased $8.8-million from negative $4.1-million to positive $4.7-million, representing 213-per-cent growth.
• Total gross transactional value increased approximately $1.4-billion from $7.7-billion to $9.1-billion, representing 18-per-cent growth.
• POS gross transactional value increased approximately $510-million from $1.4-billion to $1.9-billion, representing 37-per-cent growth.

Operational highlights:

• Controlling payroll costs are the key focus to improved EBITDA and positive net earnings. For the 12-month periods ending Dec. 31, 2023, and 2022, employee compensation as a percentage of gross profit was 53.8 per cent and 53.3 per cent, respectively. The company believes that its ability to control employee compensation as a percentage of gross profit is an indicator of its success in managing costs and profitability.
• Inflation continued to put pressure on payroll costs in all markets. Givex will continue to work toward its goal of payroll costs being 50 per cent or less of gross profit through the implementation of tools such as artificial-intelligence-enhanced client support flows.

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 over 132,000 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.

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