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Lesaka Q1 2025 Results - Lesaka continues building operational momentum achieving Revenue and Profitability guidance
Lesaka Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: LSAK
JSE share code: LSK
LEI: 529900J4IZMWV4RDEB07
ISIN: US64107N2062
("Lesaka," or the "Company")
Lesaka Q1 2025 Results: Lesaka continues building operational momentum achieving Revenue and Profitability guidance
JOHANNESBURG, November 6, 2024 – Lesaka (Nasdaq: LSAK; JSE: LSK) today released results for the first quarter of fiscal 2025
("Q1 2025").
Q1 2025 performance:
• Revenue of $145.5 million (ZAR 2.6 billion) was at the mid-point of our revenue guidance and compares to $136.1 million
(ZAR 2.5 billion) in Q1 2024.
• Operating loss of $0.05 million (ZAR 0.3 million) compares to operating income of $0.2 million (ZAR 4.2 million) in Q1 2024.
The current quarter includes $1.7 million (ZAR 30.0 million) of one-off transaction costs relating to the acquisition of Adumo.
Excluding the impact of these transaction costs, operating income would have been $1.7 million (ZAR 29.7 million).
• Net loss, including $1.7 million (ZAR 30.0 million) of one-off Adumo transaction costs, improved 23% in ZAR, to a net loss
of $4.5 million (ZAR 81.0 million) in Q1 2025.
• GAAP loss per share improved 24% in ZAR to $0.07 (ZAR 1.26) from $0.09 (ZAR 1.66) in Q1 2024.
• Group Adjusted EBITDA (a non-GAAP measure) of $9.4 million (ZAR 168.1 million) was at the mid-point of our guidance
range, improving 12% in ZAR from $8.0 million (ZAR 149.5 million) in Q1 2024.
• Fundamental earnings per share (a non-GAAP measure) of $0.04 (ZAR 0.66) improved by $0.04 (ZAR 0.74) compared to a
fundamental loss per share of $0.00 (ZAR 0.08) in Q1 2024.
• Consumer Division revenue increased 30% in ZAR to $21.1 million (ZAR 378.1 million) and Segment Adjusted EBITDA
increased 99% in ZAR, to $4.4 million (ZAR 78.7 million).
• Merchant Division revenue of $125.3 million (ZAR 2.3 billion) remained flat in ZAR and Segment Adjusted EBITDA
contracted marginally, by 1% in ZAR, to $7.9 million (ZAR 142.1 million).
(1) Average exchange rates applicable for the quarter: ZAR 17.72 to $1 for Q1 2025, ZAR 18.71 to $1 for Q1 2024. The ZAR
strengthened 5.3% against the U.S. dollar during Q1 2025 when compared to Q1 2024.
Lesaka Chairman Ali Mazanderani said: "We continue to invest in building the Lesaka platform and to scale as Southern Africa's
leading independent fintech. We achieved the mid-point of our revenue and Group Adjusted EBITDA guidance for Q1 2025. We have
now delivered on our Group Adjusted EBITDA guidance for nine successive quarters and reaffirm our FY 2025 revenue guidance of
ZAR 10 billion to ZAR 11 billion and FY2025 Group Adjusted EBITDA guidance of ZAR 900 million to ZAR 1 billion. Our Net
Revenue guidance of ZAR 5.2 million to ZAR 5.6 million for FY 2025 implies 35% year-on year growth at the midpoint of this range.
Our Group Adjusted EBITDA guidance for FY 2025 implies 37% growth, year-on-year, at the midpoint of the range."
Outlook: Second Quarter 2025 ("Q2 2025") and reaffirming Full Fiscal Year 2025 ("FY 2025") outlook
While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance
accordingly.
We have included guidance for Net Revenue, a non-GAAP measure, for the first time. This primarily eliminates the effect of changes in revenue
mix between agency and principal sales of airtime, which can be material.
For Q2 2025, the quarter ending December 31, 2024 we expect:
• Revenue between ZAR 2.4 billion and ZAR 2.6 billion.
• Net Revenue between ZAR 1.2 billion and ZAR 1.4 billion.
• Group Adjusted EBITDA between ZAR 190 million and ZAR 210 million.
Guidance For FY 2025, the year ending June 30, 2025, we expect:
• Revenue between ZAR 10.0 billion and ZAR 11.0 billion.
• Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion.
• Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion
Our outlook provided:
• Includes the impact of the acquisition of Adumo, which closed in October 2024 (in Q2 2025).
• Excludes the impact of unannounced mergers and acquisitions that we may conclude.
The mid-point of the FY 2025 Group Adjusted EBITDA guidance implies a growth rate of more than 30% on a like-for-like basis
(excluding Adumo and the allocation of interest expense charges directly related to the consumer loan book).
Management has provided its outlook regarding Net Revenue and Group Adjusted EBITDA, which are non-GAAP financial measures
and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding
GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance
for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's
control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations
to the corresponding GAAP financial measure are not available without unreasonable effort.
Earnings Presentation for Q1 2025 Results
Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.
Webcast and Conference Call
Lesaka will host a webcast and conference call to review results on November 7, 2024, at 8:00 a.m. Eastern Time which is 3:00 p.m.
South Africa Standard Time ("SAST"). A replay of the results presentation webcast will be available on the Lesaka investor relations
website following the conclusion of the live event.
Presentation webcast via Zoom:
Link to access the results webcast: https://bit.ly/3BB5RHG.
Participants using the webcast will be able to ask questions by raising their hand and then asking the question "live."
Conference call dial-in:
• US Toll-Free: +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782
• South Africa Toll-Free: +27 21 426 8190 or +27 21 426 8191 or +27 87 550 3946
Participants using the conference call dial-in will be unable to ask questions.
A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the
live event.
Our Form 10-Q for the quarter ended September 30, 2024, as filed with the SEC, is available on our company website at
www.lesakatech.com.
Headline earnings (loss) per share ("HEPS")
The inclusion of H(L)EPS in this results announcement is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated
using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per
share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial
reporting framework, including but not limited to, International Financial Reporting Standards.
The table below presents our HEPS for Q1 2025 and 2024:
Q1 Q1
2025 2024
Net loss used to calculate headline earnings (USD'000) (4,562) (4,510)
Headline (loss) earnings per share:
Basic, in USD (0.07) (0.07)
Diluted, in USD (0.07) (0.07)
Results announcement released in the US and unaudited condensed consolidated financial statements
The full results announcement released in the U.S. and our audited consolidated financial statements are available at
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/LSKE/Q1Res2025.pdf and have been published on Lesaka's website at
www.lesakatech.com. Any investment decision by investors and/or shareholders should be based on consideration of the U.S. results
announcement and its recently published consolidated financial statements. The U.S. results announcement and our consolidated
financial statements are available upon request through enquiries directed to either Lesaka's investor relations contact at
phillipe.welthagen@lesakatech.com or Lesaka's media relations contact at Ian@thenielsennetwork.com.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to
Southern Africa's underserviced consumers (B2C) and merchants (B2B), improving people's lives and increasing financial inclusion in
the markets in which we operate. We offer a wide range of integrated payment solutions including transactional accounts (banking),
lending, insurance, payouts, cash management solutions, card acceptance, supplier payments, software services and bill payments. By
providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE:
LSK). Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are
subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such
statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates,"
"plans," "could," "would," "may," "will," "intends," "outlook," "focus," "seek," "potential," "mission," "continue," "goal," "target,"
"objective," derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-
looking statements. In this press release, statements relating to future financial results and future financing and business opportunities
are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially
from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, as filed with the
SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this
press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those
anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Phillipe Welthagen
Email: phillipe.welthagen@lesakatech.com
Mobile: +27 84 512 5393
Media Relations Contact:
Ian Harrison
Email: Ian@thenielsennetwork.com
Johannesburg
November 7, 2024
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 07-11-2024 07:05:00
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