On September 11, 2024, Lesaka Technologies Inc (LSAK, Financial) released its 8-K filing detailing the financial results for the fourth quarter (Q4 2024) and fiscal year ended June 30, 2024 (FY 2024). Lesaka Technologies Inc provides payment solutions, transaction processing solutions, and financial technologies, operating mainly within South Africa through its Merchant and Consumer segments.
FY 2024 Performance Overview
Lesaka Technologies Inc (LSAK, Financial) reported a revenue increase of 11% in South African Rand (ZAR) to $564.2 million (ZAR 10.6 billion) for FY 2024. Operating income turned positive at $3.6 million (ZAR 67.3 million), compared to an operating loss of $15.3 million (ZAR 275.3 million) in FY 2023. The net loss improved by 48% in ZAR to $17.4 million (ZAR 326.1 million), down from $35.1 million (ZAR 629.2 million) in the previous year. GAAP loss per share also improved by 52% in ZAR, to $0.27 (ZAR R5.07).
Q4 2024 Performance Highlights
For Q4 2024, revenue increased by 9% in ZAR to $146.0 million (ZAR 2.7 billion) compared to Q4 2023. Operating income was $0.3 million (ZAR 5.6 million), a significant improvement from an operating loss of $6.6 million (ZAR 124.3 million) in Q4 2023. The net loss for the quarter improved by 58% in ZAR to $5.0 million (ZAR 93.2 million), and GAAP loss per share improved by 58% in ZAR to $0.08 (ZAR R1.44).
Segment Performance
The Merchant Division saw a 12% increase in revenue in ZAR to $498.3 million (ZAR 9.3 billion) and a 4% increase in Segment Adjusted EBITDA to $33.4 million (ZAR 624.1 million). The Consumer Division experienced a 15% revenue increase in ZAR to $69.2 million (ZAR 1.3 billion) and a remarkable 361% increase in Segment Adjusted EBITDA to $14.7 million (ZAR 274.2 million).
Financial Metrics and Achievements
Lesaka Technologies Inc (LSAK, Financial) achieved its Group Adjusted EBITDA guidance, increasing by 55% in ZAR to $36.9 million (ZAR 690.9 million). The net debt to Group Adjusted EBITDA ratio improved to 2.5 times, compared to 4.5 times in FY 2023. Fundamental earnings per share, a non-GAAP measure, improved to $0.06 (ZAR 1.06) from a fundamental loss per share of $0.15 (ZAR 2.66) in FY 2023.
Lesaka Chairman Ali Mazanderani stated, "We continue to materially improve the profitability of Lesaka achieving Group Adjusted EBITDA of ZAR 691 million in FY 2024, up from ZAR 445 million in FY 2023 and a significant positive transformation compared to a Group Adjusted EBITDA loss of ZAR 328 million in FY 2022."
Income Statement Summary
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $146.0M | $133.1M | $564.2M | $528.0M |
| Operating Income | $0.3M | ($6.6M) | $3.6M | ($15.3M) |
| Net Loss | ($5.0M) | ($11.9M) | ($17.4M) | ($35.1M) |
| GAAP Loss Per Share | ($0.08) | ($0.19) | ($0.27) | ($0.56) |
Balance Sheet and Cash Flow Highlights
Lesaka Technologies Inc (LSAK, Financial) reported a net increase in cash, cash equivalents, and restricted cash to $65.9 million as of June 30, 2024, from $58.6 million as of June 30, 2023. The company also saw improvements in its cash flows from operating activities, reporting $28.8 million for FY 2024 compared to $0.4 million in FY 2023.
Analysis and Outlook
Lesaka Technologies Inc (LSAK, Financial) has shown significant improvement in its financial performance, turning operating income positive and reducing net losses. The company's focus on enhancing profitability and growth, particularly in the Consumer Division, has yielded positive results. The improved net debt to Group Adjusted EBITDA ratio indicates better financial health and reduced leverage.
Looking ahead, Lesaka Technologies Inc (LSAK, Financial) has provided optimistic guidance for FY 2025, expecting revenue between ZAR 10.0 billion and ZAR 11.0 billion and Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion. This outlook reflects the company's confidence in its growth strategy and market position.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Lesaka Technologies Inc for further details.
