Usio Inc (USIO) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Total Revenue Growth: Up 3% for the quarter, with growth in Card, ACH, and Output Solutions.

  • GAAP Net Income: $600,000 or $0.02 per share, including a $1.5 million ERC benefit.

  • Total Dollars Processed: Exceeded $1.9 billion in Q4, a 36% increase year-over-year; $7.1 billion for the full year, up 33%.

  • Operating Cash Flow: $2.9 million for 2024, with over $900,000 in Q4.

  • Cash Position: Over $8 million at year-end, with expectations for further increase.

  • Card Processing Volume: Over $1.5 billion for the year, a 10% increase from fiscal 2023.

  • PayFac Revenue Growth: Up 29% in the quarter; PayFac volume up 28% for the year.

  • ACH Transaction Volume: Up 34% in Q4; electronic check dollars processed up 44%.

  • Output Solutions Growth: Electronic documents processed up 86%; total pieces mailed exceeded 5.4 million in Q4.

  • Prepaid Card Load Volume: Over $100 million for the sixth consecutive quarter; up 35% for the year.

  • Share Repurchase Program: New $4 million authorization approved by the Board.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Usio Inc (NASDAQ:USIO) reported a 36% increase in total dollars processed in the fourth quarter, reaching over $1.9 billion.

  • The company achieved its third consecutive quarter of positive GAAP net income, reporting $600,000 or $0.02 per share.

  • Usio Inc (NASDAQ:USIO) generated $2.9 million in operating cash flow for 2024, with $900,000 in the fourth quarter alone.

  • The new Usio One initiative aims to integrate all products and services under one brand, enhancing cross-selling opportunities.

  • The company has a strong cash position, rising to over $8 million at year-end, and expects further increases in 2025.

Negative Points

  • Usio Inc (NASDAQ:USIO) faced the challenge of replacing $12.1 million in annualized revenue lost from an expired COVID incentive program.

  • The company's growth is partially dependent on the successful implementation of new ISV programs, which can be delayed.

  • Despite positive cash flow, Usio Inc (NASDAQ:USIO) had to use cash for stock repurchases, which could limit other investment opportunities.

  • The company is still in the early stages of implementing its Usio One initiative, which may take time to fully realize benefits.

  • Usio Inc (NASDAQ:USIO) is cautious about M&A opportunities, indicating potential challenges in finding suitable acquisition targets.

Q & A Highlights

Q: What is the visibility for Usio's growth in 2025, and how should revenue cadence be expected throughout the year? A: Louis Hoch, Chairman and CEO, stated that growth is expected to be back-end loaded as implementations come live. The visibility for 2025 remains positive, with expectations for great growth.