Lesaka Technologies Exceeds Profitability Goals and Sets New Ones

Performance Review of FY 2024 by Lesaka Technologies

Lesaka Technologies, Inc. (NASDAQ: LSAK) has achieved remarkable performance metrics for its fiscal year ending June 30, 2024. The numbers reflect a growing trend in profitability as they pivot to become a leading fintech entity in Southern Africa.

The revenue for FY 2024 rose by 11%, reaching an impressive total of $564.2 million (ZAR 10.6 billion), painting a robust kaleidoscope of growth in a competitive sector.

Quarterly Insights: Q4 2024 Results

During the fourth quarter of FY 2024, Lesaka saw its revenue climb by 9% compared to the previous year's corresponding period, amounting to $146 million (ZAR 2.7 billion). This growth is accompanied by a pivotal transition from losses to income.

The operating income for this quarter marginally shifted to $0.3 million, up from an operating loss of $6.6 million in Q4 2023, highlighting a substantial turnaround.

Key Financial Highlights

In FY 2024, the operating income saw a significant increase to $3.6 million from a previous operating loss of $15.3 million in FY 2023. Concurrently, Lesaka’s net loss improved by 48% to $17.4 million compared to $35.1 million the previous fiscal year.

Notably, the company’s GAAP loss per share also improved by 49%, marking a noteworthy step towards greater profitability.

Consumer and Merchant Division Performance

Breaking down the company’s revenue sources, the Merchant Division led with a 12% increase, generating $498.3 million (ZAR 9.3 billion) with a Segment Adjusted EBITDA of $33.4 million (ZAR 624.1 million).

On the other hand, the Consumer Division outperformed with a striking 15% revenue increase to $69.2 million (ZAR 1.3 billion) and an extraordinary Segment Adjusted EBITDA growth of 361% to $14.7 million (ZAR 274.2 million). This impressive surge speaks volumes about the transformation underway within the company.

Looking Ahead: FY 2025 Guidance

Lesaka's management provided optimistic guidance for FY 2025, projecting the Group Adjusted EBITDA to fall between ZAR 900 million and ZAR 1 billion. The company has built confidence through the successful integration of recent acquisitions, enhancing its market position.

Commentary from Leadership

Ali Mazanderani, Chairman of Lesaka Technologies, commented on the substantial achievements of FY 2024, emphasizing the growth in Group Adjusted EBITDA, which surged to ZAR 691 million from ZAR 445 million the year prior.

Similarly, Lincoln Mali, CEO of Southern Africa, expressed pride in the Consumer Division’s notable contributions, acknowledging the dedication of the teams behind this significant turnaround.

Conclusion: A Solid Step Forward

Lesaka Technologies is embracing a transformative phase with measurable impact on its profitability. The company's solid financial results for FY 2024 mark a pivotal moment in its evolution. As it aims for greater heights in FY 2025, maintaining this momentum is crucial for sustaining its growth trajectory and enhancing shareholder value.

Frequently Asked Questions

What were Lesaka's key financial achievements for FY 2024?

Lesaka reported an 11% increase in revenue to $564.2 million and a significant improvement in operating income to $3.6 million.

How did the Consumer Division perform?

The Consumer Division witnessed a revenue increase of 15% reaching $69.2 million, with Segment Adjusted EBITDA soaring by 361% to $14.7 million.

What are the future revenue projections for FY 2025?

Lesaka projects Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion for FY 2025.

Who is leading Lesaka Technologies?

Ali Mazanderani serves as the Chairman, with Lincoln Mali as the Chief Executive Officer in Southern Africa.

What is the primary stock ticker for Lesaka Technologies?

Lesaka Technologies trades under the ticker symbol LSAK on the NASDAQ.

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