Embed Size (px)
Citation preview
1
Date of Presentation: 29th October 2021
30th JUNE 2021 FISCAL YEAR PRESENTATIONBANXA HOLDINGS INCTSX-V:BNXAOTCQX: BNXAFFSE: AC00
2
Banxa Introduction
3
SECTION 3
VISION
Providing equal access to financial opportunity for people in every part of the world.
MISSION
Banxa onboards the masses to crypto by providing payments and compliance solutions to global digital asset platforms.
Our Vision and Mission
BA
NX
A IN
VE
STO
R P
RE
SE
NTA
TIO
N
1. World’s first stock exchange listed Fintech Payment Service Provider (PSP) & Reg Tech provider for the digital asset industry (Banxa is like the Stripe/Paypal of the digital asset industry).
2. Banxa is building the PAYMENTS & COMPLIANCE bridge between “fiat” (USD/EUR/CAD etc) and “digital assets” (Bitcoin/Ethereum etc) via on/off ramps. (‘Picks and shovels’ of the industry) for both onboarding “Buy” and offboarding “Sell” functions.
3. B2B2C focused business model is regulated, highly scalable, low touch and in a growing market (whether the price of Bitcoin goes up or down).
Digital Asset world
Fiat money world
BANXA SNAPSHOT
4
BA
NX
A IN
VE
STO
R P
RE
SE
NTA
TIO
N
5
BANXA FOUR PILLARS - PAYMENTS & REGTECH
Global & Local Payments
platform
Regulatory & Compliance
platform
Coin/token delivery platform
Data Science Automation
platform
1. Global (Mastercard, Visa, Apple Pay) and local (Interac Canada, SEPA Europe, iDeal Netherlands, Faster payments UK, Poli Australia etc) payment options.
2. Banxa has multiple digital asset licences and registrations (RegTech) globally and a full AML/KYC compliance platform given the regulated nature of industry.
3. Highly scalable technology platform that automatically manages market data, pricing, payments, order management across an API and Widget.
4. Coin token delivery technology that will deliver customers order (Bitcoin/Ethereum etc) in the most efficient manner possible (on and off chain delivery technology solutions)
BA
NX
A IN
VE
STO
R P
RE
SE
NTA
TIO
N
6
With a strong pipeline of new partners, Banxa continues to grow the network and access to new customers
SOME OF OUR EXISTING B2B CUSTOMERS
BA
NX
A IN
VE
STO
R P
RE
SE
NTA
TIO
N
7
TTV numbers are management prepared.
GROWING TOTAL TRANSACTION VALUE (TTV) - $M
8
CAPITAL STRUCTURE
Share on issue: 45,326,144
Stock Options (Employee ESOP): 4,127,513
Warrants: 2,754,518
Fully Diluted: 52,181,115
TSX-V: BNXA
OTCQX: BNXAF
FSE: AC00
Research: Fundamental ResearchRAASH.C. WainWright
9
Financial Summary for FY ending June 2021
10
Financial Highlights
● $688 million AUD Total Transaction Value (TTV) for the Fiscal Year ended
30th June - up 893% year on year
● Revenue of $46 million AUD for the Fiscal Year ended 30th June - up 577%
year on year
● $25 million AUD in liquid assets (comprising of cash, deposits and digital
assets)
● Adjusted EBITDA profit of $1.7 million AUD for the full fiscal year,
excluding public company listing cost (one off)
● Statutory loss of $5.7million AUD including non-cash items and public
company listing costs (one off)
● Growth of B2B customers, 72 signed customers now
Highlights:
● TTV expansion YoY of $688m or 893%
● TTV growth underpinned by partner & geographic expansion
● Annual gross margin is at 2.5% of TTV based on geographic mix and competitive market conditions
● Continued investment in product, talent and systems has resulted in opex increasing to $15m or 2% of TTV
● Employee cost is c50% of opex
● Adjusted EBITDA of $1.7m - within 6 months of listing and despite opex expansion
11
Profit & loss - Performance & EBITDA
12
Balance sheet - Performance & KPIs
Highlights:
● Liquid assets of $25m comprising of cash, deposits and digital assets
● Net working capital of $19m and quick ratio of 4.1x
● Payment gateway receivable is collected ~T+2 days in contrast to standard payable terms of ~30 days
● Research and development costs are expensed as incurred and not capitalised on the balance sheet
● Convertible note ($1.6m) was converted to equity in July 2021. Post conversion Banxa has maintained a debt free capital structure
REVENUE RECOGNITION POLICY
Agency vs. principal Judgment is required in determining whether Banxa is the principal or the agent in transactions between customers.
Banxa evaluates the presentation of revenue on a gross or net basis based on whether it controls the cryptocurrency provided before it is transferred to the customer (gross) or whether it acts as an agent by arranging services on the platform to provide the cryptocurrency to the customer (net).
In respect of net sales transactions, Banxa does not control the cryptocurrency being provided before it is transferred to the buyer and does not have inventory risk related to the cryptocurrency. As a result, Banxa acts as an agent in facilitating the ability for a customer to purchase cryptocurrencies.
13
Key accounting policy
14
Business Update
15
Local Compliance & Paymentsfor the Digital Asset IndustryFast integration with the most paymentoptions for higher conversions.
Leave fraud, risk and compliance behind. We connect your business with the old world, so you can build the new world.
Available in 136 countries, and counting.
16
Why the Industry chooses Banxa
THE MOST WAYS TO PAY
The widest choice of payment options locally and globally – giving
our partners local currencies and lower rates so they convert more.
MAXIMISE CONVERSIONS
We ensure our partners that their users return again and again by
providing the highest conversion rates and industry-leading UX/UI.
ZERO FRAUD & CHARGEBACKS
We remove risk, manage fraud and offer chargeback guarantees – so our partners can focus on growing
their business.
17
Growth Insights1. Added a number of key executives and senior management to allow for rapid, highly scalable growth in
existing and new products and markets.
2. The Banxa network of partners has grown from 38 to 72 since listing. We continue to
expand and have as many as 7-10 more partners coming online during November
3. From FY-Q4 2020 to FY-Q2 2021, average monthly orders have increased by 3.5x
4. Operational Efficiencies:
a. Increased order processing capacity significantly with a dedicated onboarding, compliance, fraud and
and support team operating 24/7 out of 3 locations globally.
b. Over the last 12 months, company has improved its automated processing (orders not requiring
manual checks) by 513%
5. Deployed marketing, sales and customer success team to engage with the market.
6. Started license application process in a number of countries.
7. Engaged in strategic partnership conversations with payment networks in key markets.
8. Working closely with our enterprise partners to develop more customised solutions leveraging our payments
and compliance layers.
18
Comparables (Listed)
19
Comparables (Unlisted)
1. Two Unlisted transactions of companies in a similar sector were completed in
October 2021
2. Ramp which is a startup in the space raised at a USD$300m valuation
3. Moonpay (based on market intelligence) has circa $2 Billion annualised transaction
run rate raised at a USD$3 Billion valuation
Ramp transaction: https://bit.ly/RAMP-300m
Moonpay transaction: https://bit.ly/Moonpay-3-4B
20
Key Catalysts
1. Focused execution while increasing Total Transaction Value (TTV)
2. Growing B2B customer base
3. Acquire new crypto licences and registrations globally
4. Payment option expansion
5. Expansion of coins and opportunities in DeFi and NFT space
6. Increased consumer interest and acceptance in digital assets
7. Increased public company comps and investor acceptance of sector
8. Grow geographical coverage and enter new markets
