Generated Record Revenues of $18.5 million and Net Income of $4.9 million
Positive EBITDA of $7.0 million Exceeded Previous Guidance
Cash & Digital Assets of $52.5 million, Compared to $37.3 million on December 31, 2023
WonderFi to Hold Conference Call to Discuss Results at 1:00PM EST
Toronto, Ontario--(Newsfile Corp. - May 8, 2024) - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (the "Company" or "WonderFi"), Canada's leading operator of regulated crypto trading platforms and other digital asset businesses, today announced its financial results for the first quarter ended March 31, 2024. All financial references are in Canadian dollars unless otherwise noted.
This news release constitutes "a designated news release" for the purposes of WonderFi Technologies Inc.'s prospectus supplement dated December 23, 2022, to its short form base shelf prospectus dated September 7, 2022.
Key Financial Highlights for Q1 2024:
- Bitbuy, Coinsquare and SmartPay generated consolidated revenues of $18.5 million, a 43.4% increase over the $12.9 million in consolidated revenues achieved during the previous quarter.
- Cash and digital assets increased to $52.5 million from $37.3 million as at December 31, 2023.
- Generated EBITDA of $7.0 million, which is 37.8% of consolidated revenues. This compares with EBITDA of $6.7 million in Q4 2023 and an EBITDA loss of ($6.4) million in Q1 2023.
- Net income for the quarter increased to $4.9 million or $0.01 per share. This compares to a net loss of $7.6 million or ($0.03) per share in Q1 2023.
- Cash-based operating expenses as a percentage of revenues was 69.2%, a decrease from 71.7% in Q4 2023, reflecting the Company's continued realization of acquisition synergies and cost savings programs.
Operating Highlights for Q1 2024:
- WonderFi's wholly owned platforms processed a record $1.1 billion in crypto trading volumes in Q1 2024, representing an increase of 58% from Q4 2023.
- Bitbuy and Coinsquare surpassed $1.6 billion in client assets under custody as of March 31, 2024, representing an increase of 60% from Q4 2023.
- Coinsquare launched staking with the largest selection of stakeable assets of any CIRO dealer member and has seen over $17 million staked since its launch. Between Coinsquare and Bitbuy, clients staked approximately $100 million of assets as of March 31, 2024.
- Realized cash proceeds of $11 million from the sale of the Solana and Polkadot tokens received during the quarter from the investment.
Subsequent to Q1 2024:
- Closed the acquisition of FX Institution Pty. Ltd, an Australian company registered to offer crypto trading and payment remittances in the region. This acquisition provides a solid foundation for the Company's international expansion strategy.
- On April 26, 2024, the Company purchased the Canadian clients of Bitstamp ("Bitstamp"). Bitstamp is the world's longest-running cryptocurrency exchange, supporting investors, traders and leading financial institutions since 2011 and includes 110,000+ retail & institutional clients.
- As of May 1, 2024, WonderFi has repurchased for cancellation 2,417,091 Company common shares under the previously announced NCIB.
"WonderFi's record financial and operating results in Q1 2024, are a reflection of Management's strategic direction and the foundation established in fiscal 2023 - our breakout year, highlighted by transformative acquisitions, improved financial results and sequential growth across our operating platforms," said Dean Skurka, President and Chief Executive Officer of WonderFi.
"For the balance of 2024, WonderFi intends to continue to drive value for shareholders by executing on sustainable and disciplined organic and inorganic growth opportunities, share buybacks, and by introducing the WonderFi story to a broader group of investors. We continue to see opportunities to scale our existing platforms, expand into new markets such as Australia, and to build on our demonstrated ability to derive significant operating leverage to the adoption and demand for cryptocurrencies," continued Mr. Skurka.
Conference Call Information
WonderFi will hold a conference call to discuss the Company's first quarter 2024 results today, May 8th at 1:00pm EST. The registration link is here.
Access to Financial Statements and Management Discussion and Analysis
Complete financial statements along with related management discussion and analysis can be found in the System for Electronic Document Analysis and Retrieval ("SEDAR+"), the electronic filing system for the disclosure documents of issuers across Canada at www.sedarplus.ca.
Additional Information
For additional information, please contact:
Media / Investor Relations
Charlie Aikenhead
Invest@wonder.fi
ABOUT WONDERFI
WonderFi owns and operates Bitbuy and Coinsquare, two leading domestic crypto platforms with strongholds in the Canadian market; WonderFi operates Internationally through its expansion in Australia, as well as through Smartpay, its global crypto payments platform.
With a collective user base of over 1.75 Million registered Canadians and a combined assets under custody exceeding $1.6 Billion, WonderFi serves one of the largest crypto investor communities in Canada.
For more information, visit www.wonder.fi.
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the beliefs of WonderFi Technologies Inc. ("WonderFi" or the "Company") regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such "could", "intend", "expect", "believe", "will", "projected", "planned", "estimated", "soon", "potential", "anticipate" or variations of such words.
In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the inability to maintain current levels of user growth due to competition and cyclical market conditions; the inability of the Company to work effectively with strategic investors and partners, and any changes to key personnel; security and cybersecurity threats and hacks; internet and power disruptions; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; and material adverse changes in general economic, business and political conditions, including changes in the financial markets and compliance with extensive government regulation. These risks are not intended to represent a complete list of the factors that could affect the Company. A more fulsome description of risk factors that may impact business, financial condition and results of operation with respect to WonderFi is set out in its management's discussion and analysis and financial statements for the period ended March 31, 2024, as well as its annual information form, available on its SEDAR+ profile at https://www.sedarplus.ca.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
The company has provided an updated outlook for the purpose of presenting information about current expectations for the periods presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
The Toronto Stock Exchange has not approved or disapproved of the information contained in this release. Except as may be required by applicable law, WonderFi disclaims any obligation to update or revise any forward-looking statements.