Payment solutions provider Tyro Payments [ASX:TYR] released its FY22 results on Monday, bucking the wider market malaise and rising more than 10%.
While the TYR stock spiked on Monday, it’s still down 70% over the past 12 months:
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Tyro’s FY22
Here are the key highlights from Tyro’s FY22:
- Transaction value up 34.4% to $34.2 billion
- Revenue up 36.7% to $326.1 million
- Gross profit (statutory) up 29.5% to $155 million
- Payments revenue up 39% from $229.2 million to $318.8 million
- EBITDA down 24.7% to $11 million
- Loss before tax (statutory) steady at $29.6 million
- Merchants up 10% from 58,186 to 63,770
Tyro reported a record transaction value for the year, despite saying it was hampered by COVID-19.
The fintech explained the drop in normalised EBITDA was a reflection of COVID lockdowns, the loss of 2021 JobKeeper benefits, and the full-year Medipass expenses.
The group estimated $5 million in would-be EBITDA was lost due to continuing COVID lockdowns in NSW, Victoria, and the ACT.
Tyro also cut staff during the year, chasing operational efficiencies, although its statutory loss didn’t budge as a result.
Robbie Cooke, Tyro’s CEO, said:
‘Despite the challenges of 2022 with Covid, tight labour markets, market de-ratings of payment companies and inflationary pressures — we responded strongly with focused cost management, tight margin management, and a continuing focus on serving our customers while delivering new products and services to our merchants.
‘These actions started to positively contribute in the last quarter of the year and remain a key focus in FY23. They are expected to yield further operating leverage improvements in parallel with our continuing focus on driving strong top line growth and new merchant acquisition.’
Source: TYR
Tyro: looking ahead
TYR said it has started FY23 strongly, ‘with transaction values for July lifting 46% on the same period last year’.
Tyro has provided earnings guidance range for FY23 with forecast transaction value between $40–42 billion and a normalised gross profit of between $175–181 million.
‘Tyro is targeting being free cashflow positive on exiting FY23.’
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Kiryll Prakapenka
For Money Morning
