Acquisition Details - Lesaka Technologies completed the acquisition of Adumo RF (Pty) Ltd for a total purchase consideration of ZAR 1.67 billion ($96.2 million), settled through the issuance of 17,279,803 shares of Lesaka's common stock and a cash payment of ZAR 232.2 million ($13.4 million) [1] - The transaction implies a purchase price based on Lesaka's October 1, 2024, closing price of ZAR 83.05 per share on the Johannesburg Stock Exchange [1] - Lesaka also agreed to purchase 2,601,410 shares of its common stock for ZAR 207.2 million ($12.0 million) to provide cash liquidity to indirect Adumo shareholders, expected to complete in early October 2024 [5] Strategic Impact - The acquisition of Adumo, South Africa's largest independent payments processor, reinforces Lesaka's position as a consolidator in Southern African fintech [2] - The transaction enhances Lesaka's consumer and merchant market strengths, following the successful integration of Connect, Kazang, and Touchsides businesses [2] - The combined fintech platform will serve 1.7 million active consumers, 120,000 merchants, and process over ZAR 270 billion in throughput annually, including ZAR 45 billion in card transactions, ZAR 105 billion in VAS, and ZAR 120 billion in cash [3] - The acquisition broadens Lesaka's product offering and deepens penetration in both merchant and consumer segments, accelerating growth and providing opportunities for innovation and market expansion [4] Operational Integration - Adumo CEO Paul Kent joins Lesaka's executive leadership team, taking responsibility for the merchant pillar, while Crossfin CEO Dean Sparrow joins the board as a non-executive director [4] - The combined group will have over 3,300 employees operating in 5 countries: South Africa, Namibia, Botswana, Zambia, and Kenya [3] - Adumo's businesses, including Adumo Payments, Adumo ISV (GAAP), and Adumo Ventures, will integrate with Lesaka's existing operations, offering a holistic suite of products and services to merchants and consumers [6][7] Adumo Overview - Adumo is South Africa's largest independent payments processor with over 20 years of experience, serving approximately 23,000 active merchants across South Africa, Namibia, Botswana, and Kenya [6] - The company generates the majority of its revenue from per-transaction fees and SaaS subscription fees, employing approximately 950 employees as of June 30, 2024 [8] - Adumo's businesses include payment processing, integrated software solutions, and online commerce solutions, serving clients such as Anglo American, Coca-Cola, KFC, McDonald's, and Nando's [7] Lesaka Overview - Lesaka Technologies is a South African fintech company providing financial services and software to underserved consumers and merchants in Southern Africa [9] - The company offers a wide range of solutions, including transactional accounts, lending, insurance, cash management, card acceptance, supplier payments, software services, and bill payments [9] - Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK) [10]

Lesaka Technologies (LSAK) shares ended the last trading session 6.3% higher at $5.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.9% loss over the past four weeks. The stock is benefiting from the company's topline strength. LSAK has uplifted its devices from lower turnover sites and deployed them more profitably. This payments company is expected to post quarterly loss of $0.04 per share in its upcoming rep ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kindly note that our content on Seeking Alpha and other platforms doesn't constitute financial advice ...

Lesaka Technologies, Inc. (NASDAQ:LSAK) Q4 2024 Earnings Conference Call September 12, 2024 8:00 AM ET Company Participants Ali Mazanderani - Executive Chairman Steven Heilbron - Chief Executive Officer, Connect Group & Director Lincoln Mali - Chief Executive Officer, Southern Africa & Director Naeem Kola - Chief Financial Officer, Treasurer, Secretary & Director Conference Call Participants Rajiv Sharma - B. Riley Securities Theo O’Neill - Litchfield Hills Research Operator Hello, everyone and welcome to t ...

Richard Darko/iStock via Getty Images South Africa-based Lesaka Technologies (NASDAQ1.SAK) has been in the nidst of a turnaround for many years, but over the last twelve months, the company has made substantial progress with its efforts to transform into a leading fintech firm, both in its home market, and in other markets on the African continent. Since late last year, an experienced fintech executive has assumed the top leadership role. The company has also made several strategie acquisitions, all of whic ...

Lesaka Technologies (LSAK) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this payments company would post a loss of $0.05 per share when it actually produced a loss of $0.06, delivering a surprise of -20%. Over the last four quarters, the compan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Revenue and Financial Performance - Revenue increased 11% in ZAR to $564.2 million (ZAR 10.6 billion) for FY 2024[2] - Revenue for the quarter increased to $146.046 million, up from $133.149 million in the previous year[25] - Merchant Division revenue increased 12% in ZAR to $498.3 million (ZAR 9.3 billion) and Segment Adjusted EBITDA increased 4% in ZAR to $33.4 million (ZAR 624.1 million)[2] - Consumer Division revenue increased 15% in ZAR to $69.2 million (ZAR 1.3 billion) and Segment Adjusted EBITDA increased 361% to $14.7 million (ZAR 274.2 million)[2] - For FY 2025, the company expects revenue between ZAR 10.0 billion and ZAR 11.0 billion and Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion[6] Operating Income and EBITDA - Operating income improved to $3.6 million (ZAR 67.3 million) from an operating loss of $15.3 million (ZAR 275.3 million) in FY 2023[2] - Group Adjusted EBITDA increased 55% in ZAR to $36.9 million (ZAR 690.9 million) for FY 2024[2] - Group Adjusted EBITDA for the three months ended June 30, 2024 was $10.258 million, a 31.5% increase from $7.798 million in the same period of 2023[20] - Group Adjusted EBITDA for the year ended June 30, 2024 was $36.936 million, a 48.8% increase from $24.830 million in the previous year[20] - The mid-point of the FY 2025 Group Adjusted EBITDA implies a growth rate of more than 30% on a like-for-like basis (excluding Adumo and the interest expense charge on the consumer book)[7] Net Loss and Earnings - Net loss improved 48% in ZAR to $17.4 million (ZAR 326.1 million) compared to a net loss of $35.1 million (ZAR 629.2 million) in FY 2023[2] - GAAP net loss for the three months ended June 30, 2024 was $5.035 million, compared to $11.909 million in the same period of 2023[20] - Net loss for the quarter was $5.035 million, compared to a net loss of $11.909 million in the same period last year[25] - GAAP net loss for the year ended June 30, 2024 was $17.440 million, a 50.3% improvement from $35.074 million in the previous year[23] - Net loss for the year ended June 30, 2024, was $17,440 thousand, compared to $35,074 thousand in 2023, a 50.3% improvement[28] - Net loss for the three months ended June 30, 2024, was $5,035 thousand, compared to $11,909 thousand in 2023, a 57.7% improvement[29] - Fundamental net earnings (loss) per share improved to $0.02 for the three months ended June 30, 2024, from a loss of $0.04 per share in the same period of 2023[23] - Headline loss per share (basic and diluted) for the year ended June 30, 2024, was $0.26, compared to $0.43 in 2023, a 39.5% improvement[28] Debt and Financial Ratios - Net debt to Group Adjusted EBITDA ratio improved to 2.5 times compared to 4.5 times in FY 2023[2] Acquisitions and Transaction Costs - The company expects to close the acquisition of Adumo in October 2024 (Q2 FY 2025)[6] - Transaction costs related to the Adumo acquisition totaled $1.628 million for the three months ended June 30, 2024[21] Employee Misappropriation and Stock-Based Compensation - Employee misappropriation of company funds resulted in a loss of $1.152 million for the three months ended June 30, 2023[21] - Stock-based compensation charges increased to $2.258 million for the three months ended June 30, 2024, up from $1.354 million in the same period of 2023[20] Intangible Assets and Amortization - Intangible asset amortization, net was $2.670 million for the three months ended June 30, 2024, compared to $2.621 million in the same period of 2023[23] Cost of Goods Sold and Operating Expenses - Cost of goods sold, IT processing, servicing, and support increased to $113.063 million from $102.893 million year-over-year[25] - Selling, general, and administrative expenses increased slightly to $24.855 million from $24.055 million year-over-year[25] - Depreciation and amortization expenses rose to $6.205 million from $5.793 million in the previous year[25] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $5.652 million, down from $9.757 million in the prior year[26] - Capital expenditures for the quarter were $4.715 million, up from $2.946 million in the previous year[26] - Net cash used in financing activities was $2.972 million, a decrease from $30.722 million in the same period last year[26] - Cash, cash equivalents, and restricted cash at the end of the period stood at $65.918 million, up from $58.632 million at the beginning of the period[26] - Cash and cash equivalents increased to $59,065 thousand in 2024 from $35,499 thousand in 2023, a 66.4% increase[27] Assets and Liabilities - Accounts receivable, net, rose to $36,667 thousand in 2024 from $25,665 thousand in 2023, a 42.9% increase[27] - Finance loans receivable, net, increased to $44,058 thousand in 2024 from $36,744 thousand in 2023, a 19.9% increase[27] - Inventory decreased to $18,226 thousand in 2024 from $27,337 thousand in 2023, a 33.3% decline[27] - Total current assets before settlement assets grew to $164,869 thousand in 2024 from $148,378 thousand in 2023, an 11.1% increase[27] Shareholder Information - Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP increased to 64,527 thousand in 2024 from 63,805 thousand in 2023, a 1.1% increase[30] - Denominator for headline diluted loss per share increased to 64,527 thousand in 2024 from 63,805 thousand in 2023, a 1.1% increase[30] Impairment Loss - Impairment loss for the year ended June 30, 2023 was $7.039 million, with no impairment loss recorded in 2024[20]

JOHANNESBURG, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the fourth quarter ("Q4 2024") and year ended June 30, 2024 ("FY 2024"). FY 2024 performance: Revenue increased 11% in South African Rand ("ZAR")1 to $564.2 million (ZAR 10.6 billion). Operating income increased to $3.6 million (ZAR 67.3 million), compared to an operating loss of $15.3 million (ZAR 275.3 million) in FY 2023. Net loss improved 48% in ZAR to $17.4 million (ZAR 326.1 m ...

JOHANNESBURG, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. ("Lesaka" or the "Company") (NasdaqGS:LSAK; JSE: LSK) today announced changes to augment its executive leadership team to align with the Company's ambitious growth targets. These changes represent a significant step forward as Lesaka positions itself as a natural consolidator and leading fintech in Southern Africa. Executive Changes: 1. Naeem Kola, currently Group Chief Financial Officer, will be appointed as Group Chief Operating Of ...