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Currenc Group Inc.(CURR) - 2024 Q4 - Annual Report
CURRCurrenc Group Inc.(CURR)2025-04-14 19:46
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Financial Performance - For the full year ended December 31, 2024, Tranglo processed approximately 11.4 million transactions with a total processing value of 5.14billion,reflectinga3.65.14 billion, reflecting a 3.6% increase in volume and a 13.2% increase in value compared to the previous year[438]. - For the full-year period ended December 31, 2024, Currenc's revenue decreased by 12.9% to 46.4 million compared to 53.3millionforthesameperiodin2023[466].−TheremittancerevenueexcludingTNGAsiaandGEAincreasedby6.453.3 million for the same period in 2023[466]. - The remittance revenue excluding TNG Asia and GEA increased by 6.4% to 18.2 million for the full-year period ended December 31, 2024, compared to 17.1millionforthesameperiodin2023[468].−Globalairtimerevenuedeclinedby23.817.1 million for the same period in 2023[468]. - Global airtime revenue declined by 23.8% from 12.2 million in 2023 to 9.3millionin2024,attributedtochangingconsumerbehaviorduetoincreasedavailabilityoffreeWi−Fi[470].−Currencrecordedanetlossof9.3 million in 2024, attributed to changing consumer behavior due to increased availability of free Wi-Fi[470]. - Currenc recorded a net loss of 38.8 million for the full-year period ended December 31, 2024, compared to a net loss of 14.4millionin2023[465].−EBITDAforthefull−yearperiodendedDecember31,2024was14.4 million in 2023[465]. - EBITDA for the full-year period ended December 31, 2024 was (26.5) million, a significant decline from (2.1)millionin2023[465].−Tranglo′sEBITDAprofitdecreasedby21.4(2.1) million in 2023[465]. - Tranglo's EBITDA profit decreased by 21.4% to 2.75 million in 2024 from 3.50millionin2023,whileWalletKureportedanEBITDAlossof3.50 million in 2023, while WalletKu reported an EBITDA loss of 0.7 million, a 12.5% improvement from a loss of 0.8millionin2023[490].−Thecompany′sEBITDAlossfor2024was0.8 million in 2023[490]. - The company's EBITDA loss for 2024 was 26.5 million, a substantial increase from the EBITDA loss of 2.1millionin2023,primarilyduetoincreasedlossesattheheadquarterslevel[490].UserMetrics−ThenumberofuniqueusersforTrangloincreasedto1,229,132asofDecember31,2024,upfrom1,032,360intheprioryear,whileaveragemonthlyuniquesendingaccountsrosefrom330,571to355,997[439].−Currenc′sabilitytomaintainandincreaseitsuserbaseiscritical,asrevenueislargelydrivenbythenumberofusersandtransactionsonitsplatforms[451].OperatingExpensesandFinancialObligations−Operatingexpensessurgedfrom2.1 million in 2023, primarily due to increased losses at the headquarters level[490]. User Metrics - The number of unique users for Tranglo increased to 1,229,132 as of December 31, 2024, up from 1,032,360 in the prior year, while average monthly unique sending accounts rose from 330,571 to 355,997[439]. - Currenc's ability to maintain and increase its user base is critical, as revenue is largely driven by the number of users and transactions on its platforms[451]. Operating Expenses and Financial Obligations - Operating expenses surged from 24.0 million in 2023 to 42.0millionin2024,primarilyduetoa42.0 million in 2024, primarily due to a 20.9 million expense for incentive shares granted to employees[478]. - Finance costs for the year ended December 31, 2024, amounted to 6.8million,primarilyduetoPIPEissuancecostsandinterestonconvertiblebonds[483].−TotalcontractualobligationsasofDecember31,2024,amountedto6.8 million, primarily due to PIPE issuance costs and interest on convertible bonds[483]. - Total contractual obligations as of December 31, 2024, amounted to 23.99 million, including operating lease commitments and borrowings[512]. Cash Flow and Liquidity - As of December 31, 2024, the company had cash balances of 63.8million,aworkingcapitaldeficitof63.8 million, a working capital deficit of 57.9 million, and a net capital deficit of 41.8million[501].−Thecompanygeneratednetcashprovidedbyoperatingactivitiesof41.8 million[501]. - The company generated net cash provided by operating activities of 3.5 million in 2024, a significant improvement from a net cash used of 15.3millionin2023[506].−Thecompanyhadnetcashusedininvestingactivitiesof15.3 million in 2023[506]. - The company had net cash used in investing activities of 0.6 million in 2024, compared to net cash provided of 1.4millionin2023[508].−ThecompanyenteredintoanELOCPurchaseAgreementonFebruary10,2025,toenhanceliquiditythroughtheissuanceofadditionalshares[502].StrategicInitiatives−ThecompanyaimstoexpanditsB2CbusinessesintheMiddleEastanddiversifyitsuserbasetootherregions,includingPakistanandAfricancountries,toenhanceitsglobalairtimebusiness[453].−CurrencislaunchingnewAIproductsandservicesforfinancialinstitutionsthroughSEAMLESSAILab,whichincludescustomizedtradingplatformsandAIAgentservices[456].−AlandmarkcontractwassecuredwithCoinCovetoprovidecomprehensiveAI−poweredelectronicbankingsolutions,includingatradingplatformandcompliancetools[457].−CurrencplanstodevelopitsAIDataCenterbusinesswithatotalplannedcapacityof500MW,providingco−locationandwholesaleleasingsolutions[462].MarketConditions−Thecompanyfacesintensemarketcompetition,impactingpricingpowerandprofitability,necessitatingmorecompetitiveandefficientservicestoretainusers[449].AccountingandReporting−TheCompanypreparesitsconsolidatedfinancialstatementsinaccordancewithU.S.GAAP,makingestimatesthataffectreportedamountsofassets,liabilities,revenue,andexpenses[520].−TheCompanyrecognizesrevenuefromcontractswithcustomersbasedontheconsiderationspecifiedinthecontract,netofsalesandservicetax,returns,rebates,anddiscounts[522].−TheCompanycomplieswithASC606forrevenuerecognitionfromcontractswithcustomers[521].−TheCompanyhasnoobligationstocustomersintermsofguaranteesorwarrantiesforbothFiatCurrencyandXRPPrefundedRemittanceServices[528].−TheCompanyqualifiesasan"emerginggrowthcompany"undertheJOBSAct,allowingittotakeadvantageofreducedreportingrequirements[519].−TheCompanyhaselectednottoearlyadopttheguidancefromSAB122,whichrescindstherequirementtorecognizeacorrespondingliabilityandassetforsafeguardingcrypto−assets[518].−AsofDecember31,2023,theOrdinarySharessubjecttopossibleredemptionamountedto1.4 million in 2023[508]. - The company entered into an ELOC Purchase Agreement on February 10, 2025, to enhance liquidity through the issuance of additional shares[502]. Strategic Initiatives - The company aims to expand its B2C businesses in the Middle East and diversify its user base to other regions, including Pakistan and African countries, to enhance its global airtime business[453]. - Currenc is launching new AI products and services for financial institutions through SEAMLESS AI Lab, which includes customized trading platforms and AI Agent services[456]. - A landmark contract was secured with Coin Cove to provide comprehensive AI-powered electronic banking solutions, including a trading platform and compliance tools[457]. - Currenc plans to develop its AI Data Center business with a total planned capacity of 500MW, providing co-location and wholesale leasing solutions[462]. Market Conditions - The company faces intense market competition, impacting pricing power and profitability, necessitating more competitive and efficient services to retain users[449]. Accounting and Reporting - The Company prepares its consolidated financial statements in accordance with U.S. GAAP, making estimates that affect reported amounts of assets, liabilities, revenue, and expenses[520]. - The Company recognizes revenue from contracts with customers based on the consideration specified in the contract, net of sales and service tax, returns, rebates, and discounts[522]. - The Company complies with ASC 606 for revenue recognition from contracts with customers[521]. - The Company has no obligations to customers in terms of guarantees or warranties for both Fiat Currency and XRP Prefunded Remittance Services[528]. - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements[519]. - The Company has elected not to early adopt the guidance from SAB 122, which rescinds the requirement to recognize a corresponding liability and asset for safeguarding crypto-assets[518]. - As of December 31, 2023, the Ordinary Shares subject to possible redemption amounted to 83,523,112, classified as temporary equity[538].