Usio reports Q2 EPS 0c, consensus (1c)

Reports Q2 revenue $20.08M, consensus $19.91M…Louis Hoch, President and Chief Executive Officer of Usio, said, “Momentum remains strong, with a backlog of contracted PayFac integrated software vendors, “ISVs”, still to implement with more than $1.4 billion in potential processing dollars. Total payment dollar processing volume growth accelerated to 29% in the second quarter, with all of our electronic transaction processing businesses generating double-digit growth across all of their key processing metrics. However, based on first half revenues, and anticipated future volumes respective to our initial projections due to PayFac’s contracted ISVs implementing slower than we had previously forecasted…Revenues for the quarter were once again in line with our expectations for the quarter and were down from a year ago, primarily due to the continued managed wind down of a large Prepaid program related to the NYC COVID Incentive program. Excluding that single program, revenues would have been up for both the quarter and the first half of the year compared to a year ago. Revenues in the quarter were led by Credit card, specifically in our Payfac division, where revenues were up 22% on a 25% increase in volumes, overcoming the attrition in our legacy portfolios to increase total credit card revenues 2%. Prepaid card services, despite the decline in revenues, has a positive growth trajectory, with card load volume growing 55% from the comparable quarter of 2023, to a record $133 million, and exceeded $100 million for the fourth consecutive quarter. ACH & Complementary Services also had strong processing volume growth, although revenues were down marginally for the quarter, due to the presence of some one-time revenues in the prior year period, while up over the first half of the year. Revenues for Output Solutions were down for the quarter, though underlying volumes were up sequentially versus the first quarter of 2024. The decrease was due to the comparison with a strong second quarter 2023 and delays with some new customer implementations.