CardConnect Corp. (NASDAQ:CCN), one of the nation’s leading payment processors, today provided financial results for the quarter ended September 30, 2016. Revenue increased 30.7% to $154.0 million in the third quarter as compared to $117.9 million in the prior year period. Net revenue increased 32.2% to $41.1 million in the third quarter as compared to $31.1 million in the prior year period. Revenue and net revenue growth were driven by record growth in both Merchant Acquiring services and Enterprise services. Merchant Acquiring services revenue and net revenue were driven by record bankcard volume of $5.8 billion for the quarter ended September 30, 2016, a 33.9% increase from the prior year period.
Highlights for the third quarter of 2016 include:
| ● | Bankcard volume of $5.8 billion, a 33.9% increase from $4.4 billion in the prior year period |
| ● | Revenue of $154.0 million, a 30.7% increase from $117.9 million in the prior year period |
| ● | Net revenue of $41.1 million, a 32.2% increase from $31.1 million in the prior year period 1 |
| ● | Net loss of $22.1 million, and GAAP loss of $0.93 per share |
| ● | Pro forma adjusted net income of $3.5 million, and pro forma adjusted net income per share of $0.11 1 |
| ● | Adjusted EBITDA was $10.6 million, compared to $7.1 million in the prior year period 1 |
Jeff Shanahan, President and CEO of CardConnect, said, “I am very pleased to report strong results in our first quarter following the merger. In the third quarter, we generated a 33.9% increase in total bankcard volume fueled by our continued success in penetrating the integrated payments market. Our go to market strategy for integrated payments is based on the distribution of our CardPointe platform. SMB merchants access our CardPointe platform via our developer friendly APIs, mobile iOS and Android solutions, a full featured virtual terminal, and our Point to Point Encrypted (AKA, P2PE) device solutions. It’s at the forefront of our ability to differentiate CardConnect as a leading provider of value-added merchant electronic payment and related services. We are now focused on leveraging our new corporate structure to accelerate growth and expand the CardConnect franchise. Our focus will continue to be to reinvest in our differentiated technology to take advantage of the trend in the market that places greater value on integrated payment services and security. We are pleased with our third quarter results and look forward to life as a public company.”
Earnings Conference Call and Audio Webcast
CardConnect will host a conference call to discuss the third quarter financial results today at 8:30 a.m. ET. You may participate by calling 877-883-0383 and providing the operator with Pin Number 5914339. You can also listen to the conference call broadcast through a webcast on CardConnect’s website. To access the webcast, please visit the Investor Relations portion of CardConnect’s website at www.cardconnect.com. The webcast will be archived on CardConnect’s website for replay within two hours of the live call.
About CardConnect
CardConnect (CCN) is a leading provider of payment processing and technology solutions, helping more than 65,000 organizations – from independent coffee shops to iconic global brands – accept billions of dollars in card transactions each year. Since its inception in 2006, CardConnect has developed advanced payment solutions backed by patented, PCI-certified point-to-point encryption (P2PE) and tokenization. The company’s small-to-midsize business offering, CardPointe, is a comprehensive platform that includes a powerful reporting and transaction management portal which extends to a native mobile app. For enterprise-level organizations, CardSecure integrates omni-channel payment acceptance into several ERP systems – such as Oracle, SAP, JD Edwards and Infor M3 – in a way that minimizes PCI compliance requirements and lowers transaction costs.
