Expected Q4 2023 Revenues of $12.5 to $13 Million (29% growth QoQ)
Achieved Cash-Flow Positive Operations for the Quarter
Ended 2023 with Client Assets Under Custody Exceeding $1 Billion
TORONTO, CANADA, January 8 2024 - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (the "Company" or "WonderFi"), operator of regulated Canadian crypto trading platforms and other digital asset businesses, today announced certain corporate updates and unaudited fourth quarter financial estimates for the period ended December 31, 2023. All financial references are in Canadian dollars unless otherwise noted.
This news release constitutes "a designated news release" for the purposes of the Company's prospectus supplement dated December 23, 2022, to its short form base shelf prospectus dated September 7, 2022.
Q4 Corporate Updates:
- As of December 31, 2023, combined client assets under custody for Bitbuy and Coinsquare exceed $1 Billion.
- Bitbuy and Coinsquare facilitated $760 Million in combined trading volumes during the quarter. This includes over $45 Million in trading volumes generated from Bitvo client accounts purchased in the fourth quarter of 2023.
- SmartPay processed over $180 Million in crypto payment volumes during the quarter.
- WonderFi achieved cash-flow positive operations on a consolidated basis during the quarter.
Q4 Financial Guidance:
WonderFi expects to achieve the following results for Q4 2023:
- Revenue in the range of $12.5 - $13 Million. At the mid-point, this represents an increase of 29% compared to Q3 2023. This reflects increased activity across WonderFi's wholly-owned subsidiaries' business lines, including trading, payments and staking.
- WonderFi expects to generate positive non-adjusted EBITDA and operating earnings on a consolidated basis for the quarter.
"The WonderFi team has continued to execute our plan against an improved backdrop for digital assets during the fourth quarter. In less than six months following our transformational merger, we have been able to realize our vision of combining prominent digital assets businesses into a leader in the digital asset industry," shared Dean Skurka, President and Chief Executive Officer of WonderFi.
"Achieving positive non-adjusted EBITDA during the quarter is a pivotal milestone for WonderFi and a reflection of the efforts of the entire WonderFi team. We continue to provide investors with diversified exposure across the digital asset ecosystem," added Mr. Skurka.
WonderFi owns and operates leading digital asset businesses in Canada. WonderFi is the holding company for Bitbuy and Coinsquare, two of Canada's largest regulated crypto trading platforms and SmartPay, a crypto payments processing platform.
With a collective user base of over 1.6 Million registered Canadians and a combined assets under custody exceeding $1 Billion, WonderFi serves one of the largest crypto investor communities in Canada.
For more information, visit www.wonder.fi.
For additional information, please contact:
Media / Investor Relations
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the beliefs of WonderFi Technologies Inc. ("WonderFi" or the "Company") regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such "could", "intend", "expect", "believe", "will", "projected", "planned", "estimated", "soon", "potential", "anticipate" or variations of such words.
In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the inability of the Company to meet its expected revenue targets and revenue growth of SmartPay, each of which may be subject to market conditions and regulatory or other approvals which may be required in connection therewith; the inability to maintain current levels of user growth due to competition and cyclical market conditions; the inability of the Company to work effectively with strategic investors and partners, and any changes to key personnel; security and cybersecurity threats and hacks; internet and power disruptions; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; and material adverse changes in general economic, business and political conditions, including changes in the financial markets and compliance with extensive government regulation. These risks are not intended to represent a complete list of the factors that could affect the Company. A more fulsome description of risk factors that may impact business, financial condition and results of operation with respect to WonderFi is set out in its management's discussion and analysis and financial statements for the period ended March 31, 2023, as well as its annual information form and the joint management circular of WonderFi, Coinsquare and CoinSmart in respect of the Acquisition, available on its SEDAR+ profile at https://www.sedarplus.ca.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
The company has provided an updated outlook for the purpose of presenting information about current expectations for the periods presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
The Toronto Stock Exchange has not approved or disapproved of the information contained in this release. Except as may be required by applicable law, WonderFi disclaims any obligation to update or revise any forward-looking statements.