TORONTO, CANADA, November 13 2023 - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (WKN: A3C166) (the "Company" or "WonderFi") today announced its third quarter financial results for the period ended September 30, 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.
Q3 Financial Highlights:
- WonderFi's wholly-owned operating subsidiaries, Bitbuy, Coinsquare, and SmartPay generated revenues of $9.9 million.
- Net loss per share decreased to ($0.02) in Q3 2023, compared with a net loss per share of ($0.04) in Q3 2022.
- Total cash and digital assets of $32.9 million and investments of $15.7 million, as of September 30, 2023.
- Total Bitbuy and Coinsquare client assets under custody exceed $695 million, as of September 30, 2023.
- WonderFi's crypto-payments subsidiary SmartPay generated positive cash-flow.
Q3 Operational Highlights:
- Bitbuy and Coinsquare processed over $505 million in trading volumes, with SmartPay processing over $168 million in payment volumes.
- 14% increase in average monthly active users across Bitbuy and Coinsquare compared to Q2 2023.
- SmartPay onboarded 24 new merchants in Q3, with a 53% increase in total revenues in Q3 2023 when compared to Q3 2022 ($1.36 million vs. $892,000).
- 31% increase in Bitbuy users staking when compared to Q2 2023, driven by the introduction of staking for ATOM and NEAR.
- Integrated the operations of Bitbuy, Coinsquare and CoinSmart, reducing our overall full-time employee headcount from 148 to 93 as part of streamlining initiatives.
- Successfully migrated the Coinberry client accounts on to the Bitbuy platform, realizing operational and cost synergies in Q3.
"Q3 was a transformational period for WonderFi. After acquiring Coinsquare, and CoinSmart and streamlining our operations, we are entering Q4 as a truly different business. Our focus on financial sustainability, and the integration of strategic acquisitions, has demonstrated our ability to navigate the current market dynamics effectively," said Dean Skurka, CEO and President of WonderFi.
"We are entering Q4 with a strong balance sheet, higher revenues, improving market conditions, and operational efficiency efforts well underway. Through further cost optimization and improved economies of scale, WonderFi is on track to deliver positive adjusted-EBITDA in Q4 2023."
Subsequent to September 30, 2023:
- WonderFi was cash-flow positive on a consolidated basis during the month of October 2023.
- Bitbuy and Coinsquare retail trading platforms have seen a 53% increase in average daily trading volumes to start November, when compared to the October 2023 average daily trading volume.
- Total Bitbuy and Coinsquare client assets under custody exceed $875 million, as of November 10, 2023.
- Successfully migrated the CoinSmart client accounts on to the Bitbuy platform, with further operational and cost synergies expected to be realized in Q4 2023.
Access to Financial Statements and Management Discussion and Analysis
Complete financial statements along with related management discussion and analysis, as well as a copy of the business combination agreement and documentation related to the transaction, can be found in the System for Electronic Document Analysis and Retrieval ("SEDAR"), the electronic filing system for the disclosure documents of issuers across Canada at https://www.sedarplus.ca.
WonderFi owns, operates, incubates, and invests across the global digital asset ecosystem. They own and operate two of Canada's most well-known and established crypto trading platforms Coinsquare and Bitbuy, as well as SmartPay, a global crypto payment processing platform. WonderFi is also the largest shareholder of Tetra, a leading Canadian digital asset custodian.
With a collective user base of over 1.6 million registered Canadians and a combined assets under custody exceeding $875 million, WonderFi boasts one of the largest communities of crypto investors within a single regulated ecosystem in Canada.
For more information, visit www.wonder.fi.
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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.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. 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 integrate successfully (including the retention of key employees) such that the anticipated benefits of the acquisitions of Coinsquare Ltd and CoinSmart Financial Inc. (the "Acquisition") are realized; the ability to realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact of the announcement or consummation of the Acquisition on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; 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; the COVID-19 pandemic; climate change; currency risk;; 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; however, these factors should be considered carefully. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and the Company's future decisions and actions will depend on management's assessment of all information at the relevant time. 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. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice. All financial amounts referenced herein are in Canadian dollars unless otherwise expressly identified.
The Toronto Stock Exchange has not approved or disapproved of the information contained in this release.