Peak Fintech Releases Updated Guidance Reflecting North American Expansion Plans
Peak Fintech Group (CSE: PKK) this morning shared the updated revenue and earnings guidance for 2021-2023. The update in the projected guidance will accommodate the firm’s plans to expand its North American operations following the Cubeler acquisition.
The company increased its revenue guidance to $109.0 million (5%) in 2021, $345.0 million (13%) in 2022, and $814.0 million (30%) in 2023. On the other hand, it expects earnings in 2021 to be lower than previous guidance as it invests in North American expansion. EBITDA and net income for the year are guided to be $11.3 million and $4.4 million, respectively.
“But those numbers should be considerably higher in 2022 and 2023 than what was previously forecasted,” said Peak Fintech CEO Johnson Joseph. EBITDA and net income guidance are $81.8 million and $51.4 million for 2022 and $295.7 million and $204.5 million for 2023.
Following its acquisition of Cubeler, the fintech firm aims to deploy its business hub concept to North America and subsequently, other parts of the world. The firm is expecting a positive impact on its revenue and access to markets beyond China following the acquisition.
“While we don’t expect those applications to impact our 2021 numbers as they are still being developed, we do expect them to account for more than a third of our revenue by 2023 and to eventually become the biggest source of revenue for the company shortly thereafter,” Joseph added.
Peak Fintech last traded at $10.97 on the CSE.
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