READ THE FULL XTMIF RESEARCH REPORT
Q2 had a full quarter of a fully opened hospitality sector in the Canadian market and onboarded its first new US customers. Canada lifted all restrictions and limits in the hospitality and personal care spaces in early March. In Q2 2022, XTM (OTC:XTMIF) reported that the gross dollar value (GDV) loaded on its platform was $117 million, an increase of 405% from $23 million in Q2 2021. Active users at year end were 58,000, up 262% from 16,000 at the end of Q2 2021. XTM signed up 220 new locations for its Tips Today program during the slower summer quarter compared to 224 in Q1 2022.
XTM continues to enhance its platform. It has integrated with more POS systems and also introduced a stand-alone version of Tipstoday which makes it more flexible and will allow verticals aside from restaurants use it. It allows manual inputs when different information needs to be entered than the POS system would generate. The company just signed its first Tipstoday customer outside the restaurant industry—an on-demand waste disposal company and hopes many other industries will follow. Not only can the company now pay its drivers their earnings, but it can preload Tipstoday debit cards for expenses the drivers incur such as to pay for gas for the trucks, and to pay dump fees. Certainly, with the cost of gas, these are large sums for an employee to burden. XTM is looking to serve other industries employing drivers.
XTM is a canary for the economy and it has recently heard from its customers that restaurant patrons have started to pull back spending as a reaction to interest rates and inflation. We have reduced revenue expectations somewhat for XTM as a result, but still expect rapid growth this year.
The company has a fully diluted enterprise value of US$18.6 million (CN$24.5 million) and trades at an EV to 2023 sales ratio of 2.0 times. This compares with peers who trade at 3.2 times.
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