Pax Global released its 2022 H1 earnings in August 2022. Here are the key points that you don't want to miss for Pax Global from this earnings!
Pax Global released its 2022 H1 financial results in mid August 2022, and overall it’s a good set of results (better than its previous guidance) and there are no major surprises.
Revenue grew by 26% y/y to HKD 4.2 billion, with the fastest growth in EMEA (a significant +62% to HKD 1.4 billion), North America (+27%, which was impressive considering the FBI investigation incident late last year), LACIS (+13%), and APAC (+4%).
Android terminal sales remained the leader in the market and grew very rapidly at 78% (to HKD 2.3 billion), thus contributing to more than half of the total revenue.
Gross profit grew at the same rate as revenue, of 26% (with a gross profit margin of 40%). EBIT grew faster at 32%, and net profit grew even faster at 36% (to HKD 0.7 billion, with a 17% net profit margin).
Some other notable points or developments include:
The number of Android smart terminals connected to MaxStore (rebranded from the PaxStore) platform has more than doubled y/y to 6.6 million terminals, with >7,000 software applications. However, the SaaS solutions revenue grew slower than the volume of terminals connected, by 23% y/y (to HKD 25 million, or <1% of total revenue), mainly because it usually takes several months to a year before the new terminals start contributing to revenue.
On the FBI investigation into Pax Global’s US office in October 2021, during the last earnings (in March 2022), the company said that it did not expect any adverse impact from the incident. During this latest earning, the company remained in the same position, that there have not been any charges by the relevant authorities on Pax or its products, and that it continued to expect no material adverse impact from the incident on its operations or financials. It’s worth noting that, despite the incident which started in late 2021, with the uncertainty on the outcome continuing throughout 2022 H1, Pax Global’s revenue in North America grew very well, at 27% y/y.
On the recent launch of Apple Tap to Pay, which allows merchants to accept payments using their iPhones without any external hardware (like the POS devices, which Pax Global produces), Pax’s management…
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