Lesaka Technologies Inc (NASDAQ:LSAK) stock fell 2% (As on September 12, 11:15:56 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 24. In FY 24, Merchant Division revenue increased 12% in ZAR to $498.3 million (ZAR 9.3 billion) and Segment Adjusted EBITDA increased 4% in ZAR to $33.4 million (ZAR 624.1 million). Consumer Division revenue increased 15% in ZAR to $69.2 million (ZAR 1.3 billion) and Segment Adjusted EBITDA increased 361% to $14.7 million (ZAR 274.2 million). Net debt to Group Adjusted EBITDA ratio improved to 2.5 times compared to 4.5 times in FY 2023. The company is entering an exciting period of growth for Lesaka, integrating the Adumo and Touchsides acquisitions with the existing fintech solutions as the company strive to empower Southern African consumers and merchants to fulfil their potential.

LSAK in the fourth quarter of FY 24 has reported the adjusted loss per share of 8 cents, missing the analysts’ estimates for the adjusted loss per share of 6 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9 percent to $146.05 million in the fourth quarter of FY 24, missing the analysts’ estimates for revenue by 2.18%. For the quarter, Operating income increased to $0.3 million (ZAR 5.6 million) compared to an operating loss of $6.6 million (ZAR 124.3 million) in Q4 2023. Net loss improved 58% in ZAR to $5.0 million (ZAR 93.2 million).

For Q1 2025, the quarter ending September 30, 2024 the company expects revenue to be between ZAR 2.5 billion and ZAR 2.7 billion and Group Adjusted EBITDA to be between ZAR 160 million and ZAR 180 million. For FY 2025, the year ending June 30, 2025, the company expects revenue to be between ZAR 10.0 billion and ZAR 11.0 billion and Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion. The mid-point of the FY 2025 Group Adjusted EBITDA implies a growth rate of more than 30% on a like-for-like basis (excluding Adumo and the interest expense charge on the consumer book).

On the other hand, the company has announced significant changes to its executive leadership and board aimed at bolstering the company’s growth in the fintech sector. Chris Meyer and Monde Nkosi are stepping down from the board, with Dean Sparrow set to join post-Adumo acquisition.