Q1 2021 Usio Inc Earnings Call
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Ladies and gentlemen, thank you for standing by the conference will begin shortly please continue to hold and thank you for your patience.
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Good afternoon, and welcome to the UCL earnings Conference call for the first quarter ended March 31, 2021, all participants will be in a listen only mode.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.
Participants on this call are advised that the audio of this conference call is being broadcast live over the Internet and it's also being recorded for playback purposes, a replay that will be available. Shortly after the end of the call through May 28 2021.
I'd now like to turn the conference over to Joe Hassett Investor Relations. Please go ahead.
Thanks, Matt and thank you everyone for participating today, what would you see on his first quarter 2021 financial results conference call. The earnings release, which you see all issued yesterday. After market closed is available on the company's Investor Relations website at <unk> Dot Com slash investors under news on this call today on Louis Hope President and CEO.
Greg Carter Senior Vice President of payment Facilitation, Tom Jewell, Senior Vice President and Chief Financial Officer, and Houston Frost Senior Vice President of business development and prepaid products.
Management will provide prepared remarks, and then we will open the call to your questions.
Before we begin please remember that comments on today's call include forward looking statements forward looking statements can be identified by the use of such words as estimate anticipate expect believe intend may will should seek approximate we're playing for the negative of these words and other similar words and phrases.
Forward looking statements by their nature involve estimates projections goals forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward looking statements, including risks related to the COVID-19 pandemic and its effect on the economy, the realization and the opportunities from the IMS.
Acquisition management of the company's growth for walk the key reason the relationships with the automated clearing House network Bank sponsors third party card processing providers and merchants the volatility of stock price for Wassa key personnel growing competition in electronic commerce market. The security of the company's software hardware and information compliance with <unk>.
That's federal state and local laws and regulations and other risks detailed in the Companys filings with the SEC.
These forward looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events, you see oh expressly disclaims any obligations or undertaking to update or revise any forward looking statements made today to reflect any change in <unk> expectations with regard there to or any other changes in events conditions or circumstances on which any.
Such statement is based except as required by law.
Refer to the company's SEC filings on its Investor Relations website for additional information and with that I would now like to turn the call over to Lewis Lewis.
Thank you Joe and welcome everyone.
First quarter was another record quarter with record processing volumes and record revenue growth.
After four consecutive years of revenue growth and a strong recovery over the second half of last year. We were pleased that we have carried that momentum into the new year revenues were up 73% to 13, and a half million with strong growth in all of our business lines.
We achieved record transaction processing volumes in the quarter with total dollars processed nearly one 9 billion an increase of 113% from a year ago.
And more importantly, more than doubled the processing volume on any prior quarter in the company's history.
This led to a 15% increase in card revenue.
38% increase in <unk> revenue.
Revenue.
And a 61% an increase in prepaid services.
In addition, our first full quarter of ownership of IMS, which we rebranded UCL output solutions contributed revenue for the first three months of the year that exceeded our acquisition.
<unk>.
Consequently, the second consecutive quarter, we reported positive adjusted EBITDA.
Without question, we experienced an outstanding growth quarter across all of our business lines, including the Bottomline.
We believe these results clearly demonstrate that our growth trajectory has inflicted once again, we attribute our success to our strategy to offer growth.
To the growing electronic payment market, a diverse portfolio of payment channel solutions, including ACTH prepaid card processing and now output solutions.
To improve transparency, we provide business line revenue reported so let me offer some high level comments by business lines on.
Particularly pleased with AC H, which had its best quarter ever after battling through a year of Corona virus induced headwinds.
There is no other way to describe it other than his remarkable growth.
The strategic actions, we initiated as these headwinds the Roes have resulted in a broader portfolio of products serving more diverse end markets that provides for the even stronger more dynamic final foundation for future growth.
One of our early actions that is now contributing significantly to our growth is our foresight and recognizing the potential of the crypto currency market when it was in its infancy.
Growth the growth in volumes in this market are now exploding in part in part due to our success in this market a C. H is on pace for a record year and remains our most profitable business line in.
In addition, we are seeing strong growth from new products, such as Tim was debit and day count required ACTH is off a great day. After a great start in the second quarter with no current signs of any let up from the first quarter's momentum.
Which could lead to another record quarter for ACA volume and the associated.
<unk> revenues our card business also had a breakout quarter room, where momentum is picking up dollars processed were up 30% while transactions processed.
We're more than doubled we've consistently been investing in our payback platform as a strategy to accelerate growth and we are now experiencing a rapid adoption of this technology by many integrated software vendors with whom we have been partnering.
Greg will review our performance in more detail, but I believe we have reached an inflection point in our card business.
Pace of Isps implementing our technology is is on the rise and we have become a leader in certain industries such as <unk>.
Software for bankruptcy attorneys and we're getting larger deals such as our first ever potentially $100 million plus per year on ESP.
There is no question that we have.
We have so much momentum that we should see sequential improvement over the balance of this year.
Like ACTH, our card business is off to a great start in the second quarter and is likely to achieve another.
Quarter of record volumes and revenue.
After doubling in fiscal 2020 prepaid low volume doubled again in the first quarter driving a 61% increase in revenues as Houston will discuss in a minute. Our prepaid business is now branching out within many government munis municipal and other similar organizations that original.
Please turn to us for prepaid solutions for the COVID-19 relief programs with strong relationships, we built with with these nearly 100 organizations under these programs are leading to a wealth of new opportunities.
Within the organization to grow our prepaid solutions I'm very pleased with the growth of prepaid over the past year and I believe 2021 could be another.
Another year of rapid growth.
As I briefly mentioned after just four months as part of the UCL family output solution is already exceeding our expectations.
Tribute to the smooth integration into the UCL family, where we experienced no disruption in operations and created.
Numerous synergies I remain optimistic output solutions will be accretive to our 2021 earnings as contemplated in our original acquisition expectations.
We ended the quarter in solid financial condition with only a modest use of cash to support the nearly doubling of our business and with the expectation to be cash flow by the end of the year. We believe this.
We believe we are more than sufficiently funded to support our growth initiatives over the next 12 months.
With a solid first quarter on the book, we have now generated steady if not even more recent spectacular.
Sequential improvement in our performance for nearly two years.
And with the exception of last year's COVID-19 influence.
Second quarter on.
Already the second quarter of 2021 is shaping up to be another strong quarter as of yesterday, the midpoint for the second quarter, we've already processed.
Over one for $1 billion on volume that is nearly 75% of the quarterly record $1 $9 billion, we process in the entire first quarter, which in itself was twice that of our previous record.
Furthermore, on a year to place that year to date basis, we're nearly at the same level.
As for all of 2020 with seven months left in the year.
That's impressive progress as for guidance, we're obviously experiencing a growth rate that demonstrates our previous estimate of $50 million in.
And revenue for 2021 should be exceeded and as a result.
We have exceeded our internal projections. This acceleration is so dramatic that we're refining our internal projections almost daily.
Sue will provide more clarity, but we are forecasting a revenue range of $53 million to $56 million for 2021 with being.
Adjusted EBITDA positive in the range being contingent on continued improvement in overall economy continued excitement in the crypto currency marketplace and the recovery of the consumer lending industry.
Finally, I'd like to remind everyone that we will be hosting our annual shareholder meeting on June 10.
The meeting will be held in person and virtually to allow for ease of participation.
With that I'd like to now.
<unk> my opening remarks, and turn the call over to Houston Frost, our senior Vice President of prepaid services.
Thank you Louis on.
To everyone participating in the call this morning.
As Louis mentioned, the prepaid business is off to a solid start this year with another quarter of better than 100% growth in low volume as compared to the same period last year.
Prepaid card transaction volume growth was also strong up 89% leading to a 61% increase in first quarter prepaid card revenues.
We are continuing to see a shift in program activity with our nonprofit and government clients moving from dispersing COVID-19 relief funds to issuing card for a variety of other civic and community related programs.
Some examples of these include guaranteed income programs like the contemplation and humanity forward a variety of programs for domestic workers with the national domestic workers Alliance.
Transportation stipends and other support for job placement programs in various cities and the cash for trash program in San Jose, California, which helps provide support for the homeless population for keeping the city clean.
We've also had the opportunity to compete for some state administered programs, which have the potential to be substantially larger than many of the county municipal programs and supported in the past.
In virtually all cases, these new programs on a longer term and have potentially significant larger volumes.
Our involvement with the COVID-19 relief related programs administered by over 100 community civic social nonprofit and governmental organizations have been the foundation of our recent strength in.
In the process, we built strong relationships with these organizations through our exceptional attention to service and expediency and delivering a product that meets the needs of our clients on.
On previous calls you've heard me emphasize the significance of our relationships nowhere is this more evident than on the introductions and recommendations offered by our current clients for similar organizations and related agencies that are in need of a card solution to disperse funds.
For 2021, we expect another strong year, while our revenue was lower in the first quarter as compared to the final quarter of 2020. This was primarily due to a large card order delivered in December.
We have anticipated there being a cooling off period as COVID-19 related programs wound down and new disbursement programs ramped up. However, we continue to win new business and we expect to see sequential revenue growth from this point forward.
These revenue increases will be driven not only by new business and new disbursement programs, but also from the recognition of revenue that is still expected from the cards issued in 2020, beginning in late Q2 and in Q3 of this year, we will recognize revenue from breakage and dormant accounts.
All in all we are excited about the continued prospects of our prepaid card issuance line of business and expect continued growth in 2021 with that I'd like to conclude my remarks, and turn the call over to Tom Jewell, Our senior Vice President and Chief Financial Officer to discuss financial results in greater detail.
Thanks, Houston and welcome everyone. Thanks for joining our call today and your interest in <unk> I am going to provide a brief review of our first quarter financial results before turning the call over to Greg.
As mentioned revenues for the quarter ended March 31, 2021 were $13 5 million, an increase of 73% compared to the same period last year, that's a meaningful acceleration in our growth rate from 27% in the last quarter, reflecting both organic growth and a full quarter of output.
Solutions revenues.
Organic growth rate was also impressive at 25 per cent.
Revenue growth was led by prepay, which was up 61% in the quarter on a nearly doubling in card load volumes in <unk> and complementary service revenues were up a strong 38% after decreasing throughout much of 2020.
Due to the significant impact of COVID-19 on the non bank consumer lending market.
Revenues in our credit card line were also up increasing 15% from a year ago on strong growth in both volume and transactions processed, especially in payback where revenues were up 40%. In addition to December 2020 acquisition of output solutions contributed $3 8 million of.
Revenues in the quarter.
Gross profit during the quarter increased 51% to $2 9 million, although gross margins of 21, 6% were down from the same.
Period in the year ago quarter, but in line with our expectations as discussed on last quarter's call, where we indicated that gross margins for the year would likely be in the low 20% range output solutions gross margin came in as expected which are below our consolidated margin for.
For the quarter totaled other selling general and administrative costs were up 25% from the year ago quarter, reflecting the incremental cost of output solutions overhead and our continued investments in prepaid and payback growth initiatives, we expect modest increase in other SG&A expenses over the balance of the year.
In support of our significant growth initiatives and to maintain our high service levels operating loss from the first quarter was approximately $700000 an improvement of $150000 from a year ago. Adjusted EBITDA was positive 247000 in the quarter a nearly 400.
Improvement over the first quarter of 2020. This is our second consecutive quarter of positive adjusted EBITDA.
For the quarter, we reported a loss of 720000 or for per share compared to a loss of 857000 or <unk> <unk> per share a year ago.
The company remains in strong financial position cash and cash equivalents at March 31, 2021 totaled $4 3 million down from the.
For year end, which was primarily attributable to the timing of accounts receivable collections. During the quarter. We also took out a small equipment loans to finance, the new posted shorter and output solutions.
We believe we have the liquidity and financial strength to support continued investment in our growth initiatives to fund operations and undertake selective accretive acquisitions consistent with our growth strategy.
We have seen steady increases on our revenues and growth over the last three quarters since the onset of the global pandemic.
And Jimmy as Louis mentioned, we're already expecting strong growth again in the second quarter. This should enable us to self fund operations and our growth initiatives in 2021 at this time I would like to turn the call over to Greg Greg. Thank.
Thank you Tom and good morning, everyone. It was another record quarter for the card segment total dollars processed were up 30%, which is a significant sequential acceleration from growth of 17% from the preceding fourth quarter. We also generated a doubling in transactions processed arguably the exponential rate I discussed last quarter.
Which led to a 15% increase in revenues. These key metrics illustrate how the growth of our card business has inflected and is now accelerating.
I attribute our success to our unwavering commitment to our strategy of galvanizing, our infrastructure and implementing new processes and procedures to improve productivity and efficiency. The end result is an increase on our conversion rates and I'm glad to report that remains on the rise compared to June of last year. The proportion of aborted Isps that are now <unk>.
Assessing on our platform has almost tripled.
One of the drivers behind these improvements is a new tool we introduced that illustrates the number of <unk> merchants that are processing compared to the total margin boarded.
These can get highly motivated when they see how much money. They are leaving on the table by not pursuing better merchant penetration strategies, and we can help them with those strategies and provide resources that have a proven track record of improving these rates with little effort on their part.
This is one of my highest priorities and I am committed to sustaining and improving conversion rates not just with existing Isps, but also assuring the new Isps that leverage our pay for pay.
Payback platform initiate their processing at the earliest possible opportunity, there's a long runway here and just the Isps with whom we are presently engaged we estimate there are billions of dollars on electronic payments being processed outside of <unk>.
And we are continuing to add new Isps to use your platform as Louis briefly mentioned, we're finding more upstream opportunities with larger Isps, who value our technology.
We have signed agreements with Isps that process in excess of $100 million per year. Our pipeline is very active as both our recent marketing initiatives and expanded sales organization are generally generating opportunities in both traditional and new markets for instance, while we.
Been involved in the market before there's been a renewed interest increase in interest from the ministry of nonprofit verticals.
<unk> solutions has also provided entree into some of their clients and our recently established franchise vertical is already having tremendous success for.
Key remains to keep our eye on the ball as an example of the success of the success of this simple strategy. We've had record growth in the legacy portfolio by providing unparalleled service to the point, where there is virtually no attrition.
Now with the worst to COVID-19 behind them.
Folio of merchants is growing again, which is one of our three growth channels. In addition to new Isps and increased portfolio penetration. This is a simple and natural path to growth, there's nothing fancy to it it's a <unk>.
Complete service mentality that we believe is sorely lacking in our industry.
I've made this point of emphasis or sentiment I have shared with you on previous calls.
As the economy recovers, we expect many of our clients to experience strong processing volume growth.
With vehicle traffic down our parking garage clients have suffered and with bankruptcies at historic lows.
Attorneys have also been impacted by COVID-19 now that things are returning to normal it is entirely possible. These pay for our clients will be generating very strong processing growth.
Before concluding I want to remind everyone that while we certainly feel good about our position we recognized for the COVID-19 risk clearly growth in the card segment has been selected as a result of our tireless efforts to implement our disciplined strategy, we see even better times ahead momentum continues to build and success to get success fiscal.
2021 is shaping up to be a record year for the card segment and the foundation for even greater success in the future.
That concludes our prepared remarks for today, so we'd now like to open up the call for questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys.
If at any time your question that's been addressed and you would like to withdraw. Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Our first question will come from Barry Sine with Spartan Capital Securities. Please go ahead.
Hey, good morning, gentlemen, and congratulations on the strong results a couple of questions. If you don't mind first of all your new business. The output solutions could you give us an update on kind of the synergies there and it's my understanding the synergies can flow both ways you can that's out there.
Services for legacy <unk> customers and vice versa.
I understand correct me, if I'm wrong that business wasn't growing all that fast as it was in a sale process, but it seems like you've re accelerated the growth of that business.
So we're going to see growth curve from that business in three ways first.
We've increased our sales force to be more aggressive about them just selling the products that they have had before.
And they've been doing a good job with that.
Secondly, we're definitely selling print into our customer base, we have a lot on municipalities.
A lot of lenders.
Mortgage customers that require state milling that require regulatory notices and theyre already outsourcing it to somebody else and they value their payment relationship more than they do that debt print.
We're able to grab that print.
Volume away from their existing suppliers.
And that's been great for us.
Furthermore, we are getting quite a bit of introductions into.
The existing.
IMS customers utilities to provide payment services as well.
Overall, the acquisition of IMS is really exceeding our expectations.
And to the point, where we had to buy a new machine. So.
Sort more male so if you remember we print so much mail the postal service actually has what's called the detached unit.
Inside our offices, where postal employees come to our offices.
They have their own office inside our office and they actually accept mail for the postal service right there in our office.
Okay and a question for Greg.
Obviously, you had great momentum continuing in Papac I'm wondering if you could expand a bit on some of your comments.
Try to write everything down maybe I missed some of it.
But obviously you have relatively low penetration of customers you've already won two for one them, but theyre not processing and I think you said that the.
That percentage that while low as tripled from.
From the year ago period could you elaborate on that.
Sure and that's really the that's the Holy Grail in the payback model is to get that conversion rate as high as possible. So when our ISP comes on board and they have a.
Subscription base of 100 to 1000 actual software subscribers, it's getting those to convert to the payment is.
Really where we're focusing on and as I said, we've tripled that because that conversion rate percentage a year ago before we had some infrastructure in place was on the.
<unk>, it's now exceeding close to 50% so.
It's actually the numbers are 47% to be specific but so were improving that day in and day out and we've got dedicated individuals that spend time with the Isps to help them with Webinars with E mail campaigns with direct sales efforts to that subscriber base. So.
Big area of focus in addition, or in parallel with our traditional sales.
Operation.
Okay. That's great Greg. Thank you my last question, maybe for Louis It's kind of a macro question, obviously, you've benefited significantly from government programs. During the course of their pandemic on your increasing penetration into that sector. If you look at what's come out of Washington, We've had a stimulus bill that's already passed and then.
Infrastructure Bill that's being proposed if you look at those bills coming out of Washington is there are there any good he's in there for U C O that.
Think will drive accelerated business and if so what are they.
Okay.
Youre going to make me sick of talking about Washington.
Okay.
No.
Obviously inflow of cash into the economy always has benefit across.
All of our customer basis.
And what we're watching for is it.
So youre going to cause inflation or not and if it does cause inflation interest rates go up we will have some benefit on.
On all the cash that we hold.
That's not ours, but we're on interest off of it.
Where.
We continue to watch the regulation coming out of there.
And.
Theres not any huge nuggets coming out yet for us.
Okay. Thank you gentlemen.
Our next question will come from Gary <unk> with Barrington Research. Please go ahead.
Good morning, everyone.
Couple of questions here first of all for Tom.
On the stock comp and the DNA numbers are those.
Pretty good.
Numbers to carry through for the rest of the year here.
Yes.
They're better reflection, obviously thats a full year.
Amortization associated with the output solutions acquisition and.
We have been.
Full year now into the stock grants that we had at April one of last year. So that's a pretty good number to start with.
And then you also said that there will be modest growth on SG&A.
Year over year right.
Correct.
Okay. So sequentially.
And year over year, we should be seeing growth in net other expense category.
Yes.
There's going to be a little bit of fluctuations on theirs.
A lot of moving parts within that but generally I would say that there will be some.
Somewhat modest but modest growth in SG&A.
Okay and then.
Louis.
We've talked about this but I just want to make sure I'm clear on this.
The decline in the gross margin is that entirely attributable to output solutions, because the ACTH grew pretty dramatically and that's your most your highest profitable business. So is that all due to output solutions.
It was primarily them output solutions can average, 15% and they had a great quarter. So they pulled it down a little bit but also if you're comparing it to.
Q4 of 2020 margins grew because the output solutions because they had all these onetime jobs at the end of the year, which are our higher margin jobs and they have.
On the reoccur reoccurring business. So yes, primarily that it's also.
The growth in card business that occurred.
And payback so.
Yeah, because you booked out on growth right.
Yeah, and then AC H business maintained its margins of 60% plus during the quarter. So we're really excited.
So when I look at the.
EAC H business.
You bucket it an E dollar E check dollars processed.
E check transaction volumes.
Whereas the Voyager business in there is that and in the dollars processed.
So.
Voyage or contributes on both buckets transactions and dollars.
Okay, and if youre looking at if Youre looking at the transactions grew 13, 37% quarter over quarter and revenue grew 38% quarter over quarter.
Right.
Kind of the metric for us.
Okay, and then here's a question for Greg.
Could you give us.
The number of Isps, you're working with and how that has changed.
Sequentially or year end or year over year.
I can get that number for I don't have it in front of me as far as an updated.
An updated number but I will certainly provide that to you.
Yes, and the other thing is it would be really great to be able to have some kind of metrics surrounding the merchants as well if you feel that you can.
Give that out publicly.
Okay.
I'll discuss that internally and get back to you.
Alright. So then lastly, as as we go forward here and Youre processing volumes are obviously up.
Again typically.
On.
We should expect leverage flowing down to the bottom line here.
No you had that one forward.
Okay.
So we're still the last time you gave some kind of adjusted EBITDA number you said.
Believe you said at least $1 billion, so you're still good there.
Oh, yes definitely.
Alright, Thank you very much.
Thanks, Gary.
Sure.
Our next question will come from Brian Ken Slinger with Alliance Global Partners. Please go ahead.
Great. Thanks.
Follow up on that question into my only question.
Very solid volume growth.
Very solid organic growth.
But EBITDA is only increased $400000 on $6 million more of revenue year over year. So my only question really from the margin and payment processing or with AAR for cards, it's been so.
Our economy to scale are so important and so we've seen rolling up volume and merchants through M&A is a common weighted smaller players in the industry have built scale.
Relatively balance stable balance sheet, you now have modest profit you've got a higher stock price is your appetite for acquisitions.
Increasing and should we expect to see you get more aggressive on this current thank you.
Okay.
So we're not going to just acquire to acquire we don't have this big roll up strategy like some people will do in the industry.
But we are looking at strategic acquisitions, where we can see synergies.
Beyond just added volume.
We were going to board a lot of volume just from our internal sales efforts.
And from contracts and quite frankly, we've already.
Signed so so yes, we're always looking at properties we're in discussions.
High levels.
But but we're not just going to roll up the rollout.
Okay. Thank you.
You bet.
Again, if you have a question. Please press Star then one our next question will come from Jon Hickman with Ladenburg. Please go ahead.
Yeah.
Hi.
Congratulations guys. So this is a pretty impressive quarter.
I'd like to go over a comment you made are Louis about the current processing volumes for this year, you said that you've done $1 7 billion.
At the midpoint of Q2 and Thats in comparison to $1 9 billion for Olive labs. All of Q1 is that what you said did I get that right actually actually I said $1 4 billion as of yesterday.
And is 75% of the $1 9 billion. So yes, we're very well positioned for Q2 to be.
Very nice gains over Q1.
Just like Q1 was huge gains over Q4.
And.
Q2 is definitely excited for us we're already seeing it okay.
Okay. Thanks for that and then could you.
I'm sorry, I was wondering if you could.
<unk> clarify for me the number of shares that are currently outstanding.
That's correct are you looking for earnings per share calculation, Yeah, you used 19 or something.
Right. So that it excludes all of the long term grants.
We've granted those shares and.
They're not actually.
Used in the earnings per share calculation.
Okay.
Net.
I'm sorry, what.
Would you like me to send you those.
Shares that have been granted that or not.
Outstanding at this point no I think you did I think I have that back in line.
Okay notes on that.
And then just one more question.
So as you on this on the pay factors and so I'd just like to clarify one statement. So the 47% that you just stated.
That's if you take all your ISP.
Customers.
Hugh you penetrated 47% of their subscribers.
No no.
But to clarify that those that have boarded onto the platform. So that doesn't assume that that's a 100% of an <unk> subscriber base, but are those that have boarded.
Entered into the boarding platform 47% of processing.
Well, it's not on.
Some from people, who have entered into the boarding process, but never really completed the hole. That's correct. That's correct, we're not processing or they are in various stages to begin processing, but it's not it does not reflect the entire subscriber base of that IFC.
Okay do you have any number idea of what that number might be.
Because I feel like 10% or something.
I would I would be guessing.
On making a note to get more metrics around that but I would be guessing on if I gave you an answer on this call.
But that it would be but that's where the leverage is going to come from as you.
Hmm.
I mean, once you sign up on ISP.
It doesn't really cost you anything to get those other.
To get their subscribers on boarded and processing right.
I mean.
Theres, a small incremental fee that we incur when we board of merchant, but the model itself is leveraged in the sense that the ISP is working with us to provide.
Net merchant information to board onto our system, So, yes, and yes.
We're still sharing revenues with the with the IFC right correct.
Correct, Okay. Okay.
Thank you that's it for me.
Congrats again.
Thank you John.
Our next question is a follow up from Gary <unk> with Barrick Barrington Research. Please go ahead.
Yes. This is for Gregg I don't know again. This is something you want to talk about but the other credit card revenue can you give us.
Percentage range or amount that is actually coming from paid back versus the legacy business and also I'd like to know is I think you may have mentioned it is the legacy business.
Growing.
The growth differentials between the payback on the legacy.
Sure. So the legacy portfolio grew 6% quarter over quarter 'twenty one versus 'twenty.
It grew 6% and payback from the first quarter represents just under 30% of our entire credit card revenue number.
There were some revenue.
And it was it was something much much smaller last year right because it had just been introduced right.
Correct. It was around 20% of the of the number at that point.
Okay, Great. That's very helpful. Thank you so much.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Thanks, everybody for joining the call and we look forward to talking to you next quarter.
Concludes our call.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.