Usio Inc (USIO) 2025 Q1 法說會逐字稿

Hello, and welcome to Usio's first-quarter fiscal 2025 earnings conference call. (Operator Instructions) Please note, today's event is being recorded. Now I would like to turn the conference over to your host, Paul Manley. Please go ahead, sir.

您好，歡迎參加 Usio 2025 財年第一季財報電話會議。（操作員指示）請注意，今天的活動正在被記錄。現在我想將會議交給主持人保羅·曼利 (Paul Manley)。先生，請繼續。

Thank you, operator, and thank you, everyone, for joining our call today. Welcome to Usio's first-quarter fiscal 2025 conference call. The earnings release, which we issued today after the market closed is available on our website at usio.com under the Investor Relations tab.

謝謝接線員，也謝謝大家今天參加我們的電話會議。歡迎參加 Usio 2025 財年第一季電話會議。我們今天在市場收盤後發布的收益報告可在我們網站 usio.com 的「投資者關係」標籤下查閱。

On this call with me today are Louis Hoch, our Chairman and CEO; and Greg Carter, Executive Vice President of Payment Acceptance and our Chief Revenue Officer; Michael White, Senior Vice President and Accounting Officer; Jerry Uffner, Head of Card Issuing; and our Chief Product Officer, Houston Frost, will be available during the question-and-answer session at the end of the call.

今天與我一起參加電話會議的有我們的董事長兼首席執行官 Louis Hoch、支付接受執行副總裁兼首席營收官 Greg Carter、高級副總裁兼會計官 Michael White、發卡部門主管 Jerry Uffner 以及我們的首席產品官 Houston Frost，他將在電話會議結束時的問答環節中發言。

Let me remind our listeners that certain statements made today during the call constitute forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities and Litigation Act of 1995 as amended and as more fully discussed in our press release and in our filings with the SEC.

讓我提醒我們的聽眾，今天在電話會議中做出的某些聲明構成了根據經修訂的 1995 年私人證券和訴訟法的安全港條款做出的前瞻性聲明，並且在我們的新聞稿和向美國證券交易委員會提交的文件中進行了更全面的討論。

Let me start off today's call with a summary of the highlights from this afternoon's release. We are very pleased to report record numbers in first quarter revenues, a significant increase in processing volume, solid profitability and strong cash flow.

讓我先總結一下今天下午發布的重點內容，以此開始今天的電話會議。我們非常高興地報告第一季營收創歷史新高，處理量大幅成長，獲利能力穩健，現金流強勁。

We are equally pleased to report another increase in our cash position. These results reflect the increasing receptivity to our products in the market, together with the success of our commitment to better leverage our infrastructure to improve profitability. Total processing volume was up 34% with record volume in card, driven by another outstanding quarter at PayFac.

我們同樣高興地報告我們的現金狀況再次增加。這些結果反映了市場對我們的產品的接受度不斷提高，以及我們更好地利用基礎設施來提高獲利能力的承諾的成功。由於 PayFac 又一個季度的出色表現，總處理量增長了 34%，其中卡處理量創下了新高。

ACH continues its string of strong growth with processing volume up a handsome 36% in the quarter. This strong processing volume growth led to a 5% increase in revenues, 6% excluding net income, which was down in the quarter from a year ago.

ACH 持續保持強勁成長勢頭，本季處理量大幅成長 36%。強勁的處理量成長導致收入成長了 5%，不包括淨收入則成長了 6%，而淨收入較去年同期有所下降。

Gross profits were a little changed from a year ago, although margins were somewhat softer due to the revenue mix. Outside of product mix, we are seeing efficiency and productivity improve across our organization, which support our overall corporate margin aspirations of the mid-20s.

毛利與去年同期相比變化不大，但由於收入結構的原因，利潤率有所下降。除了產品組合之外，我們還看到整個組織的效率和生產力都在提高，這支持了我們實現 1920 年代中期整體企業利潤率的目標。

Our selling, general and administrative expenses were relatively unchanged from that of a year ago and down sequentially from the fourth quarter of last year. In fact, headcount today is below that of a year ago, which is a further reflection of our commitment to improve operating leverage.

我們的銷售、一般及行政開支與去年同期相比基本保持不變，且較去年第四季有所下降。事實上，今天的員工人數低於一年前，這更反映了我們提高經營槓桿的承諾。

All of this led to a sequential improvement in profitability with adjusted EBITDA rising to $700,000 in the quarter, up from $500,000 in the fourth quarter of 2024. Cash rose again to $8.7 million at quarter end as we generated $700,000 of cash in the quarter.

所有這些因素都導致獲利能力連續提升，本季調整後 EBITDA 從 2024 年第四季的 50 萬美元增至 70 萬美元。由於我們在本季產生了 70 萬美元的現金，因此季度末現金再次增加至 870 萬美元。

Ending cash is net of approximately $1.2 million used in the quarter to reduce accrued expenses and accounts payable and to also repurchase $350,000 of our shares. This is just the start of what we expect to be a year where we see revenue growth significantly picking up in the second half.

期末現金淨額約 120 萬美元，本季用於減少應計費用和應付帳款，並回購 35 萬美元的股票。這只是我們預計今年下半年營收成長將大幅回升的開始。

Growth is expected to accelerate through the ramp-up of our Usio ONE implementation and the benefit of more favorable year-over-year comparisons as the impact of prior New York City COVID-related revenues phased out.

隨著我們 Usio ONE 實施的不斷推進以及紐約市先前與 COVID 相關的收入的影響逐漸消失，同比業績更加有利，預計成長將會加速。

To conclude, we are generating strong processing volume growth, consistently cash flow positive, improving productivity and putting plans and processes in place to better leverage our products, infrastructure and technology. We are also pursuing a dual mandate to not only grow the business but to effectively lever our infrastructure to drive an ever-improving bottom line to deliver value for our shareholders.

總而言之，我們的處理量正在強勁增長，現金流持續為正，生產力正在提高，我們正在製定計劃和流程，以更好地利用我們的產品、基礎設施和技術。我們也追求雙重使命，不僅要發展業務，還要有效地利用我們的基礎設施來推動不斷改善的底線，為我們的股東創造價值。

`Consequently, we are reiterating -- as we reiterated in our press release, we remain very comfortable with our expectation for 14% to 16% top line revenue growth this year.

「因此，我們重申——正如我們在新聞稿中重申的那樣，我們仍然對今年 14% 至 16% 的營收成長預期感到非常滿意。

Now at this time, I'd like to turn the call over to Greg Carter.

現在，我想把電話轉給格雷格·卡特。

Thank you, Paul, and good afternoon, everyone. Let me begin with a few comments about the exciting launch of our Usio ONE initiative. In April, we officially introduced the company-wide initiative called Usio ONE with a meeting here in San Antonio.

謝謝你，保羅，大家下午好。首先，我想就我們令人興奮的 Usio ONE 計劃的啟動發表一些評論。今年 4 月，我們在聖安東尼奧的一次會議上正式推出了名為 Usio ONE 的全公司計畫。

This brought together key business development, marketing and sales representatives from our three business units. While this marked the official launch of Usio ONE, our sales representatives have been actively cross-selling with a few wins already in the books.

這將我們三個業務部門的關鍵業務開發、行銷和銷售代表聚集在一起。雖然這標誌著 Usio ONE 的正式發布，但我們的銷售代表一直在積極進行交叉銷售，並且已經取得了一些成功。

For instance, through their strong customer relationship, our card issuing team sold a large deal where output solutions have been chosen to print nearly 1.5 million physical checks. The meeting was a great exercise in team building and education as we equipped the team with the tools, they need to introduce Usio's entire suite of capabilities to entities with whom we already have relationships as well as future customers.

例如，透過他們強大的客戶關係，我們的發卡團隊達成了一項大交易，其中選擇輸出解決方案來列印近 150 萬張實體支票。這次會議是一次很好的團隊建立和教育練習，因為我們為團隊配備了工具，他們需要向我們已經建立關係的實體以及未來的客戶介紹 Usio 的全套功能。

The expectation is to increase the acceptance of the Usio suite of services to as many current customers as we can over the next two quarters while also exposing the suite of services to new customers. The team is off to a great start, and we expect the synergies from this new initiative to really start to produce results in the second half of the year.

我們期望在接下來的兩個季度內盡可能提高現有客戶對 Usio 服務套件的接受度，同時也向新客戶展示該服務套件。團隊已經有了一個很好的開端，我們預計這項新措施的綜效將在今年下半年真正開始產生成果。

Meanwhile, card remains on its growth trajectory led by PayFac. Total processing dollars were up 17% and transactions processed were up 65% in the quarter. Again, card remains focused on growing our PayFac business, where dollars processed were up 33% in the quarter, leading to another quarter of outstanding PayFac growth with revenue up 25%.

同時，信用卡業務仍保持著由 PayFac 引領的成長軌跡。本季總處理金額增加了 17%，處理的交易量增加了 65%。再次，信用卡仍然專注於發展我們的 PayFac 業務，該業務本季度處理的美元金額增長了 33%，從而使 PayFac 再創季度輝煌，收入增長了 25%。

PayFac now accounts for approximately 59% of total card revenues. Our success continues to stem from the steady drumbeat of new implementations with 17 new ISVs currently in various stages of implementation. In order to support future growth, we have tasked our Director of Sales Operations to streamline, accelerate and improve implementations across all Usio business lines.

PayFac 目前約佔信用卡總收入的 59%。我們的成功繼續源自於新實施的穩定推進，目前已有 17 個新的 ISV 處於實施的不同階段。為了支援未來的成長，我們已委託銷售營運總監簡化、加速和改進所有 Usio 業務線的實施。

Consequently, I can confidently reiterate today my previous expectation that card will grow nicely in 2025.Our confidence is twofold. First, growth with and within our existing accounts. For instance, one of our large healthcare ISV has been authorized by a major manufacturer to begin selling a larger range of products, which should naturally add incremental processing volume beginning this month.

因此，今天我可以自信地重申我先前的預期，即信用卡在 2025 年將實現良好成長。我們的信心是雙重的。首先，與我們現有的帳戶一起並實現成長。例如，我們的一家大型醫療保健 ISV 已獲得一家大型製造商的授權，開始銷售更大範圍的產品，這自然會從本月開始增加增量處理量。

There are several other land-and-expand opportunities that should mirror this ISV, and we remain optimistic that processing volumes within these existing accounts will increase. We're also ramping up a new filtered spend program for small retail merchants. Filtered spend is a program that allows cardholders to spend funds for specific approved items or services as defined by the card issuing organization.

還有其他幾個登陸和擴展機會應該與這個 ISV 相似，我們仍然樂觀地認為這些現有帳戶中的處理量將會增加。我們也正在為小型零售商推出新的過濾消費計畫。過濾消費是一種允許持卡人根據發卡機構的定義將資金用於特定批准商品或服務的計劃。

It's a more targeted way to control spending than a general-purpose prepaid card. Organizations can use filtered spend cards to encourage specific purchasing behaviors such as healthy eating or purchasing certain healthcare supplies. New terminals are going in at hundreds of locations, and we will begin processing the payments as they are activated.

與通用預付卡相比，這是一種更有針對性的控制支出的方式。組織可以使用過濾消費卡來鼓勵特定的購買行為，例如健康飲食或購買某些醫療用品。新的終端正在數百個地點投入使用，我們將在它們啟動後開始處理付款。

Second, I am confident we will continue to see the steady pipeline conversion that is already driving our strong PayFac growth. We are having better success with our social marketing and SEO efforts, which is getting us to the top of more relevant search pages than ever before.

其次，我相信我們將繼續看到穩定的管道轉換，這已經推動了我們強勁的 PayFac 成長。我們的社群行銷和搜尋引擎優化工作取得了更大的成功，這使我們比以前在更多相關搜尋頁面上名列前茅。

As I've said all along, it's a matter of taking a disciplined approach to the fundamentals and executing every day. Let me just wrap up by reiterating how excited I am to be leading our collective sales efforts and our new Usio ONE initiative. And while it may take some time for this program to reach its full potential, I remain confident in our sales and support teams to meet or exceed this year's financial targets.

正如我一直所說的那樣，這是一個採取嚴謹的方法來處理基本原則並每天執行的問題。最後，請容許我再次重申，我對領導我們的集體銷售工作和新的 Usio ONE 計畫感到非常興奮。雖然該計劃可能需要一些時間才能充分發揮其潛力，但我仍然相信我們的銷售和支援團隊能夠達到或超過今年的財務目標。

Now I'd like to turn the call over to Louis.

現在我想把電話轉給路易斯。

Thank you, Greg, and welcome everyone. First, the big shout out to Greg for taking the reins of the Usio ONE initiative, a potential game-changing initiative, and getting it off to a running start. At the kick off meeting, I was encouraged to hear our team already shifting how we talk about our business, moving product-centric language like ACH to solution-oriented conversations such as disbursements and acceptance.

謝謝你，格雷格，歡迎大家。首先，我們要大聲感謝 Greg 掌管 Usio ONE 計劃，這是一項可能改變遊戲規則的計劃，並且讓他順利起步。在啟動會議上，我很高興地聽到我們的團隊改變了談論業務的方式，將 ACH 等以產品為中心的語言轉變為以解決方案為導向的對話，例如支付和接受。

While it may seem subtle, I believe this marks the beginning of a meaningful paradigm shift, a reflection on how we're evolving our thinking to focus on leveraging our technology to deliver greater value to our clients. Although these types of cultural and strategic shifts may be difficult to quantify, it can also be transformative.

雖然這看起來很微妙，但我相信這標誌著一個有意義的範式轉變的開始，反映了我們如何轉變思維，專注於利用我們的技術為客戶提供更大的價值。儘管這些類型的文化和策略轉變可能難以量化，但它也可能具有變革性。

And while it's still early, the wins we have heard today already suggest that Usio ONE is becoming a powerful catalyst in capturing a larger share of our customers electronic payment volume and associated services.

雖然現在還為時過早，但我們今天聽到的成功已經表明，Usio ONE 正在成為奪取更大份額的客戶電子支付量和相關服務的強大催化劑。

Now my thoughts on the quarter. After a strong end of the year, ACH and complementary services growth accelerated in the first quarter. For the first three months ending March 31, 2025, ACH revenues were up 33% as electronic transaction volumes were up 36%, our sixth consecutive quarter of growth. Return check transactions processed were up 24% and electronic check dollars processed up 42%.

現在我對本季的看法。在經歷了強勁的年底表現後，ACH 和補充服務在第一季加速成長。截至 2025 年 3 月 31 日的前三個月，ACH 收入增長了 33%，電子交易量增長了 36%，這是我們連續第六個季度實現增長。處理的退票交易增加了 24%，處理的電子支票金額增加了 42%。

PINless debit and RCC remain strong contributors to the growth of our complementary services. Although somewhat modestly lower margins in our core ACH business, we continue to outpace the industry growth. ACH has proven an attractive add-on to many of our existing accounts, and we expect to expand our presence within more accounts as Usio ONE rolls out.

無 PIN 借記和 RCC 仍然是我們補充服務成長的重要貢獻者。儘管我們核心的 ACH 業務的利潤率略低，但我們的成長速度仍然領先於產業。ACH 已被證明是我們許多現有帳戶的一個有吸引力的附加功能，並且隨著 Usio ONE 的推出，我們希望擴大我們在更多帳戶中的影響力。

Output Solutions had another strong quarter, with revenues increasing 12% sequentially and also up from last year's especially strong first quarter. Electronic documents processed were up 5%, while total pieces mailed exceeded 6.7 million pieces.

Output Solutions 又度過了一個強勁的季度，營收季增 12%，並且高於去年特別強勁的第一季。處理的電子文件增加了5%，郵寄總量超過670萬件。

With our emphasis on transitioning to the more profitable electronic document processing, it's encouraging to note another strong quarter of growth with electronic-only documents delivered exceeding $20.5 million in the quarter.

由於我們重點轉向利潤更高的電子文檔處理，我們欣慰地看到本季又出現了強勁的成長勢頭，本季交付的純電子文檔價值超過 2050 萬美元。

The increase in electronic-only documents also boost margins. Output new business pipeline remains strong, highlighted by the recent cross-sell win with card issuing that Greg referenced earlier. With the acceleration of marketing efforts, output will prove a strategic resource, offering a competitive advantage for what we believe will be a robust marketing for integrated solutions.

純電子文件的增加也提高了利潤率。輸出新業務管道依然強勁，Greg 先前提到的近期透過發卡實現的交叉銷售勝利尤為突出。隨著行銷力度的加快，產出將成為一種策略資源，為我們認為的整合解決方案的強勁行銷提供競爭優勢。

Card issuing also had a strong start to the year, narrowly missing the continuation of its streak of $100 million in quarterly card loads. As new programs go live, we should exceed that level soon. For the quarter, revenues were slightly down in comparison to the prior year's quarter due to the New York City COVID program which provided over $1 million in revenue that quarter.

今年信用卡發行也有一個強勁的開局，僅差一點就能延續季度信用卡充值 1 億美元的勢頭。隨著新程序的上線，我們很快就會超過這個水平。本季度，由於紐約市 COVID 計劃為該季度帶來了超過 100 萬美元的收入，因此收入與去年同期相比略有下降。

However, this will be the last quarter where the New York City COVID program will affect prepaid comps. Our sales pipeline is especially strong with numerous implementations completed and others in various stages of implementation. Our volume is positioned to ramp significantly. To better leverage our unique capabilities and extensive infrastructure, card issuing has recently hired a new sales executive with extensive industry experience and broad connections in target markets such as legal settlements, rebates, incentives and rewards.

然而，這將是紐約市 COVID 計劃影響預付費補償的最後一個季度。我們的銷售管道特別強大，許多實施工作已經完成，其他實施工作正處於不同的實施階段。我們的銷量將大幅提升。為了更好地利用我們獨特的能力和廣泛的基礎設施，發卡部門最近聘請了一位新的銷售主管，他擁有豐富的行業經驗和在法律和解、回扣、獎勵和獎賞等目標市場的廣泛人脈。

Because many of these markets serve a broad spectrum of customers, including banked and unbanked, there's a strong demand for a single solution capable of meeting diverse payment needs and preferences. That's why we're putting more resources behind our proprietary product called Consumer Choice, a branded solution, which has a proven track record of offering the integrated payment disbursement solutions that these markets are increasingly demanding.

由於許多此類市場服務於廣泛的客戶群體，包括有銀行帳戶和無銀行帳戶的客戶，因此迫切需要一種能夠滿足不同支付需求和偏好的單一解決方案。這就是為什麼我們要將更多的資源投入到我們的專有產品「消費者選擇」上，這是一種品牌解決方案，在提供這些市場日益增長的需求的綜合支付支付解決方案方面有著良好的記錄。

While the sales pipeline includes some meaningful opportunities, we are strategically focused on the steady reoccurring revenue of the small to medium business market as we have built a strategic road map to leverage our technology and greatly diversify our account base.

雖然銷售管道包含一些有意義的機會，但我們在策略上專注於中小型企業市場的穩定經常性收入，因為我們已經制定了戰略路線圖來利用我們的技術並極大地多樣化我們的客戶群。

One of the first steps is to add a payroll card offering to our portfolio as another opportunity to ease cross-selling. The tenor of our business is good as we look forward to the strong second half of the year. Longer term, we are levering up our technology advantages. For instance, we're moving closer to a demonstration of our biometrics AI-driven application.

第一步是將薪資卡產品添加到我們的產品組合中，作為另一個促進交叉銷售的機會。我們期待今年下半年的強勁表現，因此我們的業務基調良好。從長遠來看，我們正在發揮我們的技術優勢。例如，我們正在逐步展示我們的生物識別人工智慧驅動的應用程式。

This new technology uses biometrics to eliminate the need for a physical card. At checkout, it uses AI to automatically select the payment method that delivers the greatest value, whether it be rewards, cash back or many other proprietary incentives. We think this could be revolutionary. So we look for our demo -- so look for our demo in the near future.

這項新技術利用生物辨識技術來消除對實體卡片的需求。在結帳時，它使用人工智慧自動選擇提供最大價值的付款方式，無論是獎勵、現金回饋或許多其他專有激勵措施。我們認為這可能是革命性的。因此，我們尋找我們的演示 - 因此在不久的將來尋找我們的演示。

We will also utilize this technology for events where consumers can utilize their retina as their ticket to enter the event and pay for items while in attendance. It was another quarter of growth and further strengthening of our organization top to bottom.

我們也將這項技術應用於各種活動，消費者可以利用視網膜作為門票進入活動現場並支付物品費用。這是我們的組織從上到下又一個成長和進一步加強的季度。

I'm extremely excited by the promise of Usio ONE to deliver accelerated growth as soon as the second half of this year. Furthermore, we are steadfast in our focus on efficiency and productivity efforts to improve gross and EBITDA margins, which is a key corporate strategic initiative.

Usio ONE 承諾最早在今年下半年實現加速成長，對此我感到非常興奮。此外，我們堅定不移地致力於提高效率和生產力，以提高毛利率和 EBITDA 利潤率，這是一項重要的企業策略舉措。

Our cash balance and our ability to generate positive cash flow remains a great story. This not only provides us with financial resources to fund our internal growth initiatives, but also gives us the flexibility to evaluate acquisitions that would be both strategic and accretive.

我們的現金餘額和產生正現金流的能力仍然很好。這不僅為我們提供了資助內部成長計畫的財務資源，而且還使我們能夠靈活地評估既具有策略性又具有增值的收購。

And we are seeing more opportunities in M&A. Usio succeeds because of the unique nature of our organization. Right now, many companies are trying to ward off the impact of tariffs and possible consumer recession. Because we offer a diversified portfolio of products to a wide range of end markets, we are highly insulated from the impact of many of these potentially macroeconomic challenges. That's why we remain confident and steadfast in our guidance we issued earlier this year that revenues will increase 14% to 16%. We appreciate your support while we continue to build value for our shareholders.

我們在併購方面看到了更多的機會。Usio 的成功得益於我們組織的獨特性。目前，許多公司正試圖抵禦關稅和可能出現的消費衰退的影響。由於我們向廣泛的終端市場提供多樣化的產品組合，因此我們能夠有效抵禦許多潛在宏觀經濟挑戰的影響。這就是為什麼我們仍然充滿信心並堅定地堅持今年稍早發布的預期，即營收將成長 14% 至 16%。我們感謝您的支持，我們將繼續為股東創造價值。

And with that, I'd like to turn the call back to the operator to conduct our question-and-answer session.

說完這些，我想將電話轉回給接線生，進行我們的問答環節。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Barry Sine, Litchfield Hills Research.

巴里·辛恩（Barry Sine），利奇菲爾德山研究公司。

Hey, good afternoon, congratulations on the quarter. First is just a minor clarifying point on organic revenue growth. I believe, and correct me if I'm wrong, you said in the year ago period, there was $1 million in spoilage revenue. So if you adjust that out, I think the growth rate in the quarter was over 10% organically. Am I on the right track there?

嘿，下午好，恭喜本季。首先，只是對有機收入成長進行一點小小的澄清。我相信，如果我錯了，請糾正我，您說去年同期的損耗收入為 100 萬美元。因此，如果進行調整，我認為本季的有機成長率將超過 10%。我的做法正確嗎？

Yes, it was $1 million, a little more than $1 million, and it's also the last quarter that we'll have any comp issue.

是的，是 100 萬美元，略多一點，這也是我們遇到任何補償問題的最後一個季度。

Okay. And that's, therefore, the guidance for revenue acceleration in the second half of the year and the 14% to 16% full year revenue guidance number, correct?

好的。因此，這就是下半年收入加速成長的指導以及全年收入成長 14% 至 16% 的指導數字，對嗎？

Well, the number of deals that we have in implementation are likely to implement and provide a lot of value in Q3 and Q4.

嗯，我們正在實施的交易數量很可能會在第三季和第四季實現並提供大量價值。

Okay. And then maybe for Greg, you talked about the Usio ONE, the kickoff meeting was only recently in April. So it sounds like the benefits of that are to come. Now that you've kind of changed your focus, Greg, if you could talk about the composition of the sales team? How many quota-bearing sales reps do you have? Where are you seeing initial opportunities in cross-selling what product to what product? And what else can you tell us about the early going on the Usio ONE sales initiative?

好的。然後也許對格雷格來說，你談到了 Usio ONE，啟動會議是最近在四月舉行的。聽起來這樣做的好處即將到來。格雷格，既然您已經改變了關注點，您能談談銷售團隊的組成嗎？您有多少名承擔配額的銷售代表？您在哪裡看到交叉銷售哪種產品與哪種產品的初步機會？您還能告訴我們有關 Usio ONE 銷售計劃早期進展的其他資訊嗎？

Sure. Barry, we have 12 quota-bearing salespeople across the enterprise. And previous to Usio ONE, they all had expertise in one of our business lines, whether that be ACH, PayFac, issuing or acceptance and output as well. So as a part of that meeting, we are now having consolidated sales meetings. We've moved to a standardized CRM.

當然。巴里，我們整個企業有 12 位承擔配額的銷售人員。在加入 Usio ONE 之前，他們都在我們的某一業務線上擁有專業知識，無論是 ACH、PayFac、發行或接受和輸出。因此，作為會議的一部分，我們現在正在召開合併銷售會議。我們已經轉向標準化 CRM。

For example, the issuing side had -- they had a Dynamics platform. We're all moving to HubSpot. So it's really just a decisive move to one voice, one effort. We have teams at various trade shows as we speak. So I'm very confident that initiative is going to really facilitate more cross-sales in that light as well.

例如，發行方有一個 Dynamics 平台。我們都將轉向 HubSpot。所以這其實只是對一個聲音、一次努力的決定性舉措。目前，我們的團隊正在參加各種貿易展會。因此，我非常有信心，從這個角度來看，這項措施確實將促進更多的交叉銷售。

We are running parallel pipeline type meetings, meaning new opportunities, net new logos as well as existing accounts and where those could be. Clearly, there's more opportunity for our issuing side and our acquiring side to introduce print. And then from the issuing side, expose that those customers to our ACH capabilities. So yeah, I'm very bullish and optimistic on what we're going to do with Usio ONE on the sales side.

我們正在舉行平行的管道類型會議，這意味著新的機會、新的標誌以及現有帳戶以及它們可能存在的位置。顯然，我們的發行方和收購方有更多機會引入印刷品。然後從發行方，向這些客戶展示我們的 ACH 功能。所以是的，我對 Usio ONE 的銷售情況非常看好和樂觀。

Okay, great. And then, lastly, a financial question in terms of the gross margin, that declined year-over-year a little bit, which is a little surprised because ACH is your highest margin business. That was the fastest growing. However, as we discussed a year ago, had the million plus in spoilage, which is probably even higher margin. So I assume that's the answer to why the margin was down a little bit year over year.

好的，太好了。最後，關於毛利率的財務問題，毛利率比去年同期略有下降，這有點令人驚訝，因為 ACH 是利潤率最高的業務。這是成長最快的。然而，正如我們一年前討論的那樣，損失金額超過一百萬，這可能意味著更高的利潤。所以我認為這就是利潤率同比略有下降的原因。

Well, last year, the $1 million in spoilage, we gave back all that money to the City of New York. So that was no margin revenue.

嗯，去年，100 萬美元的損失，我們全部都回饋給了紐約市。所以這不算是利潤收入。

Yeah, and this is Michael. I'll jump in here. If our interest revenue related to funds held for our customers was actually down for Q1 of 2025. So compared to Q1 of last year, our basically balances for customer fund had decreased. So resulting in a decrease in interest income, which was basically 100% revenue to the topline.

是的，這是邁克爾。我就跳到這裡。如果我們為客戶持有的資金相關的利息收入在 2025 年第一季實際上下降了。因此與去年第一季相比，我們的客戶基金餘額基本上有所減少。因此導致利息收入減少，而利息收入基本上佔總收入的 100%。

Okay. That's helpful, Michael. And then obviously, there's no expenses associated with the interest revenue. So 100% gross margin. Got it. Okay, those are my questions. Thank you.

好的。這很有幫助，邁克爾。顯然，利息收入不涉及任何費用。所以毛利率是100%。知道了。好的，這些就是我的問題。謝謝。

Thanks.

謝謝。

Scott Buck, H.C. Wainwright.

斯科特·巴克、H.C. 溫賴特。

Hey, good afternoon, guys. Thanks for taking my questions. First one, kind of piggybacking off of Barry's question there on gross margin. Where do you think you can take gross margins back to? Understanding that there are some mix and mechanic issues during the first quarter. But can we get back to kind of mid-20s as revenue scales here through the year?

嘿，大家下午好。感謝您回答我的問題。第一個問題，有點像是 Barry 提出的關於毛利率的問題。您認為您可以將毛利率恢復到多少？了解第一季存在一些混合和機械問題。但隨著全年收入的增加，我們能否回到 25% 左右的水平？

Well, it does depend on the mix, right? But our goal is 25% or so gross margins. Our long-term goal for EBITDA margins is 8% to 10%, which we think we can get to 10%.

嗯，這確實取決於混合，對嗎？但我們的目標是毛利率25%左右。我們的 EBITDA 利潤率長期目標是 8% 至 10%，我們認為可以達到 10%。

Great. I appreciate that, Louis. And then look, revenue was up 5%. OpEx was down 2% year-over-year. How much capacity do you have to grow given the current cost infrastructure? When do you need to start layering in kind of more cost to support that growth in the second half?

偉大的。我很感激，路易斯。然後看看，收入成長了5%。營運支出較去年同期下降2%。考慮到目前的成本基礎設施，您需要增加多少產能？什麼時候需要開始增加更多成本來支持下半年的成長？

Well, our technology and infrastructure can support tons and tons more transactions. We might have to add some people to support those new accounts, but it's the expense associated with that is on a percentage basis will be far less than the revenue and the associated margins.

嗯，我們的技術和基礎設施可以支援大量的交易。我們可能需要增加一些人來支持這些新帳戶，但與此相關的費用按百分比計算將遠低於收入和相關利潤。

Okay. So any kind of headcount adds are directly tied to revenue, I guess?

好的。所以我猜任何類型的員工人數增加都與收入有直接關係？

Yeah, we're truly at the point of having operating leverage. We can load a whole bunch of traffic on our platform.

是的，我們確實處於擁有經營槓桿的階段。我們可以在我們的平台上加載大量的流量。

That's great. And then last one, you brought up M&A and you're starting to see some new or more opportunities in the market. Can you kind of run us through what it would be that you'd be looking for, what the M&A criteria looks like?

那太棒了。最後，您提到了併購，並且您開始看到市場上的一些新的或更多的機會。您能否向我們介紹一下您所尋找的內容以及併購標準是什麼樣的？

Yeah, well, we've talked about this a few times. Our criterion is strict, and we've been successful in every acquisition we've done. First, we've got to identify a company that has synergies. Synergies can be technology, it can be people, it can be industries that we're not in today.

是的，我們已經討論過這個問題幾次了。我們的標準非常嚴格，我們進行的每一次收購都取得了成功。首先，我們必須找到一家具有綜效的公司。綜效可以是技術，可以是人，可以是我們今天尚未涉足的產業。

Secondly, we need to be able to buy the company correctly at a multiple that's less than what we're trading at. And then thirdly, the company has got to be able to take care of itself post-acquisition. We don't want to buy somebody else's problem and try to fix it. So we are seeing some opportunities, and that's about all I can say right now.

其次，我們需要能夠以低於目前交易價格的倍數正確地購買該公司。第三，公司必須能夠在收購後自行管理。我們不想購買別人的問題並試圖解決它。所以我們看到了一些機會，這就是我現在能說的全部。

If I could sneak one more in. The stock is up year-to-date, which is somewhat rare among small caps this year. I'm curious if the conversations that you and your team have been having with investors, whether you noticed a change in tone or something in the story that's resonating better with folks.

如果我能再偷偷溜進去一個。該股今年迄今一直上漲，這在今年的小型股中較為罕見。我很好奇，在您和您的團隊與投資者的對話中，您是否注意到語氣的變化，或者故事中的某些內容是否引起了人們的共鳴。

I'll let Paul answer the second part of this. But us having earnings per share, generating positive cash flow like we have been a tremendously healthy balance sheet, the quant funds have found us. They generated a lot of volume for us in January. In fact, in January, we generated well, three days in January, we generated more volume than we had all last year. So quant funds are definitely a plus for us.

我讓保羅來回答這個問題的第二部分。但是，我們的每股盈餘和正現金流的產生，就像我們的資產負債表非常健康一樣，量化基金找到了我們。他們在一月份為我們創造了大量銷售。事實上，一月份我們的產量很好，一月份有三天的產量比去年全年的產量還多。因此量化基金對我們來說絕對是個優勢。

And I think -- Scott, this is Paul Manley. I think they're also just looking at us and seeing the valuation basically on any kind of metric and the risk reward to take a position here is very well, very nice. And I think they see that the growth that we have potentially going forward will be really nice and they'll be rewarded for initiating positions here.

我認為－－史考特，這是保羅‧曼利。我認為他們也只是在看著我們，基本上根據任何指標來看待估值，而這裡持倉的風險回報非常好。我認為他們看到了我們未來潛在的成長前景，並且他們會因為在這裡擔任職務而獲得回報。

Perfect. Well, I appreciate the time today, guys. Thanks for the added color.

完美的。好吧，夥計們，我很感謝今天抽出時間。謝謝你添加的顏色。

Thanks Scott.

謝謝斯科特。

Jon Hickman, Ladenburg.

喬恩希克曼，拉登堡。

Hey, Louis, can you help us understand the relationship between 36% processing growth and 5% revenue growth?

嘿，路易斯，你能幫助我們理解 36% 的加工成長和 5% 的收入成長之間的關係嗎？

Yeah, the 36% is based upon the dollars that we process through the system. Some of our products, we don't earn upon dollars. On PayFac, we do. ACH, we do not, and a lot of those dollars increase occurred in ACH.

是的，36% 是基於我們透過系統處理的美元。我們的一些產品並不是靠美元賺錢的。在 PayFac 上，我們確實這麼做了。ACH，我們沒有，而且很多美元的增加都發生在ACH中。

Okay. So sometimes you earn on dollars and sometimes you earn on transactions?

好的。所以有時你透過美元賺錢，有時你透過交易賺錢？

That's correct. So card issuing, PayFac is dollars. ACH and output solution is transaction-based.

沒錯。所以發卡，PayFac 就是美元。ACH 和輸出解決方案是基於交易的。

Okay. Then I have a question on PayFac. I think you said that PayFac revenues were up 25% year-over-year. Is that correct? Did I hear that correctly?

好的。然後我對 PayFac 有一個疑問。我想您說過 PayFac 的營收年增了 25%。對嗎？我沒聽錯吧？

Yes. Yes, that's correct.

是的。是的，正確。

Okay. So what if you combine PayFac and the legacy card business, what was the revenue growth year-over-year ?

好的。那麼，如果將 PayFac 和傳統卡業務結合起來，其收入年增率是多少？

I don't have that number in front of me. I believe it was 4%, yeah.

我面前沒有這個號碼。是的，我相信是 4%。

Okay, thank you. And then can you elaborate again on this consumer choice product? You were talking fast, and I think I missed some of it.

好的，謝謝。那你能再詳細闡述這個消費者選擇的產品嗎？你講得太快了，我想我錯過了一些內容。

Yeah. I'll let Houston talk about that. Houston is the designer of that product.

是的。我會讓休斯頓談論這件事。休斯頓是該產品的設計師。

So the Consumer Choice product is a solution for clients that are dispersing funds, whether it be cash assistance or incentives or promotions. And what it allows for is really a combination of multiple Usio services in a single solution. So this is kind of part of that Usio ONE initiative. The consumer, when they receive funds with a consumer choice account, if you will, can use those funds with a virtual card, they can order a physical card. They can request an ACH to their bank.

因此，消費者選擇產品是針對分散資金的客戶的解決方案，無論是現金援助還是獎勵或促銷。它實際上允許在單一解決方案中組合多個 Usio 服務。所以這是 Usio ONE 計劃的一部分。當消費者透過消費者選擇帳戶收到資金時，如果他們願意，可以使用虛擬卡來使用這些資金，也可以訂購實體卡。他們可以向銀行申請 ACH。

They can request a paper check that will be printed by output solutions. There's also other options push to debit. So it gives the consumer the choice of a variety of methods to receive the dollars that the client is disbursing.

他們可以請求透過輸出解決方案列印的紙本支票。還有其他選項可以推送到借記卡。因此，消費者可以選擇多種方法來接收客戶所支付的美元。

And then each one of those methods actually has a fee associated with it that is either charged to the client or to the consumer depending on the contract we have with the client. So regardless of the method that is chosen, we're obviously generating revenue. And again, what it really highlights is how we can build products that essentially cross-sell all of Usio's services for us. And it's a philosophy that we're going to have, I think, moving forward with a number of our products.

然後，每種方法實際上都涉及費用，該費用要么向客戶收取，要么向消費者收取，具體取決於我們與客戶簽訂的合約。因此，無論選擇哪種方法，我們顯然都在創造收入。再次強調，它真正強調的是我們如何能夠建立產品，從而為我們交叉銷售所有 Usio 的服務。我認為，這是我們推動一系列產品時將秉持的理念。

So that's primarily -- right now, that's primarily a prepaid card product or offering.

所以這主要是——目前，這主要是預付卡產品或服務。

Well, it is offering that has been attractive to clients of the card issuing division. And this is really what Greg was mentioning as well, a large percentage of our clients in card issuing need or leverage ACH services with another provider. So one of our biggest opportunities in Usio ONE is cross-selling ACH as well as PINless debit services to our card issuing clients.

嗯，這是對發卡部門的客戶有吸引力的服務。這也是 Greg 提到的，我們發卡客戶中有很大一部分需要或利用其他提供者的 ACH 服務。因此，Usio ONE 的最大機會之一就是向我們的發卡客戶交叉銷售 ACH 以及無 PIN 借記服務。

So again, this goes back to that Usio ONE initiative where what we really should be focused on is the solution of funds disbursement to our clients and in that sense, our sales guys will be selling all of our funds disbursement solutions, ACH, PINless debit and cards to the clients that need those solutions. So I don't know if that answers your question directly, but it's not really just a prepaid card account, but it is something that our card issuing clients it is in demand from our card issuing clients.

所以，這又回到了 Usio ONE 計劃，我們真正應該關注的是向客戶提供資金支付解決方案，從這個意義上講，我們的銷售人員將向需要這些解決方案的客戶銷售我們所有的資金支付解決方案、ACH、無 PIN 借記卡和卡。所以我不知道這是否直接回答了你的問題，但它實際上不僅僅是一個預付卡帳戶，而是我們的發卡客戶所需要的。

Okay, thanks appreciate it bye.

好的，謝謝，再見。

Thanks Jon.

謝謝喬恩。

Michael Diana with Maxim Group.

馬克西姆集團的邁克爾·戴安娜。

Okay, thank you. You mentioned filtered spend cards. Would these be of interest to government assistance programs? Would that be the main use? Or who would other customers be?

好的，謝謝。您提到了過濾消費卡。這些會引起政府援助計劃的興趣嗎？這是主要用途嗎？或其他顧客是誰？

It certainly could be. I mean filter spend really is just a way to control certain products or services within a retail environment. So I'm certain it could extend into that market segment. But for this, it's primarily healthcare-related items with the program that we're managing.

這當然有可能。我的意思是，過濾支出實際上只是一種在零售環境中控制某些產品或服務的方式。所以我確信它可以擴展到那個細分市場。但就此而言，我們管理的主要是與醫療保健相關的項目。

Okay, great. Thank you.

好的，太好了。謝謝。

(Operator Instructions)

（操作員指示）

Gordon Holmes, Lookout Ridge. (Operator Instructions)

戈登‧霍姆斯 (Gordon Holmes)，瞭望嶺。（操作員指示）

Seeing no further questions, this concludes our question-and-answer session and today's conference call. Thank you for attending today's presentation. You may now disconnect.

沒有其他問題了，我們的問答環節和今天的電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。