IncentiaPay Q3 FY24 Quarterly Activities Report

IncentiaPay Ltd (ASX: $INP) has reported a decline in cash inflows and net operating cash loss in its Q3 FY24 Quarterly Activities Report. The company's cash inflows of $3.19 million were down 35% from the previous quarter, primarily due to a seasonality factor with Entertainment membership and gift card sales declining as the holiday season came to an end in mid-January. The net operating cash loss stood at $2.24 million, reflecting a 132% increase from the previous quarter due to the seasonality factor, but a decrease of 11% from the same quarter in the previous year, reflecting the results of cost optimization initiatives.

Executive Commentary on Q3 FY24 Quarterly Activities

IncentiaPay Chief Executive Officer Ani Chakraborty stated, 'We are now in advanced stages of execution of our Board approved strategy to rejuvenate our Fundraiser network. As part of this strategy, we have rebuilt our Fundraiser Team focusing on our large markets. We are in the process of adding new and exciting Restaurants in the program with a focus on Fine Dining. Our App UI/UX is also going through a transformation. We continue to build momentum on building our Enterprise client portfolio. Several major client programs are in the final stages of negotiations. We are now demonstrating consistent growth in Transaction Value through our card linked offer programs. Overall, with a strong organizational foundation, we are ramping up on growing our revenues with high operating leverage.'

Summary of Q3 FY24 Quarterly Activities Report

IncentiaPay's Q3 FY24 Quarterly Activities Report reflects a decline in cash inflows and an increase in net operating cash loss, primarily attributed to a seasonality factor. The company is implementing a strategy to rejuvenate its Fundraiser network, focusing on large markets and adding new Restaurants in the program with a Fine Dining focus. Additionally, IncentiaPay is witnessing consistent growth in Transaction Value through its card linked offer programs and is aiming to grow its revenues with high operating leverage. The company expects operating cash flows to improve in the coming quarters and has initiated discussions to raise additional debt from existing lenders and/or financial institutions to fund its operations.