Splitit Payments Ltd

Splitit said Q4 MSV was $141 million and registered revenue was $3.1 million. Net transaction margin was 1.3% in Q4, and management said that was more than 50% year over year growth. Operating expense was $4.7 million, a $2.7 million reduction year over year. For full-year 2022, MSV was $231 million, up 9% year over year, and revenue grew 6% year over year. Cash on hand was just under $30 million, with $19.2 million available for operating activities. Looking ahead, management targeted an MSV run rate of $700 million to $800 million by the end of 2023, and said profitability could be achieved around $1.5 billion to $2 billion of MSV as onboarding matures.

Nandan Sheth framed 2022 as a transition year in which Splitit pivoted to an embedded white-label installment strategy and saw strong market reaction. He emphasized that the company is winning larger enterprise merchants and partners, citing Checkout.com, AliExpress, Worldline, Google expansion, and Tabby as proof the strategy is converting partnerships into merchant traction. His tone was upbeat but execution-focused, repeatedly stressing that the next phase is about implementing deals already signed and continuing to add more.

Ben Malone said Q4 delivered the highest quarterly MSV and revenue, with 9% MSV growth and 6% revenue growth year over year. He pointed to Q4 net transaction margin of 1.3% and said the improvement came from lower funding costs, better merchant selection, and a portfolio with over 30% on a nonfunded product, which he described as a structural advantage. He also noted that Q4 margins softened slightly versus prior quarters due to recent interest rates, but said the company expects margins to remain in line longer term as the portfolio expands. OpEx remained at the rebased level, which he said should continue going forward.

Analysts asked about the timeline to profitability, and management said it will be driven by implementation speed and onboarding, not by a fixed date. Ben Malone said Splitit sees profitability as achievable once it reaches roughly $1.5 billion to $2 billion of MSV. Management also said Q1 2023 should be seasonally softer, but they expect stronger growth in Q2 through Q4 as larger implementations go live. In response to questions about Amazon, a mobile app, and brick-and-mortar expansion, Nandan Sheth said Splitit is targeting an infrastructure-style white-label approach for large merchants, has no consumer app plans for now, and sees a large opportunity in point-of-sale commerce but has not yet detailed the rollout.