GreenBox POS: Management’s Execution Is Remarkably Good

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GreenBox POS: Management’s Execution Is Remarkably Good

 

August 26, 2021

 

Price (as of close on August 25, 2021)

$8.58

 

Rating

BUY

 

Price Target 

blocked

 

GreenBox POS, a technology company, develops, markets, and sells blockchain-based payment solutions. The Company's blockchain-based systems are designed to facilitate, record, and store a volume of tokenized assets, representing cash or data, on a blockchain-based ledger. GreenBox POS was incorporated in 2007 and is based in San Diego, California.

 

 

GreenBox POS (GBOX)

In Q2:21, GBOX had revenue of $6.4 million, representing growth of 178% YoY and 36% sequentially. GBOX processed a quarterly record of $440 million in transaction volume, up 40% from Q1:21. In the quarter, the Company made several key acquisitions and business arrangements that have framed GBOX for a successful global launch of COYNI. We have reduced our price target from $33.00 because earlier we did not discount GBOX’s valuation enough since most of its revenue comes in 2022 and 2023. However, after increasing the valuation discount, we reiterate our BUY rating with a blocked price target.

 

sr gbox 9 6 2021 img 1

 

Q2:21 Highlights

  • Revenue grew 178% YoY and 36% sequentially to approximately $6.4 million in Q2:21, compared to $2.3 million for the same quarter one year ago.
  • GBOX processed a quarterly record of $440 million in transaction volume, up 40% from Q1:21’s processing volume of $315 million.
  • The Company deployed COYNI, their smart contract technology stablecoin, in a pilot launch and deposited $5 million in initial seed capital at Signature Bank.
  • GBOX acquired Transact Europe, a Principal Visa and Mastercard member with key licensing assets and a significant processing volume portfolio.
  • Partnered with the Territorial Bank of American Samoa to provide customized payment solutions software throughout American Samoa.
  • We are bullish on GBOX’s long-term prospects. We reiterate our BUY rating with a price target of blocked.

 

PRIMARY RISKS

  • Merchants could be slow in adopting Gen 3 and/or the token. This hesitation could result in lower processing volume and revenue.
  • The joint venture in the GBOX token may be delayed or be less than anticipated.The Company’s performance in linked to the market price of Bitcoin which has high volatility.

 

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