Usio (USIO) The MicroCap Rodeo Fall Conference 2024 summary

Strategic positioning and business model

• Focus on diversity across industries and payment channels, enabling resilience and growth during market disruptions like COVID-19.

• Shifted to a high-growth strategy over the past eight years, resulting in sevenfold revenue growth.

• Majority of revenue is now recurring, replacing prior one-time program revenues.

• Operates four divisions: payment facilitation, ACH processing, card issuing, and Output Solutions.

• Leverages integrated software vendors for scalable, recurring account acquisition.

Technology and competitive advantages

• Proprietary tech stack enables easy integration and superior customer service, differentiating from competitors like Stripe.

• Unique ability to push virtual cards directly to mobile wallets without user initiation, supporting innovative promotions.

• Real-time external authorization technology used for clients like MoviePass and major clinical trial sponsors.

• Holds a Fed terminal for ACH, placing it among the top U.S. payment processors by volume.

• Data insights from high ACH volume provide merchants with valuable account risk information.

Key partnerships, clients, and growth initiatives

• Signed largest-ever payment facilitation deal, potentially doubling division revenue, with a client migrating $1.4B in annual volume from Stripe.

• Card issuing clients include over 200 cities, the State of California, OpenTable, top universities, and major pharmaceutical companies.

• Technology powers high-profile promotions for brands like Coca-Cola and Taco Bell, driving viral engagement.

• Output Solutions serves major clients for print, mail, and electronic delivery, including utilities and telecoms.

• Entered bankruptcy distribution market, increasing check volume and diversifying revenue streams.