Pax Global – 2021 Earnings – Solid growth, with no surprises
- Rupam Deb
- Mar 30, 2022
- 2 min read
Pax Global released its 2021 financial results in late March 2022, and overall it’s a good set of results, with no unexpected surprises.
Revenue grew y/y by 27% to HKD 7.2 billion, with the fastest growth in North America (+56% to HKD 0.8 billion) and EMEA (+48% to HKD 1.9 billion), and with the Android terminal sales growing rapidly at 78% (to HKD 3.2 billion). Gross profit grew slower at 21% (with a gross profit margin of 39%), due to RMB appreciation and increase in raw material prices. EBITDA grew 18% and net profit grew 21% (to HKD 1.1 billion, with a 15% net profit margin).
Some notable points include:
The number of Android smart terminals connected to PaxStore platform has more than doubled y/y, to 4.4 million terminals, and might support some long term revenue growth in the future (although the SaaS solutions revenue at this stage was still relatively low despite a 193% y/y growth).
On the recent FBI investigation into Pax Global’s US office, there have been no adverse developments since then and the company does not expect any material financial impact from the incident. We also note that Bank of America, a major bank in the U.S., is still using and promoting Pax Global’s terminals (for its small business operations, on its website).
Since then, Pax Global has also enhanced the work on its industry security standards, including by regularly cooperating with reputable cybersecurity firms to conduct product penetration & software testing.
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