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Mar 31, 2022
CPI Card Group Q1 2022 Earnings Report
CPI Card Group's first quarter results reflected strong customer demand and sales growth.
Key Takeaways
CPI Card Group Inc. reported a 25% increase in net sales to $111.4 million and a 149% increase in net income to $6.0 million in the first quarter of 2022. The company's growth was driven by the Debit and Credit segment, with strong performance from contactless cards and instant issuance solutions.
Net sales increased 25% year-over-year to $111.4 million.
Debit and Credit segment net sales increased 32% to $92.0 million.
Prepaid Debit segment net sales were flat at $19.5 million.
Net income increased 149% to $6.0 million.
Revenue by Segment
Forward Guidance
The Company now expects low double-digit net sales growth and mid-to-high single-digit Adjusted EBITDA growth for the 2022 full year. The full-year Adjusted EBITDA margin is now expected to be slightly below 20%, reflecting inflationary pressures on materials and labor costs.
Positive Outlook
- Expects low double-digit net sales growth for full year 2022.
- Expects mid-to-high single-digit Adjusted EBITDA growth for full year 2022.
- Expects strong sales growth in its Debit and Credit segment for the year.
- Company expects long-term market growth to be aided by the gradual transition to higher-priced contactless cards, including eco-focused cards.
- Company expects continued financial payment card growth.
Challenges Ahead
- Full-year Adjusted EBITDA margin is now expected to be slightly below 20%.
- Expects Prepaid Debit segment sales slightly below the record level in 2021.
- Inflationary pressures on materials and labor costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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