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TG

Tingo Group, Inc. (TIO)·Q1 2023 Earnings Summary

Executive Summary

  • Q1 2023 was the first full quarter consolidating Tingo Mobile and approximately two months of Tingo Foods, delivering net revenues of $851.2M (+8,801% YoY), gross profit of $386.9M (45% margin), operating profit of $260.7M, and GAAP net income of $176.7M; basic EPS was $1.10 and diluted EPS $0.33 .
  • Non‑GAAP EBITDA reached $372.2M, reflecting significant add-backs for D&A and taxes; management emphasized non‑GAAP metrics as a tool to compare across periods and peers .
  • Balance sheet strengthened with cash and equivalents of $780.2M at March 31, 2023 (vs. $500.3M at Dec 31, 2022), supporting growth initiatives including export ramp via Tingo DMCC and the Tingo Foods processing facility .
  • Catalysts cited by management include (i) commencement of first export orders before end of Q2 2023 via Tingo DMCC, (ii) ramp of the $1.6B food processing facility (target mid‑2024), and (iii) TingoPay Super App with Visa, plus PCX/AFAN warehousing and supply partnerships .
  • Wall Street consensus (S&P Global) for Q1 2023 EPS/Revenue was unavailable; we cannot assess a beat/miss vs estimates. S&P Global estimates unavailable for TIO in this period.

What Went Well and What Went Wrong

What Went Well

  • Consolidation step-change in financials: $851.2M net revenues, $386.9M gross profit (45%), $260.7M operating profit, $176.7M net income in Q1 2023; EBITDA $372.2M .
  • Segment traction: Tingo Foods contributed $577.2M revenues and $143.4M operating profit for ~two months post-acquisition; Nwassa platform and device/telecom businesses added $253.4M combined .
  • Strategic progress: PCX/AFAN partnership for nationwide warehousing and supply aggregation; export pipeline nearing launch; TingoPay Super App and Visa digital card in advanced testing; construction of the $1.6B plant progressing on schedule toward mid‑2024 opening .

Quotes:

  • CEO Darren Mercer: “the first quarter of 2023 has exceeded all our expectations, not only in terms of financial performance… but also strategically and operationally.”
  • Founder & CEO Dozy Mmobuosi: “Tingo Foods is already growing at an impressive rate… There will… be a major step-change… when our state-of-the-art food processing facility comes online in 2024…” .

What Went Wrong

  • Elevated OpEx from integration and growth: S&M $85.1M (vs $2.5M YoY), G&A $29.6M (vs $7.3M YoY), including $6.7M share-based payments; reflects inclusion of Tingo Mobile/Foods and insurance marketing .
  • Limited transparency vs prior quarter: company did not disclose Q4 2022 quarterly revenue/EPS, complicating sequential comparisons; Q4 release focused on FY 2022 and pro forma metrics .
  • Regulatory/legal overhang: company engaged counsel in Feb 2023 to investigate alleged market manipulation and naked short-selling in its stock, potentially a sentiment headwind near term .

Financial Results

Consolidated P&L vs prior year

MetricQ1 2022Q1 2023
Revenue ($USD Millions)$9.56 $851.25
Gross Profit ($USD Millions)$1.27 $386.85
Gross Margin (%)13% 45%
Operating Income ($USD Millions)$(9.97) $260.68
Net Income ($USD Millions)$(8.85) $176.42
Basic EPS ($)$(0.07) $1.10
Diluted EPS ($)$(0.07) $0.33
EBITDA ($USD Millions, non‑GAAP)$(8.94) $372.16

Notes: Non‑GAAP EBITDA reconciled by adding back taxes, net interest, D&A and other items per company methodology .

Segment breakdown – Q1 2023

Segment Revenue ($USD Millions)Q1 2023
Tingo Foods Revenues$577.2
Mobile handset leasing$113.7
Mobile call and data$14.4
Nwassa – Platform Revenues$125.3
MICT Insurance & Financial Services$20.6
Total$851.2

Balance sheet liquidity

Metric ($USD Millions)Q4 2022 (Dec 31, 2022)Q1 2023 (Mar 31, 2023)
Cash & Cash Equivalents$500.3 $780.2

KPIs and operating stats

KPIQ4 2022Q1 2023
Nwassa Agri‑Fintech Platform Customers (end-period)11.4M 12.0M
Tingo Foods revenue contribution (in-period)N/A$577.2M (approx. 2 months)
Tingo Foods operating profit (in-period)N/A$143.4M (approx. 2 months)

Estimates vs Actuals (Q1 2023)

  • Consensus EPS and Revenue: Unavailable from S&P Global; unable to assess beat/miss.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
All financial metricsFY 2023 outlookNot previously providedNo specific numeric guidance; management expressed increased confidence in “upwardly revised growth projections” and near-term catalysts (exports, warehousing, TingoPay, plant build)Narrative positive; no quantified change

Note: The Q1 press release/presentation contained no specific numeric revenue, margin, or EPS guidance ranges –.

Earnings Call Themes & Trends

(Company call transcript could not be retrieved due to a document access issue; themes rely on the Q1 presentation and press release, plus prior-quarter filings.)

TopicQ3 2022 (two quarters ago)Q4 2022 (prior quarter)Q1 2023 (current)Trend
Agri/food ecosystem build-outAFAN and Ashanti deals; Tingo Mobile acquisition targeted; Tingo Inc. reported strong Q3 –Completed Tingo Mobile; launched Tingo DMCC; acquired Tingo Foods in Feb ’23; TingoPay beta – –Tingo Foods contributed ~$577M in ~2 months; PCX/AFAN warehousing; export pipeline imminent Accelerating integration and monetization
Export/dollarizationSet-up described (commodity trading center); expectations for 2023 exports DMCC platform launched; access to several $B of produce First export orders scheduled to complete before end of Q2 2023 Nearing revenue activation
Payments/Fintech (TingoPay/Visa)Broader fintech ecosystem; Singapore capital markets license (Magpie) –TingoPay beta and pan‑Africa Visa partnership Beta testing advanced; mid‑2023 full-scale launch planned Toward commercialization
Capacity expansion (Processing plant)N/A$1.6B facility plan highlighted; target early 2H 2024 Construction progressing on schedule; mid‑2024 opening anticipated; solar plant partner for net-zero energy On schedule; ESG narrative strengthening
Regulatory/legalN/AN/ACounsel engaged to investigate market manipulation and naked short‑selling New legal focus item

Management Commentary

  • Strategic message: “the first quarter of 2023 has exceeded all our expectations… strategically and operationally,” citing the ecosystem benefits of Tingo Foods and the PCX/AFAN partnership to strengthen supply, storage, and export capabilities –.
  • On growth outlook: “Having exceeded our own expectations in the first quarter of 2023 and started the second quarter strongly… we will deliver against our upwardly revised growth projections for 2023 and beyond.” .
  • Founder’s vision: Tingo Foods to be “the largest and most advanced food processing business on the African continent,” with 2024 plant opening expected to drive a step‑change in capacity and revenue .

Selected quotes:

  • Darren Mercer (CEO): “the first quarter of 2023 has exceeded all our expectations… our outlook and optimism are underpinned by the unique and dominant position we have achieved through our ecosystem…” –.
  • Dozy Mmobuosi (Founder & CEO, Tingo Mobile/Foods): “we expect [Tingo Foods] to build on [its growth]… There will… be a major step-change… when our state-of-the-art food processing facility comes online in 2024…” .

Q&A Highlights

  • The Q1 2023 earnings call transcript could not be retrieved due to a document access inconsistency; therefore, Q&A specifics and any guidance clarifications from the live call are unavailable from primary sources at this time. See press release and presentation for management’s prepared commentary –.

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2023 EPS and Revenue was unavailable for TIO; as a result, we cannot determine beat/miss vs consensus for this quarter. S&P Global estimates unavailable for TIO in this period.

Key Takeaways for Investors

  • Q1 2023 marked a structural inflection from consolidation: $851.2M revenue, 45% gross margin, $260.7M operating income, $176.7M net income; EBITDA $372.2M underscores earnings power as integration scales .
  • Segment concentration is high: Tingo Foods contributed ~68% of Q1 revenue ($577.2M in ~2 months), implying outsized sensitivity to processing volumes and execution at the new plant .
  • Liquidity is robust ($780.2M cash), providing optionality to fund export working capital, plant buildout, and potential shareholder-return programs referenced by management .
  • Near-term catalysts include first export completions before end-Q2 2023, potential monetization of PCX/AFAN warehousing network, and TingoPay/Visa rollout; each could broaden revenue mix and dollarize cash flows .
  • Risks/overhangs: elevated OpEx as businesses scale, limited sequential comparability vs pre-consolidation quarters, and the legal investigation into alleged market manipulation that could impact sentiment .
  • With no reported numeric guidance and unavailable consensus estimates, focus near-term on execution milestones (exports, TingoPay launch, plant construction progress) and reported segment disclosures for read‑through to margins and cash generation .