Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.</li><li>Opex, excluding goodwill and intangible assts impairments, was $73.2 million.</li><li>While 2022 was a difficult year for crypto, President and CEO Gavin Michael highlighted the company “delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network, and announced our acquisition of Apex Crypto.”</li></ul>

4Q22 revenue grew 14% Y/Y in a tough market. Transacting accounts grew 11% Y/Y and digital asset conversion volumes were up 19%.Opex, excluding goodwill and intangible assts impairments, was $73.2 million.While 2022 was a difficult year for crypto, President and CEO Gavin Michael highlighted the company “delivered on our product roadmap, worked closely with our partners to go-to-market, added leading industry players to our partner network, and announced our acquisition of Apex Crypto.”

14% Y/Y Revenue Growth in 4Q22 in a Tough Market; Guiding 15-30% Revenue Growth in 2023

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14% Y/Y Revenue Growth in 4Q22 in a Tough Market; Guiding 15-30% Revenue Growth in 2023