April 2018 Revenue Report & Analysis
By: Patrick Dunbar
Tags: Investing, Cryptocurrency, ICO, Bitcoin, Fintech

Welcome to the third report and analysis of Cryptopay’s monthly revenue. At the beginning of each month we will release a monthly report containing the figures of Cryptopay’s revenue for the past month, the 10% that is distributed to investors, the amount of revenue per 100 CPAY, and the date that we’ll distribute said revenue. The second part of the report will give an analysis as to why the numbers are what they are, and then provide a brief outlook for the near future.

The numbers:

Total Monthly Revenue: 213,819 EUR

Revenue Share: 21,382 EUR

Share per 100 CPAY: 0.02 EUR

Distribution Date: May 4th, 2018

Analysis:

In April 2018 Cryptopay’s revenue pulled back to the February 2018 levels declining by 53% in comparison to March’s results. Such a substantial drop is a result of two factors that affected this month’s earnings adversely — a significantly lower average USD/BTC rate being $8,025 in comparison to $8,985 in March, and the decreased overall volume of operations. Cryptopay user base kept increasing throughout last couple of months although in April 2018 these customers were less active than in the previous month. We are still analysing the current trend in details so that we can implement a working strategy against it. Such dynamics are probably connected with the wait-and-see attitude that was prevailing on the markets in April 2018 towards the BTC and other cryptocurrencies.

B2B merchant processing followed the overall market trend — this stream of revenue decreased by 36% in comparison to March partly due to the declined volume of transactions from our B2B partners. At the end of March some of our B2B clients introduced several advertising campaigns which boosted their customers’ activity, but the main effect of these campaigns will be felt in early May. Cryptopay is signing multiple contracts with new B2B clients and we are positive that their integration will happen within the next few months, which will in turn increase our revenue relating to this aspect of our business.

Towards the end of April we made a decision to terminate our gift card program starting May 15th. While we know a fair amount of our users are huge fans of these cards, the overall profitability was below our set thresholds, so we decided to focus our energy into developing other aspects of our service. Namely, the integration of more cryptocurrencies and a standalone B2B service.

Future Outlook:

We are still keeping up with developing our ICO webpage which provides our clients and the community at large a window to look through when it comes to seeing the development of current and upcoming products. This month, we’ll have several interviews with team leads, including our CFO, Alexey Sidorov, talking more on the token structure and financial details, and our CBDO, George Basiladze shedding more light on our highly anticipated Bitcoin brokerage platform.

The revenue forecast for May 2018 is still mostly reliant on general market trends and external variables because most of our new revenue generating products are due to be launched towards the latter part of Q2 2018. Including, but not limited to our new card programme. As for this, it’s important to note that we’ve successfully signed an agreement to have our prepaid cards available in the Russian Federation. This will undoubtedly substantially increase our user base and at the same time contribute to the company’s overall revenue.

In contrast to most fintech companies in our industry these days Cryptopay remains profitable from month to month and our sustainable revenue inflow covers all research and development expenditures which allows us to keep developing new products and hone our existing ones.