Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Clear Blue Technologies International Inc (CBUTF, Financial) reported a significant revenue increase, with Q2 2024 revenues reaching $1.01 million, marking a 278% increase over the trailing four quarters.
- The company has expanded its product line from two to four products, which has contributed to strong sales growth across its portfolio.
- Clear Blue Technologies International Inc (CBUTF) has a strong recurring revenue model through its Energy-as-a-Service and Illumience management services, with a 21% increase in trailing fourth-quarter recurring revenue.
- The company is actively involved in strategic partnerships and is in the process of developing two significant partnerships with Tier 1 global companies in the telecom and lighting sectors.
- Clear Blue Technologies International Inc (CBUTF) is leveraging its extensive data and AI capabilities to enhance its product offerings, providing a competitive edge in the market.
Negative Points
- The company's gross margin decreased to 24% in Q2 2024 from 41% in Q2 2023, primarily due to an unexpected solar panel anti-dumping charge.
- Clear Blue Technologies International Inc (CBUTF) is still operating at a negative EBITDA, although it has improved by 54% compared to the previous year.
- Cash flow remains tight, and the company is actively managing its financial resources, including government loans and convertible debentures.
- The company has faced delays in receiving payments from customers and grant money, impacting its financial position and growth targets.
- Clear Blue Technologies International Inc (CBUTF) has not yet achieved its revenue target of CAD8 million for 2024, with current guidance suggesting it may fall short.
Q & A Highlights
Q: Why doesn't the stock price reflect the true value of the company, and what would you tell investors?
A: Miriam Tuerk, CEO, explained that the small cap market is currently in a downturn, which affects the stock price. She advised investors to consider this an opportunity to buy, as the company has expanded from two to four products and is showing growth in revenues and margins. She believes the stock will eventually reflect the company's true value as market conditions improve.
Q: Do you believe Clear Blue will hit CAD8 million in revenue in 2024?
A: Miriam Tuerk stated that while it is possible, it is not guaranteed. The company faced delays in receiving payments and grant money, which impacted their financial position. However, they are on track for strong growth over last year's revenue and aim to cross the CAD10 million mark next year with positive EBITDA.
Q: Has NuRAN in Africa started placing orders again after receiving funding?
A: Miriam Tuerk confirmed that Clear Blue has received payments and some orders from NuRAN, with more expected soon. They anticipate strong shipments in the fall as NuRAN finalizes configurations for larger systems.
Q: How is the company doing cash-wise, and will you need to raise new funds?
A: Miriam Tuerk acknowledged that cash is tight, but they are managing through various means, including government loans and convertible debentures. They are prepared to raise funds if the market is receptive but are also exploring other funding options to support operations.
Q: When will Clear Blue achieve positive EBITDA?
A: Miriam Tuerk projected that Clear Blue will achieve positive EBITDA within the next 12 to 18 months, certainly by the end of 2025. The company is focused on maintaining margins and expects revenue growth from its diversified product base.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
