Q2 2024 POSaBIT Systems Corp Earnings Call Transcript
Key Points
- POSaBIT Systems Corp (POSAF) achieved positive Adjusted EBITDA for the first time, with nearly $100,000 in profit.
- The company reported positive free cash flow, adding $200,000 to its cash reserves.
- Revenue increased by 13% quarter-over-quarter, with payments revenue up by 24%.
- Gross margin percentage reached a historic high of 59%, reflecting effective cost control and increased revenue.
- The launch of new products, such as the POSaBIT Pay application and an e-commerce platform, shows promising adoption and potential for future growth.
- Despite the positive financial metrics, POSaBIT Systems Corp (POSAF) reported a net loss of $454,000 for the second quarter of 2024.
- Gross revenue decreased year-over-year due to a change in the processing method, which eliminated merchant fees.
- Operating expenses remain high at $2.8 million, although they have decreased from the previous year.
- The company has a debt balance of $4.5 million, which includes an SBA loan and a five-year term loan.
- The stock price remains low, and the company has not considered a stock buyback due to limited cash reserves.
Greetings, welcome to POSaBIT Systems Corporation second quarter 2024 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Oscar Dahl, Chief of Staff at POSaBIT. Oscar, you may begin.
Thank you, operator, with me on this call are Ryan Hamlin, Chief Executive Officer and Chelsea Bolander of this corporate control. I would like to begin the call by reading the Safe Harbor. Statement. This statement is made pursuant to the Safe Harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. All statements made on this call, with the exception of historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934. Although the company believes that expectations and assumptions reflected in these forward-looking statements are reasonable, it makes no assurances that such
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