Q1 2024 POSaBIT Systems Corp Earnings Call Transcript
Key Points
- POSaBIT Systems Corp (POSAF) achieved a significant improvement in adjusted EBITDA, reducing the loss from $2.5 million in Q4 2023 to $800,000 in Q1 2024.
- The company reported a 50% adjusted gross margin for Q1 2024, a substantial increase from the previous quarter's 13%.
- POSaBIT Systems Corp (POSAF) is now cash flow positive, indicating a strong fiscal position moving forward.
- The company has diversified revenue streams, including payments, point-of-sale software, and software licensing contracts, which provide a stable source of recurring monthly revenue.
- POSaBIT Systems Corp (POSAF) has successfully reduced operating expenses by 30%, primarily through headcount reduction and other cost-saving measures.
- Total revenue for Q1 2024 was $3.78 million, down 25% compared to the previous quarter.
- The company faced significant payment challenges at the end of 2023 and the beginning of 2024, impacting revenue.
- There was a notable drop in top-line revenue due to changes in billing practices, now only charging consumers instead of both merchants and consumers.
- Cash on hand decreased from $1.5 million as of December 31, 2023, to $900,000 as of March 31, 2024.
- The process of listing on the TSX Venture Exchange (TSXV) has been delayed, primarily due to internal decisions to ensure the company is in a strong position before listing.
Good day and welcome to the POSaBIT Systems Corporation first-quarter 2024 earnings call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Oscar Dahl. The floor is yours.
Thank you, operator. With me on this call are Ryan Hamlin, Chief Executive Officer; and Chelsea Bolander, POSaBIT's Corporate Controller.
I would like to begin the call by reading the Safe Harbor statement. This statement is made pursuant to the Safe Harbor or 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 21E 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 expectations will prove to have been
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