OneSoft Solutions
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OneSoft Solutions (OSS) investor relations material

OneSoft Solutions has been acquired

OneSoft Solutions Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary28 Aug, 2024

Executive summary

  • Q2 2024 revenue increased 24% year-over-year to $3.1M, driven by new and existing CIM customers, despite a decrease in IM operations revenue.

  • Gross profit rose 25% to $2.4M, with a stable gross margin of 76%, but higher staff and non-cash expenses led to a net loss of $615K for the quarter.

  • Adjusted EBITDA loss improved to $17K in Q2, trending toward positive cash flow.

  • The company announced a pending sale to Irth Solutions at $0.88 per share, representing a 42% premium to prior close and a significant premium to market value.

  • H1 2024 revenue up 28% to $6M; gross margin improved to 76% from 73%.

Financial highlights

  • Q2 2024 revenue grew by CAD 609,000 year-over-year; six-month revenue up CAD 1,307,000 or 28%.

  • Gross profit for the six months increased by CAD 1,093,000, with gross margin up 2.2% to 75.6%.

  • Net loss for Q2 was $615K (vs. $558K in Q2 2023); six-month net loss increased by $133K.

  • Adjusted EBITDA loss for H1 2024 was $261K, a $321K improvement year-over-year.

  • Cash and cash equivalents stood at $5.7M as of June 30, 2024; cash generated in the six months was $942,000.

Outlook and guidance

  • Fiscal 2024 revenue guidance maintained at $15M–$16M, a 44–54% increase over 2023.

  • Management expects to close revenue gap by year-end despite delayed customer signings, with profitability anticipated in the second half if sales forecasts are met.

  • Net loss and Adjusted EBITDA guidance unchanged, pending Q3 review.

  • Business to operate as usual until Irth transaction closes; focus remains on new modules and customer growth.

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    Frequently asked questions

    OneSoft Solutions Inc. is a technology company specializing in the development and provision of advanced software solutions, specifically targeting the oil and gas pipeline industry across Canada, Australia, and the United States. The company's flagship product, Cognitive Integrity Management, is a sophisticated software-as-a-service (SaaS) offering designed to streamline and enhance the integrity management processes of oil and gas pipelines. This solution facilitates various critical functions such as assessment planning, integrity compliance, dig management, threat monitoring, data management, and dataset analysis. Utilizing data science and proprietary machine learning algorithms, OneSoft's ILI Management software module offers automatic normalization, ingestion, alignment, and analysis of pipeline in-line inspection data files. The company is headquartered in Edmonton, Canada, and its shares are listed on the TSX.