Cust2Mate (AZ) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, was $5.3M, down from $10.1M year-over-year, mainly due to lower smart cart sales as major orders were completed in 2023.

• Net loss for the nine months was $7.1M, a significant improvement from $13.9M in the prior year period.

• Gross margin improved as cost of revenues fell in line with lower sales, and operating expenses were reduced through cost-cutting and lower share-based compensation.

• The company remains focused on scaling its smart cart business, with new partnerships and product launches expected to drive future growth.

Financial highlights

• Revenue for Q3 2024 was $2.1M, down from $2.6M in Q3 2023; smart cart segment revenue dropped sharply year-over-year.

• Gross profit for Q3 2024 was $0.7M, up from $0.4M in Q3 2023, reflecting improved margins.

• Operating loss for the nine months was $10.2M, improved from $13.7M year-over-year.

• Net cash used in operations for the nine months was $8.2M, with a period-end cash balance of $3.4M.

• Share-based compensation and public company expenses were significantly reduced year-over-year.

Outlook and guidance

• Management expects increased smart cart deployments and revenue in Q4 2024 and 2025, driven by new product launches and expanded partnerships.

• The company anticipates continued operating losses and will require additional financing to support growth and working capital needs.