Cust2Mate (AZ) Q4 2024 earnings summary

Executive summary

• Revenues for 2024 were $7.2M, down from $11.4M in 2023, mainly due to a decrease in smart cart segment sales as the company transitioned to a new product generation and completed a major order in 2023.

• Net loss for 2024 was $19.3M, compared to $18.1M in 2023, reflecting continued investment in R&D and administrative costs.

• Gross margin improved to 28% in 2024 from 18% in 2023, driven by cost reductions and a shift in revenue mix.

• The company raised over $22.8M in financing activities in 2024 and an additional $30M in early 2025, ensuring sufficient working capital for at least the next 12 months.

Financial highlights

• 2024 revenues: $7.2M (2023: $11.4M); gross profit: $2.0M (2023: $2.0M); net loss: $19.3M (2023: $18.1M).

• R&D expenses: $4.0M (2023: $4.8M); G&A expenses: $9.7M (2023: $13.9M); sales and marketing: $1.2M (2023: $1.4M).

• Cash and equivalents at year-end: $13.5M (2023: $2.3M); working capital: $5.6M.

• Loss on warrant liability revaluation: $4.4M in 2024 (2023: $1.3M gain).

• Accumulated deficit as of Dec 31, 2024: $100.5M.

Outlook and guidance

• Management expects continued operating losses in the near term as the company invests in product development and market expansion.

• The company anticipates revenue growth in 2025 from new smart cart deployments and expanded customer base, including international markets.

• Sufficient liquidity is expected for at least the next 12 months following recent capital raises.