BuildDirect.com Technologies (BILD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $16.18 million, down 15.29% year-over-year from $19.10 million, but up 3.8% sequentially from Q1 2024.

• Gross profit was $6.18 million (38.2% margin), down 18.36% year-over-year, but up 3.8% sequentially.

• Adjusted EBITDA was $578,000 (3.57% margin), positive for the tenth consecutive quarter, but down 45.67% year-over-year.

• Operating expenses fell 16.39% to $6.41 million, reflecting cost control and optimization efforts.

• Strategic focus on scaling e-commerce and Pro Centers, with new CFO Kerry Biggs appointed.

Financial highlights

• Revenue declined by $2.9 million (15.3%) year-over-year, mainly due to deliberate e-commerce scaling and softer housing market demand.

• Gross profit decreased by $1.4 million (18.4%) year-over-year, but increased $94,000 sequentially.

• Adjusted EBITDA improved 14.69% sequentially, but fell 45.67% year-over-year.

• Working capital improved to $2.91 million at June 30, 2024, up from $2.3 million at March 31, 2024.

• Cash position at $2.32 million, up 8.29% from Q1 2024, but down 38.48% year-over-year.

Outlook and guidance

• Management is optimistic about e-commerce and Pro Center growth, with plans for organic expansion and acquisitions.

• Anticipates industry rebound with potential interest rate reductions and plans to boost inventory and expand into new markets.

• Exploring lower-cost debt options to support growth and new Pro Center openings.