DSS (DSS) Q3 2024 earnings summary

Executive summary

• DSS, Inc. operates nine business lines across five segments: Product Packaging, Biotechnology, Direct Marketing, Commercial Lending, and Securities & Investment Management, with discontinued operations in Digital Transformation, Secure Living, and Alternative Energy.

• For the quarter ended September 30, 2024, total revenue increased 34% year-over-year to $5.6 million, driven by higher printed product and rental income, but decreased 28% to $13.7 million for the nine months due to declines in rental and direct marketing revenues.

• Net loss attributable to common stockholders was $5.3 million for the quarter and $14.0 million for the nine months, both improved from prior year periods.

• The company completed the deconsolidation of Sharing Services Global Corporation (SHRG) in May 2023, impacting the Direct Marketing segment and resulting in discontinued operations.

Financial highlights

• Q3 2024 revenue rose 34% year-over-year to $5.6 million; nine-month revenue fell 28% to $13.7 million.

• Net loss for Q3 2024 was $5.3 million, an improvement from $4.3 million loss in Q3 2023; nine-month net loss was $14.0 million, improved from $30.3 million loss in 2023.

• Gross margin for the nine months was negative, with operating loss of $14.3 million, improved from $15.6 million loss year-over-year.

• Cash and cash equivalents increased to $11.6 million as of September 30, 2024, from $6.6 million at year-end 2023.

• Net cash used in operating activities was $9.2 million for the nine months, down from $21.0 million in the prior year.

Outlook and guidance

• Management believes current cash and marketable securities, along with planned asset sales and cost reductions, are sufficient to fund operations for at least the next 12 months.

• The company expects improved future cash flows due to the deconsolidation of loss-generating subsidiaries and ongoing expense reductions.