EMERGE Commerce (ECOM) Corporate presentation summary

Portfolio overview and business model

• Operates a premium e-commerce brand portfolio focused on grocery and golf verticals in Canada and the U.S., with $20M revenue run rate and 32 employees.

• Streamlined from a diversified, decentralized model to a focused, centralized strategy, emphasizing operational synergies and direct management of key brands.

• Key brands include truLOCAL (premium meat subscription), Carnivore Club, UnderPar (discounted golf experiences), and JustGolfStuff (golf products/apparel).

Financial performance and operational highlights

• Achieved ~10% topline growth in Q3 2024, marking the second consecutive quarter of positive organic revenue growth.

• Q3 2024 revenue rose 5% YoY to $4.6M, with gross profit improving to $2.2M and gross margin increasing to 39.3%.

• Adjusted EBITDA loss narrowed to $(0.28M) from $(0.58M) YoY, driven by higher gross margin and reduced overhead.

• Announced $500K in cost savings, with full impact expected from Q1 2025.

• Cash balance at September 30, 2024 was $1.6M.

Debt reduction and capital structure

• Reduced total debt from $31.2M in Q1 2023 to $7.5M in Q3 2024, with net debt at ~$5.5M.

• Recent and anticipated interest rate cuts expected to yield further cash savings.

• Market capitalization at $5.6M, enterprise value at $11.2M as of November 22, 2024.