EMERGE Commerce (ECOM) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 priorities, including reigniting organic revenue growth, improved profitability, and reduced debt, with three consecutive quarters of organic growth and a return to annual growth in FY 2024.

• Major year-over-year improvement in profitability, with positive net income in Q4 2024.

• Cash balance increased year-over-year without a capital raise.

• Streamlined business model focused on grocery and golf segments, divesting non-core assets.

• Completed accretive acquisition of Tee 2 Green in Q2 2025, expected to enhance future results.

Financial highlights

• 2024 revenue grew to CAD 20.4M from CAD 19.6M; excluding Carnivore Club, revenue rose 9% to CAD 19.3M.

• Q4 revenue (ex-Carnivore Club) up 15% year-over-year to CAD 5.3M; Q4 2024 revenue rose to $5.6M from $5.1M.

• Gross profit for 2024 increased to CAD 8.2M from CAD 7.6M; Q4 gross profit rose to CAD 2.2M.

• Net loss for 2024 was CAD 0.5M, a significant improvement from CAD 21M loss in 2023; Q4 net income was CAD 0.3M.

• Adjusted EBITDA loss improved to CAD 466K from CAD 1.8M in 2023; Q4 adjusted EBITDA nearly break-even at CAD 11K loss.

• Cash on hand at year-end was CAD 3.1M, up from CAD 2.5M.

Outlook and guidance

• Management expects continued operational momentum and strong performance in 2025, with cost savings and operational efficiencies to further improve profitability.

• Addition of T2Green (Tee 2 Green) expected to enhance revenue, profitability, and cash flow starting Q2 2025.

• Priorities for 2025: accelerate revenue growth, drive operational efficiencies, and reduce interest expense.

• Discount golf vertical expected to perform well in a recession-friendly environment.