Gifty (GIFT) Q4 2024 earnings summary

Executive summary

• Completed acquisition of CardCash Exchange, Inc. in December 2023, fundamentally changing financial position and expanding business opportunities.

• Operates two principal divisions (B2C and B2B) for both CardCash and Restaurant.com, with each division contributing about 50% of gross revenue in 2024.

• Listed on Nasdaq in August 2024 and changed name to Giftify, Inc. in October 2024.

Financial highlights

• Net sales for 2024 were $88.9 million, with CardCash contributing $87.0 million and Restaurant.com $1.9 million.

• Gross profit for 2024 was $13.1 million, up from $10.4 million in 2023.

• Net loss for 2024 was $18.8 million, compared to a net loss of $5.1 million in 2023.

• Gross margin for CardCash improved to 13.0% in 2024 from 12.0% in 2023.

• Modified EBITDA for 2024 was negative $2.8 million.

• Cash and cash equivalents at year-end 2024 were $3.6 million, with negative working capital of $3.2 million.

Outlook and guidance

• CardCash aims to grow all four business channels and increase gross margins by 8% over the next two years.

• Focus on expanding branded exchange partnerships and leveraging machine learning for scalable transaction processing.

• Management expresses substantial doubt about ability to continue as a going concern without additional financing.