Intouch Insight (INX) Q2 2024 earnings summary

Executive summary

• Revenue grew 29% year-over-year to $7.35M in Q2 2024, driven by recurring and SaaS services.

• Operating expenses increased 9% as acquisition integration continued.

• Net income rose to $826K from $304K in Q2 2023, despite lower gross margin.

Financial highlights

• Recurring services revenue up 12% to $5.29M year-over-year.

• Gross margin declined to 41.7% from 54.8% due to lower margin product mix.

• Adjusted EBITDA positive at $297K, down from $634K in Q2 2023.

• Income from operating activities was $87K, down from $375K year-over-year.

Outlook and guidance

• Full-year growth and improved gross margin expected in the second half of 2024.

• Cash flow positivity remains a priority despite economic headwinds.

• New account acquisition anticipated to accelerate in 2025 as US economic conditions improve.