Newtopia (NEWU) Q2 2024 earnings summary
Event summary combining transcript, slides, and related documents.
Q2 2024 earnings summary
4 May, 2026Executive summary
Delivered industry-leading engagement and clinical outcomes in Q2 2024, with engagement rates exceeding 91% and some client outcomes at 105% of expected weight loss targets.
Revenue declined to CAD 1.6 million in Q2 2024 from CAD 2.4 million in Q2 2023, mainly due to client program changes and discontinuations.
Announced a strategic review process to explore alternatives such as a sale, merger, or strategic investment to maximize shareholder value and address indebtedness.
Focused on growth drivers: expanding partnerships, integrating with GLP-1 drugs, and collaborating with health AI and clinical discovery innovators.
Tech-enabled habit change platform with Full-Plus CDC accreditation, integrating genetic data and HIPAA-compliant technology, targeting chronic disease prevention and cost reduction for insurers and employers.
Financial highlights
Q2 2024 revenue was CAD 1.6 million, down from CAD 2.4 million year-over-year.
Gross profit was CAD 0.8 million, representing a 48% margin.
Selling, general, and administrative expenses improved by 15% year-over-year to CAD 1.1 million.
Adjusted operating expenses (excluding share-based compensation) improved by 18% to CAD 1.5 million.
EBITDA loss was CAD 727,000, compared to a loss of CAD 436,000 in Q2 2023.
Cash balance as of June 30, 2024, was CAD 0.52 million, with continued access to a revolving line of credit.
Outlook and guidance
Actively reducing variable costs and accelerating new market opportunities to offset lost revenue.
Engaged in strategic discussions with U.S. and Canadian payers to co-prescribe the platform with GLP-1 drugs.
Management remains optimistic about strategic positioning in healthcare despite macro challenges, focusing on returning to EBITDA positive through pipeline execution.
Broadened business development to new channels, including Medicare Advantage and fully insured populations.
Recently strengthened balance sheet with a $2.5M financing extension.
