NextTrip (NTRP) Q1 2024 earnings summary

Executive summary

• Revenue for the quarter ended May 31, 2024, increased 865% year-over-year to $188,793, driven by the launch of the NXT 2.0 booking engine and integration of Expedia inventory.

• Net loss applicable to common stockholders widened to $1,989,405 from $1,095,371 year-over-year, reflecting higher operating expenses and preferred dividends.

• The company completed a reverse acquisition in December 2023, resulting in a name change to NextTrip, Inc. and a shift to a travel technology focus.

Financial highlights

• Gross profit for the quarter was $15,212, up from $1,844 in the prior year period.

• Operating expenses rose 90.7% year-over-year to $1,967,613, mainly due to increased salaries, marketing, technology, and professional fees.

• Cash and cash equivalents at May 31, 2024, were $36,679, down from $323,805 at February 29, 2024.

• Working capital deficit increased to $2,109,148 from $262,005 at the prior fiscal year-end.

• Net cash used in operating activities was $1,151,220, nearly doubling year-over-year.

Outlook and guidance

• Management expresses substantial doubt about the company's ability to continue as a going concern for the next 12 months without additional financing.

• At least $5.5 million in new funding is estimated to be needed to support operations over the next year.

• The company is focused on expanding its booking platform, launching Compass.TV, and leveraging its media and technology assets for future growth.