Route1 (ROI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was CAD $3.48M, down from $4.18M in Q2 2023 and $4.03M in Q1 2024, reflecting project delays and lower device sales.

• Net loss for Q2 2024 was CAD $328K, compared to a net loss of $625K in Q2 2023 and $149K in Q1 2024.

• Management expects a stronger second half of 2024, citing a more robust sales pipeline and recent talent additions.

Financial highlights

• Subscription and services revenue for Q2 2024 was $888K, down from $1.16M in Q2 2023.

• Devices and appliances revenue for Q2 2024 was $2.61M, down from $3.03M in Q2 2023.

• Gross profit for Q2 2024 was $1.22M, up from $1.17M in Q2 2023 but down sequentially from $1.32M in Q1 2024.

• Adjusted EBITDA for Q2 2024 was negative $59K, compared to $2K in Q1 2024 and $134K in Q2 2023.

Outlook and guidance

• Management anticipates improved results in the second half of 2024, driven by a stronger sales pipeline and new hires in key areas.

• Large PocketVault order expected to be fulfilled by end of Q3 2024, with higher-than-average gross margins (45–70%).