RTB Digital (RTB) Q1 2017 earnings summary

Executive summary

• Q1 revenue rose to $388,700 from $255,000, while net loss widened to $9,797 from $4,575; one large hotel acquisition drove higher consulting revenue and direct costs.

• Negative working capital of $52,109 and stockholders’ deficit of $623,653 raised substantial doubt about continuing as a going concern.

Financial highlights

• Revenue was $388,700, up from $255,000; consulting fees were $369,500 and management fees were $19,200, versus $255,000 and $0, respectively.

• Gross profit was $136,700 versus $150,000; operating income was $244 versus an operating loss of $13,810.

• Net loss was $9,797 versus $4,575; basic and diluted loss per share was $(0.00) in both periods.

• G&A expense declined 16.7% to $136,456 from $163,810; consulting expense increased to $252,000 from $105,000.

Outlook and guidance

• Focus for the next 12 months is on real estate transactions to generate revenue; management expects shareholder note support and service revenue to sustain operations for another 12 months.

• Management expects steady revenue from three major clients while building a broader client base; it sees potential for a sustainable U.S. commercial real estate revenue stream.

• Additional financing may be needed until revenue can support operations and repay the working capital deficit; funding availability and profitability are uncertain.