Terminal X Online (TRX) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 grew 15.5% year-over-year to ₪225.8M, driven by higher average transaction value and number of transactions.

• Net income for H1 2024 was ₪12.5M, up from a loss of ₪0.3M in H1 2023, reflecting improved profitability.

• Gross margin for H1 2024 was 44.3%, slightly down from 45.6% in H1 2023 due to changes in product mix.

• The company is exiting its Greek operations by year-end 2024 due to negative contribution, with no material impact expected on financials.

• Strategic expansion continued with increased stakes in Seestarz and acquisition of 51% of Strongful Active.

Financial highlights

• H1 2024 revenue: ₪225.8M (up 15.5% YoY); Q2 2024 revenue: ₪116.6M (up 13.6% YoY).

• H1 2024 net income: ₪12.5M (vs. loss of ₪0.3M in H1 2023); Q2 2024 net income: ₪7.95M (vs. ₪3.03M in Q2 2023).

• Adjusted EBITDA for H1 2024: ₪35.6M (vs. ₪22.7M in H1 2023); Q2 2024: ₪20.5M (vs. ₪11.6M in Q2 2023).

• Operating margin before share-based payments: 6.9% in H1 2024 (vs. 2.5% in H1 2023).

• Cash flow from operations in H1 2024: ₪65.9M (vs. ₪0.7M in H1 2023).

Outlook and guidance

• The company is exploring further international expansion opportunities beyond Greece.

• No material financial impact is expected from the closure of Greek operations.