Terminal X Online (TRX) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 grew 16.9% year-over-year to ₪334.9M, driven by increased visits, higher average transaction value, and the consolidation of Strongful from July 2024.

• Net income for the period reached ₪16.8M, compared to a net loss of ₪1.8M in the same period last year.

• Gross margin remained stable at 44.4% for the nine months, with operational improvements supporting profitability.

• The company completed the acquisition of 51% of Strongful Active Ltd. and increased its stake in Seestarz, expanding its independent brands segment.

• Operations in Greece are being wound down due to negative contribution, with closure expected by year-end 2024.

Financial highlights

• Q3 2024 revenue rose 19.7% year-over-year to ₪109.1M; gross profit increased 23.6% to ₪48.8M.

• Operating profit before share-based payments for Q3 was ₪7.5M (6.8% margin), compared to a loss of ₪1.0M in Q3 2023.

• Adjusted EBITDA for the nine months was ₪31.3M, up from ₪6.3M in the prior year period.

• Cash flow from operations for the nine months was ₪67.2M, a significant increase from ₪10.1M last year.

• As of September 30, 2024, cash and short-term investments net of bank credit stood at ₪134.9M.

Segment performance

• Terminal X segment nine-month sales grew 13.4% to ₪305.9M, with operating profit before share-based payments up to ₪17.2M (5.6% margin).

• Independent sites segment (Seestarz and Strongful) nine-month sales surged 72.9% to ₪29.0M, with operating profit before share-based payments at ₪5.9M (20.2% margin).

• Q3 2024, Terminal X sales rose 13.3% to ₪95.6M; independent sites sales nearly doubled to ₪13.5M.