NowVertical Group (NOW) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $12.3 million, a 12% decrease year-over-year; excluding divestitures, revenue grew 2% to $9.4 million.

• Adjusted EBITDA increased 18% to $1.8 million; excluding divestitures, Adjusted EBITDA rose 12% to $1.5 million.

• Operating income rose 191% year-over-year, reaching $0.9 million in Q2 2024.

• Net income reached $1.9 million, reversing a $1.1 million net loss in Q2 2023.

• Strategic focus on operational excellence, cost reduction, and unified brand and business.

Financial highlights

• Gross profit was $6.5 million, slightly down from $6.8 million year-over-year; gross margin improved to 53% from 49%.

• Adjusted EBITDA margin improved to 16% in Q2 2024.

• Administrative expenses fell 10% quarter-over-quarter and 14% year-to-date, reaching $5.8 million.

• Liabilities decreased 14% year-over-year to $40.9 million as of June 30, 2024.

• Income from operations rose 125% to $0.7 million, driven by margin and expense improvements.

Outlook and guidance

• Secured 71% of 2023 comparable revenue by end of Q2 2024, excluding Allegient.

• All contracts up for renewal in Q2 2024 (over $8M) were successfully renewed.

• Management targets double-digit top-line growth and continued margin improvement, with a focus on synergies, organic growth, and product-market fit.

• Unified Proposition Strategy launched to enhance go-to-market, profitability, and value for strategic accounts.

• Management expects improved balance sheet and operational focus following divestitures and restructuring.