NowVertical Group (NOW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $10.7 million, up 9% year-over-year excluding divestitures, with EBITDA of $2.0 million and a 19% margin, marking record profitability and operational progress.

• Strategic focus on integration, simplification, and organic growth led to improved business sustainability and margin expansion.

• Net income was $0.6 million, up 381% year-over-year excluding divestitures.

• Secured 94% of FY 2023 revenue and retained 100% of strategic account contracts due for renewal in Q3.

Financial highlights

• Q3 2024 revenue rose 9% year-over-year to $10.7 million; year-to-date revenue is $28.6 million, up 6%.

• EBITDA for Q3 was $2.0 million, representing a 19% margin, with year-to-date EBITDA at $4.6 million, surpassing FY 2023.

• Income from operations improved to $1.6 million year-to-date, a 439% increase from a loss last year; Q3 operating income was $1.3 million, up 87% year-over-year.

• Administrative expenses decreased by 21% for the quarter and 13% year-to-date; Q3 admin expenses fell 38% to $3.9 million.

• Net income per share was $0.01, compared to a net loss per share of $0.00 in Q3 2023.

Outlook and guidance

• Management targets annual revenue of $50 million, annual EBITDA of $10 million, and a 20% EBITDA margin.

• Annualized Q3 revenue projected at $43 million and EBITDA at $8 million, indicating strong momentum.

• Focus remains on organic growth, with no near-term plans for acquisitions.

• 2025 planning underway to leverage growth opportunities while maintaining sustainable margins.