Tribe Property Technologies (TRBE) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of CAD 6.2 million, up 28% year-over-year, driven by organic growth and acquisitions including DMSI and Meritus.

• Gross profit reached CAD 2.3 million, a 50% increase year-over-year, with gross margin improving to 41.5% from 38.9%.

• Adjusted EBITDA outflow improved 47% to CAD 1.2 million from CAD 2.2 million last year, reflecting cost reductions and integration efficiencies.

• Completed DMSI acquisition, expanding footprint and raising proforma annualized revenue run-rate to over CAD 31 million.

• Strengthened balance sheet with CAD 6.17 million in equity financings, supporting acquisition and future growth.

Financial highlights

• First six months 2024 revenue was CAD 11.5 million, up 21.3% from the same period in 2023.

• Recurring revenue accounted for 80% of total revenue, up 17% year-over-year to CAD 4.92 million.

• Transactional revenue more than doubled, up 119% year-over-year to CAD 1.1 million.

• Run rate annual revenue now exceeds CAD 31 million, with the majority being recurring.

• Gross margin improved by 260 basis points to 41.5%.

Outlook and guidance

• On track to achieve positive Adjusted EBITDA by end of 2024 and generate cash flow in 2025.

• Focus on increasing monthly recurring revenue, further acquisitions, and continued margin improvement.

• Strong organic growth pipeline, ongoing M&A opportunities, and potential U.S. expansion in 2025.

• Continued focus on operational efficiencies, integration of acquisitions, and cross-selling opportunities.

• Ongoing investment in proprietary software and digital services to drive innovation and maintain leadership.