Tribe Property Technologies (TRBE) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of $8.33 million (CAD 8.33 million), up 74% year-over-year, driven by organic growth and acquisitions of DMSI/DMS and Meritus in Ontario, marking a transformational quarter.

• Gross profit reached $3.03 million, a 99% increase from the prior year, with gross margin stable at 38.8%.

• Adjusted EBITDA outflow/loss improved 93% to $0.11 million, reflecting efficiency gains and cost optimization.

• On track to reach break-even or positive Adjusted EBITDA by end of 2024 and positive operating cash flow in 2025.

• Successful integration and rebranding of DMSI divisions, with expanded service offerings and customer base.

Financial highlights

• Q3-2024 revenue reached $8.33 million, a 74% increase from $4.80 million in Q3-2023.

• Gross profit rose to $3.03 million, up 99% year-over-year; gross margin steady at 38.8%.

• Recurring revenue grew 67% to $7.12 million; transactional revenue up 128% to $1.21 million.

• Average revenue per home increased to $47.56 from $40.44 year-over-year.

• Net loss for Q3-2024 was $1.34 million, improved from $2.07 million in Q3-2023.

Outlook and guidance

• Positive Adjusted EBITDA expected by end of 2024; positive operating cash flow targeted for 2025.

• Management expects continued revenue growth, improved profitability, and expanding margins.

• Focus on increasing monthly recurring revenue, further acquisitions, and software innovation.

• Organic growth targeted at 10%-15% annually, with additional upside from M&A and new service offerings.

• Long-term EBITDA margin target of 15%+ for mature, fully digitized buildings, with potential to exceed 20% by 2026-2027.