Tribe Property Technologies (TRBE) Q3 2024 earnings summary

Executive summary

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

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

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

• Company now manages nearly 1,000 buildings and 50,000 units, becoming the third largest condo operator in Canada.

• Two major acquisitions completed: Meritus in late 2023/January 2024 and DMSI in June 2024, expanding the customer base and service offerings.

Financial highlights

• Revenue for the first nine months of 2024 was CAD 19.8 million ($19.8M), up 38.9% year-over-year, already surpassing full-year 2023 revenue.

• Quarterly revenue growth has accelerated over the last four quarters, supported by acquisitions and financial service revenues.

• Recurring revenue was $7.12M (85% of total) in Q3-2024, up 67% year-over-year; transactional revenue $1.21M, up 128%.

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

• Net loss for the nine months was $6.2M, an improvement from a $7.2M loss in the prior year period.

Outlook and guidance

• On track to end 2024 EBITDA-positive and generate positive cash flow from operations in early 2025.

• Expects continued sequential improvement in profitability and cash flow, with further efficiency gains and leverage from scale.

• 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.

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