Xtract One Technologies (XTRA) Q3 2024 earnings summary

Executive summary

• Q3 bookings reached CAD 9.5 million, nearly a record, with record revenues of CAD 4.7 million, over five times the prior year period.

• Achieved U.S. DHS SAFETY Act designation, opening new markets and enabling sales to organizations requiring this certification, including major sports leagues.

• Platform contractual backlog rose to CAD 13.8 million, with an additional CAD 12.8 million in agreements pending installation.

• Raised nearly CAD 10 million through an equity offering and private placement, including participation from MSG Sports, strengthening the balance sheet for continued growth.

• Announced three new contracts and welcomed 14 new clients in the quarter, with many more in the pipeline across multiple verticals.

Financial highlights

• Platform segment revenue was CAD 4.6 million, up 67% sequentially and over five times year-over-year.

• Gross profit margin for the platform segment was approximately 60%, consistent with the prior year.

• Q3 loss and comprehensive loss was CAD 2.7 million, improved from CAD 3.8 million in Q3 FY2023.

• Operating cash flow was CAD 2.4 million, up from CAD 1.1 million in Q2; quarterly burn reduced as revenue ramps.

• Cash and cash equivalents at April 30, 2024 were CAD 9.7 million, up from CAD 8.3 million at July 31, 2023.

Outlook and guidance

• Q4 revenue is anticipated to exceed Q3, with expectations for a record year and accelerated growth in fiscal 2025.

• Management expects top line growth to accelerate due to strong demand and recent DHS Designation.

• Backlog and bookings support a strong outlook, with approximately CAD 6 million of backlog expected to be recognized as revenue in the next 12 months.