Cust2Mate (AZ) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was $3.2M, down from $7.5M year-over-year, mainly due to lower smart cart sales as major orders were completed in 2023.

• Net loss for the six months was $3.6M, a significant improvement from $11.3M in the prior year period, driven by lower expenses and a gain on warrant revaluation.

• The company launched its next-generation 3.0 smart carts in January 2024, with deployments expected to begin in Q3 2024.

• The company remains focused on expanding its smart cart business, with new partnerships and pilot deployments in France and Asia Pacific.

Financial highlights

• Gross profit for the six months was $450K, compared to $1.7M year-over-year.

• Operating loss for the six months was $7.2M, down from $8.8M in the prior year.

• Gain on revaluation of warrant liability was $3.8M, compared to a $2.3M loss in the prior year.

• Cash and cash equivalents at June 30, 2024, were $653K, down from $2.3M at year-end 2023.

• Working capital deficit increased to $3.2M from $0.9M at December 31, 2023.

Outlook and guidance

• Management expects revenue growth in Q4 2024 and 2025 as new smart cart deployments ramp up.

• The company anticipates continued operating losses and will require additional financing to support growth and working capital needs.

• Focus remains on expanding the installed base of smart carts and transitioning to a subscription-based revenue model.