Financial Performance - Total revenue for Q1 2024 was $40.4 million, a decline of 5.7% year-over-year from $42.8 million in Q1 2023[4] - The company reported a net loss of $2.2 million, an improvement from a net loss of $2.5 million in Q1 2023[5] - For Q1 2024, XBP Europe Holdings, Inc. reported a net revenue of $40,284,000, a decrease of 5.8% from $42,778,000 in Q1 2023[18] - The company experienced a net loss of $2,208,000 in Q1 2024, compared to a net loss of $2,506,000 in Q1 2023, reflecting an improvement of 11.9%[18] - Adjusted EBITDA was $1.8 million, a decrease of 23.4% compared to $2.4 million in Q1 2023, with an adjusted EBITDA margin of 4.5%[5] - Adjusted EBITDA for Q1 2024 was $1,831,000, down from $2,391,000 in Q1 2023, indicating a decline of 23.4%[21] Revenue Composition - Technology segment revenue grew to $11.5 million, a 24.3% increase year-over-year, representing 28.4% of total revenues, up from 21.6% in Q1 2023[5] - The technology segment's gross profit increased significantly, contributing to the overall improvement in operating income, which was $0.1 million compared to an operating loss of $1.0 million in Q1 2023[5] Expenses and Costs - The cost of revenue for Q1 2024 was $30,396,000, down from $33,290,000 in Q1 2023, a decrease of 8.7%[18] - Selling, general and administrative expenses were $7,946,000 in Q1 2024, a decrease from $8,414,000 in Q1 2023, reflecting a reduction of 5.6%[18] Cash and Assets - Cash and cash equivalents totaled $3.5 million as of March 31, 2024, with a secured borrowing facility allowing for the sale of new receivables up to €15.0 million[11] - Cash and cash equivalents decreased to $3,501,000 as of March 31, 2024, from $6,905,000 at the end of 2023, representing a decline of 49.3%[19] - Total assets decreased to $99,135,000 as of March 31, 2024, down from $102,739,000 at the end of 2023, a reduction of 3.9%[17] - Total liabilities decreased to $113,343,000 as of March 31, 2024, from $115,307,000 at the end of 2023, a decrease of 1.7%[17] Contracts and Future Outlook - XBP Europe was awarded a multi-year contract with His Majesty's Passport Office in the UK, with a Total Contract Value of approximately $40 million[6] - Capital expenditures were 0.1% of revenue, down from 1.5% in Q1 2023, with expected spending of $1.5 to $2.5 million over the next 12 months[11] - The company is focused on executing growth objectives and improving operating leverage through a shift towards technology solutions[3] Currency Impact - The company reported a foreign currency exchange impact of $673,000 on revenues, leading to constant currency revenues of $39,677,000 for Q1 2024[20] Accounts Receivable - Accounts receivable increased slightly to $30,945,000 as of March 31, 2024, compared to $30,795,000 at the end of 2023[17] Gross Margin - Gross margin increased to 24.6%, reflecting a 270 basis points increase sequentially and a 250 basis points increase year-over-year[4]
XBP Europe (XBP) - 2024 Q1 - Quarterly Results