Financial Performance - Revenue for Q2 2024 was $36.1 million, a decrease of 14.8% year-over-year from $42.4 million in Q2 2023[2] - Gross margin declined to 18.4%, a decrease of 630 basis points sequentially and 920 basis points year-over-year[1] - Net loss for the quarter was $4.7 million, compared to a net loss of $0.6 million in Q2 2023[3] - Adjusted EBITDA was $0.3 million, a decrease of 92.8% compared to $4.0 million in Q2 2023, with an adjusted EBITDA margin of 0.8%[3] - Bills & Payments segment revenue was $27.3 million, down 9.6% year-over-year, while Technology segment revenue was $8.8 million, a decrease of 27.6% year-over-year[2][3] - For the three months ended June 30, 2024, net revenue was $36,031, a decrease of 15% compared to $42,294 for the same period in 2023[12] - The company reported a net loss of $4,723 for the three months ended June 30, 2024, compared to a net loss of $558 for the same period in 2023[12] - Revenues at constant currency for the three months ended June 30, 2024, were $36,371, compared to $42,367 for the same period in 2023, reflecting a decrease of 14%[14] - Adjusted EBITDA (Non-GAAP) for the three months ended June 30, 2024, was $287,000, a decrease of 92.85% from $4,009,000 in the same period of 2023[15] - Net loss (GAAP) for the three months ended June 30, 2024, was $(4,723,000), compared to a net loss of $(558,000) in the prior year, indicating a significant increase in losses[15] Cash and Liquidity - Cash and cash equivalents totaled $15.6 million as of June 30, 2024, with additional borrowing capacity of up to $15 million from a Revolving Credit Facility[4] - The company completed a financing transaction with HSBC to provide up to $33 million of incremental liquidity[5] - Cash and cash equivalents rose significantly to $15,562 as of June 30, 2024, compared to $6,905 as of December 31, 2023, marking an increase of 125%[11] Assets and Liabilities - Total current assets increased to $57,668 as of June 30, 2024, up from $49,867 as of December 31, 2023, representing a growth of 15%[11] - Total liabilities increased to $126,411 as of June 30, 2024, compared to $115,307 as of December 31, 2023, reflecting an increase of 10%[11] - The company’s total assets increased to $108,031 as of June 30, 2024, from $102,739 as of December 31, 2023, indicating a growth of 5%[11] Operating Performance - Operating loss for the three months ended June 30, 2024, was $(2,413), compared to an operating profit of $1,427 for the same period in 2023[12] - Net cash used in operating activities for the six months ended June 30, 2024, was $(5,540), compared to $(1,469) for the same period in 2023[13] Expenses - Income tax expenses increased to $542,000 in Q2 2024 from $385,000 in Q2 2023, reflecting a rise of 40.65%[15] - Interest expenses, including related party interest, rose to $1,488,000 in Q2 2024, up from $1,136,000 in Q2 2023, marking a 31.06% increase[15] - Employment litigation expenses surged to $917,000 in Q2 2024, compared to $345,000 in Q2 2023, representing a 166.67% increase[15] - Foreign exchange losses were $704,000 in Q2 2024, slightly up from $660,000 in Q2 2023, indicating a 6.67% increase[15] - Restructuring and related expenses decreased to $249,000 in Q2 2024 from $472,000 in Q2 2023, a reduction of 47.25%[15] - Non-cash equity compensation was recorded at $160,000 in Q2 2024, with no corresponding expense in Q2 2023[15] - Transaction fees decreased significantly to $30,000 in Q2 2024 from $202,000 in Q2 2023, a decline of 85.15%[15] Outlook - The company is optimistic about the rest of 2024 due to a strong sales funnel and large public sector contracts expected to launch soon[2] - Active revenue ramp of approximately $25 million in Annual Contract Value (ACV) from new business[1] Financial Reporting - The company emphasizes that non-GAAP financial measures should be considered alongside GAAP results for a comprehensive view of performance[17]
XBP Europe (XBP) - 2024 Q2 - Quarterly Results