Revenue Growth - QXO's consolidated net revenue for Q2 2024 increased by $1.28 million or 9.7% year-over-year, and for the first six months, it increased by $2.59 million or 9.8%[89] - Software product revenue rose due to the expansion of Sage Intacct and Accumatica product lines, while service revenue grew from hosting application services and consulting practices[89] Cost and Expenses - Cost of revenue for Q2 2024 increased by $673,000 or 8.3%, with a margin expansion to 39.8% compared to 39.1% in the prior year[90] - Selling, general and administrative expenses surged by $5.31 million or 117.3% in Q2 2024, primarily due to new senior management salaries and severance payments[91] - Depreciation and amortization expense increased by $57,000 or 27.9% in Q2 2024, attributed to higher amortization from the acquisition of JCS in 2023[92] - Adjusted EBITDA for the second quarter of 2024 was $(1,207,000), a decline from $705,000 in the same quarter of 2023, primarily due to increased employee-related costs[95] Investment and Financing - The company closed an equity investment on June 6, 2024, generating gross proceeds of $1.0 billion from the issuance of 1,000,000 shares of Convertible Perpetual Preferred Stock[97] - On July 19, 2024, the company completed a private placement, raising approximately $3.5 billion from the sale of 340,932,212 shares of common stock[97] - A subsequent private placement on July 25, 2024, generated approximately $620 million from the sale of 67,833,699 shares of common stock[98] - The company declared a cash dividend of $17.4 million to stockholders, funded by proceeds from the equity investment[98] - Cash provided by financing activities was $965.9 million, a significant increase from $531,000 used in the same period last year, due to the equity investment[100] Financial Position - For the six months ended June 30, 2024, the company reported a net loss of $591,000 compared to a net income of $344,000 for the same period in 2023[95] - As of June 30, 2024, the company's cash balance was $971.3 million, which increased to approximately $5.0 billion following the private placements[99] - The company has no outstanding debt obligations and believes its liquidity is sufficient to support operations over the next 12 months[99] Strategic Focus - QXO aims to create a tech-forward leader in the $800 billion building products distribution industry, targeting tens of billions in annual revenue over the next decade[81] - The company is focused on fostering recurring revenue and customer retention through a multi-pronged growth strategy, including sales and acquisitions[82] - QXO's legacy business includes five core components, with a significant portion of service revenue coming from ongoing customer relationships and flexible revenue options[82] - The company has expanded its footprint to nearly every U.S. state, enhancing its operational platform and creating additional revenue streams[86] Cash Flow - Cash used in operating activities increased by $359,000 year-over-year, attributed to higher personnel costs[100]
SilverSun Technologies(SSNT) - 2024 Q2 - Quarterly Report