Revenue Performance - Revenue for Q3 2024 was $35.4 million, a decrease of 5.6% year-over-year but an increase of 5.5% sequentially[1]. - The Bills & Payments segment generated revenue of $24.6 million, a decline of 3.1% year-over-year, while the Technology segment revenue was $10.8 million, down 10.8% year-over-year[4]. - Total revenue for the three months ended September 30, 2024, was $35,330,000, a decrease of 5.9% from $37,429,000 in the same period of 2023[17]. - Revenues for the three months ended September 30, 2024, were reported at $35,400,000, down from $37,496,000 in 2023, reflecting a constant currency revenue of $34,712,000[19]. - The company experienced a foreign currency exchange impact of $(688,000) on revenues for the three months ended September 30, 2024[19]. Profitability Metrics - Gross margin improved to 32.6%, reflecting an increase of 800 basis points year-over-year and 1,300 basis points sequentially[1]. - Operating profit reached $2.5 million, up from $0.3 million in Q3 2023, driven by higher gross margins and SG&A improvements[5]. - Adjusted EBITDA from continuing operations was $4.8 million, a 116% increase compared to $2.2 million in Q3 2023, with an adjusted EBITDA margin of 13.7%[6]. - Operating profit for the three months ended September 30, 2024, was $2,509,000, significantly up from $348,000 in the same period of 2023[17]. - Adjusted EBITDA from continuing operations for the three months ended September 30, 2024, was $4,846,000, compared to $2,244,000 in 2023[20]. Net Loss and Financial Position - The company reported a net loss of $2.8 million, a slight improvement from a net loss of $2.9 million in Q3 2023[5]. - Net loss for the three months ended September 30, 2024, was $2,769,000, compared to a net loss of $2,887,000 in the same period of 2023[17]. - The company reported a net loss from continuing operations of $1,226,000 for the three months ended September 30, 2024, compared to a loss of $1,219,000 in the same period of 2023[17]. - Net loss for the nine months ended September 30, 2024, was $9,700,000, compared to a net loss of $5,951,000 for the same period in 2023[18]. Cash Flow and Liquidity - The company has adequate liquidity with cash and cash equivalents totaling $7.8 million as of September 30, 2024[7]. - Cash and cash equivalents increased to $7,770,000 as of September 30, 2024, from $6,537,000 as of December 31, 2023[16]. - Cash and equivalents at the end of the period increased to $7,960,000 from $2,819,000 in the previous year[18]. - The company reported a net cash used in operating activities of $11,154,000 for the nine months ended September 30, 2024, compared to a net cash provided of $1,743,000 in 2023[18]. - The company incurred $1,441,000 in net cash used in investing activities for the nine months ended September 30, 2024, compared to $2,254,000 in 2023[18]. Investments and Future Outlook - Capital expenditures were 2.0% of revenue, up from 0.7% in Q3 2023, indicating increased investments for growth[6]. - Plans to divest the on-demand printing operation were announced, which had generated approximately $6.8 million in revenue year-to-date[8]. - The company is optimistic about future growth opportunities, particularly due to being selected for the UK government's G-cloud 14 framework[2]. Balance Sheet Highlights - Total current assets decreased to $47,511,000 as of September 30, 2024, from $49,867,000 as of December 31, 2023[16]. - Total liabilities increased to $120,408,000 as of September 30, 2024, compared to $115,307,000 as of December 31, 2023[16]. - Accounts receivable decreased to $24,576,000 as of September 30, 2024, from $30,238,000 as of December 31, 2023[16]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were $6,818,000, slightly down from $6,846,000 in the same period of 2023[17]. Debt and Interest Expenses - Borrowings under the 2024 Term Loan A Facility amounted to $3,830,000, and under the 2024 Term Loan B Facility, $11,413,000[18]. - The company reported interest expense of $1,843,000 for the three months ended September 30, 2024, compared to $1,251,000 in 2023[20]. - The impairment of goodwill was recorded at $87,000 for the nine months ended September 30, 2024[18].
XBP Europe (XBP) - 2024 Q3 - Quarterly Results