Financial Performance - Total revenue for Q3 2024 was $35.4 million, a decrease of 5.6% year-over-year and an increase of 5.5% sequentially[5] - Total revenue for Q3 2024 was $35,330, a decrease of 5.9% from $37,429 in Q3 2023[19] - Net loss for the quarter was $2.8 million, a slight improvement from a net loss of $2.9 million in Q3 2023[6] - Net loss for Q3 2024 was $2,769, compared to a net loss of $2,887 in Q3 2023, reflecting a slight improvement[19] - Operating profit reached $2.5 million, up from $0.3 million in Q3 2023, driven by higher gross margins and improved SG&A[6] - Operating profit for Q3 2024 increased to $2,509 from $348 in Q3 2023, indicating a significant operational improvement[19] - Adjusted EBITDA from continuing operations was $4.8 million, an increase of $2.6 million or 116% compared to $2.2 million in Q3 2023[6] - Adjusted EBITDA from continuing operations for Q3 2024 was $4,846, up from $2,244 in Q3 2023, showing strong operational performance[22] Segment Performance - Bills & Payments segment revenue was $24.6 million, a decline of 3.1% year-over-year, while Technology segment revenue was $10.8 million, down 10.8% year-over-year[6] Liquidity and Capital Structure - The company has adequate liquidity with cash and cash equivalents totaling $7.8 million as of September 30, 2024[6] - Cash and cash equivalents increased to $7,770 as of September 30, 2024, from $6,537 at the end of 2023[17] - Total liabilities rose to $120,408 as of September 30, 2024, compared to $115,307 at the end of 2023[17] - The company reported a net cash used in operating activities of $11,154 for the nine months ended September 30, 2024, compared to a net cash provided of $1,743 in the same period of 2023[21] - The company incurred $1,820 in interest expense for Q3 2024, compared to $1,246 in Q3 2023, indicating increased borrowing costs[19] Strategic Initiatives - The company announced plans to divest its on-demand printing operation, which has been classified as a discontinued operation[4] - The company is optimistic about future growth opportunities, particularly after being selected for the UK government's G-cloud 14 framework[3] Accounting and Reporting - Goodwill increased to $23,281 as of September 30, 2024, from $22,823 at the end of 2023, reflecting potential acquisitions or asset revaluations[17] - The company reported adjusted EBITDA as a key performance indicator, which is also utilized by lenders for debt covenant compliance[26] - Non-GAAP financial measures are used by management to assess operational performance and may influence performance-based compensation[26] - The company emphasizes the importance of considering non-GAAP measures alongside GAAP results for a comprehensive performance assessment[27] - Restructuring costs associated with employee severance were noted as an adjustment in financial reporting[27] - The company incurred transaction costs related to a business combination, impacting financial results[25] - Capital expenditures were 2.0% of revenue, up from 0.7% in Q3 2023, reflecting higher investments for growth[6]
CF ACQUISITION(CFFE) - 2024 Q3 - Quarterly Results