Financial Performance - Revenue for the second quarter was $36.1 million, representing a decline of 14.8% year-over-year, primarily due to a large one-time license sale in the previous year and project completions [3][4] - Gross margin decreased to 18.4%, down 630 basis points sequentially and 920 basis points year-over-year [1] - The company reported a net loss of $4.7 million, which includes $0.7 million in foreign exchange losses, compared to a net loss of $0.6 million in the same quarter last year [6][3] Segment Performance - The Bills & Payments segment generated revenue of $27.3 million, down 9.6% year-over-year, attributed to project completions and lower volumes [4] - The Technology segment revenue was $8.8 million, a decrease of 27.6% year-over-year, primarily due to higher license sales in the previous year [4] Operating Metrics - Operating loss was $2.4 million, compared to an operating income of $1.4 million in the same quarter last year, driven by lower revenues and an unfavorable mix [5] - Adjusted EBITDA was $0.3 million, a significant decrease of 92.8% from $4.0 million in the prior year, with an adjusted EBITDA margin of 0.8%, down 870 basis points [6] Liquidity and Financing - The company completed a financing transaction with HSBC, providing up to $33 million of incremental liquidity [1][9] - Cash and cash equivalents totaled $15.6 million as of June 30, 2024, with a newly established multi-currency Revolving Credit Facility offering up to $15 million in borrowing capacity [8] Future Outlook - The CEO expressed optimism regarding the sales funnel and the ramp-up of large public sector contracts, indicating a positive outlook for the remainder of 2024 [2]
XBP Europe Holdings, Inc. Reports Second Quarter 2024 Results