Tribe achieved record quarterly revenue of $6.16 million in Q2-2024, an increase of 28% from the same period last year, alongside a 47% Year-over-Year improvement in Adjusted EBITDA driven by increasing revenues and the execution of strategic integration and efficiency projects resulting in cost reductions.
In Q2-2024, Tribe acquired DMSI Holdings, including its three subsidiaries, bringing its expected proforma revenue run-rate to over $31 million with improved profitability.
During the quarter, Tribe completed a private placement equity financing for gross proceeds of $3.66 million and a LIFE financing for gross proceeds of $2.51 million, which allowed the Company to solidify its balance sheet and complete the DMSI acquisition.
Management provides a strong growth outlook with the goal of achieving positive Adjusted EBITDA by the end of 2024, and cash flow positive in 2025.
VANCOUVER, BC, Aug. 29, 2024 /CNW/ - Tribe Property Technologies Inc. (TSXV:TRBE) (OTCQB:TRPTF) ("Tribe" or the "Company"), a leading provider of technology-elevated property management solutions, today announces its financial results for the second quarter ended June 30, 2024. All amounts are stated in Canadian dollars on an as reported basis under IFRS (International Financial Reporting Standards) unless otherwise indicated.
Joseph Nakhla, Chief Executive Officer of Tribe, commented, "We are thrilled to announce Tribe's achievement of record quarterly revenue and a 47% improvement in Adjusted EBITDA(2) in Q2-2024. The second quarter was transformational for the Company, highlighted by our successfully completed acquisition of Toronto-based DMSI Holdings Ltd. ("DMSI"), propelling Tribe's proforma annualized revenue run-rate to over $31 million; providing the Company with scale, and significantly improving Tribe's profitability profile. The acquisition and integration of DMSI expands the Company's footprint in residential rental and commercial property management, making Tribe the second largest multi-family rental management company in Canada(1), encompassing over 19,000 units in addition to more than 30,000 strata and condo units managed nationally."
Joseph Nakhla further added, "Looking ahead, we anticipate continued revenue growth in the second half of the year, driven by organic growth and the DMSI acquisition. Improving profitability has been Tribe's strategic focus over the past year, and we're delighted to report that our efforts are yielding significant results, as reflected in our current expectation of achieving positive Adjusted EBITDA by the end of the year, followed by positive cash flows in 2025."
Angelo Bartolini, Tribe's President and Chief Financial Officer stated, "The outstanding progress we've made in the first half of the year underscores our unwavering commitment to delivering value to our shareholders. Our growth outlook for 2024 remains strong, supported by increasing monthly recurring revenue and ongoing efficiency measures, leading to improving gross margins and overall profitability. Tribe's improved balance sheet, after the recently completed private placement and LIFE equity financings, enabled the Company to complete the DMSI acquisition. We are confident that Tribe is well positioned for a highly successful 2024 and 2025."
Q2-2024 Financial Highlights:
Revenue: Tribe achieved record revenue of $6.16 million in Q2-2024, an increase of 28% compared to $4.82 million in Q2-2023. Revenue growth was positively impacted by organic growth and the acquisitions of DMSI and Meritus Group Management Inc.
Gross profit(3): Gross profit was $2.34 million in Q2-2024, an increase of 50% compared to $1.56 million in Q2-2023. Gross profit was favorably impacted by the increase in revenue and the execution of strategic integration and efficiency projects resulting in cost reductions.
Gross margin percentage: Tribe achieved Gross margin percentage of 41.5% in Q2-2024, compared to Gross margin percentage of 38.9% in Q2-2023. Gross margin percentage improvement was primarily accomplished through the integration of our back office, and efficiency efforts.
Adjusted EBITDA(2): Tribe had an Adjusted EBITDA loss of $1.18 million in Q2-2024, an improvement of 47% compared to an Adjusted EBITDA loss of $2.21 million in Q2-2023.
Revenue Segmentation: Recurring revenue, which is composed of Tribe's tech-elevated management services fees, was $4.92 million in Q2-2024, an increase of 17%, compared to $4.20 million in Q2-2023. The increase in recurring revenue was due to the onboarding of new customers and the DMSI acquisition. Transactional revenue was $1.11 million as compared to $0.51 million in Q2-2023, representing an increase of 119%. This growth was primarily driven by an increase in financial services revenues and partnerships, underscoring the Company's ongoing commitment to identifying new avenues for creating value for stakeholders while continuing to manage healthy communities.
Q2-2024 Business Highlights:
On June 3, 2024, Tribe completed a private placement equity financing in which the Company raised gross proceeds of $3,665,439 from the sale of units of the Company at a price of $0.52 per Unit. Each Unit consists of one common share and a half common share purchase warrant of the Company. Each warrant entitles the holder to acquire one common share at a price of $0.82 per common share, until June 3, 2029, subject to adjustment in certain events. The financing was led by PROPELR Growth, a Toronto based late-stage growth, equity investment fund, and also included participation from the operators of DMSI, the company's latest acquisition.
On June 4, 2024, Tribe completed the acquisition of DMSI including three operating subsidiaries of DMSI; DMS Property Management Ltd., Del Management Solutions Inc., and Delcom Management Services Inc. The acquisition propels Tribe's proforma annualized revenue run-rate to over $31 million and significantly improves the Company's profitability profile. In addition, the acquisition expands the Company's footprint in residential rental and commercial property management.
On June 21, 2024, Tribe completed a private placement equity financing under the Listed Issue Financing Exemption ("LIFE"), in which the Company raised gross proceeds of $2,510,400 from the sale of units of the Company (each, a "Unit") at a price of $0.52 per Unit. Each Unit consists of one common share and a half common share purchase warrant of the Company. Each warrant entitles the holder to acquire one common share at a price of $0.82 per common share, until ...
