Release Date: December 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Voxtur Analytics Corp (VXTRF, Financial) has significantly reduced its monthly operating expenses from USD 2.7 million in January 2024 to approximately USD 1.6 million, showcasing effective cost management.
- The company is on track to achieve EBITDA positivity in 2025, with projected gross profit exceeding operating expenses.
- Voxtur Analytics Corp (VXTRF) has streamlined operations by shutting down non-revenue generating projects and consolidating resources, which has improved operational efficiency.
- The company has introduced new products like Voxtur Rate Advisor, which are expected to drive growth and profitability in 2025.
- Voxtur Analytics Corp (VXTRF) has resolved and mitigated serious business threats, maintaining integrity and stability in its operations.
Negative Points
- Revenue for continued operations decreased from $10.1 million to $8.5 million for the three months ended September 30, 2024, indicating a decline in business performance.
- Gross profit decreased from $6.5 million to $4.9 million for the same period, reflecting reduced profitability.
- The company reported a negative adjusted EBITDA of $2.1 million for the three months ended September 30, 2024, highlighting ongoing financial challenges.
- Voxtur Analytics Corp (VXTRF) is still facing uncertainties regarding the sale of its controlling interest in Blue Water Financial Technologies, which could impact future financial stability.
- The company has not yet fully realized the cost savings from its expense reduction initiatives due to ongoing contractual obligations with vendors.
Q & A Highlights
Q: Ryan, you're talking about projections, gross profit projections. I would like to ask you about today. Right now, no future, as you stand, where are you right now in terms of gross profit?
A: Right now, we are trending total gross profit forecast ending December 31, 2024, $25 million to $28 million of gross profit, including Blue Water.
Q: Could you tell me this number without Blue Water?
A: The gross profit would be somewhere close to $10 million to $11 million for the year without Blue Water.
Q: What are your expenses to operate the business?
A: Our operating expenses will total approximately $26.6 million for the year of 2025, including all business and corporate expenses.
Q: How were you able to reduce expenses significantly?
A: We identified businesses without revenue potential for 2025, reduced force where applicable, and canceled non-revenue generating vendor contracts. This led to a reduction from $2.7 million per month in January 2024 to $1.6 million per month in USD.
Q: Can your revenues or margins improve without new clients or products?
A: We expect an 11% to 15% increase in gross profit from current clients and pricing adjustments, which could lead to a gross profit of $30 million to $33 million, with expenses around $26 million, resulting in EBITDA positivity.
Q: Do you plan to continue with the sale of Blue Water?
A: We are tracking multiple models, including the disposition of Blue Water. All models show gross profit slightly exceeding expenses, but the trajectory of growth models for 2025 may change.
Q: Can you share insights on the pipeline and ongoing projects?
A: RPTA is progressing, with responses due by January 11. We are focusing on technology-driven approaches like Voxtur Rate Advisor and Voxtur Verify, but current projections do not include these due to lack of clear line of sight.
Q: How does Blue Water fit into Voxtur's strategy moving forward?
A: We continue to operate as if we control 100% of Blue Water. Products like Super Transfer and TTR Flow remain a focus, and if we retain Blue Water, it will be a significant part of our revenue in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
