Tribe Property Technologies reports record revenue and improving profitability for Q1
Last updated: 08:29 31 May 2024 EDT, First published: 03:29 31 May 2024 EDT
Tribe Property Technologies Inc. (TSX-V:TRBE) has unveiled impressive quarterly results marked by record revenue and an improvement in profitability, which sent shares of the tech-driven property management firm 25% higher before Friday's opening bell.
For the first quarter ended March 31, Tribe achieved revenue of C$5.3 million, up 14.6% from C$4.7 million in the year-ago quarter.
Gross profit increased from C$1.44 million to C$1.84 million year-over-year, attributed to the company’s restructuring and cost reduction efforts.
It said its cost reduction initiatives also resulted in a 27% year-over-year improvement in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), narrowing it to a loss of C$1.36 million from a loss of C$1.86 million in Q1 2023.
"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,” Tribe CFO Angelo Bartolini said in a statement.
“These efforts are reflected in our improved gross margin and reduced cash burn. This outstanding progress underscores our unwavering commitment to delivering value to our shareholders."
Looking ahead, the company said it expects its recently announced acquisition of Toronto-based property services company DMSI Holdings to boost its annualized revenue run rate to more than C$31 million.
For the rest of the year, it expects increasing monthly recurring revenue and gross margin and profitability improvements from both organic and inorganic growth.
“The acquisition of DMSI expands the company's footprint in residential rental and commercial property management, making Tribe one of the largest rental property management companies in Canada,” Tribe CEO Joseph Nakhla commented.
“In addition to M&A, we are expecting healthy organic growth to continue in 2024 with a focus on improving profitability."
