The Denver-based company saw revenue jump 20% to $3.74 million in the quarter and earned a gross profit of $1.5 million. Its blended gross margin for the quarter was 41%, and its software gross margin in particular was more than 62%.
“Q3 has seen the company continue to meet its goals on key operational initiatives and our overarching strategy,” CEO Zachary Venegas said in a statement. “Strategic acquisitions, a strong customer focus, and targeted internal improvements continue to drive growth and shareholder value.”
In particular, Helix continued to grow its Biotrack seed-to-sale cannabis software business. BioTrackTHC added 306 new licenses in the quarter, a 50% increase in new users quarter over quarter. Recurring commercial revenues from BioTrack increased 10% from the second quarter, and its commercial bookings increased 27% to $489,000.
Venegas said the company is in a position of strength.
“While we firmly believe that the market does not view Helix TCS correctly, the company itself is stronger than ever,” Venegas said. “We clearly anticipated the tightening in capital markets, and took appropriate steps months in advance to prepare for it, and we are on track in improving our cash from operations, cutting costs, and closing in on profitability even as we continue to grow our market share and add new product and service lines. Doing this all simultaneously while requiring minimal capital is solid proof of the operational results that we deliver for investors.”
Helix TCS is a leading provider of critical infrastructure services, helping owners and operators of licensed cannabis businesses stay competitive and compliant while mitigating risk. Its products reach over 2,000 customer locations in 38 states and seven countries and have processed over $18 billion in cannabis sales.
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