Eightco Announces Second Quarter 2024 Financial Results
Eightco Holdings Inc. (NASDAQ: OCTO) reported financial results for Q2 2024. Key highlights include:
- Net income of $4.4 million, compared to a net loss of $8.9 million in Q2 2023
- Revenues of $7.0 million, down from $20.5 million in Q2 2023
- Gross profit margin improved to 25.3% from 12.3% year-over-year
- SG&A expenses reduced by 26.6% to $3.5 million
- EBITDA of $6.4 million, up from a loss of $5.5 million in Q2 2023
The company focused on improving its financial stability by cancelling $23 million in liabilities and repaying convertible notes, which led to a reduction in dilutive shares. The decrease in revenues was attributed to reduced capital for cell phone sales after repaying the convertible note.
Eightco Holdings Inc. (NASDAQ: OCTO) ha riportato i risultati finanziari per il secondo trimestre del 2024. I punti salienti includono:
- Utile netto di 4,4 milioni di dollari, rispetto a una perdita netta di 8,9 milioni di dollari nel Q2 2023
- Ricavi di 7,0 milioni di dollari, in calo rispetto a 20,5 milioni di dollari nel Q2 2023
- Margine di profitto lordo migliorato al 25,3% rispetto al 12,3% anno su anno
- Spese SG&A ridotte del 26,6% a 3,5 milioni di dollari
- EBITDA di 6,4 milioni di dollari, in aumento rispetto a una perdita di 5,5 milioni di dollari nel Q2 2023
L'azienda si è concentrata sul miglioramento della propria stabilità finanziaria annullando 23 milioni di dollari in passività e rimborsando note convertibili, il che ha comportato una riduzione delle azioni dilutive. La diminuzione dei ricavi è stata attribuita alla riduzione del capitale per le vendite di telefoni cellulari dopo il rimborso della nota convertibile.
Eightco Holdings Inc. (NASDAQ: OCTO) informó sobre los resultados financieros del segundo trimestre de 2024. Los aspectos más destacados incluyen:
- Ingreso neto de 4,4 millones de dólares, en comparación con una pérdida neta de 8,9 millones de dólares en el Q2 2023
- Ingresos de 7,0 millones de dólares, disminuyendo desde 20,5 millones de dólares en el Q2 2023
- Margen de utilidad bruta mejorado al 25,3% desde el 12,3% interanual
- Gastos SG&A reducidos en un 26,6% a 3,5 millones de dólares
- EBITDA de 6,4 millones de dólares, en aumento desde una pérdida de 5,5 millones de dólares en el Q2 2023
La empresa se centró en mejorar su estabilidad financiera cancelando 23 millones de dólares en pasivos y reembolsando notas convertibles, lo que llevó a una reducción de las acciones dilutivas. La disminución en los ingresos se atribuyó a la reducción de capital para las ventas de teléfonos móviles después de reembolsar la nota convertible.
Eightco Holdings Inc. (NASDAQ: OCTO)는 2024년 2분기 재무 결과를 보고했습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익 440만 달러, 2023년 2분기 순손실 890만 달러에 비해
- 매출 700만 달러, 2023년 2분기 2050만 달러에서 감소
- 총 이익률이 전년 대비 12.3%에서 25.3%로 개선됨
- SG&A 비용이 26.6% 감소하여 350만 달러
- EBITDA 640만 달러, 2023년 2분기 550만 달러 손실에서 증가
회사는 부채 2300만 달러를 취소하고 전환사채를 상환함으로써 재무 안정성 개선에 중점을 두었으며, 이로 인해 희석주식 수가 줄어들었습니다. 매출 감소는 전환사채 상환 이후 휴대폰 판매를 위한 자본 감소에 기인했습니다.
Eightco Holdings Inc. (NASDAQ: OCTO) a publié ses résultats financiers pour le deuxième trimestre 2024. Les points forts incluent :
- Revenu net de 4,4 millions de dollars, contre une perte nette de 8,9 millions de dollars au T2 2023
- Revenus de 7,0 millions de dollars, en baisse par rapport à 20,5 millions de dollars au T2 2023
- Marge brute améliorée de 12,3% à 25,3% d'une année sur l'autre
- Les frais SG&A ont été réduits de 26,6% à 3,5 millions de dollars
- EBITDA de 6,4 millions de dollars, en hausse par rapport à une perte de 5,5 millions de dollars au T2 2023
L'entreprise s'est concentrée sur l'amélioration de sa stabilité financière en annulant 23 millions de dollars de passifs et en remboursant des obligations convertibles, ce qui a entraîné une réduction des actions dilutives. La diminution des revenus a été attribuée à une réduction du capital pour les ventes de téléphones mobiles après le remboursement de l'obligation convertible.
Eightco Holdings Inc. (NASDAQ: OCTO) hat die finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben. Die wichtigsten Höhepunkte sind:
- Nettoeinkommen von 4,4 Millionen Dollar, im Vergleich zu einem Nettoverlust von 8,9 Millionen Dollar im Q2 2023
- Umsätze von 7,0 Millionen Dollar, ein Rückgang von 20,5 Millionen Dollar im Q2 2023
- Bruttomarge verbesserte sich im Jahresvergleich von 12,3% auf 25,3%
- SG&A-Ausgaben um 26,6% auf 3,5 Millionen Dollar zurückgegangen
- EBITDA von 6,4 Millionen Dollar, ein Anstieg vom Verlust von 5,5 Millionen Dollar im Q2 2023
Das Unternehmen konzentrierte sich auf die Verbesserung seiner finanziellen Stabilität, indem es 23 Millionen Dollar an Verbindlichkeiten stornierte und wandelbare Schuldverschreibungen zurückzahlte, was zu einer Reduzierung der verwässernden Aktien führte. Der Rückgang der Umsätze wurde auf das verringerte Kapital für den Verkauf von Mobiltelefonen nach der Rückzahlung der wandelbaren Anleihe zurückgeführt.
- Net income improved to $4.4 million from a net loss of $8.9 million in Q2 2023
- Gross profit margin increased to 25.3% from 12.3% year-over-year
- SG&A expenses reduced by 26.6% to $3.5 million
- EBITDA improved to $6.4 million from a loss of $5.5 million in Q2 2023
- Cancelled $23 million in liabilities, improving shareholder equity
- Eliminated 5,846,627 dilutive shares related to warrants and convertible securities
- Revenues decreased to $7.0 million from $20.5 million in Q2 2023
- Gross profit declined to $1.8 million from $2.5 million year-over-year
- Adjusted EBITDA remained negative at $0.8 million loss
Insights
Eightco's Q2 2024 results present a mixed picture. The company swung to a
The reduction in revenue is attributed to decreased capital for cell phone sales after repaying a convertible note. Despite this, gross profit margin improved from
Eightco's balance sheet restructuring, including cancellation of
Eightco's strategic shift towards its Forever 8 subsidiary, focusing on inventory capital for e-commerce and refurbished Apple product sellers, aligns with growing trends in these markets. The global e-commerce market is projected to reach
The refurbished smartphone market, particularly for Apple products, is also expanding rapidly, expected to grow at a CAGR of
However, investors should monitor how quickly Eightco can scale its Forever 8 operations to compensate for the revenue gap. The company's improved gross margin and reduced operating expenses indicate a leaner operation, which could accelerate profitability if revenue growth resumes.
Quarter Driven by Capital Restructuring to Prioritize Financial Stability
- Second quarter 2024 net income of
$4.4 million versus net loss of ($8.9) million for the prior year quarter, due to better operating performance and elimination of warrant losses related to a retired convertible note - Second quarter 2024 revenues of
$7.0 million versus$20.5 million for the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the convertible note
Easton, PA, Aug. 15, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced financial results for the three months ended June 30, 2024.
Paul Vassilakos, CEO of Eightco and President of Forever 8 Fund, LLC (“Forever 8”), the Company’s largest subsidiary, said “The Company continues to focus on prioritizing the Forever 8 business in providing inventory capital for e-commerce sellers and refurbished apple product sellers. The Company has made significant progress in the first half of 2024 improving its financial condition, most notably through the elimination of
Financial Highlights and Commentary
During the first half of 2024, Eightco took significant steps to resolve legacy issues and strengthen its balance sheet. More specifically, the Company has improved shareholder equity through the following:
- Cancellation of
$7.4 million of liabilities - Cancellation of
$15.6 million of additional liabilities to the former members of Forever 8:- Earnout consideration (fair value of
$6.1 million ) $5.4 million in promissory notes$3.0 million in interest obligations$1.1 million of interest obligations converted into 1.4 million shares of the Company’s common stock
- Earnout consideration (fair value of
The Company also repaid convertible notes which resulted in the elimination of an aggregate of 5,846,627 dilutive shares related to warrants and convertible securities that were cancelled in connection therewith, as well as several one-time accounting events.
Repayment of the convertible note reduced the Company’s capital base by
- Second quarter 2024 net income of
$4.4 million versus a net loss of ($8.9) million in the prior year quarter - Second quarter 2024 revenues of
$7.0 million versus$20.5 million in the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the convertible note - Second quarter 2024 gross profit of
$1.8 million versus$2.5 million in the prior year quarter - Second quarter 2024 gross profit margin of
25.3% , versus12.3% in the prior year quarter - Second quarter 2024 SG&A of
$3.5 million , down26.6% from$4.7 million in the prior year quarter - Second quarter 2024 EBITDA of
$6.4 million compared to a loss of ($5.5) million in the prior year quarter - Second quarter 2024 Adjusted EBITDA of a loss of (
$0.8) million , from a loss of ($1.9) million in the prior year quarter
| For the Three Months Ended | ||||||||
| June 30, | ||||||||
| 2024 | 2023 | |||||||
| Revenues, net | $ | 7,017,013 | $ | 20,547,153 | ||||
| Cost of revenues | 5,239,202 | 18,017,259 | ||||||
| Gross profit | 1,777,811 | 2,529,894 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses | $ | 3,461,221 | $ | 4,717,556 | ||||
| Restructuring and severance | - | 283,686 | ||||||
| Impairment | - | 292,748 | ||||||
| Total operating expenses | 3,461,221 | 5,293,990 | ||||||
| Operating loss | (1,683,410 | ) | (2,764,096 | ) | ||||
| Net income (loss) | 4,448,892 | (8,853,248 | ) | |||||
| For the Three Months Ended | ||||||||
| June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net income (loss) | 4,448,892 | (8,853,248 | ) | |||||
| Interest (income) expense, net | 1,323,594 | 2,736,333 | ||||||
| Income tax expense | - | - | ||||||
| Depreciation and amortization | 612,634 | 633,661 | ||||||
| EBITDA | 6,385,120 | (5,483,254 | ) | |||||
| Stock-based compensation | 206,103 | 189,000 | ||||||
| Loss on issuance of warrants | - | 3,387,604 | ||||||
| Gain on extinguishment of liabilities | (7,427,193 | ) | - | |||||
| Adjusted EBITDA | (835,970 | ) | (1,906,650 | ) | ||||
Reconciliation of EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP performance measures. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.
Reconciliations of the non-GAAP measures used in this press release are included in the table above. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.
A reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G as above.
About Eightco
Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.
For additional information, please visit www.8co.holdings
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to regain and maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; Eightco’s inability to innovate and attract users for Eightco’s products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 1, 2024. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.
For further information, please contact:
Investor Relations
investors@8co.holdings
FAQ
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