TruGolf Announces 82% YOY Third Quarter Sales Growth
TruGolf Holdings (NASDAQ: TRUG) reported strong Q3 2024 results with sales reaching $6.2M, up 82% YOY. The company achieved $1.1M EBITDA and $872K operating income in Q3. Gross margin improved to 69% from 55% YOY. The company secured commitments for 120 franchise locations across the US. Year-to-date improvements include reduced operating losses by 87%, decreased compensation expenses by $1.5M, and positive free cash flow of $3.1M compared to -$6.1M in 2023. The company revised its 2024 outlook, projecting 9-13% revenue growth and EBITDA between $1.1M-$1.5M for H2 2024.
TruGolf Holdings (NASDAQ: TRUG) ha registrato risultati solidi nel terzo trimestre del 2024, con vendite che hanno raggiunto $6,2 milioni, in aumento dell'82% rispetto all'anno precedente. L'azienda ha conseguito un EBITDA di $1,1 milioni e un reddito operativo di $872.000 nel terzo trimestre. Il margine lordo è migliorato al 69% rispetto al 55% dell'anno precedente. La società ha ottenuto impegni per 120 posizioni in franchising negli Stati Uniti. I miglioramenti dall'inizio dell'anno includono una riduzione delle perdite operative del 87%, una diminuzione delle spese per compensi di $1,5 milioni e un flusso di cassa libero positivo di $3,1 milioni rispetto a -$6,1 milioni nel 2023. L'azienda ha rivisto le sue aspettative per il 2024, prevedendo una crescita del fatturato tra il 9% e il 13% e un EBITDA compreso tra $1,1 milioni e $1,5 milioni per il secondo semestre del 2024.
TruGolf Holdings (NASDAQ: TRUG) reportó resultados sólidos en el tercer trimestre de 2024, con ventas alcanzando $6.2 millones, un aumento del 82% en comparación con el año anterior. La compañía logró un EBITDA de $1.1 millones y un ingreso operativo de $872,000 en el tercer trimestre. El margen bruto mejoró al 69% desde el 55% del año pasado. La empresa aseguró compromisos para 120 ubicaciones de franquicias en EE. UU. Las mejoras desde el inicio del año incluyen una reducción de las pérdidas operativas del 87%, una disminución en los gastos de compensación de $1.5 millones y un flujo de caja libre positivo de $3.1 millones en comparación con -$6.1 millones en 2023. La compañía revisó su perspectiva para 2024, proyectando un crecimiento de ingresos del 9% al 13% y un EBITDA entre $1.1 millones y $1.5 millones para la segunda mitad de 2024.
TruGolf Holdings (NASDAQ: TRUG)는 2024년 3분기 강력한 실적을 보고했습니다. 매출은 620만 달러에 달하며, 지난해 대비 82% 증가했습니다. 회사는 3분기에 110만 달러의 EBITDA와 87만 2천 달러의 운영 이익을 기록했습니다. 총 마진은 지난해 55%에서 69%로 개선되었습니다. 회사는 미국 전역에서 120개의 프랜차이즈 위치에 대한 약속을 확보했습니다. 연초부터의 개선 사항으로는 운영 손실이 87% 감소했고, 보상 비용이 150만 달러 줄어들었으며, 2023년 -610만 달러와 비교해 310만 달러의 긍정적인 자유 현금 흐름이 발생했습니다. 회사는 2024년 전망을 수정하여, 2024년 하반기에 9-13%의 수익 성장과 110만 달러에서 150만 달러 사이의 EBITDA를 예상하고 있습니다.
TruGolf Holdings (NASDAQ: TRUG) a reporté des résultats solides pour le troisième trimestre de 2024, avec des ventes atteignant 6,2 millions de dollars, soit une augmentation de 82 % par rapport à l'année précédente. L'entreprise a réalisé un EBITDA de 1,1 million de dollars et un revenu opérationnel de 872 000 dollars au troisième trimestre. La marge brute est passée de 55 % à 69 % par rapport à l'année précédente. L'entreprise a sécurisé des engagements pour 120 emplacements de franchise à travers les États-Unis. Parmi les améliorations depuis le début de l'année, on note la réduction des pertes d'exploitation de 87 %, la diminution des dépenses de compensation de 1,5 million de dollars, et un flux de trésorerie libre positif de 3,1 millions de dollars, comparé à -6,1 millions de dollars en 2023. L'entreprise a révisé ses prévisions pour 2024, prévoyant une croissance du chiffre d'affaires de 9 à 13 % et un EBITDA compris entre 1,1 million et 1,5 million de dollars pour le second semestre de 2024.
TruGolf Holdings (NASDAQ: TRUG) hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit einem Umsatz von 6,2 Millionen US-Dollar, was einem Anstieg von 82 % im Jahresvergleich entspricht. Das Unternehmen erzielte ein EBITDA von 1,1 Millionen US-Dollar und ein operatives Ergebnis von 872.000 US-Dollar im 3. Quartal. Die Bruttomarge verbesserte sich von 55 % auf 69 % im Jahresvergleich. Das Unternehmen sicherte sich Verpflichtungen für 120 Franchise-Standorte in den USA. Zu den Verbesserungen im bisherigen Jahresverlauf gehören eine Verringerung der Betriebskosten um 87 %, eine Senkung der Vergütungskosten um 1,5 Millionen US-Dollar und ein positiver Free Cashflow von 3,1 Millionen US-Dollar im Vergleich zu -6,1 Millionen US-Dollar im Jahr 2023. Das Unternehmen hat seine Prognose für 2024 überarbeitet und erwartet ein Umsatzwachstum von 9-13 % sowie ein EBITDA zwischen 1,1 Millionen und 1,5 Millionen US-Dollar für das 2. Halbjahr 2024.
- Q3 2024 sales increased 82% YOY to $6.2M
- Q3 2024 EBITDA reached $1.1M
- Gross margin improved to 69% from 55% YOY
- Operating income turned positive at $872K vs -$2.3M loss YOY
- Secured 120 franchise location commitments
- Free cash flow improved to $3.1M from -$6.1M YOY
- Reduced YTD operating losses by 87%
- Decreased compensation expenses by $1.5M
- Reduced SGA expenses by $4.1M
- YTD EBITDA remains negative at -$277K
- YTD operating loss of $856K despite improvements
- No franchise revenue recognized despite expenses of $306.5K
Insights
The 82% YOY revenue growth to
The commitment of 120 franchise locations represents a substantial future revenue stream, though current financials show
The sports technology sector is experiencing rapid growth and TruGolf's hardware/software expansion aligns perfectly with this trend. The 120 committed franchise locations signal strong market validation and create a powerful distribution network for future product launches. This hybrid model combining technology sales with physical locations could create significant competitive advantages and recurring revenue streams.
The revised guidance of
Salt Lake City, Utah, Nov. 15, 2024 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading golf technology company, announced today its results for the third quarter of 2024. The Company reported strong third quarter sales of
“This strong third quarter growth is a direct result of the significant investment we have made in our technology over the past two years, “said Chief Executive Officer and Director Chris Jones. “We believe this is just the beginning of a dynamic growth period for TruGolf and the sports technology industry. In addition to our hardware and software sales, our franchise concept, launched in the third quarter, has an initial 120 franchise locations committed to coming online all throughout the United States. This franchise initiative represents the future of how users will engage with the sport and adds significant tailwinds to our growing technology sales. The enthusiastic adoption of our new Hardware, Software, and Web products, combined with the enthusiasm for our franchise concept, have led us to increase our full year revenue target and EBIDTA goals for 2024.”
Revised Outlook:
- Total revenue for end of 2024 is expected to grow by
9% -13% as compared to end of 2023 levels. - EBITDA for the second half of 2024 is estimated to range between
$1,100,000 t o$1,500,000 , showing a return to profitability following significant investments made over the past two years in technology designed to drive significant, future growth and expansion opportunities.
Financial Operations:
- Gross margin for the third quarter of 2024 was
69% as compared to 55 % in the third quarter of 2023. - Year to date gross margin was
66% as compared to67% during the same period in 2023. - Operating income for third quarter 2024 hit
$872,000 , an increase of137% compared to the third quarter 2023 operating loss of ($2.3 million ). - The 2024 year to date operating loss is
87% lower at ($856,000) as compared to ($6.8 million ) for the same period in 2023. - Year to date 2024 compensation expenses decreased by
$1.5 million as compared to the same period in 2023. - Year to date 2024 SGA expenses also declined by
$4.1 million as compared to the same period in 2023. - Free cash flow year to date 2024 was
$3.1 million as compared to ($6.1 million ) during the same period in 2023. - EBITDA year to date 2024 is (
$277,000) inclusive of$306,539 of franchising expenses and zero franchising revenue recognized. Excluding franchising expenses, EBITDA it is slightly positive year to date 2024.
Disclaimer on Forward Looking Statements
This news release contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the Company’s forecasts for total sales and EBITDA discussed above. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Forward Looking Statements and Risk Factors sections of the Company’s S-1 filed with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events.
About TruGolf, Inc.:
TruGolf is a golf technology company, committed to making golf, easy. From innovative uses for AI to build content and enhanced image and spatial analysis, to gamified golf improvement plans, TruGolf is an industry leader in the growing technological revolution in the sport of golf. Since TruGolf's founding it has redefined what is possible with golf through technology. TruGolf’s suite of Hardware, Software, and Web Products make the game easier to Play, Improve and Enjoy.
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,452,185 | $ | 3,297,564 | ||||
| Restricted cash | - | 2,100,000 | ||||||
| Marketable investment securities | - | 2,478,953 | ||||||
| Accounts receivable, net | 4,542,097 | 2,398,872 | ||||||
| Inventory, net | 2,324,230 | 2,119,084 | ||||||
| Prepaid expenses | 99,032 | 262,133 | ||||||
| Total current assets | 14,417,544 | 12,656,606 | ||||||
| Property and equipment, net | 131,581 | 234,308 | ||||||
| Capitalized software development costs, net | 1,738,417 | - | ||||||
| Right-of-use assets | 721,051 | 972,663 | ||||||
| Other long-term assets | 31,097 | 1,905,983 | ||||||
| Total assets | $ | 17,039,690 | $ | 15,769,560 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,288,208 | $ | 2,059,771 | ||||
| Customer deposits | 4,600,105 | 1,704,224 | ||||||
| Deferred revenue | 575,000 | - | ||||||
| Notes payable, current portion | 9,854 | 9,425 | ||||||
| Notes payable to related parties, current portion | 1,937,000 | 1,237,000 | ||||||
| Line of credit, bank | 802,738 | 802,738 | ||||||
| Margin line of credit account | - | 1,980,937 | ||||||
| Convertible notes payable | 954,622 | 954,622 | ||||||
| Notes payable assumed in Merger | 1,465,000 | - | ||||||
| Accrued interest | 1,649,341 | 459,872 | ||||||
| Accrued and other current liabilities | 1,201,071 | 1,125,495 | ||||||
| Accrued and other current liabilities - assumed in Merger | 295,008 | - | ||||||
| Lease liability, current portion | 375,660 | 334,255 | ||||||
| Total current liabilities | 16,153,607 | 10,668,339 | ||||||
| Non-current liabilities: | ||||||||
| Notes payable, net of current portion | 12,290 | 2,402,783 | ||||||
| Note payables to related parties, net of current portion | 874,000 | 861,000 | ||||||
| PIPE loan payable, net | 4,232,448 | - | ||||||
| Dividend notes payable | 4,023,923 | 4,023,923 | ||||||
| Gross sales royalty payable | 1,000,000 | 1,000,000 | ||||||
| Lease liability, net of current portion | 380,386 | 668,228 | ||||||
| Other liabilities | 589,619 | 63,015 | ||||||
| Total liabilities | 27,266,273 | 19,687,288 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ deficit: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock - Series A, | 1,189 | 120 | ||||||
| Common stock - Series B, | 172 | - | ||||||
| Treasury stock at cost, 4,692 shares of common stock held, respectively | (2,037,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 7,100,503 | 10,479,738 | ||||||
| Accumulated other comprehensive loss | - | (1,662 | ) | |||||
| Accumulated deficit / losses | (15,291,447 | ) | (12,358,924 | ) | ||||
| Total stockholders’ deficit | (10,226,583 | ) | (3,917,728 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 17,039,690 | $ | 15,769,560 | ||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues, net | $ | 6,236,795 | $ | 3,431,735 | $ | 15,121,980 | $ | 13,788,700 | ||||||||
| Cost of revenues | 1,924,093 | 1,533,691 | 5,183,328 | 4,531,429 | ||||||||||||
| Gross profit | 4,312,702 | 1,898,044 | 9,938,652 | 9,257,271 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Royalties | 166,631 | 130,610 | 719,668 | 447,366 | ||||||||||||
| Salaries, wages and benefits | 1,695,678 | 2,252,848 | 4,654,560 | 6,171,878 | ||||||||||||
| Selling, general and administrative | 1,578,112 | 1,838,297 | 5,420,872 | 9,455,683 | ||||||||||||
| Total operating expenses | 3,440,421 | 4,221,755 | 10,795,100 | 16,074,927 | ||||||||||||
| (Loss) income from operations | 872,281 | (2,323,711 | ) | (856,448 | ) | (6,817,656 | ) | |||||||||
| Other (expenses) income: | ||||||||||||||||
| Interest income | 38,592 | 21,197 | 105,800 | 71,542 | ||||||||||||
| Interest expense | (971,048 | ) | (358,354 | ) | (2,176,810 | ) | (1,265,775 | ) | ||||||||
| Loss on investment | - | - | (3,912 | ) | - | |||||||||||
| Total other expense | (932,456 | ) | (337,157 | ) | (2,074,922 | ) | (1,194,233 | ) | ||||||||
| Loss from operations before income taxes | (60,175 | ) | (2,660,868 | ) | (2,931,370 | ) | (8,011,889 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (60,175 | ) | $ | (2,660,868 | ) | $ | (2,931,370 | ) | $ | (8,011,889 | ) | ||||
| Basic and diluted net loss per share attributable to common stockholders | $ | (0.00 | ) | $ | (219.38 | ) | $ | (0.28 | ) | $ | (660.56 | ) | ||||
| Basic and diluted weighted average common shares | 13,380,737 | 12,129 | 10,550,277 | 12,129 | ||||||||||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,931,370 | ) | $ | (8,011,889 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization expense | 331,728 | 45,682 | ||||||
| Amortization of PIPE convertible notes original issue discount | 47,447 | 183,695 | ||||||
| Amortization of right-of-use asset | 251,612 | 217,101 | ||||||
| Bad debt expense | - | 665,920 | ||||||
| Change in OCI | 1,662 | - | ||||||
| Stock issued for services | - | 4,493,333 | ||||||
| Stock issued for interest | 341,696 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (2,143,225 | ) | (1,057,286 | ) | ||||
| Inventory, net | (205,146 | ) | (1,289,741 | ) | ||||
| Prepaid expenses | 163,101 | (76,690 | ) | |||||
| Other current assets | 2,478,953 | 17,840 | ||||||
| Other assets | - | (2,026,082 | ) | |||||
| Accounts payable | 228,437 | 837,049 | ||||||
| Customer deposits | 2,895,881 | (70,508 | ) | |||||
| Deferred revenue | 575,000 | - | ||||||
| Accrued interest | 1,208,014 | 397,517 | ||||||
| Accrued and other current liabilities | 75,576 | (290,484 | ) | |||||
| Other liabilities | (1,148 | ) | 38,357 | |||||
| Lease liability | (246,437 | ) | (194,953 | ) | ||||
| Net cash provided by (used in) operating activities | 3,071,781 | (6,121,139 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | - | (89,024 | ) | |||||
| Capitalized software development costs | (1,967,418 | ) | - | |||||
| Reduction in long term assets | (115 | ) | (2,419,725 | ) | ||||
| Net cash used in investing activities | (1,967,533 | ) | (2,508,749 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from line of credit | - | 1,945,397 | ||||||
| Proceeds from notes payable | - | 2,499,999 | ||||||
| Repayments of notes payable | (7,005 | ) | (89,337 | ) | ||||
| Repayments of notes payable - related party | (287,000 | ) | (18,500 | ) | ||||
| Proceeds from notes payable - related party | 1,000,000 | - | ||||||
| Payments on assumed liabilities in Merger | (15,716 | ) | - | |||||
| Proceeds from convertible notes | - | 185,500 | ||||||
| PIPE loan, net of OID discount | 4,185,000 | - | ||||||
| Cash acquired in Merger | 103,818 | - | ||||||
| Costs of Merger paid from PIPE loan | (1,947,787 | ) | - | |||||
| Repayment of line of credit | (1,980,937 | ) | - | |||||
| Repayment of notes payable assumed in Merger | (100,000 | ) | - | |||||
| Dividends paid | - | (75,096 | ) | |||||
| Net cash provided by financing activities | 950,373 | 4,447,963 | ||||||
| Net change in cash, cash equivalents, and restricted cash | 2,054,621 | (4,181,925 | ) | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 5,397,564 | 9,656,266 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 7,452,185 | $ | 5,474,341 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | - | $ | - | ||||
| Cash paid for interest | $ | 548,041 | $ | 868,264 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING and FINANCING ACTIVITIES: | ||||||||
| Notes payable assumed in Merger | $ | 1,565,000 | $ | - | ||||
| Accrued liabilities assumed in Merger | $ | 310,724 | $ | - | ||||
| Remeasurement of common stock exchanged/issued in Merger | $ | (1,875,724 | ) | $ | - | |||
| Right of Use Asset in exchange for lease liability | $ | - | $ | 537,995 | ||||
Contact: Michael Bacal
mbacal@darrowir.com
917-886-9071
FAQ
What was TruGolf's (TRUG) Q3 2024 revenue growth?
How many franchise locations has TruGolf (TRUG) secured commitments for in Q3 2024?
What is TruGolf's (TRUG) revised revenue growth outlook for 2024?
What was TruGolf's (TRUG) Q3 2024 gross margin?
