EMERGE Commerce Celebrates Growth in Preliminary Q4 Financials
EMERGE Commerce Shares Preliminary Q4 Results
EMERGE Commerce Ltd (TSXV: ECOM), a leading name in the e-commerce sector, recently released its preliminary unaudited results for the fourth quarter. The company has showcased remarkable growth, particularly in its revenue, marking a positive shift in its financial landscape.
Key Financial Highlights for Q4 2024
Gross Merchandise Sales Increase
For the fourth quarter of 2024, EMERGE reported Gross Merchandise Sales (GMS) reaching approximately $9.3 million, a notable increase from $7.96 million during the same period last year. This represents a significant year-over-year growth of 17%, underlining the company's resilience and strategic execution in the competitive e-commerce market.
Revenue Growth and Positive Adjusted EBITDA
The company's revenue for Q4 is anticipated to approximate $5.3 million, up from $4.6 million in Q4 2023. This increase of 15% reflects the company's highest growth rate of the year. Furthermore, EMERGE is poised to report a positive Adjusted EBITDA between $40,000 and $80,000, a sharp recovery from the $400,000 loss recorded in Q4 2023.
Cash Position Strengthened
EMERGE ended the year with a robust cash balance exceeding $3 million, significantly up from $1.6 million at the end of September 2024, and $2.5 million as of December 31, 2023. This financial cushion enables EMERGE to explore future growth opportunities confidently.
CEO's Commentary on Growth Trends
Ghassan Halazon, the founder and CEO of EMERGE, expressed satisfaction with the company’s achievements in Q4. He stated, "EMERGE's organic revenue growth accelerated to double-digits in Q4, and we expect to achieve positive Adjusted EBITDA for the first time this year. This marks our third consecutive quarter of positive organic revenue growth. Our strategy of focusing on a streamlined portfolio of brands is evidently paying off. Both truLOCAL and our golf segment significantly contributed to our double-digit growth in Q4."
Focus on Future Growth
EMERGE plans to capitalize on this momentum into 2025, aiming to build on strong growth trends and enhanced cash flow. The sale of non-core assets, including the recent divestment of Carnivore Club, has helped the company sharpen its focus and drive profitability. As EMERGE approaches the end of its fiscal year, it looks forward to sharing more detailed results and the full financial picture for 2024 soon.
About EMERGE Commerce Ltd
EMERGE is recognized for its diverse e-commerce brand portfolio, offering innovative solutions in grocery and golf. With services like truLOCAL, a premium meat and seafood subscription platform, the company connects local farmers to a health-conscious audience efficiently. EMERGE's golf-related offerings include discounted tee times through its brands like UnderPar and JustGolfStuff.
Frequently Asked Questions
What is the primary focus of EMERGE Commerce?
EMERGE Commerce focuses on providing a premium portfolio of e-commerce brands, specializing in grocery and golf products.
How did EMERGE's Q4 2024 performance compare to previous quarters?
EMERGE's Q4 performance showed strong revenue growth and positive Adjusted EBITDA, marking the third consecutive quarter of positive growth.
What contributed to the growth in Q4 2024?
The increase was driven primarily by strong performances in its truLOCAL meat subscription service and golf business segments.
What is the outlook for EMERGE in 2025?
EMERGE aims to build on its accelerated growth trends and improved cash position as it moves forward into 2025.
How has EMERGE improved its cash position?
EMERGE enhanced its cash position through stronger-than-expected revenue growth and the divestment of non-core assets, contributing to overall financial stability.
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