Gross Margins Increased 380 Basis Points to 16.3% Cash Balance of $4.7 Million
SCHAUMBURG, IL, Aug. 15, 2024 (GLOBE NEWSWIRE) -- RDE, Inc. (Nasdaq: RSTN) (the “Company”), the owner and operator of leading digital platforms, Restaurant.com and CardCash.com, with a focus on incentives and rewards in retail, dining & entertainment experiences, is pleased to announce its financial and operational results for the first quarter ended June 30, 2024.
Key Financial Highlights for the Three Months Ended June 30, 2024 Compared to Prior Year Period
- Revenue of $20.0 million
- Gross profit of $3.3 million
- Gross margin increased 380 basis points to 16.3%
- Net loss of $7.7 million (Of note, net loss for the three months ended June 30, 2024 included $7.4 million in non-cash and one-time expenses, including $6.2 million in stock option and other non-cash compensation, $0.6 million in amortization of intangible assets, $0.3 million in interest expense and $0.3 million in amortization of capitalized software costs)
- Modified EBITDA loss of $0.4 million
- Cash balance of $4.7 million
- Total assets of $40.5 million
- Shareholders’ equity of $23.8 million
Modified EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading “Non-GAAP Financial Measures and Key Metrics” and the reconciliations at the end of this release for additional information concerning this and other non-GAAP financial measures.
Management Commentary
Ketan Thakker, Chief Executive Officer of RDE, Inc., commented, “Our second quarter and first half 2024 results demonstrate the increased efficiencies we identified and executed upon with the acquisition of CardCash.com at the end of 2023. The increased gross profit and gross margins are meaningful and drive incremental dollars to our operating line, which has been improving with each quarter. Backing out the non-cash and one-time expenses, which were mostly from the CardCash.com acquisition, we operated at near breakeven and reported a Modified EBITDA loss of just $357,229 for the second quarter.”
Thakker, continued, “Our recent listing onto Nasdaq on August 7 was a major milestone and one we believe will better enable us to seek strategic opportunities such as additional acquisitions to complement our organic growth. We also believe the national listing allows us to increase our visibility and awareness among the shareholder community. Additionally, our strong balance sheet, led by $4.7 million in cash, puts us in a strong position to be able to execute on continued growth and profitability. We look forward to the remainder of 2024 as we embark on increasing our shareholder relations and outreach programs later in the fall.”
About RDE, Inc.
RDE, Inc. (Restaurant, Dining and Entertainment) is a pioneer in the incentive and rewards industry with a focus on retail, dining & entertainment experiences. Its Restaurant.com is the nation’s largest restaurant-focused digital deals brand and CardCash.com is a leading secondary gift card exchange platform. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deal options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our restaurant certificates and gift cards allow customers to save at thousands of restaurants across the country with just a few clicks. CardCash.com is renowned for its leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales.
For more information, visit: www.rdeholdings.com and https://www.restaurant.com and www.cardcash.com .
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although RDE, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, RDE, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company’s ability identify a suitable business model for the corporation.
Non-GAAP Financial Measures and Key Metrics
The Company has provided in this release Modified EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Modified EBITDA is defined as net (loss) income adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, and stock-based compensation expense.
Management uses Modified EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Modified EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Modified EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Modified EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Modified EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; net loss from discontinued operations; interest income, net; other expense, net; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Modified EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider Modified EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.
Investors Contacts: ClearThink nyc@clearthink.capital
