Business
Tantalus Systems Holding Inc. Reports Financial Results for Q4 and Fiscal Year of 2023
Delivers record revenue and neutral Adjusted EBITDA for the year Burnaby, British Columbia--(New...
About this update from Tantalus Systems Holding Inc
[{"type":"text","content":"Tantalus Systems Holding Inc. Reports Financial Results for Q4 and Fiscal Year of 2023Delivers record revenue and neutral Adjusted EBITDA for the yearBurnaby, British Columbia--(Newsfile Corp. - March 26, 2024) - Tantalus Systems (TSX: GRID) (\"Tantalus\" or the \"Company\"), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, is pleased to announce its financial and operating results for the quarter (\"Q4\") and fiscal year (\"FY\") ended December 31, 2023. Financial Highlights for FY 2023 and Q4 20231:Revenue: The Company generated the highest annual revenue in its history of US$42.1 million (CND$56.8 million), inclusive of US$10.4 million (CND$14.0 million) in Q4, representing a 6% increase over 2022. Revenue contributions from the Utility Software Applications and Services segment (\"Software & Services\") in 2023 and Q4 hit 35%, representing the highest percentage contribution in the Company's history. Annual Recurring Revenue (ARR)2: The Company hit another record by growing ARR to approximately US$11.5 million (CND$15.2 million) as of December 31, 2023, representing 17% growth year-over-year. Recurring Revenue recognized in the Q4 represented approximately 24% of total revenue generated. Gross Profit2 Margin: The Company delivered 52% for 2023 and 51% for Q4 compared to 48% and 45%, respectively, over the prior year periods. The Gross Profit Margin percentage in 2023 is the highest percentage in the Company's history and reflects the achievement of an important milestone to drive operating leverage as the business continues to scale.Adjusted EBITDA2: The Company delivered positive Adjusted EBITDA of US$0.35 million (approximately CND$0.5 million) in Q4 compared to positive Adjusted EBITDA of US$0.1 million (approximately CND$0.1 million) for the prior year period. Adjusted EBITDA for FY 2023, approached a point of neutrality at negative US$29k (approximately negative CND$40k) compared to negative US$2.4 million (negative CND$3.1 million) for the prior year. The Adjusted EBITDA result for 2023 includes approximately US$5.0 million (approximately CND$6.8 million) of further investment in the TRUSense Gateway™ product offering made throughout the year. Total Assets: The Company ended Q4 with US$34.8 million (CND$46.0 million) as compared to US$37....