Tribe Property Technologies Inc. (TSX-V:TRBE) saw its adjusted profits grow by over 50% in its fourth quarter, its latest financial statements show.
In a statement, the company attributed the performance to a turnaround plan marked by cost reduction strategies over the past year.
“Improving profitability has been Tribe’s strategic focus over the past year, and we’re delighted to report that our efforts are yielding significant results,” CEO Joseph Nakhla said in a statement accompanying the results.
“Through streamlined workflow optimizations, the consolidation of backend services and subscriptions, and various cost reduction initiatives, our team has propelled us toward profitability with remarkable momentum.”
Nakhla noted that the firm’s efforts were reflected in improved gross margin and reduced cash burn.
In the fourth quarter of 2023, Tribe achieved record revenue of $5.11 million, marking a 7.6% increase compared to the same period in 2022. Gross profit for the quarter was $2.06 million, with a margin of 46.7%, reflecting significant improvement through restructuring and cost reduction efforts. Adjusted EBITDA for Q4-2023 improved by 50.8% compared to the previous year.
The fiscal 2023 annual financial highlights include a revenue increase of 8.8% compared to the previous year, reaching $19.39 million. Gross profit for fiscal 2023 totaled $6.63 million, representing a 41.0% margin, while Adjusted EBITDA improved by 19.8%.
Tribe’s key business metrics as of Q4-2023 indicate strong growth, with new property developers signing up for Tribe Home Pro construction software and Tribe Management services. Additionally, the company successfully onboarded new clients for management services, software licensing agreements, and property management agreements.
Looking ahead, Tribe anticipates continued revenue growth, profitability, and expanding margins in 2024.
“We expect improving Adjusted EBITDA in the upcoming fiscal year through our ongoing cost optimization endeavors and potential positive Adjusted EBITDA contributions from future acquisitions,” CEO Nakhla added.
“The company has a robust pipeline of profitable acquisition opportunities. While profitability remains paramount, it’s crucial to state our commitment to pursuing additional acquisition opportunities and fostering organic growth prospects.”
Key goals for the year include increasing monthly recurring revenue, making additional acquisitions, driving efficiencies to improve gross margins, and investing in software innovation to maintain industry leadership.