TransAct Technologies Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
TransAct Technologies Reports Second Quarter 2024 Financial Results
TransAct Technologies Incorporated (NASDAQ:TACT), a global leader in software-driven technology and printing solutions, reported its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue | $11.6M | $10.6M | $19.9M | Down 42% | Up 9% | $10.44M |
| Earnings Per Share (EPS) | $(0.03) | $(0.10) | $0.08 | - | - | $(0.16) |
| Net (Loss)/Income | $(319)K | $(1.0)M | $765K | - | - | - |
| Gross Profit | $6.1M | - | $10.9M | Down 44% | - | - |
| Operating (Loss)/Income | $(438)K | $(1.3)M | $1.2M | - | - | - |
| EBITDA | $(190)K | $(966)K | $1.6M | - | - | - |
| Adjusted EBITDA | $89K | $(701)K | $3.2M | - | - | - |
Interpretation: TransAct Technologies exceeded revenue and EPS consensus estimates for Q2 2024. Despite a significant year-over-year decline in revenue and gross profit, there was a notable sequential improvement in both total revenue and EBITDA, indicating a potential recovery trajectory.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q1 2024 Revenue | Q2 2023 Revenue | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| FST Recurring Revenue | $2.8M | $2.4M | $2.5M | Up 12% | Up 15% |
| Total Revenue | $11.6M | $10.6M | $19.9M | Down 42% | Up 9% |
Interpretation: The robust sequential growth in FST recurring revenue, up 15%, along with the addition of new customers, highlights the strength of the company’s BOHA! platform. The decline in overall revenue year-over-year is mainly attributed to expected market dynamics in the Casino and Gaming segment.
Operational Data
| Operational Metric | Q2 2024 |
|---|---|
| Terminals Sold | 1,476 |
| New FST Customers Added | 13 |
| Annual Cost Savings Initiatives | $2M |
Executive Comments
John Dillon, CEO of TransAct, commented: "We are pleased with our results for the quarter, highlighted by 1,476 new terminals sold, sequential FST recurring revenue growth, and thirteen new logos added to our BOHA! platform. Our focus on cost control measures is yielding results, and we anticipate these initiatives will continue to drive positive changes."
Forward Guidance
TransAct updated its 2024 financial outlook: - Total Net Sales : Expected to be between $45 million and $50 million. - Total Adjusted EBITDA : Expected to range between negative $1 million and negative $2 million, up from previous guidance of negative $2.5 million to negative $3.5 million.
Stock Price Movement
After the earnings release, TransAct Technologies stock showed no significant movement, with a 0.0% change.
TransAct's latest financials underscore the company's successful cost management efforts and positive momentum in its FST segment, despite industry headwinds impacting overall revenue.