CUENW
Cuentas Inc.
Q1 2024 Report
Cuentas Inc. (CUENW) Q1 2024 Financial Results: Weak Revenue Pushes Net Loss Wider...
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Executive Summary
Cuentas Inc. reported a dismal financial performance for Q3 2024, with revenues of $4,000, marking a sharp decline of 90% year-over-year (YoY) and 99.37% quarter-over-quarter (QoQ). The company faced substantial operating losses of $306,000 and a net loss of $399,000, contributing to an earnings per share (EPS) of -$0.13. In response to these results, management highlighted ongoing challenges in maintaining operational efficiency and capturing market share in an increasingly competitive landscape.
Despite these staggering losses, management remains optimistic about their fintech ecosystem, which incorporates prepaid debit services tailored for underbanked populations. They believe that strategic investments in technology and customer outreach may yield future revenue growth. Investors should closely monitor developments, particularly as the company experiences significant pressure to stabilize financial results and boost investor confidence.
Key Performance Indicators
Revenue
4.00K
QoQ: -99.37% | YoY:-90.00%
Gross Profit
-7.00K
-1.75% margin
QoQ: 89.86% | YoY:93.81%
Operating Income
-306.00K
QoQ: 63.70% | YoY:65.73%
Net Income
-399.00K
QoQ: 10.34% | YoY:71.74%
EPS
-0.13
QoQ: 18.75% | YoY:80.60%
Revenue Trend
Margin Analysis
Key Insights
- Gross profit stood at -$7,000, indicating negative gross margins due to high costs of revenue, which amounted to $11,000.
- Operating expenses totaled $299,000, primarily driven by administrative costs of $297,000, reflecting the company's struggle to control overhead.
- The net income for Q3 was -$399,000, showcasing ongoing profitability challenges with a net income ratio of -99.75% and an EBITDA loss of $306,000.