Executive Summary
CLink Squared Limited reported QQ3 2024 revenue of MYR 23.68 million, with a gross profit of MYR 6.82 million and a gross margin of 28.79%. Despite a modest YoY revenue decline (-1.12%) and a QoQ drop (-4.55%), gross margin improved meaningfully from the prior quarter, reflecting potential mix shift or cost containment at the gross level. The quarter produced a substantial operating loss of MYR 10.96 million and an EBITDA loss of MYR 9.95 million, driving a net loss of MYR 11.27 million and a negative net income margin of 47.6%. The company, however, generated solid operating cash flow of MYR 9.33 million and free cash flow of MYR 9.16 million, supported by working capital movements and non-cash items, underscoring a healthy liquidity position with a cash balance of MYR 59.72 million and a net debt position of MYR -54.49 million. The balance sheet shows a large goodwill balance (MYR 191.91 million) and minimal near-term indebtedness, contributing to a robust current ratio (~6.1) and a cash ratio (4.21x). While liquidity remains strong, the business continues to face profitability headwinds from a high fixed-cost base and ongoing operating expenses that outpace revenue growth. Absent a material pivot to cost optimization and higher-margin revenue streams, the margin trajectory suggests the need for strategic actions to translate cash generation into sustainable earnings. Management commentary is not included in the provided data; as such, the forward-looking assessment relies on quantitative metrics and industry dynamics. Investors should monitor operating expense discipline, margin expansion, and any strategic initiatives around software-enabled services or cross-selling that could unlock incremental profitability.
Key Performance Indicators
QoQ: -3 006.23% | YoY:-2 521.33%
QoQ: -2 116.82% | YoY:-32 778.26%
QoQ: -2 050.00% | YoY:N/A
Key Insights
Revenue: MYR 23.683 million in Q3 2024; YoY change -1.12%; QoQ change -4.55%. Gross Profit: MYR 6.818 million; Gross margin 28.79%, YoY margin +1.06pp; QoQ margin up from the prior quarter by a sizable margin (approx. +27.5% in gross profit). Operating Expenses: MYR 34.639 million; Operating income: MYR -10.956 million; Operating margin: -46.26%. EBITDA: MYR -9.952 million; EBITDA margin: approximately -42.0%. Net income: MYR -11.274 million; Net margin: -47.60%. Earnings per share (EPS): -MYR 0...
Financial Highlights
Revenue: MYR 23.683 million in Q3 2024; YoY change -1.12%; QoQ change -4.55%. Gross Profit: MYR 6.818 million; Gross margin 28.79%, YoY margin +1.06pp; QoQ margin up from the prior quarter by a sizable margin (approx. +27.5% in gross profit). Operating Expenses: MYR 34.639 million; Operating income: MYR -10.956 million; Operating margin: -46.26%. EBITDA: MYR -9.952 million; EBITDA margin: approximately -42.0%. Net income: MYR -11.274 million; Net margin: -47.60%. Earnings per share (EPS): -MYR 0.0039; Weighted average shares: 2.873 billion. Balance sheet highlights: Cash and cash equivalents MYR 59.723 million; Total assets MYR 311.662 million; Total liabilities MYR 16.486 million; Total stockholders’ equity MYR 290.485 million. Goodwill: MYR 191.911 million. Net debt: MYR -54.485 million (net cash). Liquidity metrics: Current ratio 6.13; Quick ratio 5.99; Cash ratio 4.21. Cash flow: CFO MYR 9.3265 million; Free cash flow MYR 9.161 million. Valuation: Price-to-book 2.78x; Price-to-sales 34.11x; P/E negative; Enterprise value multiple -75.70x; Price to fair value MYR 2.78. Note: The earnings transcript is not provided in the data; therefore, transcript-driven quantitative context is not included here.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
23.68M |
-1.12% |
-4.55% |
| Gross Profit |
6.82M |
1.06% |
27.51% |
| Operating Income |
-10.96M |
-2 521.33% |
-3 006.23% |
| Net Income |
-11.27M |
-32 778.26% |
-2 116.82% |
| EPS |
0.00 |
N/A |
-2 050.00% |
Key Financial Ratios
operatingProfitMargin
-46.3%
priceEarningsRatio
-17.91
Management Commentary
- No QQ3 2024 earnings call transcript was provided in the data; consequently, management quotes or commentary from the call are not available for synthesis. - The result set is anchored in reported financials and quarterly trends, with a notable contrast between positive operating cash flow generation and negative accounting profitability.
Forward Guidance
No formal guidance was disclosed for QQ4 2024 or beyond in the provided data. Given the current profitability gap, the key near-term priorities would logically include: (1) reducing fixed operating expenses or improving cost absorption to push EBITDA toward break-even; (2) leveraging the sizable cash position to fund selective capex or software-enabled solutions that could elevate margin profiles; (3) sustaining and optimizing working capital to support ongoing free cash flow generation; (4) monitoring goodwill for potential impairment if revenue momentum does not improve. Industry peers in Asia-Pacific exhibit a wide dispersion in margins, suggesting that margin recovery for CLink would likely be contingent on either pricing, efficiency gains, or a higher-value service mix. Investors should track quarterly opex intensity as a leading indicator of margin improvement and any announcements around strategic pivots (e.g., automation, software-as-a-service offerings, or cross-selling initiatives).