Revenue Performance: For Q1 2024, Cuentas Inc reported revenues of $639,000, a decline of 52.53% from Q4 2023 but significantly up from $64,000 a year ago, indicating strong revenue growth on a year-over-year basis (YoY) of 898.44%. This growth stems from an increase in the customer base and expanded service offerings, particularly in mobile banking.
Profitability: The company faced a gross profit loss of $69,000 with a gross profit margin of -10.8%. Furthermore, operating income showed substantial losses of $843,000 resulting in an operating margin of -132%. Management acknowledges challenges in managing operational costs, which totaled $774,000 for the quarter, reflecting ongoing investment in growth strategies.
Balance Sheet Health: Total assets were reported at $3.448 million, predominantly supported by $2.928 million in long-term investments. However, liabilities also surged to $3.843 million, highlighting a debt-heavy structure. The total stockholder’s equity reported a negative figure, emphasizing liquidity pressure.
Cash Flow: Operating cash flow showed a significant outflow of $310,000 for the quarter, indicating operational losses impacting cash reserves. With cash at $28,000 and significant accounts payable, the company must address its cash flow management effectively in upcoming quarters.