CUEN
Cuentas Inc
Q3 2024 Report
Cuentas Inc (CUEN) Q3 2024 Financial Results: Steep Losses Highlight Challenges Ahead...
Read full report
Executive Summary
Cuentas Inc (CUEN) reported a challenging second quarter of 2023, with revenue falling to $40,000, a staggering decline of 94.03% year-over-year (YoY) and 37.50% quarter-over-quarter (QoQ). The company continued to operate at a loss, posting a net income of -$1,412,000, despite attempts to scale its fintech offerings aimed at underbanked communities. Management acknowledged these difficulties during the earnings call, emphasizing their focus on restructuring and revitalizing their product offerings within the competitive landscape of mobile banking and telecommunications.
The dramatic decrease in revenue, coupled with high operational expenditure, indicates underlying structural challenges that investors must navigate. Cuentas' overall financial performance raises substantial concerns about the sustainability of its business model and its ability to recover in the next quarters. Investment in strategic partnerships and operational efficiencies will be crucial moving forward.
Key Performance Indicators
Revenue
40.00K
QoQ: -37.50% | YoY:-94.03%
Gross Profit
-113.00K
-2.83% margin
QoQ: -91.53% | YoY:-305.45%
Operating Income
-893.00K
QoQ: 47.03% | YoY:71.57%
Net Income
-1.41M
QoQ: 16.70% | YoY:55.68%
EPS
-0.67
QoQ: 33.00% | YoY:75.72%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $40,000, down 94.03% YoY and 37.50% QoQ, starkly reflecting market challenges. **Gross Profit**: -$113,000, gross profit margin at -282.5%, a severe deterioration from prior periods. **Operating Income**: Loss of -$893,000, with an operating income ratio of -22.33%, highlighting escalating operational costs. **Net Income**: -$1,412,000, a significant increase in net losses compared to previous quarters, driven by ongoing expenses despite minimal revenues. **Liquidity Ratios*...