CUEN
Cuentas Inc
Q3 2024 Report
Cuentas Inc (CUEN) Q3 2024 Financial Results: Steep Losses Highlight Challenges Ahead...
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Executive Summary
In the third quarter of 2023, Cuentas Inc demonstrated significant growth in revenue and operational metrics compared to the previous quarter, indicating early signs of recovery from previous losses. Revenue surged to $895,000, reflecting a staggering 2,137.50% increase from Q2 2023, driven by an expanding fintech ecosystem tailored to the unbanked and underserved populations. However, Cuentas faced a net loss of $1,187,000, representing a -1.33 net income ratio, which highlights ongoing challenges in cost management and profitability.
Management emphasized a strategic focus on enhancing operational efficiency and scaling new customer acquisition initiatives. Despite the setback in net profitability, the company remains optimistic about its growth trajectory as evidenced by a 32.74% improvement in gross profit quarter-over-quarter. Cuentas aims to leverage its unique service offerings to capture a larger share of the growing market for mobile banking services.
Key Performance Indicators
Revenue
895.00K
QoQ: 2 137.50% | YoY:-21.70%
Gross Profit
-76.00K
-8.49% margin
QoQ: 32.74% | YoY:-165.52%
Operating Income
-1.17M
QoQ: -31.35% | YoY:48.23%
Net Income
-1.19M
QoQ: 15.93% | YoY:47.78%
EPS
-0.53
QoQ: 20.90% | YoY:71.20%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue**: Recorded at $895,000, down 21.70% year-over-year but up 2,137.50% quarter-over-quarter, signaling strong recovery efforts. 2. **Gross Profit**: Reported at -$76,000 with a gross profit margin of -8.49%; a reflection of high costs relative to revenue. 3. **Net Income**: Cuentas incurred a net loss of $1,187,000, an improvement reflecting a 47.78% reduction in losses year-over-year. 4. **Earnings Per Share (EPS)**: EPS of -$0.53 indicated a 71.20% improvement YOY and a 20.90% rise ...