TruGolf Holdings, Inc. reported third quarter sales of $6.2 million, an increase of 82 percent as compared to the third quarter of 2023. EPS for the third quarter of 2024 was $0.00. EBITDA for the third quarter of 2024 was $1.1 million, inclusive of $148,000 of franchising expenses and zero franchising revenues recognized. The gains were said to be driven by enthusiastic market adoption of new hardware and software products launched earlier this year.
Gross margin was 69 percent of sales in Q3 as compared to 55 percent in the third quarter of 2023.
Operating income for Q3 hit $872,000, an increase of 137 percent compared to the third quarter 2023 operating loss of $2.3 million.
Year-to-Date Summary
Nine-month year-to-date (2024 YTD) revenue was $15.2 million, compared to $13.8 million in the 2023 YTD period.
Gross margin for the 2024 YTD period was 66 percent of sales as compared to 67 percent during the same period in 2023. SG&A expenses for the 2024 YTD period declined by $4.1 million as compared to the same period in 2023. Compensation expenses for the 2024 YTD period decreased by $1.5 million year-over-year.
The 2024 YTD operating loss was 87 percent lower at $856,000 as compared to an operating loss of $6.8 million for the YTD period in 2023.
Free cash for the 2024 YTD period was $3.1 million as compared to negative $6.1 million during the same period in 2023.
EBITDA for the 2024 YTD period was negative $277,000, inclusive of $306,539 of franchising expenses and zero franchising revenue recognized. Excluding franchising expenses, EBITDA it is slightly positive for year-to-date 2024.
“This strong third quarter growth is a direct result of the significant investment we have made in our technology over the past two years,“ said Chris Jones, CEO and director, TruGolf Holdings, Inc. “We believe this is just the beginning of a dynamic growth period for TruGolf and the sports technology industry. In addition to our hardware and software sales, our franchise concept, launched in the third quarter, has an initial 120 franchise locations committed to coming online all throughout the United States. This franchise initiative represents the future of how users will engage with the sport and adds significant tailwinds to our growing technology sales. The enthusiastic adoption of our new Hardware, Software, and Web products, combined with the enthusiasm for our franchise concept, have led us to increase our full year revenue target and EBIDTA goals for 2024.”
Revised Outlook
Total revenue for end of 2024 is expected to grow 9 percent to 13 percent as compared to end of 2023 levels.
EBITDA for the second half of 2024 is estimated to range between $1.1 million and $1.5 million, showing a return to profitability following significant investments made over the past two years in technology designed to drive significant, future growth and expansion opportunities.
Image courtesy TruGolf
