Tribe Property Technologies Inc. (TSX-V:TRBE) has reported record revenue for the second quarter of its 2023 financial year, driven by organic growth and acquisitions.
In a statement, the technology-enabled property management solutions company said grew revenue by 11.3% to $4.33 million in the three months to June 30, 2023.
During the quarter, it implemented cost-reduction strategies aimed at improving its profit margins and accelerating its path to profitability. These included process improvements, cost optimizations, headcount reduction and consolidation of back-office systems.
Gross profit rose 15.3% to $1.96 million as its margin improved to 40.6% from 39.2% a year earlier, while adjusted underlying earnings (EBITDA) improved to an outflow of $2.21 million from an outflow of $2.43 million in 2Q 2022.
CEO Joseph Nakhla said he was “very pleased” with the results and highlighted the recent acquisition of Meritus Group Management in the Greater Toronto Area, which he described as a significant milestone for Tribe.
“This is Tribe's twelfth acquisition! We have established a successful track record of executing and integrating acquisitions to further accelerate the Company's revenue growth,” Nakhla said.
“In addition, our organic growth profile remains stable, as we continue to experience a surge in community onboarding for management services and software usage, which we expect will result in a record total number of communities using our platforms and services.”
Tribe said it remains on track for improved revenue, profitability and expanding margins for FY23 after adding 14 new property development partners in the first half of the year and expanding its acquisition pipeline in underserved markets such as the Greater Toronto Area.
Despite concerns surrounding the real estate sales market and a potential economic downturn, the company said these factors have not hindered its growth opportunities thus far and that it continues to be active in its negotiations for additional acquisition targets which it plans to announce in the coming quarters.
“We remain excited about the Company's growth prospects and continue to be committed to improving our profitability while increasing revenues and strengthening our market leadership position,” Nakhla concluded.
The company has guided investors for continued growth from the increasing number of real estate projects and the onboarding of new communities.
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