Tribe Property Technologies Inc. (TSX-V:TRBE) has announced record annual revenue and gross margin for its 2021 financial year, which it described as transformational.
The Vancouver-based property technology company reported annual revenue of $15.8 million for the year to December 31, 2021, an increase of 247% compared to the $4.6 million it earned in 2020. Gross profit improved by 47.4% to $7.5 million as a result of the addition of service contracts associated with acquisitions and organic growth, it added.
"We began the year with the acquisition of a large national property management company, became a public company, and continued our acquisition strategy completing three transactions in 2021,” CEO Joseph Nakhla said in a statement. “We formally launched our digital partnership program in the third quarter and continue to add partners to grow the offerings for residents of our Tribe communities."
READ: Tribe Property Technologies announces results of its April 22 annual general and special meeting
Fourth-quarter revenue increased by 217% to $4 million from $1.3 million in 4Q 2020, while its adjusted underlying (EBITDA) loss came in at $1.53 million.
Highlights for the year included:
- The completion of its national amalgamation and integration of Gateway Property Management;
- The assembly of an M&A Opportunities Team to gather market intelligence and identify potential acquisition opportunities;
- The introduction of an M&A Integration Team to expedite the full integration and digitization of acquired businesses;
- The launch of its enterprise software nationally as "Tribe Home”;
- Closing the acquisition of assets in three separate transactions;
- The launch of its revenue-generating strategic Digital Partnership Program and the announcement of numerous signed partnership agreements.
"With a record-setting 2021 now in the rear-view mirror, we have continued to execute on our growth strategy,” Nakhla continued. “On January 14 of this year, we closed on a $21 million private placement to fund our future growth initiatives, welcoming to our capital structure one of Canada's leading technology investors, Round 13 Capital, and also welcoming to our board at our recent annual and special meeting, Mr Sanjiv Samant.”
Tribe is a property technology company that is digitizing the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe's integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers.
The company's business is composed of three revenue pillars: software and services (recurring licensing and management fees), transactional (rent or condo fees, banking services, lease-ups), and digital services and partnerships (smart building products, financial and insurance service).
Tribe seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Its platform decreases customer acquisition costs, increases retention, and allows for the addition of value-added products and services through the platform.
Contact the author at stephen.gunnion@proactiveinvestors.com