Proactive Investors - Tribe Property Technologies Inc. (TSXV:TRBE) said its revenue in the first quarter ended March 31, 2023, came in at $4.659 million, 10.9% higher from the corresponding period of 2022, led by organic growth and acquisitions.
The company said gross profit for the first quarter was $1.827 million compared to $1.835 million in the first quarter of 2022 while adjusted EBITDA showed an outflow of $1.863 million compared with an outflow of $1.481 million in the first quarter of 2022.
“This year, we have experienced an influx of new real estate developers who have chosen to utilize our Tribe HomePro software or take advantage of our comprehensive property management services. Our dedicated teams have been diligently engaged in onboarding and training these new communities onto our platform. We anticipate a continued surge in community onboarding for management services and software usage, extending throughout Q3 and Q4, resulting in a record-breaking number of communities being added to our platforms and services in 2023," Joseph Nakhla, Tribe's CEO, said in a statement.
Outlook
Looking ahead, the company said management is optimistic that 2023 will be a strong year with expected improvements in revenue, profitability and margins.
“Tribe expects to improve margins and continues to focus on its cost efficiency strategies and accelerating its path to profitability,” the company said in its earnings statement.
It is actively seeking acquisition opportunities, focusing on the Greater Toronto Area, and is currently in negotiations for multiple acquisition targets.
Having completed 11 acquisitions to date, Tribe has established a successful track record of executing and integrating acquisitions to further accelerate its revenue growth.
The company said it remains resilient despite concerns over the real estate market and the economy. It expects growth in 2023 to be driven by a pipeline of new development opportunities, partnerships, winning software agreements and higher digital services revenue.
"This year our commitment extends beyond onboarding new communities as we are fully dedicated to optimizing efficiencies within our operations. Through process improvements, cost optimizations and consolidation of back-office systems, we are continuing to execute our cost reduction strategies. As we delve deeper into exploring efficiencies, we recognize immense opportunities to bolster the company's profitability. We take great pride in our current national footprint, as our M&A and organic growth engine continue to thrive. We are excited about the prospects that lie ahead and remain focused on strengthening our position in the residential market,” Tribe’s CEO said further.
Appointment
Tribe said it has appointed Dan Feeny as chief operating officer replacing Drew Keddy, who is pursuing other endeavors. Feeny is currently Tribe's chief technology officer and previously acted as interim COO for the Company.
Tribe said it will hold a webcast to discuss its performance at 10:00 a.m. PDT on May 31, 2023. The details can be found here.