Company forecasts at least $85 million in revenue for 2024
Guidance reflects the Company's strong market position in the growing secondary gift card market, estimated to reach $2.1 billion by 2025
SCHAUMBURG, IL, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company”), the owner and operator of leading digital platforms, CardCash.com and Restaurant.com, with a focus on incentives and rewards in retail, dining and entertainment experiences, today announced financial and operational results for the third quarter ended September 30, 2024.
Key Highlights for the Three Months Ended September 30, 2024 Compared to Prior Year Period
- Completed uplisting of shares to the Nasdaq Capital Market; Finalized ticker change to "GIFT”
- Revenue increased 14.9% to $23.2 million
- Gross profit increased 16.0% to $3.0 million
- Gross margin increased to 12.9%
- Modified EBITDA loss was $0.7 million
- Net loss of $4.1 million (Of note, net loss for the three months ended September 30, 2024 included $3.4 million in non-cash and one-time expenses, including $1.7 million in stock option and other non-cash compensation, $0.6 million in amortization of intangible assets, $0.3 million in interest expense, $0.3 million in amortization of capitalized software costs and $0.5 million in fair value of common stock issued for services.)
- Cash balance of $3.1 million
- Total assets of $37.5 million
- Shareholders' equity of $22.1 million
Subsequent Events
- On October 25, 2024, the Company announced its corporate rebranding to Giftify, Inc. The Rebranding highlights the Company's evolution and illustrates the Company's ambition to be the leader in the incentives-based market.
- Subsequent to the end of the third quarter, insiders purchased approximately 70,000 shares in the open market at an average price of $1.50 per share.
The Company has identified the following strategic priorities to accelerate growth and enhance shareholder value:
- Accelerate platform synergies between CardCash.com and Restaurant.com
- Expand retail partner network through new business partnerships
- Drive new user registration through targeted marketing campaigns
- Enhance user engagement via personalized deal recommendations
- Scale transaction volume with optimized purchase funnels
- Elevate average user spend through premium offerings
Ketan Thakker, Chief Executive Officer of Giftify, Inc., commented, "Our third quarter and year-to-date 2024 results demonstrate the increased efficiencies we identified and executed upon with the acquisition of CardCash.com at the end of 2023. The increased gross profit and gross margins are meaningful and drive incremental dollars to our operating line, which has been improving with each quarter. Backing out the non-cash and one-time expenses, which were mostly from the CardCash.com acquisition, we operated at near breakeven and reported a Modified EBITDA loss of just $0.7 million for the third quarter.”
Thakker, continued, "Our recent uplisting onto Nasdaq was a major milestone and one we believe will better enable us to seek strategic opportunities such as additional acquisitions to complement our organic growth. With our corporate rebranding to Giftify, Inc. behind us, we are now focused on driving revenue growth by increasing the number of retailers, registered users, active users and transactions on our platforms. We also believe the national listing allows us to increase our visibility and awareness among the shareholder community, which we have started by attending a few investor conferences. We look forward to the remainder of 2024 and into 2025 as we embark on our growth initiatives and look to increase our shareholder relations and outreach programs.”
About Giftify, Inc.
Giftify, Inc. is a pioneer in the incentive and rewards industry with a focus on retail, dining & entertainment experiences, as the owner and operator of leading digital platforms, CardCash.com and Restaurant.com. CardCash.com is a leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales. Its Restaurant.com is the nation's largest restaurant-focused digital deals brand. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deals options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our gift cards and restaurant certificates allow customers to save at thousands of restaurants across the country with just a few clicks.
For more information, visit: www.giftifyinc.com and www.cardcash.com and https://www.restaurant.com.
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words "believe,” "may,” "could,” "should,” "expect,” "anticipate,” "estimate,” "project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although RDE, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, RDE, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company's ability identify a suitable business model for the corporation.
Investors Contacts:
ClearThink
GIFTIFY, INC. AND SUBSIDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
| Successor | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of $1,258,826 at September 30, 2024 and December 31, 2023) | $ | 3,090,980 | $ | 4,099,737 | ||||
| Accounts receivable | 1,202,690 | 1,681,165 | ||||||
| Inventories | 4,395,506 | 4,152,273 | ||||||
| Prepaid expenses and other current assets | 114,562 | 177,119 | ||||||
| Total current assets | 8,803,738 | 10,110,294 | ||||||
| Property and equipment, net | 2,302,192 | 2,563,312 | ||||||
| Operating lease right of use asset, net | 1,481,742 | 315,183 | ||||||
| Deposits | 65,556 | 65,556 | ||||||
| Intangible assets, net - provisional | 4,876,249 | 6,700,000 | ||||||
| Goodwill - provisional | 20,007,669 | 20,007,669 | ||||||
| Total assets | $ | 37,537,146 | $ | 39,762,014 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,994,869 | $ | 2,218,285 | ||||
| Accrued expenses | 1,396,301 | 1,175,934 | ||||||
| Deferred revenue | 78,403 | 336,996 | ||||||
| Secured revolving line of credit | 4,234,149 | 6,737,385 | ||||||
| Convertible promissory notes | 42,387 | 40,137 | ||||||
| Secured note payable - related party | 1,986,632 | - | ||||||
| Notes payable, current portion | 946,509 | 836,509 | ||||||
| Acquisition obligation | - | 500,000 | ||||||
| Operating lease liability, current portion | 306,670 | 134,475 | ||||||
| Total current liabilities | 10,985,920 | 11,979,721 | ||||||
| Notes payable, net of current portion | 1,393,890 | 1,458,270 | ||||||
| Deferred taxes | 1,800,000 | 1,800,000 | ||||||
| Operating lease liability, net of current portion | 1,216,346 | 202,829 | ||||||
| Total liabilities | 15,396,156 | 15,440,820 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized; | - | - | ||||||
| Common stock, $0.001 par value, 750,000,000 shares authorized; 26,134,763 and 24,119,967 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | 26,129 | 24,114 | ||||||
| Additional paid-in-capital | 106,223,043 | 93,376,244 | ||||||
| Common stock issuable, 350,843 and 383,343 shares, respectively | 350,843 | 383,343 | ||||||
| Accumulated deficit | (84,459,025 | ) | (69,462,507 | ) | ||||
| Total stockholders' equity | 22,140,990 | 24,321,194 | ||||||
| Total liabilities and stockholders' equity | $ | 37,537,146 | $ | 39,762,014 | ||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2024 and 2023
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Successor | Predecessor | Successor | Predecessor | |||||||||||||||
| Net Sales | $ | 23,210,850 | $ | 20,207,519 | $ | 64,753,246 | $ | 65,460,904 | ||||||||||
| Cost of sales | 20,220,237 | 17,629,985 | 55,244,862 | 57,352,182 | ||||||||||||||
| Gross profit | 2,990,613 | 2,577,534 | 9,508,384 | 8,108,722 | ||||||||||||||
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