Jun 30, 2024

QXO Q2 2024 Earnings Report

QXO's financial performance declined due to higher employee-related costs, reflecting the introduction of a new senior management team.

Key Takeaways

QXO reported a revenue increase to $14.54 million compared to $13.26 million in the same quarter last year. However, the company experienced a net loss of $591,000, a significant shift from the net income of $344,000 reported in the prior year. The decline in profitability was attributed to higher employee-related costs associated with the new senior management team.

Total revenue increased to $14.54 million from $13.26 million year-over-year.

Software product revenue grew to $3.78 million, up from $3.30 million in the prior year.

Service and other revenue increased to $10.76 million compared to $9.96 million year-over-year.

Net loss was ($591,000) or ($9.93) loss per basic and diluted share, compared to net income of $344,000 or $0.52 earnings per basic and diluted share.

Total Revenue
$14.5M
Previous year: $13.3M
+9.7%
EPS
-$9.93
Previous year: $0.07
-14285.7%
Gross Profit
$5.53M
Previous year: $5.19M
+6.7%
Cash and Equivalents
$971M
Previous year: $7.13M
+13518.9%
Free Cash Flow
-$1.05M
Previous year: $440K
-338.4%
Total Assets
$988M
Previous year: $20.6M
+4696.3%

QXO

QXO

QXO Revenue by Segment

Forward Guidance

QXO is focused on becoming a tech-forward leader in building products distribution through accretive acquisitions and organic growth.

Positive Outlook

  • Accomplished senior management team in place.
  • Approximately $5 billion of cash to execute strategy.
  • Focus on accretive acquisitions.
  • Focus on organic growth.
  • Targeting tens of billions of dollars of annual revenue in the next decade.

Challenges Ahead

  • Risks associated with potential significant volatility and fluctuations in the market price of the company’s common stock
  • Risks associated with raising additional equity or debt capital from public or private markets to pursue the company’s business plan
  • The possibility that additional future financings may not be available to the company on acceptable terms or at all
  • Uncertainties regarding the company’s focus, strategic plans and other management actions
  • The risk that the company is or becomes highly dependent on the continued leadership of Brad Jacobs

Revenue & Expenses

Visualization of income flow from segment revenue to net income