Q2 Revenue Growth Reflects Strategic Acquisitions and Cost Optimization

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VSBLTY Groupe Technologies Corp. (VSBY:CSE;  VSBGF:OTC;  5VS:FSE) reported significant improvements in its financial performance for the second quarter of 2024. The company's revenue reached US$700,000, marking a 700% increase compared to the same period in 2023.

This surge in revenue can be attributed to the acquisition of the Winkel master service agreement and revenue from Shelf Nine, a company VSBLTY acquired in the fourth quarter of 2023. Despite an operating loss of US$1.0 million, this figure represents a notable reduction from the US$2.3 million loss recorded in Q2 of the previous year. The company attributes this improvement to a series of cost-reduction measures, including a broad austerity initiative and optimizations in cloud computing, as well as a dramatic reduction in share-based payments that have decreased expenses by 40%.

Jay Hutton, VSBLTY's co-founder and CEO, expressed pride in the company's progress, stating in the news release, "I am proud of the work the leadership team has performed in reducing costs and streamlining the company. As our revenue is beginning to show quarter over quarter growth, we remain focused on the goal of cash flow positive by the end of this year."

VSBLTY also recently reported a non-brokered private placement of up to 13.5 million common shares of the company at 10 cents per share for gross proceeds of up to approximately CA$1.35 million (US$1 million). The company will use the net proceeds from the offering for general corporate purposes.

VSBLTY's Catalysts

VSBLTY Groupe Technologies Corp. stands at the intersection of marketing and security through its advanced computer vision and AI technology. The company's recent Q2 financial results reflect its growth trajectory, driven by a series of strategic initiatives and acquisitions. VSBLTY's partnership with AB InBev through the Winkel Retail Media Network has facilitated expansion into Latin American markets, with recurring monthly ad sales to major consumer packaged goods brands such as Coca-Cola, PepsiCo, and Nestlé. Additionally, the successful pilot project in Brazil and the agreement with LuLu Group in the Middle East demonstrate VSBLTY's momentum in scaling its operations globally. 

The company's acquisition of Shelf Nine in Q4 2023, which added 4,500 screens across major U.S. media markets, has created a critical mass that is expected to scale over the next two to three years. Moreover, VSBLTY's AI-driven software, such as Vector, provides enhanced facial and weapons recognition capabilities, which have already shown significant results in security deployments, particularly in Mexico City.

With a total addressable market of US$100 billion in-store media and US$912 billion in public safety, VSBLTY is well-positioned to capitalize on these opportunities. According to the company's investor presentation, VSBLTY's technology is regarded as a game-changer, with Joe Jensen, former VP of Intel's IoT Group, describing it as “like ‘the Google' of in-store media and contextual security. And they are ahead of anybody else.”

These developments highlight VSBLTY's ability to execute on its growth strategy, supported by global strategic relationships, ongoing product expansion, and a focus on increasing profitability and sales growth. The company remains focused on achieving positive cash flow by the end of 2024, leveraging its disruptive technology and expanding its presence in key markets. 

Ownership and Share Structure

According to Refinitiv, 1.87% of VSBLTY's stock is held by management and insiders. 

Strategic investor Actus Interactive Holdings Inc. has 2.10%.

Institutions own 0.04%

The rest is with retail investors.

VSBLTY had a market cap of CA$3.66 million, with 48.5 million shares outstanding. It trades in a 52-week period between CA$1.65 and CA$0.08.