- Cleartronic reported QQ2 2024 revenue of 572,013 (USD thousands), a YoY increase of 12.0% but a QoQ decline of 5.6% from 606,047 in Q1 2024. The company generated a modest operating profit of 11,970 and net income of 21,327 for the quarter, with EPS of 0.0001 (diluted 0.0000185). The results reflect a high gross margin (80.85%) driven by product mix, but profitability is pressured by elevated operating expenses.
- Cash flow remains negative from operating activities (-88,333) and free cash flow was also negative (-144,936), despite a strong net cash position at period end due to a large deferred revenue balance (1,525,176) and modest debt. This combination signals that a substantial portion of cash is tied up in working capital and deferred revenue rather than being released as cash from ongoing operations.
- The quarterly balance sheet shows total assets of 1,679,063 and total liabilities of 1,634,892, with stockholders’ equity of 44,171 and retained earnings deeply negative (-15,198,298). The current ratio (0.895) and quick ratio (0.875) indicate liquidity constraints on a short-term basis, despite net cash being positive. The valuation appears premium relative to revenue (price-to-sales ~8.4) and book value (price-to-book ~109), underscoring elevated market expectations for a niche, recurring-revenue software franchise.
- The absence of an earnings call transcript in the provided data limits the ability to extract management quotes or themes directly. Given the mix of favorable gross margins and liquidity headwinds, the near-term focus for investors should be on revenue sustainability, cash flow improvement, and the trajectory of deferred revenue and operating expenses. The company’s leverage remains modest, but the balance sheet shows limited equity and ongoing cash burn risks if operating improvements do not materialize.