Fri, Mar 28, 11:31 AM (30 days ago)
### Summary of Katapult Holdings, Inc. (KPLT) 2024 Annual Report **Financial Performance:** - **Revenue:** $247.2 million, up 11.6% from 2023. - **Gross Profit:** $45.8 million, up 9.7% from 2023. - **Net Loss:** $25.9 million, down 29.3% from 2023. - **Earnings per Share (EPS):** $(5.96), down 33.6% from 2023. - **Operating Expenses:** $53.9 million, down 11.0% from 2023. **Strategic Overview:** - **Merchant Engagement:** Focus on building and retaining relationships with merchants and waterfall finance companies. - **Consumer Engagement:** Increase engagement with existing and potential customers, grow conversion and repeat purchase rates. - **Partnerships:** Enter new partnerships to deliver new customers, increase brand awareness, and enhance product offerings. - **Financial Model:** Maintain fiscal discipline to invest in growth opportunities while generating profitable growth. **Future Outlook:** - **Growth Initiatives:** Focus on mobile app and Katapult Pay, which represented 32% of total gross originations in 2024. - **Market Position:** Capture less than 1% of the virtual LTO market, with significant room for growth. **Risk Factors:** - **Merchant Concentration:** Wayfair represented 36% of gross originations in 2024. - **Operational Risks:** Dependence on effective implementation of strategies and maintaining customer satisfaction. - **Financial Risks:** Substantial indebtedness and dependence on refinancing. - **Technological Risks:** Reliance on proprietary technology and data analytics. **Financial Condition:** - **Debt:** $114.5 million of principal outstanding with Midtown Madison Management LLC. - **Liquidity:** $14.5 million of cash on hand as of March 24, 2025, with substantial doubt about continuing as a going concern. **Market Position Changes:** - **Merchant Relationships:** Top ten merchants represented approximately 78% of total gross originations in 2024. - **Seasonality:** Strongest revenue in the first quarter due to higher gross originations during the fourth quarter holiday season. **Note:** Amounts are in thousands, 000s.