Wed, Aug 14, 9:16 PM (153 days ago)
For Q2 2024, Vado Corp reported a significant revenue increase to $7,372,393, up 95% from $3,780,310 in Q2 2023, largely driven by a customer acquisition agreement. However, cost of revenue rose 121.5% to $6,018,725, resulting in a gross profit margin decline to 18% from 28%. SG&A expenses increased by 12.6% to $2,591,892, influenced by onboarding costs from the same agreement. The company experienced a net loss of $1,749,677, an improvement from the prior year's loss of $2,384,537. For the first half of 2024, revenue also grew 49.7% to $10,950,565, with a notable increase in costs leading to a gross margin drop to 17% from 31%. Cash used in operations was $897,056, reflecting a net loss adjusted for non-cash items and working capital fluctuations. The company faces liquidity challenges, with a working capital deficit of $10,383,599, raising doubts about its ability to continue operations without additional financing. Future operations will depend on revenue growth and managing expenditures effectively amidst market uncertainties.