The following is a summary of the Quest Resource Holding Corporation (QRHC) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 revenue was $73.1 million, marking a decrease of 2% year-over-year, but a sequential growth of 1% from Q1 2024.
EBITDA for the second quarter was over $5 million, continuing the positive performance from the previous quarter.
Gross profit for Q2 remained flat at $13.5 million compared to the previous year, due to client-related delays and lower volumes from a significant industrial client.
SG&A expenses for Q2 2024 were $9.4 million, showing a modest increase from the previous year.
Business Progress:
Quest Resource continued to expand its client base, adding three 7-figure expansions with existing clients during the quarter.
Investments in AP automation and technology aimed at increasing invoice processing efficiency have been significantly successful, with about three-quarters of vendors now processed through the new platform.
The company increased its borrowing capacity to $35 million and integrated more compactors to boost its asset service profile.
Opportunities:
Continued growth opportunities in existing and new client bases, including potential expansion into additional states with existing large retail clients.
Quest's technology investments, such as AP automation and expanded data services, improve operational efficiencies and client servicing capabilities, providing a competitive advantage in attracting new customers.
Risks:
Temporary revenue and volume reductions from a major industrial client due to a market slowdown could impact financial performance in the short term.
More details: Quest Resource Holding IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.