Connect with us

Technology

EMERGE Reports Strong Q2 2024 Results

Published

2 years ago

on

First Organic Revenue Growth quarter since Q4 2020. Improved Profitability.

TORONTO, Aug. 27, 2024 /CNW/ – EMERGE Commerce Ltd. (TSXV: ECOM) (“EMERGE” or the “Company”) today announced results for its three months ended June 30, 2024. Copies of the interim financial statements and MD&A are available on the Company’s profile on SEDAR at www.sedar.com.

Q2 2024 Financial Highlights

Q2 GMS1 increased by 5% to $8.4M compared to $8.0M in Q2 2023Q2 Revenue increased by 9.4% to $5.2M compared to $4.7M in Q2 2023. Excluding Carnivore Club, a brand that is actively eliminating loss-making revenue, EMERGE revenue growth was 14%, driven by truLOCAL and the golf business. Q2 Gross Profit increased by 13% to $2.1M compared to $1.9M in Q2 2023Q2 Gross Margin improved to 41% compared to 39% in Q2 2023Q2 Adjusted EBITDA1 improved to $(73K) compared to $(346K) in Q2 2023Q2 Net loss improved to $(549K) compared to $(2.0M). The majority of the net loss was attributable to a one-time non-cash modification expense related to the restructured convertible note. Excluding the one-time charge, Net loss for Q2 2024 would have been $(251K)Cash on hand at June 30, 2024 was $2.2M

Ghassan Halazon, Founder and CEO, EMERGE commented, “Q2 was a major turning point for EMERGE, as we delivered our first quarter of positive organic revenue growth since late 2020, following a multi-year comedown from the artificially high pandemic levels. Across the spectrum, we delivered materially improved metrics, including year-over-year growth in GMS, Revenue, Gross Profit, Adjusted EBITDA and Net Income. We remain focused on delivering on the “return-to-revenue-growth” plan that we articulated earlier in the year, and see continued momentum in Q3 to date. Both truLOCAL and our golf business saw healthy YoY organic revenue growth. Meanwhile, Carnivore Club, our smallest brand, is a business we have actively been optimizing for profitability, while shrinking “loss-making” revenue. Excluding Carnivore Club, our Q2 revenue grew 14% year over year. Our more streamlined portfolio strategy this year has meant that most of management’s time and energy has been spent on optimizing the existing brands directly, re-igniting growth, and improving profitability. Finally, I would like to take this opportunity to offer my sincere gratitude to our unrelenting team, Board, shareholders and trusted partners as we deliver this breakthrough quarter, and look to build on this momentum for the balance of 2024 and beyond.”

Brand-Level Commentary

truLOCAL, our premium meat subscription service, and EMERGE’s largest business by revenue, saw healthy organic growth in Q2.

Management believes truLOCAL represents an outsized strategic opportunity for the Company with a large total addressable market. We view it as an anchor asset that we can build around in the food tech space at large where we have big ambitions. truLOCAL’s future growth is expected to come from a mix of consumer subscription revenue growth (core business), B2B initiatives & partnerships, geographical expansion, and acquisition opportunities down the line.

The golf vertical, which includes UnderPar and JustGolfStuff, continues to perform well. The golf business has gained from the weakening macro climate which has resulted in more golf courses returning to the marketplace platform, in some cases for the first time in years, offering more aggressive deals to seek customers.

Carnivore Club, EMERGE’s smallest business, continues to be optimized for profitability, which includes the elimination of loss-making revenue.

Excluding Carnivore Club, EMERGE’s Q2 2024 revenue increased by approximately 14%.

Outlook

EMERGE is seeing strong sales momentum through Q3 to date, and continues to execute towards a return to organic revenue growth plan in 2024, with a substantially improved profitability profile and reduced overall debt levels.

The recent interest rate cuts, as well as the highly anticipated upcoming rate reductions, are expected to result in meaningful cash savings for the business.

Top Priorities

The Company’s top priorities in the near-term are to i) continue to drive organic growth, ii) extract further operational efficiencies, and iii) opportunistically explore avenues to further pay down debt and reduce interest expense.

Voluntary Option Cancellations

EMERGE announces the voluntary cancellation of certain stock options (the “Options”) pursuant to the Company’s omnibus equity incentive plan.

A total of 2,334,390 Options were voluntarily cancelled by certain directors and officers of the Company. The Options were previously issued with an effective price of between $0.11 and $0.79 per share. Prior to this cancellation, each vested Option entitled the holder to receive one common share of the Company.

Management Transition

As part of the Company’s strategy to operate a leaner HQ team to support our more streamlined brand portfolio, Fazal Khaishgi will be stepping down from his role as Chief Operating Officer by November 2024. EMERGE has no plans to replace this position.

“On behalf of the EMERGE team, I’d like to extend our sincere gratitude to Fazal for his true partnership over the years, having played an instrumental role from our foundational stages until this point. We will continue to work closely with Fazal throughout the transition period, and wish him nothing but the best in his future endeavours,” commented Halazon.

Conference Call

Management will host a conference call on Tuesday, August 27 at 8:30 am ET to discuss its second quarter results. To access the conference call, please dial (437) 900-0527 or (888) 510-2154 and provide conference ID 21130.

Alternatively, the conference call can be accessed online at: https://app.webinar.net/37Ao90x9G2v

Selected Financial Highlights

The tables below set out selected financial information and should be read in conjunction with the Company’s consolidated financial statements and MD&A for the three months ended June 30, 2024, which are available on SEDAR.

Three months
ended June 30,

Three months
ended June 30,

Six months

 ended June 30,

Six months

 ended June 30,

2024

$

2023

$

2024

$

2023

$

Gross Merchandise Sales1

8,429,775

8,008,648

16,075,033

15,616,866

Total revenue

5,193,900

4,745,815

10,202,951

10,071,510

Adjusted EBITDA1

(73,210)

(346,047)

(172,516)

(871,723)

Net (loss) income from continuing operations

(663,363)

(1,758,822)

(653,921)

(4,167,900)

Net (loss) income

(549,190)

(1,954,819)

(63,382)

(4,084,532)

Basic and diluted (loss) per share

(0.01)

(0.02)

(0.01)

(0.04)

1

Non-GAAP Financial Measure. Refer to section “Non-GAAP Financial Measures” for additional information.

Results from WholesalePet, BattlBox, and WagJag have been reclassified to discontinued operations.

The following table highlights Adjusted EBITDA and a reconciliation of the Company’s reported results to its adjusted measures:

Three months
ended June 30,

Three months
ended June 30,

Six months

 ended June 30,

Six months
ended June 30,

2024

$

2023

$

2024

$

2023

$

Net (loss) income

(549,190)

(1,954,819)

(63,382)

(4,084,532)

Add back:

Finance costs

300,326

858,425

799,163

1,917,400

Income taxes

36,105

(538,987)

(134,378)

(767,047)

Amortization

59,533

792,870

119,190

1,587,174

EBITDA

(153,226)

(842,511)

720,593

(1,347,005)

Share-based compensation

29,363

38,359

54,635

115,564

Transaction cost

231

57,542

101,589

204,057

Foreign exchange and other losses (gains)

164,595

507,799

(458,794)

542,262

Fair value change in contingent consideration

–

(303,233)

–

(303,233)

Net loss (income) from discontinued operations

(114,173)

195,997

(590,539)

(83,368)

Adjusted EBITDA

(73,210)

(346,047)

(172,516)

(871,723)

 

The following table highlights GMS and a reconciliation of the Company’s reported results to its adjusted measures:

Three months
ended June 30,

Three months

 ended June 30,

Six months
ended June 30,

Six months

 ended June 30,

2024

$

2023

$

2024

$

2023

$

Revenue

5,193,900

4,745,815

10,202,951

10,071,510

Adjusted for:

Merchant costs deducted from net revenue

3,524,062

3,370,510

6,364,427

5,997,455

Sales added to deferred revenue and value

of orders fulfilled not included in revenue

1,838,405

1,720,662

3,792,850

3,314,377

Deferred and other adjustments to revenue recognized

(2,041,057)

(1,820,285)

(4,035,339)

(3,749,239)

Advertising revenue

(85,535)

(8,054)

(249,856)

(17,237)

GMS

8,429,775

8,008,648

16,075,033

15,616,866

About EMERGE

EMERGE (TSXV: ECOM) is a premium e-commerce brand portfolio in Canada and the U.S. Our subscription and marketplace e-commerce properties provide our members with access to unique offerings across grocery and golf verticals. Our grocery businesses include truLOCAL.ca, our premium meat subscription brand, and Carnivore Club, our artisanal meat brand. Our golf businesses include UnderPar, our discounted experiences brand, and JustGolfStuff, our golf products & apparel brand.

To learn more visit https://www.emerge-commerce.com/

Follow EMERGE:
LinkedIn | Twitter | Instagram | Facebook 

Cautionary notice

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-GAAP Measures

This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales (“GMS”), EBITDA, and Adjusted EBITDA should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. GMS, EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

GMS as defined by management is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA as defined by management means earnings before interest and financing costs, income taxes, depreciation and amortization, transaction costs, foreign exchange gains/losses, discontinued operations, unrealized gains/losses on contingent consideration and share-based compensation. Management believes that Adjusted EBITDA is a useful measure because it provides information about the operating and financial performance of EMERGE and its ability to generate ongoing operating cash flow to fund future working capital needs and fund future capital expenditures or acquisitions.

A reconciliation of the adjusted measures is included in the Company’s management discussion & analysis for the twelve months ended December 31, 2023 in the section “Non-GAAP Financial Measures” available through SEDAR at www.sedar.com.

Notice regarding forward-looking statements

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information.  Actual results and developments may differ materially from those contemplated by these statements.  The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable).  Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including the risk factors discussed in the Company’s MD&A, Prospectus Supplement and Annual Information Form and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

On Behalf of the Board
Ghassan Halazon
Director, President and CEO

SOURCE Emerge Commerce Ltd.

Related Topics:
Continue Reading

Technology

Hexaware Hosts Greater Manchester and West Yorkshire Mayoral Delegation, Deepens Partnership with University of Leeds

Published

33 minutes ago

on

October 23, 2026

By

Part of the Great North Mayoral Delegation’s visit to India, discussions focused on Hexaware’s UK expansion and planned R&D centers in Leeds and Manchester

MUMBAI, India, Oct. 23, 2026 /PRNewswire/ — Hexaware Technologies (NSE: HEXT), an AI-first digital and IT services company, hosted a delegation led by Tracy Brabin, Mayor of West Yorkshire, and Bev Craig, Mayor of Greater Manchester, as part of The Great North’s first joint mayoral-led trade mission to India

Hexaware met with Tracy Brabin and delegates from West Yorkshire at its Mumbai office to discuss the company’s UK investment plans, regional employment, and opportunities for technology collaboration across the North of England.

During the visit, Hexaware and the University of Leeds discussed their agreement to strengthen industry–academic collaboration through research, knowledge sharing, and experiential learning opportunities for students.

Earlier in the mission, on October 14 in Bengaluru, Hexaware leaders met Bev Craig, Mayor of Greater Manchester, together with representatives of the British Deputy High Commission and the Invest Manchester team, to discuss Hexaware’s investment in the city region.

Hexaware announced that it will create hundreds of jobs and invest £9 million in a new Design and Innovation Centre at Manchester’s innovation district, SISTER, delivered in collaboration with the University of Manchester. By establishing a base at SISTER, Hexaware will have access to Europe’s largest clinical academic campus on Manchester’s Oxford Road Corridor and a rapidly expanding digital and tech ecosystem within the city.

The visits follow Hexaware’s June 2026 announcement of a £25 million UK expansion, expected to create approximately 1,200 jobs over three to five years across Manchester, Leeds, and Birmingham, including 420 in Manchester and 240 in Leeds. Plans include proposed R&D centers in Manchester and Leeds, with Newcastle also under consideration as a potential future location, given the region’s strong university talent pool and proximity to Scotland.

Parameshwaran Iyer, Executive Vice President & Head – Europe, Hexaware, said, “The North of England is an important part of our UK growth plans. Our investment goes into developing technology capabilities and recruiting graduates from the region’s universities, training them to work with enterprise and public-sector customers. Our new agreement with the University of Leeds will strengthen this pipeline, giving us closer access to graduate talent as we grow our presence in the region. We see considerable potential in the talent and expertise available across these cities.”

Bev Craig, Mayor of Greater Manchester, said, “Greater Manchester has established strengths in healthcare, life sciences, and AI, supported by close cooperation between universities, researchers, and industry. We welcome Hexaware’s plans for Manchester and the opportunities they present for investment, innovation, and employment in these sectors.”

Tracy Brabin, Mayor of West Yorkshire, said, “It was great to visit Hexaware’s headquarters in Mumbai and hear first-hand about the company’s ambitious plans for growth in the UK. Their investment in Leeds and the creation of hundreds of new jobs is fantastic news for West Yorkshire and a strong vote of confidence in our region. Trade missions like this give us the opportunity to meet decision-makers directly, strengthen international relationships and explore how businesses like Hexaware can deepen their links with West Yorkshire to create a stronger, better-off region that works for all.” 

Glenn McCauley, Head of Proposition Development at the University of Leeds, said, “We were delighted to join this Great North Mayoral Delegation to India and to discuss with Hexaware leadership and with the Mayor of West Yorkshire how the University of Leeds’ agreement with Hexaware can be a catalyst to drive economic growth in our region.”

India and the North of England are connected above all through people, with more than 81,000 people of Indian heritage living in Yorkshire and the Humber, and 50,000 people of Indian diaspora in Greater Manchester. Thousands of Indian students also choose universities in the two regions every year. Increasingly, Indian companies are also among the region’s investors and employers. The India–UK Comprehensive Economic and Trade Agreement (CETA), in force since July 2026, alongside The Great North’s investment initiatives, gives that relationship fresh momentum.

Hexaware will continue discussions with regional partners on its proposed R&D facilities, graduate recruitment, and technology partnerships across the North of England, drawing on Leeds’ strengths in digital engineering, data science, robotics, fintech, and technology-enabled care, and Manchester’s strengths in healthcare, life sciences, cyber, and AI.

About Hexaware

Hexaware is a global technology and business process services company. Every day, Hexawarians wake up with a singular purpose: to create smiles through great people and technology. With offices across the world, we empower enterprises worldwide to realize digital transformation at scale and speed by partnering with them to build, transform, run, and optimize their technology and business processes. Learn more about Hexaware at https://hexaware.com.

 

View original content to download multimedia:https://www.prnewswire.com/in/news-releases/hexaware-hosts-greater-manchester-and-west-yorkshire-mayoral-delegation-deepens-partnership-with-university-of-leeds-302917888.html

Continue Reading

Technology

Fosun Wealth Opens Its First Private Wealth Center in Hong Kong at Harbour City, Tsim Sha Tsui

Published

33 minutes ago

on

October 23, 2026

By

Appointment-Only Center for High-Net-Worth Clients, Partnering with Fosun Wealth IFA to Expand Wealth Management Capabilities

HONG KONG, Oct. 23, 2026 /PRNewswire/ — Fosun Wealth International Holdings Limited (“Fosun Wealth”) announced the official opening of its first Private Wealth Center on the 23rd floor of Prudential Tower, at The Gateway, Harbour City, Tsim Sha Tsui, Hong Kong. The center provides a dedicated offline space for meetings and wealth planning in Hong Kong, exclusively tailored for high-net-worth clients. Visits are by appointment only, and the center operates in partnership with Fosun Wealth IFA (Independent Financial Advisor), supporting clients from initial discussions and tailored proposals through to signing and implementation.

The opening ceremony, themed “A Starry New Chapter on Victoria Harbour”, brought together business partners from fund, asset management and insurance industries in Hong Kong to celebrate the occasion.

Expanding amid Industry Growth to Address Clients’ Demand for Long-Term Advice

The opening comes as Hong Kong’s wealth management sector continues to expand. According to the Securities and Futures Commission of Hong Kong, as of the end of 2025, total assets under management (AUM) in Hong Kong jumped 20% year-on-year (YoY) to a record high of HK$42.2 trillion. Among the major segments, AUM of private banking and private wealth management business increased by an impressive 24% YoY to HK$12.9 trillion. At the same time, client expectations have shifted. High-net-worth individuals are increasingly looking beyond fragmented, one-off product recommendations and seeking professional institutions that can deliver cross-market and multi-generational support over the long term.

The center’s location in Harbour City offers views across Victoria Harbour and a calm, private setting. It features four dedicated meeting rooms, with each client received by a relationship manager throughout their visit to allow for in-depth discussions in a confidential environment. In addition to client meetings and document signing, the center will also host smaller, focused sessions to help clients better capture opportunities in Hong Kong’s wealth management market.

Strengthening Collaboration with Fosun Wealth IFA to Enrich Service Matrix

The Private Wealth Center will also serve as a working base for Fosun Wealth IFA, supporting professional discussions and the review of more complex cases. Launched by Fosun Wealth in 2025, Fosun Wealth IFA is Hong Kong’s first one-stop platform for independent financial advisors (IFAs) to establish and grow their practices. It has already built a team of nearly 500 advisors. Built on a compliant licensing framework, the platform integrates diversified financial products, AI-powered tools and structured trainings, supporting advisors from licensing through ongoing professional development to independent practice. The goal is to help raise standards and professionalism across Hong Kong IFA industry.

Fosun Wealth subsidiaries hold securities and insurance brokerage licenses. Under strict compliance, they provide access to insurance, securities, asset management, and corporate financing services. Fosun Wealth has also established partnerships with numerous leading fund houses, asset managers, and insurers, supporting both the Private Wealth Center and the IFA platform.

Cheng Kang, CEO of Fosun Wealth, said: “Hong Kong continues to strengthen its position as an international hub for asset and wealth management, supported by its resilience and openness. This creates a valuable opportunity for us to deepen our presence in the local market. The opening of the Private Wealth Center is more than the launch of a new location—it marks a new chapter in Fosun Wealth’s commitment to serving high-net-worth clients in Hong Kong with a more personal, long-term approach, bringing our ‘warm private wealth stewardship’ to a broader client base. Whether we are serving high-net-worth clients or building a stronger ecosystem for financial advisers, we aim to set a high standard in Hong Kong’s wealth management industry. We will focus on turning our capabilities into lasting value for clients, and work with clients and partners to support the continued growth of the sector.”

About Fosun Wealth International Holdings Limited

Fosun Wealth International Holdings Limited (hereinafter referred to as “Fosun Wealth”) is an AI-driven global one-stop Web5(Web2+Web3) wealth management platform wholly owned by Fosun International Limited (stock code: 656.HK) in Hong Kong. With its solid financial position, Fosun Wealth has obtained various licenses via its subsidiaries, including Type 1, 2, 4, 6, and 9 licenses granted by the Securities and Futures Commission(SFC) of Hong Kong, and an insurance broker license granted by the Insurance Authority(IA) of Hong Kong. Fosun International Securities Limited, a subsidiary of Fosun Wealth, is one of the first batch of brokerages to provide virtual asset dealing service. Fosun Wealth has launched several industry-leading brands, including the Fosun Wealth App, Finloop, FinChain, and Fosun Wealth IFA. For more information, please visit: www.fosunwealth.com.

View original content:https://www.prnewswire.com/apac/news-releases/fosun-wealth-opens-its-first-private-wealth-center-in-hong-kong-at-harbour-city-tsim-sha-tsui-302917889.html

SOURCE Fosun Wealth International Holdings Limited

Continue Reading

Technology

WOLFX Student Super App Reaches 104 Universities One Month After US Launch

Published

34 minutes ago

on

October 23, 2026

By

All-in-one college platform reports 300 percent subscription growth following Arizona campaign 

MELBOURNE, Australia, Oct. 23, 2026 /PRNewswire/ — WOLFX, an all-in-one app designed to help college students thrive academically, socially and financially, has been downloaded by students at 104 universities in 130 cities across the US just one month after its launch in Indiana.

The platform recorded a 300 percent increase in subscriptions following its Rush WOLFX campaign in Arizona. Rush WOLFX is a game of skill that involves college fraternities and sororities putting their business skills to the test to win a $10K prize. 

WOLFX plans to hold six additional Rush competitions at Universities across the country next month.

WOLFX brings together AI-powered study tools, wellness support, a student marketplace and opportunities for student entrepreneurs in a single app, giving students who juggle academic, social and financial pressures one place to manage college life.

“I developed WOLFX to make the lives of college kids better. To see the app being so well received across America gives everyone involved a huge boost,” said Simon Bishop, founder of WOLFX. “As a father, I know college can be a daunting time for students and parents. WOLFX is aimed at easing those fears of loneliness and isolation. I’m so happy WOLFX is making a difference.”

Students say the app is already part of their daily routine.

“This is honestly the only college app you’ll ever need,” said Katie Wolf, a cheerleader at Indiana University. “Whether it’s managing my schedule, working on a business idea or even selling some items on the student marketplace, WOLFX has me covered. This app is a game changer for college students.”

WOLFX Platinum is available for $28.99 per month. WOLFX can be downloaded on iOS and Android.

About WOLFX

WOLFX is a student-focused super app designed to help college students navigate campus life through AI-powered study tools, wellness support, a student marketplace and entrepreneurial opportunities. The platform aims to make college life more connected, manageable and rewarding. WOLFX is available on iOS and Android. Learn more at https://wolfxapp.com/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/wolfx-student-super-app-reaches-104-universities-one-month-after-us-launch-302917619.html

SOURCE WOLFX

Continue Reading

Trending