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KPLT Nasdaq· Katapult Holdings Inc.
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KPLT Nasdaq· Katapult Holdings Inc.
Earnings report Q3 2023

KPLT Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

KPLT reported total revenue of $55.25 million for the three months ended September 30, 2023, representing a 9.8% increase compared to the same period last year. Rental revenue accounted for the majority of the total revenue, amounting to $54.48 million, while other revenue contributed $0.77 million. For the nine months ended September 30, 2023, total revenue reached $165.50 million, showing a 1.3% growth compared to the previous year.

Strengths

KPLT demonstrated strong revenue growth in the latest quarter, driven primarily by an increase in rental revenue. The company's ability to generate $54.48 million in rental revenue reflects the success of its business model. KPLT's management attributed this growth to several factors, including favorable macroeconomic conditions and increased demand for its services. The company's focus on technology and data analytics also contributed to its revenue growth by enhancing operational efficiency and customer experience.

Challenges

Despite the overall positive performance, KPLT faced challenges in managing its operating expenses. The company reported higher professional and consulting fees, technology and data analytics costs, and compensation costs compared to the previous year. These increased expenses impacted KPLT's profitability and resulted in a narrower gross profit margin. Additionally, the company's underwriting fees remained relatively stable, indicating potential challenges in expanding its customer base.

Noteworthy

It is worth noting that KPLT experienced a significant improvement in its operating income. The company reported income from operations of $0.70 million for the latest quarter, compared to a loss of $4.67 million in the same period last year. This improvement can be attributed to the company's efforts in controlling its operating expenses and optimizing its cost structure. KPLT's management highlighted the successful implementation of cost-saving initiatives and improved operational efficiencies as key drivers of this positive outcome.

Summary

KPLT delivered a strong performance in terms of revenue growth in the latest quarter. The company's total revenue increased by 9.8% compared to the same period last year, primarily driven by growth in rental revenue. KPLT's ability to capitalize on favorable macroeconomic conditions and leverage its technology and data analytics capabilities contributed to its revenue growth. However, the company faced challenges in managing its operating expenses, resulting in a narrower gross profit margin. Despite these challenges, KPLT reported a significant improvement in its operating income, reflecting successful cost-saving initiatives. Overall, KPLT's latest financial results demonstrate its resilience and potential for future growth.

Source documents

Form 10-Q  filed on Nov 08, 2023
13 pages scanned

Reference data

Company financials Q3 revenue 56.7M
Analyst estimates Q3 EPS missed by NaN%
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