TruGolf Announces 82% YOY Third Quarter Sales Growth

Core Insights - TruGolf Holdings, Inc. reported a strong third quarter in 2024 with sales reaching $6,236,795, marking an 82$1.1 million despite having no franchising revenues recognized [1][2]. Financial Performance - The gross margin for Q3 2024 was 69%, up from 55% in Q3 2023. Year-to-date gross margin stood at 66%, slightly down from 67% in the same period last year [3]. - Operating income for Q3 2024 was $872,000, a significant improvement of 137$2.3 million in Q3 2023. Year-to-date operating loss decreased by 87% to $856,000 from$6.8 million in the same period last year [3]. - Year-to-date 2024 free cash flow was $3.1 million, compared to a negative$6.1 million in the same period of 2023 [3]. Growth Initiatives - The company has launched a franchise concept with 120 franchise locations committed across the United States, which is expected to enhance user engagement with the sport and support technology sales growth [2]. - TruGolf has revised its full-year revenue target for 2024, expecting total revenue growth of 9%-13% compared to 2023 levels, with EBITDA for the second half of 2024 estimated between $1.1 million to$1.5 million [2]. Cash and Assets - As of September 30, 2024, TruGolf's current assets totaled $14,417,544, an increase from$12,656,606 at the end of 2023. Cash and cash equivalents were reported at $7,452,185, up from$3,297,564 [6][7]. - Total assets increased to $17,039,690 from$15,769,560 at the end of 2023 [7]. Liabilities - Total current liabilities rose to $16,153,607 from$10,668,339 at the end of 2023, indicating an increase in obligations [8][9]. - The company reported a stockholders' deficit of $10,226,583 as of September 30, 2024, compared to$3,917,728 at the end of 2023 [11].