At Voxtur Analytics, the Toronto-based company with significant U.S. operations, recently installed CEO Ryan Marshall is bullish on the company's future.
This is in spite of the continued presence in its financial statements of a going concern comment regarding the future of the company. The note included that Voxtur was out of compliance with the financial covenants on its credit facilities.
"In order to continue as a going concern, the Company will be required to attain its projected cash flows through achievement of successful integration of its business acquisitions, its planned growth initiatives, to obtain continued support from its lender or to raise additional financing through the sale of its debt and equity securities, and/or disposition of non-core assets," said the note in Voxtur's filing on SEDAR+, the Canadian securities website.
But on the earnings call, a discussion with an investor indicated that because of actions taken during Marshall's brief tenure, things are now on the upswing.
Mariusz Skonieczny, founder of MicroCap Explosions, during the Q&A portion of the earnings call commented to Marshall, "I'm hearing people going from we're going under, the bank is pulling the plug to now you're telling me that you're EBITDA positive right now?"
In response, Marshall said things were moving in the right direction.
"We've given notice to vendors," said Marshall,
Earlier in the call Marshall said a projected growth rate of 11% to 15% combined with expenses under C$26.6 million ($18.9 million at current exchange rates) after first-quarter initiatives take effect, should put Voxtur on path for EBITDA profitability of between C$4 million ($2.85 million) and C$7 million ($5 million).
"The first thing that we had to do was identify the businesses that did not have a line of sight on generating revenue for 2025," Marshall said. "As a result of that, we were then able to offer a reduction in force where applicable and appropriate, both at the corporate level and supporting levels with other businesses."
Next, Voxtur cancelled any vendor or other expenses it could not assign a revenue number to. That is an ongoing process.
Although Voxtur made a gross profit of C$4.9 million ($3.5 million) for the third quarter, it posted a net loss of C$10.2 million ($7.3 million), including C$2.7 million ($1.9 million) from discontinued operations, which includes agreed to sale of
That transaction was announced in July, but has yet to take place, and Voxtur noted on the call it
At the time of the sale, one month after
For the third quarter of last year, Voxtur had gross profit of C$6.5 million ($4.6 million) and a net loss of C$9 million ($6.4 million)
In his prepared remarks, Marshall said he was "proud of the progress that we've made and fully aware of the significant challenges that we face.
"Over the past four to five years, Voxtur's journey has been turbulent, yet I still remain, and I believe that the story is growth, ambition and the unique synergies that sets us apart from anyone else in the industry," he said.
Marshall highlighted the growth potential for Voxtur as it shifts its title business strategy from being service-focused to technology-driven.
This included the launch of Voxtur Rate Advisor, which along with other new products as Voxtur Verify and Voxtur Direct, he did not include in his financial forecasts for 2025.
"Additionally, as competitors contract we anticipate material increases in our volume from our organic and per click products, further strengthening our position in the marketplace for 2025," Marshall said.
"In closing, I want to emphasize that while identifying problems is straightforward, executing solutions requires trust, discipline and timing," he continued. "The progress we've made in the last 90 days is a foundation for a stronger, leaner and more focused Voxtur, one that is positioned for sustained profitability and growth."
