Executive Summary

Q3 2024 (three months ended September 30, 2024) revenue declined 1.6% year over year to $4.08M, with gross margin compressing to 12.8% from 15.6% on higher warehouse, customs and terminal costs and lower air freight volumes .
Segment mix shifted: ocean revenue rose 7.8% to $1.84M while air fell 8.2% to $2.24M; Asia-based customers surged to 69% of mix while U.S.-based customers fell sharply to 31% .
Net loss widened to $1.34M (loss per share $0.18) from $0.30M (loss per share $0.05) on elevated G&A (+115% y/y), including audit/legal and public-company costs (D&O), and higher lease expenses .
Management expects a rebound next quarter driven by holiday-season air freight demand, expanded capacity (DFW expansion), and lower ocean freight charges stimulating trade activity .
Estimates comparison was unavailable; S&P Global consensus data could not be retrieved. See Estimates Context section.

What Went Well and What Went Wrong

What Went Well

Ocean freight revenue grew 7.8% y/y to $1.84M as ocean TEU volume increased to 1,430 from 1,290; Asia-based customer revenue rose 65.8% y/y to $2.81M .
Capacity and footprint expansion: DFW facility more than doubled to 46,657 sq. ft. with added staff and advanced logistics systems; management cited readiness to handle higher holiday volumes .
Strategic initiatives with e-commerce/social platforms (API-driven visibility, customs brokerage) and launch of Pick & Pack service to improve fulfillment efficiency across ORD/DFW/LAX .

Selected quote:

“We anticipate a rebound in revenue for the next quarter, driven by increased air freight demand for the upcoming holiday season… backed by our investments in advanced logistics technology and strategic facility expansions, including our new Dallas-Fort Worth site.” — Henry Liu, CEO .

What Went Wrong

Air freight revenue fell 8.2% y/y to $2.24M; processed volume declined to ~7,273 tons from ~7,816 tons, pressuring margins .
Gross margin compressed to 12.8% (from 15.6%) due to higher warehouse service charges (+8.0% y/y), customs/terminal charges (+5.1%), freight arrangement fees (+59.3%), and overhead (+80.9%) .
G&A doubled (+114.7% y/y) to $1.84M, materially weighed by professional fees ($340k vs. $18k a year ago), insurance (D&O), office and staffing as a newly public company .

Financial Results

Income Statement – YoY Comparison (Q3 2023 → Q3 2024)

Metric	Q3 2023	Q3 2024
Revenue ($USD)	$4,148,476	$4,081,554
Gross Profit ($USD)	$647,543	$522,539
Gross Margin (%)	15.6%	12.8%
General & Administrative ($USD)	$855,778	$1,837,206
Operating Income ($USD)	$(333,508)	$(1,327,504)
Net Income ($USD)	$(307,285)	$(1,335,407)
Diluted EPS ($USD)	$(0.05)	$(0.18)

Note: Prior-quarter (Q4 FY2024) quarterly detail was not disclosed in public filings; only full-year FY2024 data was provided .

Segment Revenue – YoY Comparison (Q3 2023 → Q3 2024)

Segment	Q3 2023	Q3 2024
Cross-border Ocean Freight ($USD)	$1,703,657	$1,836,591
Cross-border Air Freight ($USD)	$2,444,819	$2,244,963

Customer Geography Mix – YoY (Q3 2023 → Q3 2024)

Geography	Q3 2023 ($ / %)	Q3 2024 ($ / %)
Asia-based Customers	$1,694,223 / 40.8%	$2,809,636 / 68.8%
U.S.-based Customers	$2,454,253 / 59.2%	$1,271,918 / 31.2%
Total Revenue	$4,148,476	$4,081,554

KPIs – Volume & Margins (Q3 2023 → Q3 2024)

KPI	Q3 2023	Q3 2024
Air Freight Volume (tons)	~7,816	~7,273
Ocean Volume (TEU)	1,290	1,430
Gross Margin (%)	15.6%	12.8%

Consensus vs. Actual – Q3 2024

Metric	Wall Street Consensus (S&P Global)	Actual
Revenue ($USD)	Unavailable	$4,081,554
Primary EPS ($USD)	Unavailable	$(0.18)

Estimates Context: S&P Global consensus data was unavailable at time of analysis.

Liquidity & Capitalization (Quarterly Snapshot)

Metric	June 30, 2024	Sept 30, 2024
Cash & Cash Equivalents ($USD)	$123,550	$2,739,275
Total Assets ($USD)	$9,193,759	$10,809,818
Total Liabilities ($USD)	$8,553,967	$7,191,538
Total Equity ($USD)	$639,792	$3,618,280

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Next quarter (Q2 FY2025)	Not provided	Management “anticipates a rebound” driven by holiday-season air freight and lower ocean freight charges stimulating trade	Positive qualitative
Capacity/Operations	Ongoing	Not provided	Expanded DFW facility to 46,657 sq. ft.; added staff and systems to handle rising demand	Raised capacity
Dividends	Ongoing	None	None disclosed	Maintained

No numeric ranges for revenue, margins, OpEx, OI&E, tax rate, or segment guidance were provided in Q3 2024 materials .

Earnings Call Themes & Trends

Note: No Q3 2024 earnings call transcript was available. The company scheduled a FY2024 results call for Oct 4, 2024; replay details were provided, but a transcript was not found in filings .

Topic	Previous Mentions (FY2024 press release and Q3 PRs)	Current Period (Q3 2024)	Trend
Demand/Seasonality	FY2024: Air freight surged; strong e-commerce demand; call scheduled	Expect holiday-driven air freight rebound; expanded capacity to meet demand	Improving near term
Customer mix (Asia vs U.S.)	FY2024: Shift toward Asia-based customers	Asia-based customers up to 68.8% of mix; U.S. down to 31.2%	Continued shift to Asia
Costs & Margins	FY2024: higher transportation, warehouse, customs; margins modestly up annually	Warehousing, customs, terminal, overhead up; gross margin down y/y	Cost pressure persists
Technology/API integration	Partnerships for real-time logistics data; customs brokerage APIs	Reinforced focus on technology enablement for visibility and efficiency	Ongoing execution
Footprint/Capacity	DFW expansion; Pick & Pack launch	Capacity in place for holiday volumes	Expanded capacity
Governance/Controls	N/A in press releases	Material weaknesses in disclosure controls noted in 10-Q	Risk to monitor

Management Commentary

“We anticipate a rebound in revenue for the next quarter… backed by our investments in advanced logistics technology and strategic facility expansions, including our new Dallas-Fort Worth site.” — Henry Liu, CEO .
“We achieved solid gains in cross-border ocean freight… stronger demand from Asia-based customers… affirms our strategy to focus on expanding high-growth markets.” — Henry Liu, CEO .
FY2024: “117.6% surge in our cross-border airfreight solutions… volume of air freight processed doubling to over 26,000 tons.” — Henry Liu, CEO .

Q&A Highlights

No public Q&A transcript was found for Q3 2024. The FY2024 press release provided dial-in/webcast details but no transcript was available in filings . Guidance clarifications came via press release commentary (holiday-driven demand rebound, capacity readiness) .

Estimates Context

S&P Global consensus estimates for Q3 2024 (Revenue and EPS) were unavailable at the time of analysis; thus, we cannot assess beats/misses versus Street. Actual results are shown above from filings .
Where estimates are not available, we rely solely on reported company data.

Key Takeaways for Investors

Mix shift toward Asia-based customers (69% of revenue) underpins ocean freight growth (+7.8% y/y), but air freight softness (-8.2% y/y) and cost inflation compressed margins (12.8% gross margin) .
Elevated public-company G&A (professional fees, insurance) and higher lease costs drove operating leverage negative; monitor cost discipline as scale builds .
Liquidity improved meaningfully post-IPO: cash rose from $0.12M to $2.74M; equity increased to $3.62M, positioning the company to fund operations and capacity ramp into holiday demand .
Near-term catalyst: holiday season air freight rebound plus expanded DFW capacity and tech-enabled fulfillment could drive sequential improvement; monitor volumes and margin recapture .
Risks to thesis: persistent cost pressure (warehouse, customs, overhead), internal control weaknesses, and lack of numeric guidance increase execution risk and uncertainty around margin recovery .
Strategic partnerships (API integrations with e-commerce/social platforms) and Pick & Pack capabilities deepen service breadth and may support higher-markup ancillary services .
Absent Street estimates, trading reactions may hinge on reported volume trajectories (tons/TEU), customer mix, and early indications of holiday-season throughput from management updates.

Sources: Q1 FY2025 8-K and 10-Q for quarter ended Sept 30, 2024; FY2024 8-K/press release; operational press releases cited above .

Lakeside Holding Ltd (LSH)·Q3 2024 Earnings Summary