NextTrip, Inc. (SASI)·Q2 2024 Earnings Summary

Executive Summary

• The company did not issue a Q2 2024 Item 2.02 earnings press release or hold an earnings call; instead, it disclosed Nasdaq non‑compliance notices due to late 10‑K/10‑Q filings .
• For the quarter ended May 31, 2024 (within calendar Q2 2024), revenue was $188,793, gross profit $15,212, operating loss $(1,952,401), and net loss $(1,978,717); revenue rose 865% year over year on NXT 2.0 rollout and Expedia integration .
• Liquidity remains constrained: cash was $36,679, working capital deficit $(2,109,148), and management disclosed substantial doubt about going concern and the need to raise at least $5.5M over the next 12 months .
• Strategically, management announced Compass.TV with Dooya to drive content‑to‑commerce and advertising monetization, slated to launch in fall 2024 .
• Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable; no estimate comparison is provided.

What Went Well and What Went Wrong

What Went Well

• Rapid revenue scaling: “During the three months ended May 31, 2024, we recognized revenue of $188,793… an increase of $169,231, or 865%. The increase was primarily due to the implementation of the BookIt asset as well as the integration of Expedia into our booking engine, NXT 2.0” .
• Product distribution expansion: “We have expanded our distribution since launch to include over one million hotel properties worldwide and have completed a full launch of the leisure travel website in May 2024” .
• Media strategy progress: “Compass.TV is an innovative step that we believe is poised to disrupt the tourism industry… to create and distribute this new premium FAST channel” (CEO Bill Kerby) .

What Went Wrong

• Filing delays and compliance risk: Nasdaq notices for late 10‑K and 10‑Q with potential for delisting if remediation fails .
• Elevated operating cost base: Total operating expenses of $1,967,613 drove an operating loss of $(1,952,401) in the quarter .
• Liquidity and related‑party debt dependence: Cash fell to $36,679 with notes payable to related parties of $1,752,868 at May 31, 2024, rising to $2,731,690 by September 13, 2024 .

Financial Results

Notes:

• Year-over-year strength reflects NXT 2.0 rollout and Expedia integration, per management’s MD&A .
• No Q2 2024 estimates were available from S&P Global; thus, no beat/miss analysis is provided.

Segment breakdown and KPIs: The filing did not present segment reporting; management highlighted distribution breadth (1M+ properties) and platform launch milestones rather than quantified KPIs .

Guidance Changes

Note: Company communications during Q2 2024 focused on compliance remediation and strategic initiatives; no quantitative guidance ranges were issued .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was filed. Key narrative topics across recent quarters:

Management Commentary

• “Compass.TV is an innovative step that we believe is poised to disrupt the tourism industry... We are very excited to work alongside [Dooya] to create and distribute this new premium FAST channel” — CEO Bill Kerby .
• “During the three months ended May 31, 2024, we recognized revenue of $188,793… the increase was primarily due to the implementation of the BookIt asset as well as the integration of Expedia into our booking engine, NXT 2.0” .
• Liquidity and compliance disclosures: The company submitted a plan to Nasdaq to regain compliance and disclosed substantial doubt about going concern pending additional funding .

Q&A Highlights

No Q2 2024 earnings call was filed; therefore, no analyst Q&A highlights or clarifications are available .

Estimates Context

• Wall Street consensus via S&P Global for Q2 2024 EPS and revenue was unavailable; no estimate comparison can be provided.
• As a result, no beats/misses assessment is included.

Key Takeaways for Investors

• Execution on distribution and product integration is improving: revenue growth and >1M property access reflect NXT 2.0 scaling, which should support transaction growth if liquidity is stabilized .
• Near‑term risk is primarily financial and compliance‑related: low cash, rising related‑party debt, and recent Nasdaq notices increase uncertainty; watch for timely filings and capital raises to mitigate going‑concern risks .
• Media monetization could diversify revenue: Compass.TV and TravelMagazine/MyBucketList offer potential ad and content‑to‑commerce streams, but timing and scale depend on distribution partners and launch execution .
• Expect continued operating losses near term: the cost base (technology, professional fees, marketing) remains high relative to current revenue; track OpEx discipline and revenue conversion metrics .
• Strategic financing and equity structures (e.g., preferred conversions, potential equity facilities) may be dilutive; monitor terms and impacts on shareholder value .
• No formal guidance provided: investors should rely on filing cadence, monetization milestones (Compass.TV launch), and transaction growth as primary indicators of trajectory .
• Tactical positioning: near‑term trading likely sensitive to compliance updates and funding news; medium‑term thesis hinges on successful media+booking convergence and sustained revenue scaling .