NextTrip, Inc. (SASI)·Q4 2023 Earnings Summary

Executive Summary

• The company did not issue a Q4 2023 8‑K 2.02 earnings press release or hold a Q4 earnings call; filings around year-end focused on closing the reverse acquisition of NextTrip (closed December 29, 2023), leadership changes, and fiscal-year realignment to Feb 28, reflecting a transition quarter .
• Prior quarters showed a small revenue base with improving sequential trend: Q2 2023 revenue of $0.10M and gross margin of 62% improved to Q3 2023 revenue of $0.14M but with negative gross margin due to discounting; net losses persisted as the legacy additive business wound down .
• Strategic pivot: management closed the NextTrip travel-tech acquisition (Dec 29, 2023), rebranded to NextTrip, Inc., and announced a ticker change to “NTRP” effective March 13, 2024; the go-forward business centers on travel booking and media with AI-assisted planning and content-to-commerce strategy .
• Near-term catalysts are operational (not financial): a soft launch in late Nov 2023 reportedly drove >75% m/m top-line growth, with full platform roll-out targeting 3M+ properties, a 6M+ legacy customer database, and 200+ supplier relationships—potential drivers of 2024 revenue ramp as the platform scales .

What Went Well and What Went Wrong

What Went Well

• Closed the reverse acquisition of NextTrip and installed NextTrip CEO Bill Kerby as CEO of the public company, positioning for capital access and scale as a Nasdaq-listed travel-tech platform .
  “This transaction will allow NextTrip the ability to execute our strategic growth plans…with access to additional sources of capital” — Bill Kerby .
• Early operating momentum from platform relaunch: management cited a >75% top-line m/m lift in the late‑Nov 2023 soft launch and targeted availability of 3M+ properties across 200+ countries, supported by a curated collection of 200+ resorts and a U.S. call center .
• Brand and strategy alignment: corporate rebrand to NextTrip, ticker change to NTRP, and launch of AI-assisted travel planning, an owned media ecosystem (Travel Magazine) and Compass.TV (FAST) to convert content into commerce .

What Went Wrong

• Continued operating losses and thin liquidity exiting the legacy business: Q3 2023 net loss was $(0.87)M with cash of ~$0.6M at quarter end, underscoring reliance on external funding and the need for execution on the travel pivot .
• Earlier “going concern” warnings and minimal cash runway (disclosed in Q1 2023 10‑Q) highlighted financing risk before the transaction close; management stated existing cash would fund operations only through June 2023 without additional financing .
• Nasdaq compliance risk during 2023 necessitated actions (e.g., reverse split and bid‑price plan per 10‑Q subsequent events note); while later filings emphasized transaction completion, the listing constraint remained an execution focus in 2023 .

Financial Results

Note: The company focused year‑end filings on the NextTrip transaction; no Q4 2023 earnings 8‑K 2.02 or call was filed/held. Trend tables below show the prior two quarters.

Revenue, EPS and margins (oldest → newest):

Liquidity snapshot (reference dates as disclosed):

Segment breakdown and KPIs: Not applicable for legacy additive business; go‑forward travel segment metrics were described qualitatively (supplier relationships, property coverage, media strategy) pending relaunch and scale .

Vs. Estimates: Wall Street consensus (S&P Global) was unavailable for Q4 2023 for SASI; no estimate comparison provided. Values retrieved from S&P Global were unavailable due to missing coverage mapping.*

Guidance Changes

No formal financial guidance was issued. Management outlined operational milestones linked to contingent share earn-outs post-acquisition:

Earnings Call Themes & Trends

No Q4 2023 call was held. Prior-quarter commentary centered on strategic alternatives (legacy SASI) and then the NextTrip transaction.

Management Commentary

• “This transaction will allow NextTrip the ability to execute our strategic growth plans and expand our reach into new markets as part of a public company” — Bill Kerby, CEO (Jan 3, 2024) .
• “We are just weeks away from the full re-activation and roll-out of our travel booking platform… launching an end-to-end content ecosystem that uses AI assisted travel planning… Travel Magazine platform housing a unique FAST TV model – Compass.TV” — Company announcement (Mar 12, 2024) .
• “A soft launch in late November 2023 resulted in top-line revenue growth of over 75% vs the prior month… expect over 3 million properties… and ramping up marketing to our 6+ million customer database” — Lyndsey North, President of NextTrip .

Q&A Highlights

No Q4 2023 earnings call or Q&A session was held; in Q3 the company explicitly did not host its regular call due to the pending NextTrip acquisition and Divergent asset sale process .

Estimates Context

• Street consensus (S&P Global) for Q4 2023 revenue/EPS was unavailable for SASI during the transition; coverage and estimates are expected to evolve as NextTrip (NTRP) establishes a standalone reporting cadence.*

*Values retrieved from S&P Global were unavailable due to missing coverage mapping.

Key Takeaways for Investors

• Transition quarter with no Q4 earnings release/call: the primary catalyst was closing the NextTrip reverse acquisition (12/29/23), rebranding, and fiscal-year change to Feb 28, marking a shift from legacy additive to travel-tech .
• Early operational signals are constructive (soft-launch traction, supplier depth, broad inventory, and large legacy customer file), but revenue durability will hinge on execution of full platform roll-out and marketing conversion in 2024 .
• Liquidity and operating loss history heighten execution and financing risk; prior disclosures show limited cash and going‑concern risk before the transaction—underscoring dependence on capital access and rapid scaling of the travel business .
• Watch milestone earn-out triggers (leisure, groups, agents, PayDelay) as embedded execution scorecards; they also drive potential dilution upon achievement .
• The media and AI-assisted planning ecosystem (Travel Magazine, Compass.TV) is intended to create a content-to-commerce funnel—monitor user engagement, ad monetization, and conversion-to-bookings KPIs post full launch .
• Regulatory/listing backdrop was an overhang in 2023; maintaining Nasdaq compliance under the new brand while scaling topline is a critical near-term objective .
• Near-term focus: evidence of monthly gross bookings ramp, take-rate/unit economics, repeat bookings/CLV, and Opex discipline as the company transitions to a travel-tech operating model .

Sources

• Q3 2023 earnings 8‑K press release and financials: revenue, margins, net loss, and cash .
• Q2 2023 earnings 8‑K press release and financials .
• Q1 2023 10‑Q: going concern and Nasdaq compliance update .
• NextTrip acquisition close and fiscal-year change (Jan 3, 2024 8‑K + press release) .
• Corporate rebrand and ticker change to NTRP (Mar 12, 2024 8‑K/press) .