Safe & Green Development Corp (SGD)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 revenue was $49,816 and GAAP net loss was $3.07M, with Adjusted EBITDA of ($0.43M); management emphasized progress on property monetization and proptech initiatives .
• CFO guided to “around $1 million” revenue in Q2 2024 from the St. Mary’s property sale and targeted a minimum of 200 XENE subscribers, framing near-term revenue drivers and recurring revenue build-out .
• FY 2023 context: the company reported no revenue and an operating loss of ~$3.0M for the year; raised $4.5M, and expected recurring revenue to start in Q2 2024, underscoring inflection ambitions into 2024 .
• Potential stock catalysts near term include closing the St. Mary’s sale and visible subscriber traction for XENE/MyVONIA as part of the proptech mix .

What Went Well and What Went Wrong

What Went Well

• Strategic monetization milestones: executed the contract to sell St. Mary’s for $1.35M and moved Lago Vista toward sale; CEO highlighted “substantial profits” and balance sheet strengthening from these transactions .
  Quote: “Our upcoming sale of the St. Mary property, which will result in substantial profits… the execution of a contract to sell our Lago Vista parcel is a significant milestone that will significantly strengthen our balance sheet upon closing.”
• Proptech progress: acquired XENE Real Estate AI software in Q1 and advanced plans to integrate/close MyVONIA, later launched and integrated MyVONIA into XENE to enhance realtor and consumer utility .
  Quote: “I am particularly enthused by the development of our XENE Platform…” and the anticipated MyVONIA acquisition closing in Q2 .
• Financing and development execution: secured financing to expand the Norman Berry project in Atlanta, enabling portfolio development momentum .

What Went Wrong

• Minimal quarterly revenue versus sizable losses: Q1 revenue of $49.8k was outweighed by GAAP net loss of $3.07M; non-cash expenses (stock-based comp $1.75M; common stock for services $0.32M) and interest expense ($0.57M) were significant drivers .
• Limited visibility to quarterly trends: no earnings call transcript found for Q1 2024, and no prior-quarter (Q3 2023/Q4 2023) quarterly detail available from documents, constraining granular trend analysis [List: earnings-call-transcript not found; 2023 Q3 documents not found].
• FY 2023 backdrop remained loss-making with no revenue, placing more pressure on executing announced monetization and subscription targets in 2024 to evidence scale and operating leverage .
  Quote (CFO, FY 2023 PR): “While we did not generate revenue in 2023… we expect to generate recurring revenue starting in Q2 of 2024.”

Financial Results

Quarterly Snapshot

Notes:

• Margins are calculated from cited revenue and loss figures; exact margin figures are derived from disclosed numbers .

FY Context

Non-GAAP Reconciliation (Q1 2024)

Segment Breakdown

• Not disclosed in Q1 2024 press release; company operates Real Estate Development and Proptech (XENE/MyVONIA) initiatives, but no segment revenue provided .

KPIs

Guidance Changes

Earnings Call Themes & Trends

• No Q1 2024 earnings call transcript found; table reflects press releases and prior disclosures.

Management Commentary

• CEO (David Villarreal): “Our upcoming sale of the St. Mary property, which will result in substantial profits… the execution of a contract to sell our Lago Vista parcel is a significant milestone that will significantly strengthen our balance sheet upon closing.”
• CEO on AI roadmap: “I am particularly enthused by the development of our XENE Platform… we eagerly anticipate completing the acquisition of MyVONIA… scheduled to close during the second quarter.”
• CFO (Nicolai Brune): “Our aim is to attain a revenue milestone of around $1 million in the second quarter derived from the sale of the St. Mary’s property… reach a minimum of two hundred XENE subscribers… despite significant non-cash expenses, our adjusted EBITDA demonstrates our dedication to operating in an efficient manner.”
• FY 2023 CFO framing: “We raised $4.5 million… operating loss for the year was $3 million… we expect to generate recurring revenue starting in Q2 of 2024.”

Q&A Highlights

• No Q1 2024 earnings call transcript was available; therefore, Q&A themes and clarifications cannot be assessed [List: earnings-call-transcript not found].

Estimates Context

• S&P Global consensus estimates for Q1 2024 (EPS, revenue, EBITDA, target price) were unavailable at the time of this analysis due to service limits; therefore, comparisons to Wall Street estimates are not provided. Values would be retrieved from S&P Global if accessible.

Key Takeaways for Investors

• The quarter underscored execution on asset monetization (St. Mary’s, Lago Vista) and proptech build-out (XENE/MyVONIA), providing tangible near-term revenue catalysts into Q2 2024 .
• Losses were driven by non-cash items and interest costs; Adjusted EBITDA at ($0.43M) shows early-stage operating drag with a path to improvement contingent on closing transactions and scaling subscribers .
• FY 2023 had no revenue; Q1 2024 established an initial revenue baseline, with management targeting ~$1M from St. Mary’s in Q2—watch for confirmation of close and cash inflow timing .
• Subscriber traction is a key KPI for validating XENE/MyVONIA monetization; achieving the 200 subscriber minimum could begin to demonstrate recurring revenue viability .
• Financing progress at Norman Berry supports development optionality; continued capital access and cost of capital will influence execution speed and dilution risk .
• Absent an earnings call transcript, focus on upcoming press releases/8-Ks for updates on St. Mary’s closing, Lago Vista sale, and subscriber metrics to drive narrative and stock reaction .
• Medium-term thesis hinges on successfully converting asset monetization into sustainable recurring proptech revenues while managing operating expenses and interest burden to show improving EBITDA trajectory .