Pineapple Financial Inc. Reports 7.5% Revenue Growth in 2024, and Accelerates Growth to Start 2025
Expecting 20% YOY Net Revenue Growth in early 2025, on Track for Ongoing Profitability by April 2025
December 23, 2024 8:00 AM EST | Source: Pineapple Financial Inc.
Toronto, Canada--(Newsfile Corp. - December 23, 2024) - Pineapple Financial Inc. (NYSE American: PAPL), a leading Canadian mortgage and insurance fintech, today reported its audited financial results for the fiscal year ended August 31, 2024. The company achieved a 7.5% increase in net revenue year-over-year, driven by growth in its subscription services and strong mortgage sales. Early reporting indicated Pineapple is expecting to experience a strong start to fiscal year 2025, with significant growth across key metrics, including 13.3% YOY volume growth, 13.9% YOY gross billing growth, and 20.8% YOY net revenue growth from September through November. These results reflect both the company's effective growth initiatives and a shifting market sentiment. With these strong figures and a clear path forward, Pineapple is on track to achieve ongoing profitability by April 2025.
Fiscal Year 2024 Highlights
- Revenue Growth: Pineapple Financial achieved net revenue of $2.69 million in fiscal year 2024, marking a 7.5% increase compared to $2.50 million in fiscal year 2023. This growth was driven by the company's expanding subscription services and strong mortgage sales, demonstrating the effectiveness of its customer acquisition strategies.
- Gross Billings: The company reported total gross billings of $16.26 million in fiscal year 2024, up from $15.03 million in the previous fiscal year, reflecting continued success in service delivery and customer retention across its brokerage network.
- IPO Success: Pineapple Financial successfully completed its Initial Public Offering (IPO) on the NYSE American, raising $3.5 million in gross proceeds. This milestone demonstrates investor confidence in Pineapple's business model and growth potential.
- Insurance Vertical Launch - Key Milestone: As part of its strategic use of IPO proceeds, Pineapple launched a new insurance vertical, offering life, creditor, and disability insurance on behalf of Industrial Alliance. This milestone further diversifies Pineapple's service offering, strengthens customer relationships, and creates additional revenue streams, positioning the company for continued success.
- Innovation Leadership: Pineapple continued to lead in mortgage technology innovation, investing heavily in proprietary AI-driven tools to improve the efficiency and experience of brokers and clients. These innovations contributed to the company's development of $1.11 million in intangible assets, reinforcing Pineapple's position at the forefront of digital mortgage solutions.
- Strong Fiscal Q1 2025 Performance: From September to November 2024 (Fiscal Q1), Pineapple Financial has delivered strong growth, with a 13.3% year-over-year increase in volume, a 13.9% increase in gross billings, and a 20.8% increase in net revenue. These results underscore the positive momentum Pineapple is experiencing as it enters 2025, driven by both internal growth initiatives and favorable market conditions.
Comment from Leadership
Shubha Dasgupta, CEO of Pineapple Financial Inc., stated:
"Fiscal 2024 laid a strong foundation for Pineapple, and we are seeing significant momentum as we enter 2025. The recent performance in Q1, with over 13% growth in both volume and gross billings, demonstrates the effectiveness of our growth initiatives and the favorable shifts in market sentiment. The launch of our insurance vertical has been a key milestone, further strengthening our value proposition and diversifying revenue streams."
"We are confident that with the combination of our continued growth in core mortgage services, the addition of the insurance vertical, and market momentum from recent Bank of Canada rate cuts and favorable policy changes, Pineapple is well on its way to achieving ongoing monthly profitability by April 2025. Our trajectory is clear, and we remain focused on capitalizing on these opportunities to drive continued growth and value creation."
Future Outlook
Pineapple Financial is poised for continued growth, with a clear path to monthly profitability by April 2025. With a strengthened balance sheet, a growing broker network, and the successful launch of the insurance vertical, Pineapple is well-positioned to capitalize on the improving macroeconomic conditions. The company's investments in technology, customer experience, and operational efficiencies will continue to drive revenue growth and increased customer retention as the Canadian mortgage market recovers in 2025.
Pineapple Financial Inc.
Consolidated Balance Sheets
As at August 31, 2024 and 2023
(Expressed in US Dollars)
| As at: | August 31, 2024 | August 31, 2023 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 580,356 | $ | 720,365 | ||||
| Trade and other receivables | 155,224 | 758,988 | ||||||
| Prepaid expenses and deposits | 157,911 | 218,150 | ||||||
| Total current assets | 893,491 | 1,697,503 | ||||||
| Investment | 10,042 | 10,013 | ||||||
| Right-of-use asset | 828,674 | 960,377 | ||||||
| Property and equipment | 152,610 | 242,091 | ||||||
| Intangible assets | 2,211,775 | 1,718,954 | ||||||
| Total Assets | $ | 4,096,592 | $ | 4,628,938 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 1,125,477 | $ | 605,319 | ||||
| Deferred revenue | 111,921 | - | ||||||
| Loan | - | 430,098 | ||||||
| Current portion of lease liability | 161,508 | 138,372 | ||||||
| Total current liabilities | 1,398,906 | 1,173,789 | ||||||
| Deferred government incentive | 491,251 | 699,627 | ||||||
| Lease liability | 815,599 | 969,589 | ||||||
| Warrant liability | 41,520 | - | ||||||
| Total liabilities | $ | 2,747,276 | $ | 2,843,005 | ||||
| Shareholders' Equity | ||||||||
| Common shares, no par value; unlimited authorized; 8,425,353 issued and outstanding shares as of August 31, 2024 and 6,306,979 as at August 31, 2023. | 8,559,856 | 4,903,031 | ||||||
| Additional paid-in capital | 2,955,944 | 2,955,944 | ||||||
| Accumulated other comprehensive loss | (408,510 | ) | (417,727 | ) | ||||
| Accumulated deficit | (9,757,974 | ) | (5,655,315 | ) | ||||
| Total stockholders' equity | 1,349,316 | 1,785,933 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,096,592 | $ | 4,628,938 | ||||
F-3
Pineapple Financial Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the years ended August 31, 2024 and 2023
(Expressed in US Dollars)
| For the year ended | August 31, 2024 | August 31, 2023 | ||||||
| Revenue | $ | 2,688,987 | $ | 2,502,264 | ||||
| Expenses | ||||||||
| Selling, general and administrative | 2,382,225 | 2,170,149 | ||||||
| Advertising and Marketing | 860,047 | 844,796 | ||||||
| Salaries, wages and benefits | 2,436,783 | 2,330,127 | ||||||
| Interest expense and bank charges | 93,472 | 56,316 | ||||||
| Depreciation and amortization | 838,843 | 441,159 | ||||||
| Share-based compensation | - | 33,091 | ||||||
| Government Incentive | (97,646 | ) | (591,480 | ) | ||||
| Total expenses | $ | 6,513,724 | $ | 5,284,158 | ||||
| Loss from operations | (3,824,737 | ) | (2,781,894 | ) | ||||
| Write down of investment | - | (27,143 | ) | |||||
| (Loss) on extinguishment of liability | (156,339 | ) | - | |||||
| Foreign exchange gain (loss) | (38,836 | ) | - | |||||
| Gain on change in fair value of warrant liability | 63,769 | - | ||||||
| Gain on change in fair value of conversion feature liability | 76,543 | - | ||||||
| Accretion expense | (223,059 | ) | - | |||||
| Loss before income taxes | $ | (4,102,659 | ) | $ | (2,809,037 | ) | ||
| Net loss | (4,102,659 | ) | (2,809,037 | ) | ||||
| Foreign currency translation adjustment | 9,217 | (64,509 | ) | |||||
| Net loss and comprehensive loss | $ | (4,093,442 | ) | $ | (2,873,546 | ) | ||
| Loss per share - basic and diluted | $ | (0.57 | ) | $ | (0.45 | ) | ||
| Weighted average number of common shares outstanding - basic and diluted | 7,145,939 | 6,306,979 | ||||||
About Pineapple
Pineapple is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokers as well as the overall experience of homeowners. With hundreds of brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.
Follow us on social media:
Instagram: @pineapplemortgage @empoweredbypineapple
Facebook: Pineapple Mortgage
LinkedIn: Pineapple Mortgage
Safe Harbor Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. They are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and economic needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results. It encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
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