Continued Momentum with 13.3% YOY Volume Growth, 13.9% YOY Gross Billings Growth, and 20.8% YOY Net Revenue Growth Positions Company on Track for Profitability by April 2025
Toronto, Ontario--(Newsfile Corp. - January 21, 2025) - Pineapple Financial Inc. (NYSE American: PAPL), a leading provider of innovative financial solutions in the mortgage industry, today announced its financial results for the first quarter ended November 30, 2024. The company continues to make significant progress in its journey toward sustained growth and profitability, driven by operational efficiency improvements from past investments and a strong increase in customer demand.
Key Financial Highlights:
- Revenue Growth: Pineapple Financial reported a 34.6% increase in revenue, totaling $766,074 for the quarter, up from $569,355 during the same period last year. This growth was fueled by increased customer demand, broader market presence, and ongoing enhancements to the company's service offerings.
- Cash Flow Strength: As of November 30, 2024, Pineapple's cash position rose to $619,581, supported by strong financing activities and improved cash management. This robust cash flow provides the company with the liquidity to continue fueling growth initiatives and operational improvements.
- Net Loss Reduction: Pineapple's net loss for the quarter was $656,894, reflecting a 26.8% improvement from a net loss of $897,757 in Q1 FY2023-2024. This reduction in net loss is a clear indicator that the company's strategy of optimizing operations and investing in high-impact growth initiatives is gaining traction.
- Improved Operational Efficiency: Total operating expenses for the quarter were $1,459,589, a modest increase from $1,445,681 in Q1 FY2023-2024. This increase reflects continued investments in advertising, marketing, and the company's ongoing technology advancements, which are expected to yield long-term benefits by driving further operational efficiencies.
Strategic and Operational Updates:
- Pineapple issued an additional $566,930 in share capital, further strengthening the company's financial position and providing additional resources for strategic investments.
- The company made significant advancements in technology and infrastructure, investing $282,298 in intangible assets during the quarter. These investments are expected to contribute to operational efficiencies and enhance customer satisfaction moving forward.
- Pineapple continues to emphasize operational efficiency and cost management, driving profitability improvements and positioning the company for sustained long-term growth.
Balance Sheet Highlights:
- Total assets reached $4,137,152, reflecting a modest increase from $4,096,592 as of August 31, 2024.
- Shareholders' equity amounted to $1,151,902, underscoring Pineapple's dedication to creating value for its investors and ensuring strong financial health.
CEO Statement:
"We are encouraged by our strong revenue growth and the continued improvement in operational efficiency this quarter," said Shubha Dasgupta, CEO of Pineapple Financial Inc. "Our ongoing investments in technology and infrastructure, coupled with a relentless focus on cost management, are driving the progress we've made toward profitability. As we look ahead, we remain committed to delivering sustainable growth, enhancing profitability, and maximizing long-term value for our shareholders."
Broader Market Context:
The Canadian mortgage industry is experiencing a notable shift, driven by favorable economic conditions and a renewed focus on housing affordability. Recent policy changes, combined with the Bank of Canada's rate cuts, have already begun to stimulate activity in the housing market, presenting new opportunities for mortgage providers and lenders. At Pineapple, we are well-positioned to capitalize on these changing dynamics, with our investments in technology and customer-centric solutions allowing us to meet the growing demand for innovative, data-driven mortgage services. As the market continues to evolve, we remain confident that our strategic initiatives will enable us to continue driving growth and profitability, helping to shape the future of the Canadian mortgage landscape.
Pineapple Financial Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss - Unaudited
(Expressed in US Dollars)
| Three Months Ended | |||||
| For the period ended | November 30, 2024 | November 30, 2023 | |||
| (Unaudited) | (Unaudited) | ||||
| Revenue | $ | 766,074 | $ | 569,355 | |
| Expenses | |||||
| Selling, general and administrative | 417,406 | 560,151 | |||
| Advertising and Marketing | 273,009 | 133,470 | |||
| Salaries, wages and benefits | 436,365 | 644,273 | |||
| Interest expense and bank charges | 174,505 | 21,407 | |||
| Depreciation and amortization | 185,523 | 137,427 | |||
| Government Incentive | (27,219) | (51,047) | |||
| Total expenses | $ | 1,459,589 | $ | 1,445,681 | |
| Loss from operations | (693,515) | (876,326) | |||
| Foreign exchange gain (loss) | 5,089 | (10,691) | |||
| Gain on change in fair value of warrant liability | 31,532 | (10,740) | |||
| Loss before income taxes | $ | (656,894) | $ | (897,757) | |
| Net loss | (656,894) | (897,757) | |||
| Foreign currency translation adjustment | (272,351) | 24,578 | |||
| Net loss and comprehensive loss | $ | (929,245) | $ | (873,179) | |
| Loss per share - basic and diluted | $ | (0.13) | $ | (0.14) | |
| Weighted average number of common shares outstanding - basic and diluted | 7,145,939 | 6,566,594 | |||
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements
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.
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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
Media Contact:
For media inquiries, please contact Shubha Dasgupta, Chief Executive Officer, at Pineapple.
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