NASDAQ$MARK

Remark Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Remark Holdings reported a revenue increase of 24% year-over-year, driven by strategic partnerships and project completions in China.

Remark Holdings reported a 24% increase in revenue for Q2 2023 compared to Q2 2022, driven by project completions in China. The company secured major partnerships for its AI solutions and is targeting EBITDA breakeven by the end of the year.

  • Revenue increased by 24% year-over-year, reaching $3.2 million in Q2 2023.
  • Remark AI secured a $6.0 million, 30-month recurring revenue subscription contract for license plate and mobile facial recognition capabilities in Rio De Janeiro.
  • Strategic partnerships with WaitTime, NVIDIA, and DSSL Group were established to expand the reach of Remark AI's Smart Safety Platform.
  • The company is targeting EBITDA breakeven exiting the fourth quarter of 2023.

Headline financials

Total Revenue

$3.17M

Previous: $2.56M+23.8%
EPS (adj)

-$0.39

Previous: -$1.20+67.5%
Revenue Growth

24.0%

No prior period
Capital Expenditures

-$6K

Previous: -$166K+96.4%
Free Cash Flow

-$5.23M

Previous: -$11.2M+53.5%
Net Income

-$5.87M

Previous: -$12.5M+53.1%
Operating Income

-$3.96M

Previous: -$3.96M-0.1%
Gross Profit

$656K

Previous: $711K-7.7%
Cash & Equivalents

$208K

Previous: $1.06M-80.4%
Total Assets

$12.9M

Previous: $33.4M-61.5%
Stock-Based Comp

-$3K

Previous: $330K-100.9%

Revenue & EPS history

Remark Holdings · Revenue · Quarterly

$3.17M

Q2 2023+23.8%vs Q2 2022
Beat estimate in 3 of 7 quarters(43%)
ActualEstimate

Revenue by segment

Remark Holdings · $11.4M total across 1 segment · Q4 2022

  • China
    $11.4M

Forward guidance

Remark Holdings aims to achieve EBITDA breakeven by the end of the fourth quarter of 2023, driven by growth in AI investments across various markets.

Tailwinds

  • Strategic technology partnerships expected to scale innovative solutions.
  • Expansion into existing and new markets anticipated in the second half of the year.
  • China's reopening is expected to bolster revenue opportunities.
  • AI investment growth is expected to reduce expenses and increase operational efficiencies.
  • Focus on synergizing with smart city initiatives to enhance urban living.

Headwinds

  • Operating loss remained unchanged at $4.0 million in Q2 2023.
  • Cash balance totaled $0.2 million as of June 30, 2023.
  • Obligation to issue common stock to Ionic Ventures with an estimated aggregate fair value of $5.6 million.
  • Received notice from Nasdaq regarding non-compliance with continued listing standards.
  • Company needs to regain compliance with Nasdaq listing standards by October 24, 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-4.8%

Avg return

Earnings day

-5.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

28%

11 / 39 earnings

Positive

+19.1%

Q3 2020

Best reaction

-94.3%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025-94.3%+0.0%+2.0%
Q4 2024+0.0%+5.8%+26.9%
Q3 2024-7.7%-13.3%-21.9%
Q2 2024+8.6%+2.9%+9.8%
Q1 2024-16.0%-11.9%-23.3%
Q4 2023-1.9%-4.2%+152.4%
Q3 2023-9.4%-13.5%-21.4%
Q2 2023-10.6%-15.1%-34.9%
Q4 2022-14.0%+4.3%+0.0%
Q1 2023-14.0%-19.6%-18.2%
Q3 2022+0.0%-4.2%-39.8%
Q2 2022-5.9%-16.7%-30.7%
Q4 2021-10.5%+8.5%-6.2%
Q1 2022-10.5%-12.1%-33.2%
Q2 2021-10.5%-12.1%-33.2%
Q3 2021-3.8%-16.0%+99.1%
Q1 2021+9.6%+0.0%+6.9%
Q4 2020-7.5%-6.5%+55.8%
Q3 2020+19.1%+21.7%+72.2%
Q1 2020+9.7%-30.9%-28.4%
Q2 2020-0.4%+2.2%-40.7%
Q3 2019-1.3%-13.3%-24.9%
Q2 2019-10.5%-25.1%+18.5%
Q1 2019-0.8%-9.2%-26.8%
Q3 2018-6.0%-52.4%-55.3%
Q2 2018+2.8%+5.4%-10.3%
Q1 2018-13.9%-18.3%-3.7%
Q3 2017+0.8%+63.0%+119.0%
Q2 2017-1.9%-2.5%-1.1%
Q1 2017+4.7%+0.0%-14.7%
Q3 2016-1.4%+5.0%-19.6%
Q2 2016+1.3%+2.7%-6.2%
Q1 2016
Q3 2014
Q4 2012+3.1%
Q2 2011+0.4%
Q1 2011-2.2%
Q4 2010-0.5%
Q3 2010+13.9%
Q2 2010-2.5%
Q1 2010-3.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro