Cubbo: Brazil becomes cash flow positive

We’re publicly sharing our investor updates — here is the latest update we shared to investors today

Dear Cubbo investor,
In this update, we’re happy to share the latest company news.

quarter over quarter revenue, orders, and EBITDA

1. In September, we generated $1.04M in gross revenue, reflecting a +61% increase compared to the same month last year. We also processed 178K orders, representing +116% growth year-over-year.
2. With September’s results, our year-to-date revenue has reached $10.8M, already surpassing the total $8.7M achieved in 2023 by +25%. We remain on track with our revised forecast to exceed $15M in total revenue for 2024.
3. Historically, Q4 has outperformed Q3 due to holiday demand. Last year, we saw a 66% increase in Q4 revenue compared to Q3. For this year, we are projecting a conservative but solid 29% growth between the two quarters.

A look at our cash

Month-to-date cash

Brazil FTW!

we’re profitable, but we have a decrease in cash due to investment activities

1. In September, Brazil became cash flow positive for the first time, with a $70K increase in cash month-over-month. Since January, orders in Brazil have grown by 161%, and we remain optimistic about continued growth in the country.
2. Previously, the holding company covered certain expenses for both subsidiaries. We have recently reallocated all these expenses directly to the subsidiaries. This change prevents the holding company’s cash balance from depleting while both subsidiaries are positioned to sustain positive cash flow going forward.
3. With an increasing top line projected for Q4 and sustained profitability, we anticipate the upcoming three-month period to be our best quarter of the year for cash retention, expecting to add approximately $250K.

Final thoughts

Despite constraints on our ability to invest aggressively due to maintaining a lower cash balance as a strategic buffer, we are pleased with our performance this year. We’ve effectively managed resources while remaining focused on growth.

Cubbo is well positioned in both Mexico and Brazil to continue leading the market and gaining share from less capable competitors.

As always, please feel free to reach out with any questions or for further details.

Cubbo