Giftify, Inc. (formerly RDE, Inc.) reported its financial results for the quarter ended September 30, 2024, reflecting significant changes in revenue, profitability, and strategic developments. The company, which focuses on connecting digital consumers with dining and merchant deal options, underwent a name change effective October 28, 2024, and was approved for listing on Nasdaq on August 6, 2024.

For the third quarter of 2024, Giftify generated net sales of $23.2 million, an increase from $20.2 million in the same quarter of 2023. However, for the nine months ended September 30, 2024, net sales decreased slightly to $64.8 million from $65.5 million in the prior year. The gross profit for Q3 2024 was $3.0 million, up from $2.6 million in Q3 2023, while the nine-month gross profit increased to $9.5 million from $8.1 million year-over-year.

Despite the revenue growth, the company reported a substantial increase in selling, general, and administrative expenses, which rose to $5.9 million in Q3 2024 from $2.6 million in Q3 2023. This contributed to a loss from operations of $(3.8 million) for Q3 2024, compared to a loss of $(365,607) in the same period last year. The net loss before income taxes for Q3 2024 was $(4.1 million), significantly higher than $(556,933) in Q3 2023. For the nine-month period, the net loss escalated to $(15.0 million) from $(1.7 million) in the previous year.

The company’s total assets as of September 30, 2024, were $37.5 million, a decrease from $39.8 million at the end of 2023. Total liabilities remained relatively stable at $15.4 million compared to $15.4 million at the end of the previous fiscal year. The accumulated deficit increased to $(84.5 million) from $(69.5 million) as of December 31, 2023.

A key strategic development was the completion of the merger with CardCash Exchange Inc. on December 29, 2023, for a total purchase price of $26.7 million. This acquisition is expected to enhance Giftify's market position by expanding its offerings in the gift card resale market. As of September 30, 2024, the company recorded goodwill of $20.0 million related to this acquisition.

The company continues to face challenges, including a history of net losses and negative operating cash flows, raising concerns about its ability to continue as a going concern. Independent auditors have expressed substantial doubt regarding the company's sustainability without additional capital to fund operations and achieve profitability.