Vado Corp. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, Vado Corp. generated revenue of $5.1 million, a 17.4% increase from $4.3 million in Q3 2023. Year-to-date revenue for the nine months ended September 30, 2024, reached $16.1 million, up 37.6% from $11.7 million in the same period last year. This growth was attributed to onboarding sales from a recent customer acquisition agreement, which contributed approximately $2.5 million in revenue for Q3 2024.

Despite the revenue increase, the company's gross profit for Q3 2024 fell to $606,503, down from $1.8 million in Q3 2023, resulting in a gross profit margin decline to 12% from 40%. For the nine-month period, gross profit also decreased to $2.4 million from $4 million, reflecting a significant rise in the cost of revenue, which surged by 73.1% in Q3 and 78.3% year-to-date.

Vado Corp. reported a net operating loss of $1.5 million for Q3 2024, compared to a loss of $471,696 in Q3 2023. The nine-month net operating loss increased to $4.1 million from $4 million in the prior year. The net loss before provision for income taxes for the three months was $1.6 million, slightly improved from $1.6 million in the previous year, while the nine-month loss decreased to $5.4 million from $5.6 million.

The company’s total assets decreased to $3.7 million as of September 30, 2024, down from $4.5 million at the end of 2023. Current liabilities rose significantly to $15.9 million from $11.5 million, contributing to a total liabilities increase to $18.6 million from $13.6 million. The accumulated deficit also widened to $20.6 million from $15.2 million.

Strategically, Vado Corp. completed the acquisition of Socialcom, enhancing its digital marketing capabilities. The company has focused on developing data science and predictive analytics solutions, targeting independent agencies and brands. In March 2024, Vado acquired a customer base and employees from a third party, which is expected to bolster future revenue.

The company has faced challenges, including a working capital deficit of $12.3 million and insufficient cash to meet operating needs for the next 12 months. Management is exploring capital-raising options and strategic initiatives to improve cash flow and operational efficiency.