The firm's revenue suffers a notable decline
Pineapple Financial Inc. (Pineapple), a tech-focused mortgage firm, has announced the results of its 2023 fiscal year ending on August 31.
The company experienced a net loss of $2,809,036 on its revenue of $16,434,100, which amounted to $0.45 per share. In the previous year, the firm saw a net loss of $2,810,061 on revenue of $20,380,984. This 19% decrease in fiscal year revenue was attributed to the increase in the Bank of Canada’s interest rate which went from 2.5% on September 1, 2022, to 5% as of August 31, 2023.
Pineapple still managed to reduce its net loss which was the result of an 18% decrease in expenses this year compared to the previous year.
Its cash on hand by the end of fiscal 2023 was $720,365 which was lower than the $3,896,840 it boasted by August 31, 2022. This decrease was attributed to the firm’s working capital and capital expenditures for technological enhancements, skilled personnel investments, and marketing services.
Its current cash position includes the receipt of IPO gross proceeds of around $3.5 million on November 3, 2023. Its total shares outstanding on August 31, 2023, and August 31, 2022, stood at 6,306,978.
Pineapple’s forecast for 2024
Pineapple is expecting to see an increase in its market share using strategies that will achieve technological innovation and strategic expansion. It will be leveraging borrower data analytics, introducing a suite of insurance products, and expanding into new Canadian provinces and regions.
“The company’s growth in 2024 will also likely be buoyed by the industry forecast that, during the next 24 months, 60%–or $1.5 trillion–in the Canadian mortgage market is up for renewal,” said Shubha Dasgupta (pictured), Pineapple’s chief executive officer.
“Couple that with the growth in population, need for housing starts, and the short-term cyclical nature of our market, and we are poised and ready for an exciting future,” he added.
Pineapple is also set to continue using streamlined online mortgage applications which will give potential homebuyers insights into their borrowing capacity.
“We project profitability in fiscal 2024 and anticipate even stronger bottom-line performance in fiscal 2025,” said Dasgupta.
“Additionally, to enhance shareholder value, we are actively exploring the initiation of a stock buy-back program in the next six to 12 months,” he added.
