WILMINGTON, DE — Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) has announced encouraging financial results for the first quarter ending March 31, 2024. The company showed marked improvements in revenue, gross profit, and a significant reduction in net loss, signaling positive momentum toward profitability.
First-quarter revenue increased by 17% to $1.59 million from $1.35 million in the previous year and $1.27 million in the fourth quarter of 2023. Gross profit rose by 35% to $1.00 million compared to $0.74 million in the prior year period and $0.84 million in the last quarter. Operating expenses decreased by 23% to $1.61 million from $2.09 million last year and $1.67 million in the previous quarter. Net loss also saw a substantial decrease of 51%, down to $0.63 million from $1.28 million in the previous year and $0.9 million in the last quarter of 2023.
CEO Dominic Wells highlighted the improved financial figures and noted that cash used in operations for the quarter was $431,007, the lowest since the company’s IPO. This is a significant drop from $1,021,969 during the same period last year.
“The year-on-year improvements are most noticeable in the net loss, which roughly halved in 2024 compared to 2023,” said Wells. “This was also a quarter-on-quarter improvement.”
Onfolio’s strategic cost reductions and the acquisition of RevenueZen in January 2024 have been key factors in these positive results. The acquisition has shown promising results both qualitatively and quantitatively, according to Wells.
“These operational improvements are significant and facilitate our path to overall profitability,” Wells added. “As we pursue additional cash-flowing acquisitions, our enhanced operational efficiency will continue to contribute positively.”
In their earnings release on April 2, 2024, Onfolio discussed launching a private raise for “Onfolio Agency SPV,” a joint venture with retail investors. This initiative aims to allow Onfolio to acquire companies without using its own cash. The company has several acquisitions in negotiation, with plans to close in the coming weeks. These deals involve acquiring 60-90% of various profitable marketing companies using outside investor capital.
Wells expressed optimism about reaching profitability soon. He stated, “Based on the deals currently in our pipeline, we believe that if Onfolio Agency SPV raises approximately $1 million to $1.5 million and we close on these acquisitions, then Onfolio Holdings could reach profitability in the near term.”
To date, Onfolio Agency SPV has raised about $1 million, bringing the target within reach. This financial boost is expected to add profits to Onfolio’s bottom line and bridge the gap to profitability.
Paving the Path to Profitability and Growth
The implications of these developments are substantial for Onfolio Holdings. Achieving profitability would mark a significant milestone for the company, enhancing its financial stability and market position. It would also validate the company’s strategy of targeted acquisitions and operational efficiency.
For investors, these results provide a hopeful outlook. The potential for Onfolio to become profitable in the near future could lead to increased investor confidence and potentially boost the company’s stock performance.
As Onfolio continues to refine its approach and capitalize on strategic acquisitions, the company seems poised for a promising future.
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