Nogin, Inc.

Net revenue in Q2 2023 was $12.7 million, down 37.4% from $20.4 million in Q2 2022. Operating loss was $10.4 million versus $5.8 million in the year-ago quarter, and adjusted EBITDA loss was $7.5 million compared with $9.3 million last year. Management said Q2 adjusted EBITDA improved by $1.8 million sequentially despite the revenue decline, and it expects more than $500,000 per month of savings during the current quarter from recent actions. Full-year 2023 net revenue is expected to be $50 million to $55 million, with adjusted EBITDA positive in Q4. For 2024, management expects net revenue growth of more than 40% versus 2023 and adjusted EBITDA margins of 10% to 15%.

Jonathan Huberman framed the quarter as a transition toward a more profitable mix, saying the company is focusing on only profitable sales, exiting unprofitable channels, and expanding beyond fashion into new verticals like food, home decor, publishing, outdoor gear, consumer electronics and B2B. He emphasized strong demand, more than $27 million in year-to-date bookings, and a partnership with RSM that is already producing prospects. His tone was confident and upbeat, with repeated emphasis on profitable growth, technology differentiation, and a larger pipeline.

Shahriyar Rahmati highlighted that Q2 net revenue fell 37.4% to $12.7 million, operating loss widened to $10.4 million from $5.8 million, and adjusted EBITDA loss improved to $7.5 million from $9.3 million. He attributed the changes to the wind-down of product-related revenue, JV-related headwinds, warehouse consolidation, severance, and $2.2 million of legal expense, while noting sequential improvement from realized cost savings and lower unprofitable revenue. He said the company expects full-year 2023 revenue of $50 million to $55 million, adjusted EBITDA positive in Q4, 2024 revenue growth above 40%, and 2024 adjusted EBITDA margins of 10% to 15%; he also said savings should exceed $500,000 per month in the current quarter.

Analysts focused on the company’s business exits, new-booking pace, and whether the reported 80% win rate is sustainable. Management said the product-revenue business should be exited before the end of 2023, the JV and wholly owned sub should become profitable tailwinds once a partner deal closes, and the new business won so far should be live by the end of Q4. On the win-rate question, management said the success comes from focusing on the right prospects, broadening beyond fashion, and positioning Nogin as a partnership-based CaaS platform with low-friction adoption and no CapEx.