Triterras, Inc.

For the six months ended August 31, 2022, Triterras reported revenue of $26.4 million, up 15% from $22.9 million in the prior comparable period. Trade transaction volume was nearly $1 billion versus $4 billion a year ago, while users on the platform rose 89% to 249 from 132. Net loss was $21.6 million, or $0.28 per share, compared with net income of $27.3 million, or $0.35 per share, and adjusted EBITDA was a loss of $19.1 million versus adjusted EBITDA of $4.1 million a year earlier. Gross margin was not stated. Looking ahead, management expects operating losses for the remainder of the fiscal year and said it hopes to reach a breakeven run rate sometime in the next fiscal year, while working to increase funding on the platform, reduce SG&A, and improve liquidity through collections, a $4.25 million insurance credit, and redemption of a $20 million investment in trade credit partners.

Srinivas Koneru framed the period as one of strategic repositioning rather than just a weak operating backdrop. He said Triterras has expanded beyond a sole focus on commodity traders into broader supply chain finance across commodities, semi-finished goods, and finished goods, with geographic expansion into MENA and Europe. His tone was cautiously optimistic, emphasizing platform scalability, security upgrades, and product development such as Kratos 2.0, while acknowledging that lender recruitment is critical.

Alvin Tan focused on financial discipline and near-term liquidity. He said the company will prioritize recruiting new lenders, collecting outstanding receivables, enhancing the trade marketplace, and reducing non-critical cash spending to lower SG&A without harming long-term prospects. He stated the company had $33.9 million in cash and cash equivalents and a $77.8 million working capital surplus at August 31, 2022, and said Triterras expects adequate cash for the next 12 months while seeking liquidity from a $4.25 million insurance credit, a $20 million investment redemption, and improved receivable collections.

In Q&A, management reiterated that lender growth is the main constraint on transaction volume and said five lenders were on the platform as of October 2022, though many were still early in rollout. They also said Triterras is not planning to disclose more about the October 2021 internal investigation and does not plan quarterly business updates. On relisting, management said it could not estimate if or when the securities would be listed on NASDAQ or the OTC markets, and Jim Groh added that industry borrowing costs have risen by 25% in the last six months, making it harder to pass higher pricing through to customers.