VerifyMe Updates 2024 Revenue Growth Rate To Be Mid-Single Digit, As Opposed To Double Digit Growth; Expect The Gross Margin Percentage For 2024 Will Be Reduced, But We Still Anticipate The 2024 Gross Margin Percentage, Will Still Exceed The 2023 Gross Margin Percentage; Actively Identifying Strategies To Reduce The Impact Of The Gross Margin Reduction On Adjusted EBITDA
Portfolio Pulse from Benzinga Newsdesk
VerifyMe has updated its 2024 revenue growth forecast to mid-single digits from double digits due to the discontinuation of a subcontracting agreement with a large global carrier customer. Despite this, the company expects its 2024 gross margin percentage to exceed that of 2023. VerifyMe is actively seeking strategies to mitigate the impact on adjusted EBITDA.
May 23, 2024 | 12:13 pm
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VerifyMe has revised its 2024 revenue growth forecast to mid-single digits from double digits due to the end of a subcontracting agreement with a large global carrier customer. The company expects its 2024 gross margin percentage to still exceed that of 2023 and is actively seeking strategies to mitigate the impact on adjusted EBITDA.
The discontinuation of a significant subcontracting agreement will reduce VerifyMe's revenue growth rate for 2024. Although the company expects its gross margin percentage to exceed 2023 levels, the overall impact on revenue and the need to find strategies to mitigate the impact on adjusted EBITDA suggest a negative short-term impact on the stock price.
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