BitcoinWorld iQSTEL Inc. Reports Q2 Loss but Beats Revenue Estimates iQSTEL Inc. (OTC: IQST) reported a net loss for the second quarter of 2024, but its revenue surpassed analyst expectations
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iQSTEL Inc. Reports Q2 Loss but Beats Revenue Estimates
iQSTEL Inc. (OTC: IQST) reported a net loss for the second quarter of 2024, but its revenue surpassed analyst expectations, according to the company’s latest financial release.
The company posted a net loss of $1.2 million for the quarter ended June 30, 2024, compared to a net income of $0.5 million in the same period last year. Revenue came in at $38.5 million, exceeding the consensus estimate of $35.2 million, driven by strong performance in its telecom and technology segments.
Revenue increased by 22% year-over-year, fueled by expansion in the company’s international voice and data services, as well as growth in its electric vehicle (EV) battery and fintech divisions. The company’s gross margin improved to 18.5% from 17.2% in the prior-year quarter, reflecting operational efficiencies.
The net loss was primarily attributed to increased operating expenses, including higher research and development costs and one-time charges related to strategic acquisitions. Management emphasized that these investments are aimed at long-term growth and are expected to yield returns in subsequent quarters.
Following the earnings release, IQST shares traded up 4% in over-the-counter markets, as investors focused on the revenue beat and positive forward guidance. The company reiterated its full-year revenue target of $160 million, representing a 30% increase from 2023.
iQSTEL’s Q2 results reflect a company in a growth phase, balancing short-term profitability against strategic investments. While the net loss may raise concerns, the revenue beat and robust segment performance suggest underlying momentum. Investors should monitor the company’s ability to convert growth into profitability in the coming quarters.
Q1: Why did iQSTEL report a loss despite beating revenue estimates?The loss was due to higher operating expenses, including R&D and acquisition-related costs, which outweighed the revenue growth.
Q2: What were the key revenue drivers for iQSTEL in Q2?The telecom segment, particularly international voice and data services, along with growth in EV battery and fintech divisions, contributed significantly.
Q3: What is iQSTEL’s outlook for the full year?The company reaffirmed its revenue target of $160 million for 2024, a 30% increase from the previous year, despite the current net loss.
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