SINGAPORE - Genius Group Limited (NYSE American: GNS), a global education and acceleration firm with a focus on AI and Bitcoin, has announced preliminary unaudited financial results for the first half of 2024. The company reported a significant 130% increase in pro forma revenue, reaching $20.7 million, up from $9.0 million in the same period last year. The first half of 2024 also saw a reduction in adjusted EBITDA loss by 37%, with a net loss of $4.6 million compared to a net loss of $7.3 million in the first half of 2023.
The reported revenue growth and EBITDA improvement are part of the company's strategic shift toward a sustainable, cash-positive business model. These preliminary results exclude the contributions from FatBrain AI before the asset purchase transaction closed in March 2024, and include the performance of Entrepreneur Resorts Ltd, which was spun off from the company in 2023.
Roger Hamilton, CEO of Genius Group, expressed confidence in the company's direction and its AI education and acceleration model, which includes the Genius Cities platform and AI avatars. Hamilton anticipates that the detailed financial results, expected to be released following the completion of the auditor's review, will further demonstrate the company's progress and its leadership in AI-powered training for the future of work.
The financial results also reflect the inclusion of the Fatbrain AI transaction following a settlement commitment signed by all parties involved. The company serves a user base of 5.4 million across over 100 countries, offering a range of AI training, tools, and talent through its digital marketplace.
Adjusted EBITDA, a non-IFRS financial measure, has been presented to provide an additional tool for understanding the company's financial performance, excluding certain non-operational expenses for better period-to-period comparisons.
This update is based on a press release statement and contains forward-looking statements that are subject to risks and uncertainties. The company has advised that these preliminary results should not be relied upon as an indication of future performance.
In other recent news, Genius Group Limited has launched a global AI education platform, GeniusGroup.AI, as part of its expansion strategy. The platform, designed to provide AI training and resources, offers a suite of AI Avatars and a global marketplace for AI avatars and agents. The company, which caters to 5.4 million users in over 100 countries, has also seen a 27% increase in revenue to $23.1 million in 2023, with a target of $105 million for 2024.
Genius Group has recently reshuffled its Board and Management team, appointing four new directors and an Interim CFO, while four directors resigned due to conflicts of interest and breaches of fiduciary and statutory duties. The company's CEO, Roger James Hamilton, acquired 500,000 ordinary shares and received approval for the purchase of up to 10 million shares, reflecting confidence in the company's trajectory.
Additionally, Genius Group successfully completed Phase 1 of a $22 million contract with the government of Kazakhstan to develop a Sovereign AI and secured approximately $3.8 million from the exercise of Series 2024-C warrants, managed by H.C. Wainwright & Co. In a strategic move, the company announced a reverse stock split at a 1-for-10 ratio and canceled its Extraordinary General Meeting after reevaluating the Proposed Share Consolidation plan. These are the recent developments for Genius Group.
InvestingPro Insights
Genius Group's recent financial results reflect a company in transition, with both promising developments and ongoing challenges. According to InvestingPro data, Genius Group's revenue for the last twelve months as of Q4 2023 stood at $23.06 million, with a robust revenue growth of 26.76% over the same period. This aligns with the company's reported 130% increase in pro forma revenue for the first half of 2024, indicating a strong upward trajectory in top-line performance.
However, the company's financial health presents a mixed picture. An InvestingPro Tip highlights that Genius Group is "quickly burning through cash," which is consistent with the reported adjusted EBITDA loss, albeit improved from the previous year. This cash burn is further emphasized by another tip noting that "short term obligations exceed liquid assets," suggesting potential liquidity concerns.
On the market front, Genius Group's stock has shown significant volatility. The company has seen a strong return of 39.77% over the last month, yet it has experienced a dramatic 85.29% decline over the past year. This volatility is captured in an InvestingPro Tip stating that the "stock generally trades with high price volatility."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Genius Group, providing a deeper understanding of the company's financial position and market performance. These insights can be particularly valuable given the company's evolving business model and focus on AI and Bitcoin education.
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