RDE, Inc. Reports $21.5 Million Revenue, Highlighted by 12% Increase in Gross Profit for the First Quarter Ended March 31, 2024

Gross Margins Increased 300 Basis Points to 15.1%
Cash Balance of $5.4 Million

SCHAUMBURG, IL, May 16, 2024 (GLOBE NEWSWIRE) -- May 16, 2024: RDE, Inc. (OTCQB: RSTN) (the “Company”), the owner and operator of leading digital platforms, Restaurant.com and CardCash.com, with a focus on incentives and rewards in retail, dining & entertainment experiences, is pleased to announce its financial and operational results for the first quarter ended March 31, 2024.

Key Financial Highlights for the Three Months Ended March 31, 2024 Compared to Prior Year Period

• Revenue of $21.5 million
• Gross profit of $3.3 million
• Gross margin increased 300 basis points to 15.1%
• Net loss of $3.2 million (Of note, net loss for the three months ended March 31, 2024 included $2.5 million in non-cash and one-time expenses, including $1.1 million in stock option and other non-cash compensation, $0.6 million in amortization of intangible assets, $0.2 million in interest expense, $0.4 million in amortization of capitalized software costs and $0.2 million in fair value of common stock issued for services)
• Modified EBITDA loss of $0.7 million
• Cash balance of $5.4 million
• Total assets of $39.1 million
• Shareholders’ equity of $25.1 million

Key Recent Business Highlights

• CardCash.com surpasses 1,100 retailers in their network, including major brands like Target, Home Depot, Starbucks, and TJ Maxx
• Restaurant.com launched an all-new mobile app for the iOS system designed to elevate the dining experience for users and provide seamless access to their Restaurant Deals

Modified EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading “Non-GAAP Financial Measures and Key Metrics” and the reconciliations at the end of this release for additional information concerning this and other non-GAAP financial measures.

Management Commentary

Ketan Thakker, Chief Executive Officer of RDE, Inc., commented, “We are very pleased with our initial three months owning CardCash.com and the increased efficiencies we have already realized, which is evident with our increased gross profit and improved gross margins. Backing out the non-cash and one-time expenses, which were mostly from the CardCash.com acquisition, we operated at near breakeven.”

Thakker, continued, “The combination with CardCash.com is transformational and we look forward to the cross-selling marketing opportunities and new growth prospects to drive our expected increase in revenue over the remainder of 2024 and into 2025. Our strong balance sheet, led by $5.4 million in cash, puts us in a strong position to be able to execute on continued growth and profitability.”