Karachi: Octopus Digital Ltd. (OCTOPUS) presented its CY24 financial results at an analyst briefing today, revealing a 37.7% increase in topline revenue, despite a significant drop in earnings. The company, which operates in Pakistan and the Middle East, also outlined plans to expand into North America.

The company's revenue reached PkR1.3 billion, up from PkR0.9 billion in the same period last year. Gross margins improved to 48.3%, a rise from 40.8% in the previous year. However, earnings for the year fell to PkR205 million from PkR373 million in CY23, marking a 45% year-on-year decrease. This decline is attributed to the absence of exchange gains which were present in the previous year.

Despite the earnings setback, Octopus Digital is optimistic about its future growth. The company projects revenue for CY25 to reach PkR2.1 billion, with PkR1.75 billion expected from recurring revenue streams and PkR0.35 billion from non-recurring sources.

In terms of regional operations, Octopus Digital anticipates its AMS Middle East pipeline to be approximately US$15 million, with expected orders of around US$8 million. Meanwhile, the AMS Pakistan pipeline is projected at US$2.2 million, with anticipated orders totaling US$1.2 million.

The briefing did not include any formal coverage of the company's stock. The insights were sourced from AKD Securities Limited.