Mr. James Matthews reports

ARMADA RELEASES Q2 2024 RESULTS

Armada Data Corp.'s interim financial results for the quarter ended Nov. 30, 2023, have now been filed on SEDAR+ and are available to view on SEDAR+ and the company's website.

The company's total revenue increased 4 per cent in the period ended Nov. 30, 2023, to $559,649 from $539,093 in the same period a year earlier. Comprehensive income increased to $8,054 in this quarter, from comprehensive loss of $(111,399) as at Nov. 30, 2022.

The company reported comprehensive income of $8,054, due to the following:

• During 2022, 2023 and continuing into 2024, the supply of new vehicles for sale at automobile dealerships in Canada continues to be constrained. The continuing lack of supply is affecting buyer interest and activity. The impact of lower-than-usual inventory is pricing at or above full retail list price, or manufacturer's suggested retail price. Many consumers are choosing to withdraw from the market, which results in reducing overall traffic and new user activity on the CarCostCanada website. The lower traffic levels also impairs third party advertising revenues.
• Management continued to reduce expenses, mainly in advertising and payroll.

Operations

The insurance services division realized a decrease in revenue in the three months ended Nov. 30, 2023, from $363,128 in 2022 to $361,575 in 2023. This decrease was a result of fewer claims processed -- natural disasters and weather events contribute to an increase in claims, and there were no occurrences of these during this period.

The CarCostCanada division (combining the former retail, dealer and advertising divisions) revenue was up 9 per cent to $111,068 for the period ended Nov. 30, 2023, from $101,656 for the period ended Nov. 30, 2022. Once new vehicle production and dealership inventories return to pre-COVID levels, management expects this division's revenues to continue to increase. Also, management is working on new revenue-producing products for this division.

The information technology division revenue increased 17 per cent to $87,006 in Q2 2024, from $74,309 in Q2 2023. IT continues to offer technical support and website hosting to customers and is developing new customer relationships on a regular basis, as well as offering new services for sale.

Wages and other office expenses in this second quarter of fiscal 2024 before amortization and interest decreased to $537,211, compared with $627,671, a 14-per-cent decrease over the same quarter last year.

Accounts receivable increased 52 per cent to $400,770 as at Nov. 30, 2023, compared with $264,205 as at Nov. 30, 2022. Related parties accounts receivable decreased from $13,178 to $124 in the same periods.

Accounts payable and accrued liabilities increased 92 per cent to $267,437 as at Nov. 30, 2023, from $139,074 a year earlier. Related parties accounts payable increased to $35,428 as at Nov. 30, 2023, from $21,916 a year earlier.

The company's deficit as at Nov. 30, 2023 is $(1,832,261), compared with $(1,536,596) the prior year. Earnings per share at Nov. 30, 2023, are nil versus nil per share at Nov. 30, 2022.

Segmented quarterly information

The chief executive officer measures performance by segment based on revenues. Tevenues recognized from third party customers, by segment, are presented herein. No internal revenue is included for the IT services segment.

About Armada Data Corp.

Armada Data is a Canadian publicly traded information and marketing services company providing accurate and real-time data to institutional and retail customers, through developing, owning and operating automotive pricing-related websites and providing information technology and marketing services to its clients.