D-BOX Technologies Fourth Quarter Caps Record Year for Revenue and Net Profit

Haptics leader is focused on accelerating profitable growth


(Compared to Q4 fiscal 2023)

Total revenues of $10.1 million contributed to full year record highs for rights for use, rental and maintenance revenue, system sales revenue, and total revenues

31 net new screens installed, bringing the total number of active D-BOX cinema screens to 929 as at March 31, 2024

Adjusted EBITDA decreased slightly from $648 thousand to $619 thousand

Net profit of $620 thousand contributed to record net profit of $1.1 million for the fiscal year

“Fiscal 2024 was our best year ever, with record highs for rights for use, rental and maintenance revenue, system sales revenue, total revenues, and net profit,” said Sébastien Mailhot, President and Chief Executive Officer of D-BOX. “We attribute this success to our decision to focus primarily on commercial markets, particularly the theatrical, simulation and training, and sim racing segments. In fact, most of our record revenues and profitability in fiscal 2024 came from these three key market segments. For the fourth quarter, our revenues and profitability rebounded strongly following a softer third quarter a few months ago. However, our system sales, total revenues and adjusted EBITDA were down compared to the very strong fourth quarter we had the prior year.”

“Even though we are proud of our strong and growing financial results in both fiscal 2023 and fiscal 2024, we are looking to accelerate profitable growth as we have reached a pivotal point on revenue growth conversion to higher profitability. We are now more focused on fewer markets where we see more market readiness, and on building a more dominant position in those markets to materialize strategic value accordingly. And while the Hollywood guild strikes ended last year, some lingering effects are expected to persist in calendar 2024 as the industry undergoes a transition-year ahead of an expected rebound, pointing to a potentially softer H1 in fiscal 2025 for D-BOX.”


Fourth quarter revenues decreased 2% to $10.2 million compared to the same period in the previous year, due to a 5% decrease in overall system sales, attributable to lower system sales in the simulation and training market.

Systems sales for the entertainment market increased 4% to $6.4 million driven by a $1.9 million increase in system sales to theatrical customers. There were 31 net new screen installations in the quarter, bringing the total number of active D-BOX screens to 929 at quarter end. The increase in system sales among theatrical customers was offset by decreases among sim racing customers ($0.5 million) and other entertainment market customers ($1.2 million).

Rights for use, rental and maintenance revenues increased 10% to $2.1 million with strong performances from highly anticipated films like Dune II and Kung Fu Panda 4 during the month of March.

Gross profit excluding amortization decreased to $5.0 million from $5.2 million for the same period in the previous year. Gross margin excluding amortization decreased to 49% from 50% due to a higher proportion (market mix) of system sales to theatrical customers. Generally, system sales to theatrical customers have a slightly lower margin due to rights for use, rental, and maintenance revenues in subsequent periods.

Operating expenses excluding selling and marketing expenses decreased 3% to $10.2 million, representing 45% of total revenues. Selling and marketing expenses decreased 5% to $1.7 million; administration expenses were down 3% to $1.8 million; and research and development expenses were essentially flat at $1.1 million.

Net profit was $620 thousand compared to a loss of $115 thousand a year earlier. Adjusted EBITDA was $619 thousand, down from $648 thousand a year ago.

At quarter-end, D-BOX had a cash position and undrawn credit facilities totaling $8.4 million.


The financial information relating to the fourth quarter and fiscal year ended March 31, 2024, should be read in conjunction with the Corporation’s audited consolidated financial statements and the Management’s Discussion and Analysis dated May 30, 2024. These documents are available at www.sedarplus.ca.


D-BOX uses three non-IFRS financial performance measures in its MD&A and other communications. The non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to similarly titled measures reported by other companies. Investors are cautioned that the disclosure of these metrics is meant to add to, and not to replace, the discussion of financial results determined in accordance with IFRS. Management uses both IFRS and non-IFRS measures when planning, monitoring and evaluating the Corporation’s performance. The non-IFRS performance measures are described as follows:

1) EBITDA represents earnings before interest and financing, income taxes and depreciation and amortization. Adjustments to EBITDA are for items that are not necessarily reflective of the Corporation’s underlying operating performance. As there is no generally accepted method of calculating EBITDA, this measure is not necessarily comparable to similarly titled measures reported by other issuers. Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows from operations. The following table reconciles adjusted EBITDA to profit (loss):


2) During fiscal 2024, D-BOX sold an investment, recorded in other assets, for gross proceeds of $500, resulted in a realized gain on sale of investment of $478.


D-BOX creates and redefines realistic, immersive entertainment experiences by moving the body and sparking the imagination through effects: motion, vibration and texture. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it’s movies, video games, music, relaxation, virtual reality applications, metaverse experience, themed entertainment or professional simulation, D-BOX creates a feeling of presence that makes life resonate like never before. D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit D BOX.com.

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