Thank you everyone for joining us. My name is Vivitar Sangha, Investor Relations, and I will be the operator for today's call. Welcome to Tribe Property Technologies Fiscal Second Quarter 2024 Financial Results Conference Call. Thank you all for joining us today. This call is being recorded. We will be having a question and answer session at the end of the call, which will be limited to analysts only. On our call today, we have Tribe's CEO, Joseph Nakhla,
and the company's President and CFO, Angelo Bartolini. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion and analysis from SEDAR+.ca. Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws.
These statements are made under the safe harbor provisions of those laws. Forward-looking statements that are based on management's current views and assumptions. Please review our press release and Tribe's reports filed on SEDAR+ for various risk factors that could cause actual results to differ materially from our projections. We use terms such as gross profit, gross margin, adjusted EBITDA, and MRR on this conference call, which are non-IFRS and non-GAAP measures.
For more information on how we define these terms, please refer to the definition set in our management's discussion and analysis. In addition, reconciliations between any adjusted EBITDA and net income is included in the press release this morning.
The company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations, which this company can use to fund working capital requirements, service, future interest, and principal debt repayments, and fund future growth initiatives. Adjusted EBITDA should not be construed as an alternative to net income loss determined in accordance with IFRS. Please note that all financial information is provided in Canadian dollars, unless otherwise noted. With that, I will turn the call over to Tribe CEO, Joseph Nakhla. Joseph, you're muted currently. Thank you.
Apologies. Good morning and afternoon, everyone. Thank you for taking time out of your very busy and hopefully sunny summer to join us. We're quite pleased with the results of this quarter. We essentially obviously due to the great acquisition of DMSI, we've also and our organic growth, we're able to hit a record revenue of CAD 6.16 in Q2. That's increased by approximately 28%.
Anybody that's been listening to us will know we've been speaking quite aggressively about our drive to profitability now that we've built a national footprint and feel really, really good about our presence as one of the largest property management companies in residential living right across with the amount of data we've been able to accumulate and starting to put to work for our profitability,
s o we had a 47% year-over-year improvement in EBITDA, and we continue to drive hard towards cash flow generation in 2025. The successful acquisition of DMSI obviously is one that we've been working on for a long time. It's a fantastic company with great operators.
It gives a significant amount of muscle in the institutional rental space, especially in the GTA market. I'll be speaking a little bit more about that later, but what it really has helped us do, in addition to the organic growth, is get us a run rate of over CAD 31 million. The overwhelming majority of that is recurring, steady business or monthly revenue. And obviously, through the quarter, we've been busy. We completed a private placement, equity financing. We raised approximately CAD 3.66 million. We also did a LIFE financing offering at the exact same terms, and we raised an additional CAD 2.51 million.
That was really mainly done to bolster our position, but also to help us get over the line of DMSI transaction. A big shout-out and thank you from a support point of view to our shareholders, mainly driven in both transactions by Propeller Growth Fund out of Toronto, who's obviously been with us for the last couple of years and very involved in our operations as well. In addition to a number of our existing shareholders and the operators of DMSI also participated in these financings, in addition to a number of our executive management team, including yours truly.
The outlook looks really strong for the remainder of 2024 between organic, again, business that we've already either secured, signed, or just awaiting for the completion of these communities, so we can actually start recognizing some of that revenue, and we, as we have spoken in the last quarter, we are on track to achieving positive Adjusted EBITDA by the end of 2024, and 2025 is gonna be the year where we're gonna start generating cash as, as again, anybody who's been listening to us, will know now that we've built the infrastructure, the national infrastructure, to support the growth that we've got on the docket. With that being said, I'll hand it over to our CFO, Angelo.
Thank you, Joseph. Since joining Tribe, I've been captivated by the immense potential within this business and the exciting trajectory it has in transforming the property management industry. Despite the market challenges, Tribe once again delivered a strong financial performance in Q2 of 2024, as follows: Tribe achieved record revenue of CAD 6.2 million, an increase of 28% compared to CAD 4.8 million last year.
Revenue growth was positively impacted by organic growth and the recent acquisition of both DMSI and Meritus in Ontario. Gross profit for the second quarter was a record CAD 2.3 million, compared to CAD 1.6 million last year, representing an increase of 50%. Gross profit percentage improvement was primarily accomplished by the increase in revenue and execution of strategic integration and efficiency projects, resulting in cost reductions.
Gross margin percentage was 41.5%, compared to 38.9% last year. Gross margin percentage improvement, 260 basis points, significantly impacted by our efficiency efforts. Adjusted EBITDA for the second quarter of 2024 was an outflow of CAD 1.2 million, an improvement of 47% compared to an outflow of CAD 2.2 million in the second quarter of last year.
We are very proud of having achieved this 47% improvement in our adjusted EBITDA. Our efficiency measures are having an impact, as well as the strategic acquisition as DMS. So revenue growth. Here we have a graphical representation of Tribe's revenue growth. Annual revenue growth is shown on the graph on the left, and quarterly revenue growth is shown on the graph on the right. For the first six months of 2024, Tribe has achieved revenue of CAD 11.5 million, compared to CAD 9.5 million in the first six months of 2023, an increase of 21%, 21.3% to be precise, year over year. We are on track to achieve record revenue in 2024 and expect to surpass last year's total of CAD 19.4 million.
In the quarterly revenue graph, we can see that our revenue growth has been accelerating over the last three quarters, primarily driven by Meritus, the DMSI acquisition, as well as our financial service revenues. The company continues to win contracts from its competitors, underscoring the strength of Tribe's market position. This success is driven by the strength of our franchise, characterized by superior service, better-managed buildings, and our proprietary technology, which provides a distinctive competitive advantage.
Our well-recognized and trusted property management franchise has consistently proven to be a winning strategy, exemplified by our growing presence in the Greater Toronto area, which has unlocked new opportunities. On revenue segmentation. As a reminder, our revenue is segmented as follows: We have recurring revenue, which is comprised of our tech-elevated service fees, strata, condo, rental, and commercial management fees.
We also refer to this as our MRR, or very sticky recurring revenue. Recurring revenue accounted for 80% of our total revenue in Q2 2024. Of our total revenue, CAD 4.9 million was recurring in Q2 2024, an increase of 17% as compared to CAD 4.2 million last year. We have transactional fees, partnerships, and digital services, whereby we generate revenues in person, in-app purchase, and from licensing of our proprietary software to real estate developers.
This year, we are focusing on, quite a bit on our banking services and financial transactions. Transactional revenue was CAD 1.1 million this year, compared to CAD 507,000 in Q2 of last year, an increase of 119% year over year. Our path to profitability. This graph shows our improvement in adjusted EBITDA over the past eight quarters.
This year, we have been fully dedicated to improving profitability by optimizing efficiencies within our operations, leading to significant expense savings. Tribe's commitment to achieving profitability is unwavering, as strategic steps are being taken every day to position the company for sustainable financial success.
We have implemented strategies which include employee process improvements, cost optimizations, and consolidation of back-office systems, allowing us to be much more efficient with our headcount. We are confident about the company's growth prospects and continue to be committed to improving our profitability while increasing revenues and strengthening our market leadership position. The outstanding progress we've made in the first half of the year underscores our unwavering commitment to delivering value to our shareholders.
During the quarter, Tribe completed a private placement equity financing for gross proceeds of CAD 3.66 million and a LIFE financing for gross proceeds of CAD 2.51 million, both of which allowed the company to solidify its balance sheet and complete the DMSI acquisition. Our target is to reach Adjusted EBITDA positive by the end of this year. Overall, Tribe is in good financial position with improving cash flows. That concludes my update, and I'll now turn it over back to you, Joseph.
Thank you, Angelo. It's been a really strong quarter. Just to reorient everyone that is watching our company, we manage homes on our platform, and we generate recurring revenue. The revenue that we generate tends to be per customer, and a customer for us often is a full building that we manage, where we are, in the case of condos, contracted directly with the condo corporation or strata,
as we call it out west. In the case of our rental communities, we manage those, and we tend to be doing that with the landlord, which happens to often be either a REIT or an institutional asset management group that has a number of rental buildings that are also being managed through our services.
So, revenue on the left-hand side, as you look at it per community. We call these buildings communities because they can sometimes be multiple phases as well within a neighborhood. You'll see here a continuous growth revenue per customer, or per community, as you'll see, which is when you take it out and actually start unpacking it as it pertains to your revenue, your monthly recurring revenue per home, and we have two big buckets of revenue per home. One bucket is our recurring, sticky contractual business.
And then the second part of it is due to the fact that we have a lot of data about every home and the building and the community, we actually have the ability to put in front of them products and services, whether it's for the councils, whether it's condo corporation, whether it's for the landlord, or whether it's for the tenant and/or the homeowner, that leverages our group buying power, and we can actually transact with them, for multiple services. And you'll see, these are key metrics that we look at. You'll see a massive improvement in our revenue per customer. That's driven mainly due to a couple reasons.
One is we continue to create efficiencies and identify higher revenue opportunities whereby we can actually and essentially combine our services into a community and generate more revenue per customer. And in some cases, that requires us to actually take a smaller community that may not be generating as much margin for us and actually placing them elsewhere in terms of a competitor and actually somebody that's actually better suited for their size.
And in the case here, you'll see also additional revenue streams that are occurring. So quarter over quarter, great growth in terms of our revenue. Per home, we're up to CAD 39, and you also see a massive improvement in our transaction revenue. And again, that is the big opportunity that we have.
As we continue to increase the number of homes that we service and the amount of data that we accumulate about every single one of those homes, we're able to put really interesting products and services that save the community money.
The financial services project that we've been referring to, that's been driving a lot of our margin growth this year, is a function of that, whereby the communities that we manage are actually doing better. They're actually generating more money on their CRFs, which is their contingency funds. They're spending less money on their operating accounts with the banks. Due to our size, we'll be able to negotiate that and actually generate further revenue from that.
So you'll see our total average revenue per home has increased significantly, and you'll see us continue to push on that side of the business. We spoke quite a bit about DMSI or DMS, the company that we acquired in the last quarter. For anybody that's had a conversation with me knows that this is. We felt that it was a great asset that to be kind of amalgamated within our service delivery.
This amalgamation, essentially, and the acquisition of DMSI, not only does it give us massive scale and allows us to be at a run rate of CAD 31 million coming out of this quarter, but annual revenue, but also it really gives us the size and scale.
It puts us closer to ninety, an additional nineteen thousand units of rental in Canada, which makes us pretty large, depending on the publication. It could be definitely top three or four, but it could be as high as top second to be second and top two in the country. We've done some rebranding, some soft rebranding, for the divisions that operate under DMSI. We really like the brand. We like what they've done in terms of historical effect in the market, especially in the Ontario market. We're starting to work on not only the integration, but also the cross-selling opportunities.
So just so everybody can get oriented a little bit more, the operators in the divisions within DMSI are really very strong in the GTA market, but there's actually. They've built a significant amount of services that we think can the rest of the country and the rest of even our population that we manage elsewhere outside of the GTA market can benefit from.
So we're starting to actually cross-sell right across our services. They could also be working, or they are working with developers. They also have condo projects where historically, DMS does not offer any condo services. And we've got, obviously, a massive number of products that we can actually put in front of those developers.
So this process of cross-selling is actually undergoing, and we put a recent update to kind of speak about how that, a little more meat on the bones around how that integration has been going. And then there's a division within DMS. It's a part of the acquisition that really focuses on project management services. It's really best way to think about it,
is it's data-driven way of looking forward to health of a community or health of a building and actually projecting, using the data, what you anticipate will be needed as capital expenditure projects for a rental community. This is the facelift that it requires. So the projects, this is the mean time to failure for some of the assets within the building.
Using that data allows landlords, in our case, now that we're going to bring that product into our condos, allows us condo owners to really have a good plan for a healthy community that, in terms of operation, that we used to outsource that product and service. I'm talking prior to the acquisition, but now that we have that within our midst, we're going to make that a part of our toolbox that we put in front of all of our customers and future customers as well...
Reiterating again the differentiator and why our tech stack really plays a major role in how the health of these communities, as we now that we're halfway through the year, in terms of at least this reporting, we've been able to get further data about the improvement, how our communities, the buildings that we manage, are doing compared to the population, and there's literally tens of line items per budget,
per community, where we can actually point to improvements in how our communities actually fare compared to the population. But these are just really simple four examples, and we're contemplating how we actually publish more and more of these examples to the Street, to let customers that don't use us know what the value is when they come to us.
But you'll see here, our buildings essentially cost less to insure just simply because the amount of data allows for better management, for less incidents. And when an incident does occur, because of the technology and because of the communication platform and the processes we have, we're really much better equipped to be able to recover and actually not limit the damage. And that's a massive advantage for our customers.
Administration per sq ft, that's pretty self-explanatory, due to the fact that we have a significant amount of digital platform that accumulates a lot of the communication and allows for us to lower the admin cost per sq ft. Less mail outs, less packages getting sent out, less, you know, communication back and forth.
In the case of, you know, higher-end buildings that may have concierge, you don't need them for as long of a shift due to the fact that there's quite a bit of automation. In there, you also see data around our energy per sq ft. That tends to be a function of our ability to put education on how best practices are around the buildings that we manage.
And I spoke earlier about the financial and the revenue from reserve funds. That's actually a much bigger service offering that we have, because we also lower the operating, the banking operations cost associated with each one of our communities compared to our peers in the market.
You'll keep an eye on us kind of coming up to the street with a little bit more light onto why our buildings are much better managed. Just to remind everybody what our goals were for 2024 and how we're actually tracking against them.
You'll see increased monthly recurring revenue. That's been obviously a big goal from the sales and the conversion team on our side, and obviously, that's been achieved through some of the acquisitions as well. I'm very pleased to also speak to our work at the GTA market through the Meritus acquisition. Quite a bit of opportunities to cross-sell into that market, and we're starting to see the results of that.
We wanted to obviously make acquisitions that improve our and add to incremental EBITDA, and we've been able to do that with DMSI, a very healthy operation there. That's not only great as it stands, but it continue to grow with the footprint, the national footprint that we have. Improve profitability by driving efficiencies of the business. Just to be very specific to that, you know, over the years, we've either acquired 12, 13 acquisitions of portfolios, operating businesses, a full share purchase agreement, or in some cases, just the pure business itself.
And each one of those, think of them as, as community or building, is actually operating in its own way, and us bringing them all in, integrating them, putting them all in one back office, standardizing the way we push out their either financials or communications or processes. So it was an undertaking that we started working on in Q4 last year, and we're starting to see the benefit of that.
That's really... When we speak about efficiencies and improving profitability towards that, it's really a function of us bringing all of our services under one platform, one communication tool, and that's been a big driver for our improved efficiencies this year. And obviously continuing to innovate.
We did quite a bit in terms of building features within our platform, expanded our platform ability to support bigger portfolio of buildings. Big area of focus for us moving forward now is, as a lot of our cities in Canada and provinces in Canada are waking up to, how can we make these communities more efficient? A lot more projects and programs are coming into the market about improving, you know, management systems, improving the way communities offer things like EVs and solutions around that. We've got a couple of products that we're taking to the market shortly that will play a major role in helping our communities stay on the right side of the law, being compliant for some of these initiatives.
Also identifying biggest offenders, essentially, of line items on their budgets, so we can actually go and help them with smart building technology that can make a difference. Everything I just referenced is monetizable for us.
Again, we continue to grow our footprint, manage more communities, accumulate more data, and just keep driving into the bottom line by bringing in more products and services that generate more revenue for us. From an outlook for 2024 and 2025, very healthy pipeline on the organic growth side. We have a really strong pipeline for bringing in more buildings on our platform and to start running through our MRR model.
We're on track, obviously, as we spoke, Angelo and I, previously about. We're on track to achieve our positive EBITDA by the end of 2024. 2025 is the year we start generating cash. That's pretty evident in our communication and our plans. We have. I spoke about the robust opportunities there, but we also have some interesting stuff on the M&A front that we're looking at,
and we continue to evaluate. Our national footprint really just opens up more doors for us in these markets. You know, a lot of talk about business downturn and what's occurring there, and I don't need to educate anybody here about what's happening in the market or interest rates.
Interest rates going up obviously played a role in some of the projects that the developers are building in terms of their completion dates. It hasn't really affected us materially, but we've seen it a little bit more, I would argue, in Ontario than BC, and that could be a function of the way construction loans operate in these two markets. Slightly different.
I won't bore you too much with the details, but it's a little bit more incentive here for BC to close and complete than in Ontario. We're not really seeing anything there. Our what we call transition, which is business, which is essentially the existing buildings, those ones that you drive by every day, that are being managed by other competitors of ours.
Those buildings coming to us due to the fact that our service delivery platform and data shows that the buildings that we manage are in much healthier shape. We're seeing more and more of that activation, so that's coming our way and it gives us big market share. And then, finally, you know, all we're seeing really on this conversation being had, significant conversations being had about increasing rental inventory. We're still very, very short on housing, period. There's a lot of conversation that can be had about why and how we can fix it. However, we are seeing significant amount of movement towards rental.
We're seeing a lot of developers even contemplating converting some of their projects that were traditionally gonna be condos, into legacy rental, whereby they can, weather the storm and survive essentially by having cash flowing buildings that maybe in three, five years they can convert back to condos. So we're seeing that dynamic, and puts us in a really good place, especially with the DMSI acquisition, to be able to be at the table and give either insight and/or services to these communities that are being built. That's it for me. I'm happy to take any questions.
Thank you. And with that, we'll now open up all the questions. Just a reminder that questions will be limited to analysts only. The first question is from Kiran Sridharan of Eight Capital. Please go ahead.
Hey, morning, guys. Thanks for taking my questions here. So maybe just start, I'll start with slide eight, I believe it was, where MRR for community stepped up quite significantly sequentially. Is that the impact from DMSI or because you're seeing results from, you know, when you right-size your own portfolio, or maybe there's other dynamics to be aware of? Just some color there would be helpful.
Yeah, DMSI has certainly helped with that. We didn't even see the full impact of DMSI revenue per door in this quarter because we didn't even get a full three months there. But yes, that has been the impact there. However, organically, on our own, our MRR per home has also increased. And it's funny because to your point, Kiran, we contemplated showing it without,
you know, without DMSI, without also because another contribution has been positive because we grew our GTA market on the Meritus platform, and then we also contemplate showing it. So but it would just been too much for everybody to contemplate or process.
But yes, the quick answer is DMSI has played a role, but we've also been successful in increasing our revenue per door. Now, the transactional revenue piece is actually 100% driven through our organic business and the services offering that we have. So actually, we have not had any benefit of adding our transactional business onto the DMSI platform yet.
Well, that's good to hear, Joseph. Very good color. And maybe I can then jump to... It's good to see the profitability being recreated by the end of the year and some of the cash generation in sight as well. Can we maybe talk more broadly in terms of the forward-looking efficiencies that are yet to be unlocked? Any areas of savings or investments that should help you get through there?
Yeah, for sure. So a couple of thoughts. Just one is, the undertaking of bringing one back office financial package service delivery to all of our buildings across the country, across our nine offices. I cannot begin to tell you how big of a project or initiative that is. But more importantly, we've yet to see the full impact of that.
As you're seeing improvement, it's bits and pieces of us kind of amalgamating the different processes. We think it's gonna take the whole year, essentially, to complete that, you know, project to get us to the other side of the water. So there will be further improvements there. What the outcome of that, that's massive in terms of opportunities, is then you get data sets that you can compare right across your population.
Right now, there's some low-hanging fruit. We can see it. We can see big offenders, big line items in different communities, and we have products and solutions there. But once we actually accumulate all that data sets and run it right across all of our population, we'll be able to identify really further products and services, mainly smart, built-in technology, mainly energy management, that kind of align directly with government changes in terms of what their asks are of these communities. So let me just pause and kind of shed a little bit of light on that, just to give you a real-life example.
There is an initiative that just been mandated, it's I wanna say weeks old in BC, whereby they would like the government would like to see every single building, mostly started with commercial, now it's worked its way to into residential, to be able to give a report directly on how it's doing in terms of efficiency compared to the population.
So what happens is, most buildings are not gonna be doing very well. This is the truth, and they don't have enough capacity for even growth. So we are very well equipped, because we have all that data running. We're running those reports for these communities. These are monetizable items.
But more importantly, what are you gonna do once you've identified that your building doesn't have enough capacity to support the fact that twenty out of the two hundred people that live in the building just purchased electric cars?
Y ou need more capacity, so you gotta go through that process. We also have the mechanics that allows you to actually manage that capacity, even if you've improved the capacity, manage it while people are charging their cars and, you know, living day to day. Well, we've got products and partnerships that actually can solve these problems, that are all monetizable, that actually lower, a, qualify for government grants that actually pay for the equipment that's coming in, but actually lower your operating costs. So you'll see more and more of that.
But once you put all of your buildings, and you, with a click of a button, you can actually identify all their financial woes or successes, then you can actually start deploying more and more products there. And that will be a theme in 2025 that you'll see us doing more of.
Thanks, Joseph. That's pretty good direction. And then finally, for my last one here, I wanted to touch on the M&A pipeline and what you're seeing in that barrel. You know, with pretty meaningful exposure now to the rental market through DMSI's portfolio, like, does that change the type of targets, you guys are evaluating? And I'll leave it there. Thanks.
Yeah, it does a little, simply because we really, really believe in the competency and the ability of DMSI's leadership. The operators and the team there are a fantastic group of executives that have done an amazing job in that market and kind of hungry to work with us on the rest of the market. So we're gonna be selective and may accelerate some assets that we really like,
because we feel comfortable that great leadership is gonna be able to help us integrate these assets. And in some cases, it may disqualify some assets that we're looking at because, you know, we may be able to act a little bit quicker in that market without making an acquisition. So there is bits and pieces of that. On the condo side, we're open for business.
We like the condo space. We think there's a lot of opportunities to continue to generate revenue and add more products and service to many of these communities that are not well managed. So we'll continue to grow organically, and we'll keep an eye on that. And 2025 will also be a ripe year to start looking in the U.S. The U.S. is, for those that are not aware, I would argue, significantly behind us in terms of our condo management, not only solutions, but even processes, even government regulations. So they're catching up, but that will open up opportunities for us in the market as well.
Thanks for taking my question, too.
Thank you.
The next question comes from Andre Botto of Stifel. Please go ahead.
Hi, Joe and Angelo. It's Andre stepping in for Suthan here. Congrats on the quarter. So a few questions from me. So it looks like your margins are on track for positive cash flow next year. Maybe you could comment on the outlook and the progression of how that unfolds over the next quarters? Maybe any updates on timing there?
I'll take that one. What you're gonna find is that we'll have steady progression throughout each of the quarters. You know, you've seen already, sort of early days, a little bit of improvement, quarter over quarter, and you'll start to see some much more significant improvements, both as, you know, we get, a full integration of, DMSI, and as we continue to leverage from some of the efficiencies that
Joseph alluded to earlier on the call. So those synergies are gonna continue to grow quarter after quarter. Our plan, as we stated is, you know, is to exit the year on an EBITDA-positive basis, and, and, soon in twenty twenty-five, is to start generating positive cash flows. So, it will be a steady progression.
And as you know, as we also continue to get some of the top-line synergies, 'cause there's a lot of opportunities with, you know, with the, with our acquisitions, Meritus and with DMSI, both in Ontario, taking some of the products and competencies that we have, bringing them to Ontario, and then vice versa, taking some of theirs and bringing, you know, bringing them west. And there are some real significant benefits there that will drop to the bottom line.
... So we're pretty bullish on seeing those opportunities materialize throughout 2025.
Great. Great, thank you, and so last year, you guys disclosed some KPIs, such as new agreements signed, communities onboarded. Do you have any updates here, or are there any new KPIs you'll be looking to disclose going forward?
Yeah. We had a great quarter, significant amount of. I think we've decided to kind of limit that to annual updates. Just we felt that, you know, the number of homes and the revenue per home was probably a more important metric for everybody else. Our organic growth still continues to be on track. Significant amount of transition business that's been added. We haven't decided to do that for the next quarter, but we were thinking of doing it for annually, like a more update, business update kind of report that runs right through.
There was really no specific reason other than just it seemed like a lot of data for everyone, but happy to get back on track with that once a year.
Great, thank you. And you mentioned, you know, you're seeing a strong pipeline. Maybe you could provide some more color there on new construction and any activity you're seeing there?
Yeah. So we tend to have agreements executed with... In the new construction world, very specific to condos, we tend to have agreements executed with developers, sometimes as far out as two years. Where it really gets a lot more, you know, closer to accuracy-wise. Usually, we're about six to nine months out. That's when developers get a little bit of a handle on their completion and specific outliers of products that are slowing them down, if there's any, and there often is. So twenty-four looks actually very, very good. We've got a significant amount of business that's coming through the door.
I mean, at all times, we're in the 3 to 4 million CAD ARR in our docket that we're looking at to bring over the line, and that's usually about 12 months out, and then our closing rate continues to be one out of three out east and one out of two out west. Sorry, other way around, one out of three out west and 50% out east. And the reason that's a function of out west being BC, specifically, a lot of our competitors just love the race to the bottom, and we don't compromise there. So we're often the most expensive solution.
However, as I shared data earlier, we tend to be we show that overall operation of the building is significantly lower. So you come to us because your building's gonna be managed properly, not because we're the cheapest. So that's kind of a function of what we're looking at, twenty-four, twenty-five, at all times we've got that, and that's not including additional revenue per door in transactional financial services or even the new products that we're bringing across, like project management.
Great. Great, thank you. And then for my last question, you spoke to, you continue to see, contract wins from competitors. Do you have any, recent wins that you can speak to?
Yeah. I mean, we have a lot. We don't usually shame our competitors. It's no surprise that we go head-to-head with two massive players that are in the multi-billion dollar size in terms of market cap, and we feel very strongly that, you know, our solution offering data speaks for itself in terms of what we're offering there. We're comforted that some of our competitors are leaning on their price point to compete with us versus service delivery quality, and it's not a knock, it's just the reality of where we are. We'll continue to be the driver of elevating the price service delivery of our product sets in Western Canada.
That's been a challenge, and we've been commended by multiple people in the space saying that, "You know, you guys are holding the fort in terms of adding value to the price," but we do deliver great service there. But yeah, so to give you a perspective, 21%-22% of our transition business, so transition means it's an existing building that exists and it's managed by a competitor of ours. 22% of our business came from the top two players in North America.
Okay. Thank you so much.
Thanks.
I just, I'll pass the line here. Hope you have a good summer.
Thank you so much, Andre. You, too.
There are no further questions. I will now pass the call back to Joseph Nakhla for closing remarks.
Folks, thanks so much for your interest in our company. We continue to build a great company that's national. There's not many of us around. I would say we're probably the most unique company now, officially, in Canada, that can actually deliver a significant amount of services within both the rental communities as well as the condo space.
We continue to grow. Improvement of the bottom line is an absolute focus for us, and also leveraging the amount of data that we've been able to accumulate over the last three years as we build this national footprint to drive significant dollars per door or per home. So watch us continue to grow that and watch us get to profitability.
And once we hit that particular point, there'll be an opportunity for us from a capital expenditure point of view, to do some really interesting stuff in this space as well, and we're not very far. Thank you so much for your interest, and we're, you know how to get a hold of us if you're ever interested in a one-on-one conversation, we're happy to take your call.