Clear Blue Technologies: A Stormy Fiscal Year but a Sunny Outlook?

Clear Blue Technologies International (TSXV:CBLU) has just reported its fiscal 2024 results, and the numbers are a wild mix of triumph and turmoil. Let’s break this down like I would on Mad Money—no fluff, just the facts and my take.

The Good: Bookings Soar, Strategic Shifts Pay Off

The company’s bookings rocketed 105% to $5.07 million, nearly doubling from $2.47 million in 2023. This isn’t just a one-off bump—these are future revenue commitments that will deliver over the next three years. Think of it like a construction company winning big contracts but not yet building the houses: the work is lined up, and the cash will come.

The recurring revenue stream, which is the lifeblood of any subscription-based or service-driven business, grew 2% to $759,261. That’s a small number in absolute terms, but in a year of massive revenue contraction (more on that later), it shows stickiness in their customer base.

The Ugly: Revenue Collapse and EBITDA Woes

Now, let’s face the elephant in the room: revenue plummeted 49% to $2.76 million. This isn’t a typo. The company’s Trailing Four Quarter (TFQ) revenue dropped from $5.4 million to $2.76 million—a 50% haircut.

What’s behind this? Partly delayed R&D grants and a shift in delivery timelines for those booked contracts. But here’s the kicker: Q3 2024 revenue collapsed 84% to $369,297, a disastrous quarter that screamed “cash flow crisis.”

The Non-IFRS Adjusted EBITDA loss widened 51% to $2.96 million, thanks to lower revenue and write-downs of intangible assets. Ouch.

The Fight Back: Cost Cuts and Debt Restructuring

Clear Blue didn’t just sit there. They slashed costs with a vengeance:
- Workforce reductions and executive pay cuts saved $3 million annually.
- A move to open-source cloud platforms cut IT expenses further.
- Debt restructuring reduced interest payments by $1 million.

These moves bought them time. Cash stayed stable at $340,000 through early 2025, and they’re expecting $1.3 million from a government grant by mid-2025.

2025: The Year of Redemption?

The company enters 2025 with $5.87 million in bookings—a 138% surge over 2024. Three major contracts alone could be the difference between survival and collapse. Management is now laser-focused on converting these bookings into revenue.

CEO Miriam Tuerk says the goal is positive EBITDA in 2025, driven by:
- A robust sales pipeline across five products.
- Partnerships in high-growth regions like Africa (e.g., Nigeria, South Sudan).
- A shift to “Road to Zero Diesel” R&D, aligning with global green energy trends.

The Risks: A High-Wire Act

This is a “all-in-or-out” story. The company’s survival hinges on:
1. Delivering on those bookings without further delays.
2. Securing government grants that are notoriously slow-moving.
3. Avoiding geopolitical disruptions (e.g., conflicts in Africa).

If these bookings don’t materialize, the company’s cash runway—already tight—could crumble.

Verdict: A High-Risk, High-Reward Gamble

Clear Blue is like a boxer in the 12th round: down but not out. The 105% booking surge and $3 million in cost savings give me hope, but the revenue freefall and EBITDA hole are terrifying.

Investors should ask themselves: Are you buying into future growth or a near-term cash crunch? For me, this is a speculative play—only for those with a high risk tolerance and a long-term view. If they nail 2025’s bookings, this could be the next Tesla (TSLA) of off-grid energy. But one misstep, and it’s WeWork (WE) territory.

Final Take

Buy if:
- You believe in their Smart Off-Grid technology and the global push to green energy.
- You’re willing to stomach volatility and delayed revenue.

Avoid if:
- You need stability or near-term profits.
- You can’t handle the risk of another cash crunch.

The stock’s performance over the past year (see chart above) shows investor skepticism, but a $1.3 million grant and $5.8 million in bookings could flip sentiment. Keep an eye on their May 1 earnings call—it could be the moment the sun finally breaks through the clouds.

Cramer’s Bottom Line: Clear Blue is a gamble, but the upside is massive. Proceed with caution, and only if you’re ready to ride the storm.