Guerrilla RF Reports Record Revenue for Fourth Quarter and Full Year 2023
Fourth quarter revenue rose 93.6% and Full Year Revenues Grew 30.2% year-over-year
Full Year 2024 Guidance: Revenue between
Management Expects EBITDA Break-Even Second Quarter 2024
Announced first production PO and shipment to the SATCOM market with a PO from a tier 1 SATCOM company
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Annual revenue for 2023 grew 30.2% to
Fourth Quarter and Full Year 2023 Financial Results
- Fourth quarter shipments 99.8% higher than same period in 2022, representing highest quarterly deliveries in Company’s history.
-
The Company reported
$15.1 million in revenue for FY23 hitting the upper end of management’s full year 2023 guidance of between$14.7 and$15.2 million . - Contribution margin of 70.5% for FY23, compared to 71.5% for FY22, indicating price stability as revenues grow.
- Gross profit margin for Q4 2023 was 56.8% of revenues, 100bps over Q3 2023.
-
Fourth quarter operating expense decreased
$0.8 million or 14.4% from Q3 2023, reflecting the continued impact of previously announced expense management efforts. -
Operating loss for fourth quarter 2023 was
$2.1 million , an improvement of$1.6 million , or 43.2%, as compared to an operating loss of$3.7 million for the third quarter of 2023. -
R&D expenses decreased
$0.5 million to$2.3 million from the prior quarter, reflecting the continued impact of previously announced expense management efforts. - New product revenue represented 22.1% of our product revenue in 2023 compared to 10.6% in 2022, reflecting positive results of previous R&D investments. New product revenue is for products in production less than three years.
-
Fourth quarter bookings exceeded
$5.0 million . -
Distribution channel inventory days reached lowest level in two years at 50.0 days as of
December 31, 2023 , leading management to believe the inventory overhang is behind the Company. -
Backlog (a non-GAAP measure) remained steady quarter-over-quarter, ending 2023 at
$6.0 million ;$1.5 million higher compared to$4.5 million at the end of 2022. Subsequent to year end, customer orders remained strong with backlog growing to$8.6 million onMarch 22, 2024 .
Corporate Highlights:
-
Management expects full year 2024 revenue to be between
$21.0 and$26.0 million and gross profit to be between$12.8 and$15.9 million . -
Management believes revenue for Q1 2024 will be between
$4.7 and$5.2 million . -
Completed private placement equity financing and debt conversion of approximately
$5.0 million in aggregate transaction value subsequent to the fiscal 2023 year. This capital is expected to allow the Company to reach EBITDA breakeven. -
Executed agreement with primary lender to extend loan maturity from
April 2024 toJanuary 2026 . - Continued focus on expense reduction and revenue growth is expected to enable the Company to achieve EBITDA breakeven in second quarter 2024.
- Announced initial production purchase order (PO) from a Tier 1 telecommunications provider for point-to-multipoint Wireless Infrastructure design win.
-
Announced first production PO and shipment to the SATCOM market with a PO from a tier 1 SATCOM company. The Company expects 2024 SATCOM revenues to exceed
$1.0 million and the total market opportunity to exceed$560 million . - Guerrilla RF shipped over 36 million units in 2023, with total lifetime shipments exceeding 200 million units.
Financial Tables
The following table compares condensed elements of the Company’s summarized Consolidated Statements of Operations for the three-month periods and years ended
|
||||||||
SUMMARIZED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
UNAUDITED |
Q4 2023 |
Q4 2023 |
FY 2023 |
FY 2022 |
||||
Total Revenue |
|
|
|
|
|
|||
Direct product costs |
2,029,471 |
1,059,750 |
6,473,477 |
4,835,632 |
||||
Gross Profit |
2,672,711 |
1,368,588 |
8,604,839 |
6,765,272 |
||||
Operating Expenses: |
||||||||
Research and development |
2,294,691 |
2,198,162 |
10,282,635 |
8,114,377 |
||||
Sales and marketing |
1,239,458 |
1,186,448 |
5,677,141 |
4,634,012 |
||||
General and administrative |
1,264,230 |
1,291,619 |
5,569,654 |
5,138,410 |
||||
Total Operating Expenses |
4,798,379 |
4,676,229 |
21,529,430 |
17,886,799 |
||||
Operating Loss |
(2,125,668) |
(3,307,641) |
(12,924,591) |
(11,121,527) |
||||
Interest expense |
(1,441,967) |
(443,271) |
(2,904,454) |
(874,713) |
||||
Change in fair value of derivative liabilities |
(94,800) |
- |
(142,200) |
- |
||||
Other income (expense) |
(411) |
(275) |
4,951 |
(30,526) |
||||
Total Other Expenses, net |
(1,537,178) |
(443,546) |
(3,041,703) |
(905,239) |
||||
Net Loss |
|
|
|
|
SUMMARIZED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
|||||
UNAUDITED |
||||||
Assets |
||||||
Cash |
$ |
781,318 |
$ |
4,340,407 |
||
Accounts receivable, net |
|
2,079,111 |
|
1,124,971 |
||
Inventories, net |
|
1,533,592 |
|
1,672,925 |
||
Prepaid expenses |
|
458,313 |
|
643,401 |
||
Total Current Assets |
|
4,852,334 |
|
7,781,704 |
||
Prepaid expenses and other |
|
- |
|
3,574,746 |
||
Operating lease right-of-use assets |
|
10,500,620 |
|
209,669 |
||
Property, plant, and equipment, net |
|
3,659,084 |
|
5,098,097 |
||
Total Assets |
$ |
19,012,038 |
$ |
16,664,216 |
||
Liabilities and Stockholders' Equity (Deficit) |
||||||
Accounts payable and accrued expenses |
$ |
2,099,537 |
$ |
4,426,477 |
||
Short-term debt |
|
1,628,667 |
|
959,803 |
||
Derivative liabilities |
|
158,000 |
|
- |
||
Operating lease liability, current portion |
|
745,969 |
|
139,794 |
||
Finance lease liability, current portion |
|
978,543 |
|
1,078,506 |
||
Convertible notes |
|
78,905 |
|
- |
||
Convertible notes - related parties |
|
700,189 |
|
- |
||
Notes payable, current portion, net |
|
10,948,668 |
|
- |
||
Total Current Liabilities |
|
17,338,478 |
|
6,604,580 |
||
Long-term debt |
|
698,600 |
|
44,279 |
||
Operating lease liability |
|
6,176,508 |
|
71,714 |
||
Finance lease liability |
|
1,593,979 |
|
2,984,618 |
||
Notes payable |
|
- |
|
4,604,132 |
||
Total Liabilities |
|
25,807,565 |
|
14,309,323 |
||
Common stock, |
|
|
789 |
|
|
621 |
Additional paid-in capital |
|
36,243,146 |
|
29,427,440 |
||
Accumulated deficit |
|
(43,039,462) |
|
(27,073,168) |
||
Total Stockholders' Equity (Deficit) |
|
(6,795,527) |
|
2,354,893 |
||
Total Liabilities and Stockholders' Equity (Deficit) |
$ |
19,012,038 |
$ |
16,664,216 |
About
Founded in 2013,
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of the Company and its management about future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company’s control. Actual results may differ materially from those in the forward-looking statements as a result of several factors, including those described in the Company’s filings with the
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ir@guerrilla-rf.com
+1 336 510 7840
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