Airgain, Inc. (NASDAQ: AIRG), a leading provider of
wireless connectivity solutions that creates and delivers embedded
components, external antennas, and integrated systems across the
globe, today reported financial results for the second quarter
ended June 30, 2024.
“We are pleased to report sequential revenue growth as we
continue to effectively navigate macro-economic challenges,” said
Airgain’s President and Chief Executive Officer, Jacob Suen. “We
delivered sales of $15.2 million in the second quarter, marking a
7% increase over the prior quarter, above the midpoint of our
guidance range. The growth was driven by increased sales of
embedded antennas to MNO and MSO customers, including the delivery
of our first Wi-Fi 7 router antenna systems to a tier-one MSO
partner. We successfully completed and launched our Fixed Wireless
Access (FWA) Lantern product. As we move into the second half of
2024, we are focused on our AirgainConnect Fleet launch and
continued Lighthouse customer trials. The introduction of our 5G
connectivity products, along with the expansion of our antenna and
IoT product portfolios and design wins, strengthen our confidence
in our ability to address high-growth markets with cutting edge
innovation.”
Second Quarter 2024 Financial Highlights
GAAP
- Sales of $15.2 million
- GAAP gross margin of 40.5%
- GAAP operating expenses of $8.7 million
- GAAP net loss of $2.5 million or $(0.23) per share
Non-GAAP
- Non-GAAP gross margin of 41.5%
- Non-GAAP operating expenses of $6.9 million
- Non-GAAP net loss of $0.6 million or $(0.05) per share
- Adjusted EBITDA of $(0.4) million
Second Quarter 2024 Financial Results
Sales for the second quarter of 2024 were $15.2 million, of
which $8.6 million was generated from the enterprise market, $4.8
million from the consumer market, and $1.7 million from the
automotive market. Sales increased by 6.7%, or $1.0 million in the
second quarter of 2024 compared to $14.2 million in the first
quarter of 2024. Sequentially, consumer sales increased by $1.3
million from the first quarter of 2024 driven by higher sales to
cable, broadband and mobile network operators. Enterprise sales
decreased by $0.3 million driven by lower custom product sales,
partially offset by higher asset trackers, embedded modems,
enterprise antennas and first shipments of our Lantern fixed
wireless access (FWA) device. Automotive sales decreased $0.1
million from the first quarter of 2024 due to continued excess
inventory. Sales for the second quarter of 2024 decreased by 4.1%,
or $0.6 million from $15.8 million in the same quarter a year-ago
primarily due to lower sales of $1.4 million from the consumer
market and $0.5 million from the automotive market, partially
offset by higher sales of $1.2 million from the enterprise
market.
GAAP gross profit for the second quarter of 2024 was $6.1
million, compared to $5.6 million for the first quarter of 2024 and
$6.3 million for the same quarter a year ago. Non-GAAP gross profit
for the second quarter of 2024 was $6.3 million, compared to $5.7
million for the first quarter of 2024 and $6.4 million for the same
quarter a year ago (see note regarding "Use of Non-GAAP Financial
Measures" below for further discussion of this non-GAAP
measure).
GAAP gross margin for the second quarter of 2024 was 40.5%,
compared to 39.2% for the first quarter of 2024 and 39.7% for the
same quarter a year ago. The increase in gross margin compared to
the first quarter of 2024 was due to a higher enterprise market
margin. Non-GAAP gross margin for the second quarter of 2024 was
41.5% compared to 40.2% for the first quarter of 2024 and 40.4% for
the same quarter a year ago (see note regarding "Use of Non-GAAP
Financial Measures" below for further discussion of this non-GAAP
measure).
GAAP operating expenses for the second quarter of 2024 were $8.7
million, compared to $8.2 million for the first quarter of 2024 and
$8.5 million for the same quarter a year ago. Operating expenses
were higher for the second quarter of 2024 compared to the first
quarter of 2024 primarily due to higher sales employee expenses
partially offset by lower marketing and professional services
expenses. Non-GAAP operating expenses for the second quarter of
2024 were $6.9 million compared to $6.6 million in the first
quarter of 2024 and $6.5 million for the same quarter a year ago
(see note regarding "Use of Non-GAAP Financial Measures" below for
further discussion of this non-GAAP measure).
GAAP net loss for the second quarter of 2024 was $2.5 million or
$(0.23) per share (based on 10.9 million shares), compared to a net
loss of $2.5 million or $(0.23) per share (based on 10.5 million
shares) for the first quarter of 2024 and a net loss of $2.2
million or $(0.21) per share (based on 10.4 million shares) for the
same quarter a year ago. Non-GAAP net loss for the second quarter
of 2024 was $0.6 million or $(0.05) per share (based on 10.9
million shares), compared to a non-GAAP net loss of $0.8 million or
$(0.08) per share (based on 10.5 million shares) for the first
quarter of 2024 and a non-GAAP net loss of $0.1 million or $(0.01)
per share (based on 10.4 million shares) for the same quarter a
year ago (see note regarding "Use of Non-GAAP Financial Measures"
below for further discussion of this non-GAAP measure).
Adjusted EBITDA for the second quarter of 2024 was $(0.4)
million, compared to $(0.7) million for the first quarter of 2024
and break even for the same quarter a year ago (see note regarding
"Use of Non-GAAP Financial Measures" below for further discussion
of this non-GAAP measure).
Third Quarter 2024 Financial Outlook
GAAP
- Sales are expected to be in the range of $15.25 million to
$16.75 million, or $16.0 million at the midpoint
- GAAP gross margin is expected to be in the range of 40.0% to
43.0%
- GAAP operating expense is expected to be approximately $8.5
million
- GAAP net loss per share is expected to be ($0.17) at the
midpoint
Non-GAAP
- Non-GAAP gross margin is expected to be in the range of 41.0%
to 44.0%
- Non-GAAP operating expense is expected to be approximately $6.9
million
- Non-GAAP net loss per share is expected to be $(0.01) at the
midpoint
- Adjusted EBITDA is expected to be break-even at the
midpoint
Our financial outlook for the three months ending September 30,
2024, including reconciliations of GAAP to non-GAAP measures can be
found at the end of this press release.
Conference Call
Airgain management will hold a conference call today, Tuesday,
August 6, 2024, at 5:00 PM Eastern Time (2:00 PM Pacific Time) to
discuss financial results for the second quarter ended June 30,
2024.
Airgain management will host the presentation, followed by a
question and answer period.
Date: August 6, 2024 Time: 5:00 PM Eastern Time (2:00 PM Pacific
Time) Dial-In: (877) 407-2988 or (201) 389-0923
The conference call will be broadcast simultaneously and be
available for replay via the investor section of the company’s
website at investors.airgain.com.
For webcast access, please follow the web address below to
register for the conference call. Registration: Here
A replay of the webcast will be available via the registration
link after 8:00 PM Eastern Time until August 6, 2025.
About Airgain, Inc.
Airgain is a premier provider of wireless connectivity
solutions, offering a range of embedded components, external
antennas, and integrated systems worldwide. We streamline wireless
connectivity across devices and markets, with a focus on solving
complex connectivity challenges, expediting time to market, and
optimizing wireless signals. Our mission is to connect the world
through optimized, integrated wireless solutions. Our product
portfolio focuses on three key markets: enterprise, consumer, and
automotive. Airgain is headquartered in San Diego, California. For
more information, visit airgain.com, or follow Airgain on LinkedIn
and Twitter.
Airgain, AirgainConnect, and the Airgain logo are trademarks or
registered trademarks of Airgain, Inc. All other trademarks are the
property of their respective owner.
Forward-Looking Statements
Airgain cautions you that statements in this press release that
are not a description of historical facts are forward-looking
statements. These statements are based on the company’s current
beliefs and expectations. These forward-looking statements include
statements regarding our third quarter 2024 financial outlook, our
ability to navigate macro-economic challenges, expected launches of
company initiatives, expected growth in markets and overall
strategy. The inclusion of forward-looking statements should not be
regarded as a representation by Airgain that any of our plans will
be achieved. Actual results may differ from those set forth in this
press release due to the risks and uncertainties inherent in our
business, including, without limitation: the market for our
products is developing and may not develop as we expect; our
operating results may fluctuate significantly, including based on
seasonal factors, which makes future operating results difficult to
predict and could cause our operating results to fall below
expectations or guidance; supply constraints on our and our
customers' ability to obtain necessary components in our respective
supply chains may negatively affect our sales and operating
results; risks associated with the performance of our products,
including bundled solutions with third-party products; our products
are subject to intense competition, and competitive pressures from
existing and new companies may harm our business, sales, growth
rates, and market share; risks associated with quality and timing
in manufacturing our products and our reliance on third-party
manufacturers; we may not be able to maintain strategic
collaborations under which our bundled solutions are offered;
overall global supply shortages and logistics delays within the
supply chain that our products are used in, as well as adversely
affecting the general U.S. and global economic conditions and
financial markets, and, ultimately, our sales and operating
results; any rise in interest rates and inflation may adversely
impact our margins, the supply chain and our customers’ sales,
which may negatively affect our sales and operating results; our
future success depends on our ability to develop and successfully
introduce new and enhanced products for the wireless market that
meet the needs of our customers, including our ability to
transition to provide a more diverse solutions capability; we sell
to customers who are price conscious, and a few customers represent
a significant portion of our sales, and if we lose any of these
customers, our sales could decrease significantly; we rely on a
limited number of contract manufacturers to produce and ship all of
our products, and our contract manufacturers rely on a single or
limited number of suppliers for some components of our products and
channel partners to sell and support our products, and the failure
to manage our relationships with these parties successfully or a
failure of these parties to perform could adversely affect our
ability to market and sell our products; if we cannot protect our
intellectual property rights, our competitive position could be
harmed or we could incur significant expenses to enforce our
rights; and other risks described in our prior press releases and
in our filings with the Securities and Exchange Commission (SEC),
including under the heading “Risk Factors” in our Annual Report on
Form 10-K and any subsequent filings with the SEC. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, and we
undertake no obligation to revise or update this press release to
reflect events or circumstances after the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement, which is made under the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Note Regarding Use of Non-GAAP Financial Measures
To supplement our condensed financial statements presented in
accordance with U.S. generally accepted accounting principles
(GAAP), this earnings release and the accompanying tables and the
related earnings conference call contain certain non-GAAP financial
measures, including adjusted earnings before interest, taxes,
depreciation, amortization (Adjusted EBITDA), non-GAAP net income
(loss) attributable to common stockholders (non-GAAP net income
(loss)), non-GAAP net income (loss) per (basic or diluted) share
(non-GAAP EPS), non-GAAP operating expense, non-GAAP gross profit
and non-GAAP gross margin. We believe these financial measures
provide useful information to investors with which to analyze our
operating trends and performance.
In computing Adjusted EBITDA, non-GAAP net income (loss), and
non-GAAP EPS, we exclude stock-based compensation expense, which
represents non-cash charges for the fair value of stock awards;
interest income, net of interest expense offset by other expense,
depreciation and amortization, workforce reduction severance and
exit costs, and provision (benefit) for income taxes. In computing
non-GAAP operating expense, we exclude stock-based compensation
expense, amortization of intangibles, workforce reduction severance
and exit costs. In computing non-GAAP gross profit and non-GAAP
gross margin, we exclude stock-based compensation expense, and
amortization of intangible assets. Because of varying available
valuation methodologies, subjective assumptions, and the variety of
equity instruments that can impact a company’s non-cash operating
expenses; we believe that providing non-GAAP financial measures
that exclude non-cash expense allows for meaningful comparisons
between our core business operating results and those of other
companies, as well as providing us with an important tool for
financial and operational decision making and for evaluating our
own core business operating results over different periods of time.
Management considers these types of expenses and adjustments, to a
great extent, to be unpredictable and dependent on a considerable
number of factors that are outside of our control and are not
necessarily reflective of operational performance during a
period.
Our non-GAAP measures may not provide information that is
directly comparable to that provided by other companies in our
industry, as other companies in our industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net
income (loss), non-GAAP EPS, non-GAAP operating expense, non-GAAP
gross profit and non-GAAP gross margin are not measurements of
financial performance under GAAP and should not be considered as an
alternative to operating or net income or as an indication of
operating performance or any other measure of performance derived
in accordance with GAAP. We do not consider these non-GAAP measures
to be a substitute for, or superior to, the information provided by
GAAP financial results. Reconciliations with specific adjustments
to GAAP results and outlooks are provided at the end of this
release.
Airgain, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
8,416
$
7,881
Trade accounts receivable, net
8,642
7,375
Inventories
3,144
2,403
Prepaid expenses and other current
assets
1,109
1,422
Total current assets
21,311
19,081
Property and equipment, net
2,220
2,507
Leased right-of-use assets
1,146
1,392
Goodwill
10,845
10,845
Intangible assets, net
6,751
8,234
Other assets
164
170
Total assets
$
42,437
$
42,229
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
5,844
$
6,472
Accrued compensation
1,295
728
Accrued liabilities and other
2,287
1,926
Short-term lease liabilities
881
865
Total current liabilities
10,307
9,991
Deferred tax liability
170
151
Long-term lease liabilities
370
674
Total liabilities
10,847
10,816
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock and additional paid-in
capital, par value $0.0001, 200,000 shares authorized; 11,842
shares issued and 11,301 shares outstanding at June 30, 2024; and
11,010 shares issued and 10,469 shares outstanding at December 31,
2023.
120,444
115,295
Treasury stock, at cost: 541 shares at
June 30, 2024 and December 31, 2023.
(5,364
)
(5,364
)
Accumulated deficit
(83,489
)
(78,521
)
Accumulated other comprehensive (loss)
income
(1
)
3
Total stockholders’ equity
31,590
31,413
Total liabilities and stockholders’
equity
$
42,437
$
42,229
Airgain, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share data)
(unaudited)
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Sales
$
15,184
$
15,830
$
29,415
$
32,274
Cost of goods sold
9,036
9,551
17,691
19,677
Gross profit
6,148
6,279
11,724
12,597
Operating expenses:
Research and development
3,116
2,590
6,236
5,039
Sales and marketing
2,349
2,305
4,507
5,171
General and administrative
3,188
3,596
6,115
7,389
Total operating expenses
8,653
8,491
16,858
17,599
Loss from operations
(2,505
)
(2,212
)
(5,134
)
(5,002
)
Other (income) expense:
Interest income, net
(27
)
(16
)
(53
)
(34
)
Other expense (income)
1
11
(7
)
15
Total other income
(26
)
(5
)
(60
)
(19
)
Loss before income taxes
(2,479
)
(2,207
)
(5,074
)
(4,983
)
Income tax expense (benefit)
34
(2
)
(106
)
80
Net loss
$
(2,513
)
$
(2,205
)
$
(4,968
)
$
(5,063
)
Net loss per share:
Basic
$
(0.23
)
$
(0.21
)
$
(0.46
)
$
(0.49
)
Diluted
$
(0.23
)
$
(0.21
)
$
(0.46
)
$
(0.49
)
Weighted average shares used in
calculating loss per share:
Basic
10,938
10,413
10,736
10,340
Diluted
10,938
10,413
10,736
10,340
Airgain, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Six months ended June
30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(4,968
)
$
(5,063
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation
284
342
Loss on disposal of property and
equipment
—
11
Amortization of intangible assets
1,484
1,485
Stock-based compensation
2,253
1,949
Deferred tax liability
19
7
Amortization of prepaid assets
132
—
Accrual of property and equipment
22
—
Changes in operating assets and
liabilities:
Trade accounts receivable
(1,267
)
115
Inventories
(740
)
(571
)
Prepaid expenses and other current
assets
312
596
Other assets
6
6
Accounts payable
(628
)
(877
)
Accrued compensation
379
(880
)
Accrued liabilities and other
432
912
Lease liabilities
(42
)
(36
)
Net cash used in operating activities
(2,322
)
(2,004
)
Cash flows from investing
activities:
Purchases of property and equipment
(150
)
(104
)
Net cash used in investing activities
(150
)
(104
)
Cash flows from financing
activities:
Proceeds from at-the-market common stock
offering, net of offering costs
3,006
—
Payments for withholding taxes related to
net share settlement of equity awards
(95
)
(690
)
Proceeds from employee stock purchase and
option exercises
101
165
Net cash provided by (used in) financing
activities
3,012
(525
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(5
)
—
Net increase (decrease) in cash, cash
equivalents and restricted cash
535
(2,633
)
Cash, cash equivalents, and restricted
cash; beginning of period
7,976
12,078
Cash, cash equivalents, and restricted
cash; end of period
$
8,511
$
9,445
Supplemental disclosure of cash flow
information:
Income taxes paid
$
38
$
64
Income taxes refunded
$
50
$
—
Supplemental disclosure of non-cash
investing and financing activities:
Operating lease liabilities resulting from
right-of-use assets
$
179
$
11
Accrual of property and equipment
$
—
$
29
Accrued offering costs charged against
proceeds from sale of common stock
$
10
$
—
Cash, cash equivalents, and restricted
cash:
Cash and cash equivalents
$
8,416
$
9,270
Restricted cash included in prepaid
expenses and other current assets and other assets long term
95
175
Total cash, cash equivalents, and
restricted cash
$
8,511
$
9,445
Airgain, Inc.
(in thousands)
(unaudited)
Sales by Target Market
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Enterprise
$
8,615
$
8,879
$
7,366
$
17,494
$
15,803
Consumer
4,827
3,511
6,189
8,338
11,321
Automotive
1,742
1,841
2,275
3,583
5,150
Total sales
$
15,184
$
14,231
$
15,830
$
29,415
$
32,274
Reconciliation of GAAP to
non-GAAP Gross Profit
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Gross profit
$
6,148
$
5,576
$
6,279
$
11,724
$
12,597
Stock-based compensation
65
58
29
123
44
Amortization of intangible assets
89
89
89
178
178
Non-GAAP gross profit
$
6,302
$
5,723
$
6,397
$
12,025
$
12,819
Reconciliation of GAAP to
non-GAAP Gross Margin
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Gross margin
40.5%
39.2%
39.7%
39.9%
39.0%
Stock-based compensation
0.4%
0.4%
0.2%
0.4%
0.1%
Amortization of intangible assets
0.6%
0.6%
0.5%
0.6%
0.6%
Non-GAAP gross margin
41.5%
40.2%
40.4%
40.9%
39.7%
Reconciliation of GAAP to
non-GAAP Operating Expenses
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Operating expenses
$
8,653
$
8,205
$
8,491
$
16,858
$
17,599
Stock-based compensation expense
(1,142
)
(988
)
(939
)
(2,130
)
(1,905
)
Amortization of intangible assets
(654
)
(653
)
(653
)
(1,307
)
(1,307
)
Severance and exit costs
—
—
(365
)
—
(570
)
Non-GAAP operating expenses
$
6,857
$
6,564
$
6,534
$
13,421
$
13,817
Airgain, Inc.
(in thousands, except per
share data)
(unaudited)
Reconciliation of GAAP to
non-GAAP Net (Loss)
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Net loss
$
(2,513
)
$
(2,455
)
$
(2,205
)
$
(4,968
)
$
(5,063
)
Stock-based compensation expense
1,207
1,046
968
2,253
1,949
Amortization of intangible assets
742
742
742
1,484
1,485
Severance and exit costs
—
—
365
—
570
Other (income) expense
(27
)
(26
)
(16
)
(53
)
(28
)
Income tax benefit (expense)
34
(140
)
(2
)
(106
)
80
Non-GAAP net (loss) attributable to common
stockholders
$
(557
)
$
(833
)
$
(148
)
$
(1,390
)
$
(1,007
)
Non-GAAP net (loss) per share:
Basic
$
(0.05
)
$
(0.08
)
$
(0.01
)
$
(0.13
)
$
(0.10
)
Diluted
$
(0.05
)
$
(0.08
)
$
(0.01
)
$
(0.13
)
$
(0.10
)
Weighted average shares used in
calculating non-GAAP net (loss) per share:
Basic
10,938
10,532
10,413
10,736
10,340
Diluted
10,938
10,532
10,413
10,736
10,340
Reconciliation of Net Loss to
Adjusted EBITDA
Three months ended
Six months ended June
30,
June 30, 2024
March 31, 2024
June 30, 2023
2024
2023
Net loss
$
(2,513
)
$
(2,455
)
$
(2,205
)
$
(4,968
)
$
(5,063
)
Stock-based compensation expense
1,207
1,046
968
2,253
1,949
Depreciation and amortization
881
887
927
1,768
1,827
Severance and exit costs
—
—
365
—
570
Other income
(27
)
(26
)
(16
)
(53
)
(28
)
Income tax expense (benefit)
34
(140
)
(2
)
(106
)
80
Adjusted EBITDA
$
(418
)
$
(688
)
$
37
$
(1,106
)
$
(665
)
Q3-2024 Financial
Outlook
Reconciliations of GAAP to
Non-GAAP Gross Margin, Operating Expense, Net (Loss) Income, EPS
and to Adjusted EBITDA
For the Three Months Ended
September 30, 2024
(dollars in millions, except
per share data)
Gross Margin
Reconciliation:
Operating Expense
Reconciliation:
GAAP gross margin
41.5
%
GAAP operating expenses
$
8.5
Stock-based compensation
0.4
%
Stock-based compensation
(1.0
)
Amortization
0.6
%
Amortization
(0.6
)
Non-GAAP gross margin
42.5
%
Non-GAAP operating expenses
$
6.9
Net (Loss) Income
Reconciliation
Net (Loss) Income per Share
Reconciliation(1):
GAAP net loss
$
(1.9
)
GAAP net loss per share
$
(0.17
)
Stock-based compensation
1.1
Stock-based compensation
0.09
Amortization
0.7
Amortization
0.07
Non-GAAP net loss
$
(0.1
)
Non-GAAP net loss per share
$
(0.01
)
Adjusted EBITDA
Reconciliation
GAAP net loss
$
(1.9
)
Stock-based compensation
1.1
Depreciation and amortization
0.8
Adjusted EBITDA
$
0.0
(1) Amounts are based on 11.1 million
basic and 11.1 million diluted weighted average shares
outstanding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806581775/en/
Airgain Contact Michael Elbaz Chief Financial Officer
investors@airgain.com Airgain Investor Contact Matt Glover
and Matt Szot Gateway Group, Inc. +1 949 574 3860
AIRG@gateway-grp.com
Airgain (NASDAQ:AIRG)
過去 株価チャート
から 10 2024 まで 11 2024
Airgain (NASDAQ:AIRG)
過去 株価チャート
から 11 2023 まで 11 2024
