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 first quarter ended
March 31, 2024.
“We are pleased to report strong sequential revenue growth as we
continue to effectively navigate a challenging macro-economic
environment,” said Airgain’s President and Chief Executive Officer,
Jacob Suen. “We delivered sales of $14.2 million in the first
quarter, driven by sequential and year-over-year revenue growth in
our enterprise market. As we look to the rest of 2024, we remain
focused on the launch of our 5-G connectivity initiatives and are
confident that we can build on this momentum to continue executing
on our strategy.”
First Quarter 2024 Financial Highlights
GAAP
- Sales of $14.2 million
- GAAP gross margin of 39.2%
- GAAP operating expenses of $8.2 million
- GAAP net loss of $2.5 million or $(0.23) per share
Non-GAAP
- Non-GAAP gross margin of 40.2%
- Non-GAAP operating expenses of $6.6 million
- Non-GAAP net loss of $0.8 million or $(0.08) per share
- Adjusted EBITDA of $(0.7) million
First Quarter 2024 Financial Results
Sales for the first quarter of 2024 were $14.2 million, of which
$8.9 million was generated from the enterprise market, $3.5 million
from the consumer market, and $1.8 million from the automotive
market. Sales increased by 41.3%, or $4.1 million in the first
quarter of 2024 compared to $10.1 million in the fourth quarter of
2023. Sequentially, enterprise sales increased by $4.2 million
driven by higher industrial IoT product sales. Consumer sales
increased by $0.3 million from the fourth quarter of 2023 driven by
a Tier 1 Mobile Network Operator antenna shipments. Automotive
sales decreased by $0.4 million from the fourth quarter of 2023 due
to customer excess inventory correction. Sales for the first
quarter of 2024 decreased by 13.5%, or $2.2 million from $16.4
million in the same quarter a year-ago primarily due to lower sales
of $1.6 million from the consumer market and $1.1 million from the
automotive market, partially offset by higher sales of $0.5 million
from the enterprise market.
GAAP gross profit for the first quarter of 2024 was $5.6
million, compared to $2.9 million for the fourth quarter of 2023
and $6.3 million for the same quarter a year ago. Non-GAAP gross
profit for the first quarter of 2024 was $5.7 million, compared to
$3.1 million for the fourth quarter of 2023 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 first quarter of 2024 was 39.2%,
compared to 29.1% for the fourth quarter of 2023 and 38.4% for the
same quarter a year ago. The increase in gross margin compared to
the fourth quarter of 2023 was due to an inventory charge in the
fourth quarter of 2023. Non-GAAP gross margin for the first quarter
of 2024 was 40.2% compared to 30.3% for the fourth quarter of 2023
and 39.1% 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 first quarter of 2024 were $8.2
million, compared to $8.4 million for the fourth quarter of 2023
and $9.1 million for the same quarter a year ago. Operating
expenses were lower for the first quarter of 2024 compared to the
fourth quarter of 2023 primarily due to lower stock-based
compensation and general and administrative expenses, offset by
higher engineering project and trade show expenses. Non-GAAP
operating expenses for the first quarter of 2024 were $6.6 million
compared to $6.5 million in the fourth quarter of 2023 and $7.3
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 first quarter of 2024 was $2.5 million or
$(0.23) per share (based on 10.5 million shares), compared to a net
loss of $5.5 million or $(0.52) per share (based on 10.5 million
shares) for the fourth quarter of 2023 and a net loss of $2.9
million or $(0.28) per share (based on 10.3 million shares) for the
same quarter a year ago. The decrease in net loss compared to the
fourth quarter of 2023 was driven by higher sales and higher gross
margin due to a fourth quarter inventory charge. Non-GAAP net loss
for the first quarter of 2024 was $0.8 million or $(0.08) per share
(based on 10.5 million shares), compared to a non-GAAP net loss of
$3.5 million or $(0.33) per share (based on 10.5 million shares)
for the fourth quarter of 2023 and a non-GAAP net loss of $0.9
million or $(0.08) per share (based on 10.3 million diluted 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 first quarter of 2024 was $(0.7)
million, compared to $(3.3) million for the fourth quarter of 2023
and $(0.7) 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).
Second Quarter 2024 Financial Outlook
GAAP
- Sales are expected to be in the range of $14.25 million to
$15.75 million, or $15.0 million at the midpoint
- GAAP gross margin is expected to be in the range of 38.7% to
41.7%
- GAAP operating expense is expected to be approximately $8.4
million
- GAAP net loss per share is expected to be $0.22 at the
midpoint
Non-GAAP
- Non-GAAP gross margin is expected to be in the range of 39.5%
to 42.5%
- Non-GAAP operating expense is expected to be approximately $6.8
million
- Non-GAAP net loss per share is expected to be $(0.06) at the
midpoint
- Adjusted EBITDA is expected to be a loss of $0.5 million
Our financial outlook for the three months ending June 30, 2024,
including reconciliations of GAAP to non-GAAP measures can be found
at the end of this press release.
Conference Call
Airgain, Inc. management will hold a conference call today,
Wednesday, May 8, 2024, at 5:00 PM Eastern Time (2:00 PM Pacific
Time) to discuss financial results for the first quarter ended
March 31, 2024.
Airgain management will host the presentation, followed by a
question and answer period.
Date: May 8, 2024 Time: 5:00 PM Eastern Time (2:00 PM Pacific
Time) Dial-In: (877) 407-2988 or +1 (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 on the same day until May 8,
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 second quarter 2024 financial outlook,
expected recovery of markets the company serves, expected launches
of company initiatives, 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, 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, and 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)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
7,169
$
7,881
Trade accounts receivable, net
9,644
7,375
Inventories
2,588
2,403
Prepaid expenses and other current
assets
1,419
1,422
Total current assets
20,820
19,081
Property and equipment, net
2,305
2,507
Leased right-of-use assets
1,180
1,392
Goodwill
10,845
10,845
Intangible assets, net
7,493
8,234
Other assets
155
170
Total assets
$
42,798
$
42,229
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
7,156
$
6,472
Accrued compensation
799
728
Accrued liabilities and other
2,848
1,926
Short-term lease liabilities
848
865
Total current liabilities
11,651
9,991
Deferred tax liability
158
151
Long-term lease liabilities
476
674
Total liabilities
12,285
10,816
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock and additional paid-in
capital, par value $0.0001, 200,000 shares authorized; 11,302
shares issued and 10,761 shares outstanding at March 31, 2024; and
11,010 shares issued and 10,469 shares outstanding at December 31,
2023.
116,852
115,295
Treasury stock, at cost: 541 shares at
March 31, 2024 and December 31, 2023.
(5,364
)
(5,364
)
Accumulated deficit
(80,976
)
(78,521
)
Accumulated other comprehensive income
1
3
Total stockholders’ equity
30,513
31,413
Total liabilities and stockholders’
equity
$
42,798
$
42,229
Airgain, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share data)
(unaudited)
Three months ended March
31,
2024
2023
Sales
$
14,231
$
16,444
Cost of goods sold
8,655
10,126
Gross profit
5,576
6,318
Operating expenses:
Research and development
3,120
2,449
Sales and marketing
2,158
2,866
General and administrative
2,927
3,793
Total operating expenses
8,205
9,108
Loss from operations
(2,629
)
(2,790
)
Other (income) expense:
Interest income, net
(26
)
(18
)
Other (income) expense
(8
)
4
Total other income
(34
)
(14
)
Loss before income taxes
(2,595
)
(2,776
)
Income tax (benefit) expense
(140
)
82
Net loss
$
(2,455
)
$
(2,858
)
Net loss per share:
Basic
$
(0.23
)
$
(0.28
)
Diluted
$
(0.23
)
$
(0.28
)
Weighted average shares used in
calculating loss per share:
Basic
10,532
10,266
Diluted
10,532
10,266
Airgain, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(2,455
)
$
(2,858
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation
145
157
Amortization of intangible assets
742
743
Stock-based compensation
1,046
981
Deferred tax liability
7
3
Amortization of prepaid assets
132
—
Accrual of property and equipment
(15
)
—
Changes in operating assets and
liabilities:
Trade accounts receivable
(2,269
)
593
Inventories
(185
)
(255
)
Prepaid expenses and other current
assets
3
555
Other assets
15
—
Accounts payable
684
250
Accrued compensation
72
(1,109
)
Accrued liabilities and other
963
(459
)
Lease liabilities
(4
)
(35
)
Net cash used in operating activities
(1,119
)
(1,434
)
Cash flows from investing
activities:
Purchases of property and equipment
(60
)
(89
)
Net cash used in investing activities
(60
)
(89
)
Cash flows from financing
activities:
Proceeds from at-the-market common stock
offering, net of offering costs
488
—
Payments for withholding taxes related to
net share settlement of equity awards
(95
)
(678
)
Proceeds from employee stock purchase and
option exercises
76
137
Net cash provided by (used in) financing
activities
469
(541
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(2
)
—
Net decrease in cash, cash equivalents and
restricted cash
(712
)
(2,064
)
Cash, cash equivalents, and restricted
cash; beginning of period
7,976
12,078
Cash, cash equivalents, and restricted
cash; end of period
$
7,264
$
10,014
Supplemental disclosure of cash flow
information:
Income taxes paid
$
7
$
—
Income taxes refunded
$
50
$
—
Supplemental disclosure of non-cash
investing and financing activities:
Operating lease liabilities resulting from
right-of-use assets
$
—
$
11
Accrual of property and equipment
$
—
$
13
Offering costs charged against proceeds
from sale of common stock
$
164
$
—
Cash, cash equivalents, and restricted
cash:
Cash and cash equivalents
$
7,169
$
9,839
Restricted cash included in prepaid
expenses and other current assets and other assets long term
95
175
Total cash, cash equivalents, and
restricted cash
$
7,264
$
10,014
Airgain, Inc.
(in thousands)
(unaudited)
Sales by Target Market
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Consumer
$
3,511
$
3,209
$
5,132
Enterprise
8,879
4,615
8,437
Automotive
1,841
2,246
2,875
Total sales
$
14,231
$
10,070
$
16,444
Reconciliation of GAAP to
non-GAAP Gross Profit
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Gross profit
$
5,576
$
2,931
$
6,318
Stock-based compensation
58
34
15
Amortization of intangible assets
89
89
89
Non-GAAP gross profit
$
5,723
$
3,054
$
6,422
Reconciliation of GAAP to
non-GAAP Gross Margin
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Gross margin
39.2
%
29.1
%
38.4
%
Stock-based compensation
0.4
%
0.3
%
0.1
%
Amortization of intangible assets
0.6
%
0.9
%
0.6
%
Non-GAAP gross margin
40.2
%
30.3
%
39.1
%
Reconciliation of GAAP to
non-GAAP Operating Expenses
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Operating expenses
$
8,205
$
8,419
$
9,108
Stock-based compensation expense
(988
)
(1,175
)
(966
)
Amortization of intangible assets
(653
)
(653
)
(654
)
Severance and exit costs
—
(64
)
(205
)
Non-GAAP operating expenses
$
6,564
$
6,527
$
7,283
Airgain, Inc.
(in thousands, except per
share data)
(unaudited)
Reconciliation of GAAP to
non-GAAP Net (Loss)
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Net loss
$
(2,455
)
$
(5,484
)
$
(2,858
)
Stock-based compensation expense
1,046
1,209
981
Amortization of intangible assets
742
742
743
Severance and exit costs
—
64
205
Other (income) expense
(26
)
(47
)
(12
)
Income tax (benefit) expense
(140
)
44
82
Non-GAAP net (loss) attributable to common
stockholders
$
(833
)
$
(3,472
)
$
(859
)
Non-GAAP net (loss) per share:
Basic
$
(0.08
)
$
(0.33
)
$
(0.08
)
Diluted
$
(0.08
)
$
(0.33
)
$
(0.08
)
Weighted average shares used in
calculating non-GAAP net (loss) per share:
Basic
10,532
10,455
10,266
Diluted
10,532
10,455
10,266
Reconciliation of Net Loss to
Adjusted EBITDA
Three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Net loss
$
(2,455
)
$
(5,484
)
$
(2,858
)
Stock-based compensation expense
1,046
1,209
981
Depreciation and amortization
887
903
900
Severance and exit costs
-
64
205
Other income
(26
)
(47
)
(12
)
Income tax (benefit) expense
(140
)
44
82
Adjusted EBITDA
$
(688
)
$
(3,311
)
$
(702
)
Q2-2024 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
June 30, 2024
(dollars in millions, except
per share data)
Gross Margin
Reconciliation:
Operating Expense
Reconciliation:
GAAP gross margin
40.2
%
GAAP operating expenses
$
8.4
Stock-based compensation
0.4
%
Stock-based compensation
(1.0
)
Amortization
0.4
%
Amortization
(0.6
)
Non-GAAP gross margin
41.0
%
Non-GAAP operating expenses
$
6.8
Net (Loss) Income
Reconciliation
Net (Loss) Income per Share
Reconciliation(1):
GAAP net loss
$
(2.4
)
GAAP net loss per share
$
(0.22
)
Stock-based compensation
1.0
Stock-based compensation
0.09
Amortization
0.7
Amortization
0.07
Non-GAAP net loss
$
(0.7
)
Non-GAAP net loss per share
$
(0.06
)
Adjusted EBITDA
Reconciliation
GAAP net loss
$
(2.4
)
Stock-based compensation
1.0
Depreciation and amortization
0.9
Adjusted EBITDA
$
(0.5
)
(1) Amounts are based on 10.8 million
basic and 10.8 million diluted weighted average shares
outstanding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508390170/en/
Airgain Contact Michael Elbaz Chief Financial Officer
investors@airgain.com
Airgain Investor Contact Matt Glover and Chris
Adusei-Poku Gateway Group, Inc. +1 949 574 3860
AIRG@gateway-grp.com
Airgain (NASDAQ:AIRG)
Historical Stock Chart
From Dec 2024 to Jan 2025
Airgain (NASDAQ:AIRG)
Historical Stock Chart
From Jan 2024 to Jan 2025
