Airgain® Reports Fourth Quarter and Full Year 2023 Financial Results
- Airgain reported Q4 2023 sales of $10.1 million and full-year sales of $56.0 million.
- The company expects gradual growth in 2024 due to market recoveries and product innovations.
- All market segments experienced sales declines in Q4 2023 compared to the previous quarter and the same period last year.
- Sales decreased in all markets compared to the previous year.
- GAAP net loss increased in Q4 2023 due to lower sales and higher expenses.
- The company's financial outlook for Q1 2024 indicates a potential net loss.
Insights
The reported financial results of Airgain, Inc. reflect a significant year-over-year decline in sales, with a 26.2% drop from the previous year. This decrease is indicative of challenges faced across the enterprise, consumer and automotive markets. The notable decline in gross profit, both GAAP and non-GAAP, suggests a contraction in operational efficiency, potentially due to the excess and obsolete inventory charges mentioned. The reported net losses have widened, with the GAAP net loss growing more substantially than the non-GAAP net loss, emphasizing the impact of non-operating factors and adjustments on the company's financial health.
From an investor's perspective, the increased net loss and reduced sales raise concerns about the company's current market position and competitive dynamics. Despite this, the forecast for the first quarter of 2024 indicates an expectation of sales recovery and improved gross margins. This projection, if realized, could signal the beginning of a turnaround for Airgain. However, the anticipated continued net loss suggests that the path to profitability may still be challenging. Stakeholders should monitor the company's ability to execute its growth strategy, particularly in the context of its 5-G connectivity initiatives, which could be pivotal in driving future performance.
The wireless connectivity sector is undergoing rapid evolution, with 5-G technology being a key driver of growth. Airgain's focus on product innovation and the launch of 5-G initiatives could position the company to capitalize on this trend. However, the reported decline in sales across all market segments, particularly in the enterprise and consumer markets, suggests that Airgain is facing significant headwinds, possibly due to market saturation, competitive pressures, or shifts in consumer demand.
It is critical to assess Airgain's market strategy and its ability to differentiate its offerings in a crowded marketplace. The company's performance must be contextualized within the broader industry trends, such as the impact of the global semiconductor shortage, which may have affected supply chains and inventory levels. The financial outlook for Q1 2024 hints at modest improvements, but stakeholders should remain cautious and seek evidence of sustained demand and effective inventory management in subsequent quarters to validate the company's growth trajectory.
Airgain's performance in the wireless connectivity market is closely tied to technological advancements and the adoption of new standards like 5-G. The decline in sales, particularly in the automotive market due to the discontinued AC-HPUE product line, reflects the importance of maintaining a relevant and competitive product portfolio. The excess inventory correction also points to potential misalignment between production and market demand, which is critical in the fast-paced technology sector.
Investments in product innovation and 5-G initiatives could be key differentiators for Airgain moving forward. The technology sector values agility and the ability to quickly adapt to changing market needs. As such, Airgain's future success will likely depend on its ability to not only innovate but also to effectively forecast and respond to market demands. Stakeholders should monitor the company's R&D focus, particularly in the enterprise WiFi and industrial IoT segments, to gauge its potential for recovery and growth in the evolving landscape of wireless technology.
“Our team delivered quarterly sales of
Fourth Quarter 2023 Financial Highlights
GAAP
-
Sales of
$10.1 million -
GAAP gross margin of
29.1% -
GAAP operating expenses of
$8.4 million -
GAAP net loss of
$5.5 million $(0.52)
Non-GAAP
-
Non-GAAP gross margin of
30.3% -
Non-GAAP operating expenses of
$6.5 million -
Non-GAAP net loss of
$3.5 million $(0.33) -
Adjusted EBITDA of
$(3.3) million
Fourth Quarter 2023 Financial Results
Sales for the fourth quarter of 2023 were
GAAP gross profit for the fourth quarter of 2023 was
GAAP gross margin for the fourth quarter of 2023 was
GAAP operating expenses for the fourth quarter of 2023 were
GAAP net loss for the fourth quarter of 2023 was
Adjusted EBITDA for the fourth quarter of 2023 was
Full Year 2023 Financial Highlights
GAAP
-
Sales of
$56.0 million -
GAAP gross margin of
37.1% -
GAAP operating expense of
$33.2 million -
GAAP net loss of
$12.4 million $(1.20)
Non-GAAP
-
Non-GAAP gross margin of
37.9% -
Non-GAAP operating expense of
$26.4 million -
Non-GAAP net loss of
$5.1 million $(0.50) -
Adjusted EBITDA of
$(4.5) million
Full Year 2023 Financial Results
Sales for the full year of 2023 were
GAAP gross profit for the full year of 2023 was
GAAP gross margin for the full year of 2023 was
GAAP operating expenses for the full year of 2023 were
GAAP net loss for the full year of 2023 was
Adjusted EBITDA for the full year of 2023 was
First Quarter 2024 Financial Outlook
GAAP
-
Sales are expected to be in the range of
$13.3 million $14.7 million $14.0 million -
GAAP gross margin is expected to be in the range of
38.6% to41.6% -
GAAP operating expense is expected to be approximately
$8.1 million -
GAAP net loss per share is expected to be
$(0.24)
Non-GAAP
-
Non-GAAP gross margin is expected to be in the range of
39.5% to42.5% -
Non-GAAP operating expense is expected to be approximately
$6.4 million -
Non-GAAP net loss per share is expected to be
$(0.06) -
Adjusted EBITDA is expected to be
$(0.5) million
Our financial outlook for the three months ending March 31, 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 Wednesday, March 6, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss financial results for the fourth quarter and full year ended December 31, 2023.
Airgain management will host the presentation, followed by a question and answer period.
Date: Wednesday, March 6, 2024
Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)
Participant Dial-In: (877) 407-2988 or +1 (201) 389-0923
The conference call will be broadcast simultaneously and available here and for replay via the investor relations section of the company's website at investors.airgain.com.
A replay of the webcast will be available via the registration link after 8:00 p.m. Eastern Time on the same day until March 6, 2025.
About Airgain, Inc.
Airgain simplifies wireless connectivity across a diverse set of devices and markets, from solving complex connectivity issues to speeding time to market to enhancing wireless signals. Our products are offered in three distinct sub-brands: Airgain Embedded, Airgain Integrated and Airgain Antenna+. Our mission is to connect the world by making wireless simple. Airgain's expertise in custom cellular and antenna system design pairs with our focus on high-growth technologies and our dedication to simplify the growing complexity of wireless. With a broad portfolio of products across the value chain, from embedded components to fully integrated products, we are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive, and consumer markets. Airgain is headquartered in
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 first quarter and 2024 financial outlook, expected recovery of markets the company serves, expected launches of company initiatives, and overall long-term strategy and priorities. 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
Note Regarding Use of Non-GAAP Financial Measures
To supplement our condensed financial statements presented in accordance with
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. Consolidated Balance Sheets (in thousands, except par value) (unaudited) |
||||||||
|
|
As of December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
7,881 |
|
|
$ |
11,903 |
|
Trade accounts receivable, net |
|
|
7,375 |
|
|
|
8,741 |
|
Inventories |
|
|
2,403 |
|
|
|
4,226 |
|
Prepaid expenses and other current assets |
|
|
1,422 |
|
|
|
2,284 |
|
Total current assets |
|
|
19,081 |
|
|
|
27,154 |
|
Property and equipment, net |
|
|
2,507 |
|
|
|
2,765 |
|
Leased right-of-use assets |
|
|
1,392 |
|
|
|
2,217 |
|
Goodwill |
|
|
10,845 |
|
|
|
10,845 |
|
Intangible assets, net |
|
|
8,234 |
|
|
|
11,203 |
|
Other assets |
|
|
170 |
|
|
|
216 |
|
Total assets |
|
$ |
42,229 |
|
|
$ |
54,400 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
6,472 |
|
|
$ |
6,507 |
|
Accrued compensation |
|
|
728 |
|
|
|
2,874 |
|
Accrued liabilities and other |
|
|
1,926 |
|
|
|
2,615 |
|
Short-term lease liabilities |
|
|
865 |
|
|
|
904 |
|
Total current liabilities |
|
|
9,991 |
|
|
|
12,900 |
|
Deferred tax liability |
|
|
151 |
|
|
|
139 |
|
Long-term lease liabilities |
|
|
674 |
|
|
|
1,536 |
|
Total liabilities |
|
|
10,816 |
|
|
|
14,575 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock and additional paid-in capital, par value |
|
|
115,295 |
|
|
|
111,282 |
|
Treasury stock, at cost: 541 shares at December 31, 2023 and 2022 |
|
|
(5,364 |
) |
|
|
(5,364 |
) |
Accumulated deficit |
|
|
(78,521 |
) |
|
|
(66,093 |
) |
Accumulated other comprehensive income |
|
|
3 |
|
|
|
— |
|
Total stockholders’ equity |
|
|
31,413 |
|
|
|
39,825 |
|
Total liabilities and stockholders’ equity |
|
$ |
42,229 |
|
|
$ |
54,400 |
|
Airgain, Inc. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Sales |
|
$ |
10,070 |
|
|
$ |
13,696 |
|
|
$ |
19,889 |
|
|
$ |
56,040 |
|
|
$ |
75,895 |
|
Cost of goods sold |
|
|
7,139 |
|
|
|
8,460 |
|
|
|
14,009 |
|
|
|
35,277 |
|
|
|
47,923 |
|
Gross profit |
|
|
2,931 |
|
|
|
5,236 |
|
|
|
5,880 |
|
|
|
20,763 |
|
|
|
27,972 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
|
3,169 |
|
|
|
2,298 |
|
|
|
2,240 |
|
|
|
10,505 |
|
|
|
11,345 |
|
Sales and marketing |
|
|
2,251 |
|
|
|
1,704 |
|
|
|
2,623 |
|
|
|
9,126 |
|
|
|
11,174 |
|
General and administrative |
|
|
2,999 |
|
|
|
3,144 |
|
|
|
4,294 |
|
|
|
13,532 |
|
|
|
14,033 |
|
Total operating expenses |
|
|
8,419 |
|
|
|
7,146 |
|
|
|
9,157 |
|
|
|
33,163 |
|
|
|
36,552 |
|
Loss from operations |
|
|
(5,488 |
) |
|
|
(1,910 |
) |
|
|
(3,277 |
) |
|
|
(12,400 |
) |
|
|
(8,580 |
) |
Other expense (income): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income, net |
|
|
(41 |
) |
|
|
(34 |
) |
|
|
(26 |
) |
|
|
(109 |
) |
|
|
(63 |
) |
Other expense |
|
|
(7 |
) |
|
|
1 |
|
|
|
16 |
|
|
|
9 |
|
|
|
58 |
|
Total other (income) expense |
|
|
(48 |
) |
|
|
(33 |
) |
|
|
(10 |
) |
|
|
(100 |
) |
|
|
(5 |
) |
Loss before income taxes |
|
|
(5,440 |
) |
|
|
(1,877 |
) |
|
|
(3,267 |
) |
|
|
(12,300 |
) |
|
|
(8,575 |
) |
Provision (benefit) for income taxes |
|
|
44 |
|
|
|
4 |
|
|
|
(47 |
) |
|
|
128 |
|
|
|
84 |
|
Net loss |
|
$ |
(5,484 |
) |
|
$ |
(1,881 |
) |
|
$ |
(3,220 |
) |
|
$ |
(12,428 |
) |
|
$ |
(8,659 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
(0.52 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.20 |
) |
|
$ |
(0.85 |
) |
Diluted |
|
$ |
(0.52 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.20 |
) |
|
$ |
(0.85 |
) |
Weighted average shares used in calculating loss per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
10,455 |
|
|
|
10,430 |
|
|
|
10,225 |
|
|
|
10,392 |
|
|
|
10,190 |
|
Diluted |
|
|
10,455 |
|
|
|
10,430 |
|
|
|
10,225 |
|
|
|
10,392 |
|
|
|
10,190 |
|
Airgain, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||
|
|
For the Years Ended December 31, |
||||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(12,428 |
) |
|
$ |
(8,659 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
661 |
|
|
|
675 |
|
Loss on disposal of property and equipment |
|
|
— |
|
|
|
4 |
|
Amortization of intangible assets |
|
|
2,969 |
|
|
|
3,026 |
|
Stock-based compensation |
|
|
3,681 |
|
|
|
4,978 |
|
Deferred tax liability |
|
|
12 |
|
|
|
30 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Trade accounts receivable |
|
|
1,367 |
|
|
|
2,015 |
|
Inventories |
|
|
1,823 |
|
|
|
4,723 |
|
Prepaid expenses and other current assets |
|
|
822 |
|
|
|
(1,012 |
) |
Other assets |
|
|
6 |
|
|
|
137 |
|
Accounts payable |
|
|
(93 |
) |
|
|
1,037 |
|
Accrued compensation |
|
|
(1,253 |
) |
|
|
(35 |
) |
Accrued liabilities and other |
|
|
(793 |
) |
|
|
(370 |
) |
Payments of contingent consideration fair value changes |
|
|
— |
|
|
|
(2,040 |
) |
Lease liabilities |
|
|
(75 |
) |
|
|
(63 |
) |
Net cash (used in) provided by operating activities |
|
|
(3,301 |
) |
|
|
4,446 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(346 |
) |
|
|
(763 |
) |
Proceeds from sale of equipment |
|
|
— |
|
|
|
13 |
|
Net cash used in investing activities |
|
|
(346 |
) |
|
|
(750 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Cash paid for business acquisition contingent consideration |
|
|
— |
|
|
|
(6,532 |
) |
Payments for withholding taxes related to net share settlement of equity awards |
|
|
(690 |
) |
|
|
— |
|
Issuance of shares for stock purchase and option plans |
|
|
232 |
|
|
|
228 |
|
Net cash used in financing activities |
|
|
(458 |
) |
|
|
(6,304 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
3 |
|
|
|
— |
|
|
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash |
|
|
(4,102 |
) |
|
|
(2,608 |
) |
Cash, cash equivalents, and restricted cash; beginning of period |
|
|
12,078 |
|
|
|
14,686 |
|
Cash, cash equivalents, and restricted cash; end of period |
|
$ |
7,976 |
|
|
$ |
12,078 |
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
Taxes paid |
|
$ |
112 |
|
|
$ |
197 |
|
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
||||
Operating lease liabilities resulting from right-of-use assets |
|
$ |
11 |
|
|
$ |
— |
|
Accrual of property and equipment |
|
$ |
58 |
|
|
$ |
— |
|
|
|
|
|
|
||||
Cash and cash equivalents and restricted cash |
|
$ |
7,881 |
|
|
$ |
11,903 |
|
Restricted cash included in other assets |
|
|
95 |
|
|
$ |
175 |
|
Total cash, cash equivalents, and restricted cash |
|
$ |
7,976 |
|
|
$ |
12,078 |
|
Airgain, Inc. Sales by Target Market (in thousands) (unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
Years Ended December 31, |
|
||||||||
Target Market |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Consumer |
|
$ |
3,209 |
|
|
$ |
4,404 |
|
|
$ |
6,438 |
|
|
$ |
18,934 |
|
|
$ |
25,793 |
|
Enterprise |
|
|
4,615 |
|
|
|
6,791 |
|
|
|
10,015 |
|
|
|
27,209 |
|
|
|
34,533 |
|
Automotive |
|
|
2,246 |
|
|
|
2,501 |
|
|
|
3,436 |
|
|
|
9,897 |
|
|
|
15,569 |
|
Total sales |
|
$ |
10,070 |
|
|
$ |
13,696 |
|
|
$ |
19,889 |
|
|
$ |
56,040 |
|
|
$ |
75,895 |
|
Airgain, Inc. (in thousands) (unaudited) |
|||||||||||||||||||
Reconciliation of GAAP to non-GAAP Gross Profit |
|||||||||||||||||||
|
Three Months Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
Years Ended December 31, |
|
||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Gross profit |
$ |
2,931 |
|
|
$ |
5,236 |
|
|
$ |
5,880 |
|
|
$ |
20,763 |
|
|
$ |
27,972 |
|
Stock-based compensation |
|
34 |
|
|
|
29 |
|
|
|
98 |
|
|
|
107 |
|
|
|
181 |
|
Amortization of intangible assets |
|
89 |
|
|
|
89 |
|
|
|
89 |
|
|
|
355 |
|
|
|
355 |
|
Non-GAAP gross profit |
$ |
3,054 |
|
|
$ |
5,354 |
|
|
$ |
6,067 |
|
|
$ |
21,225 |
|
|
$ |
28,508 |
|
Reconciliation of GAAP to non-GAAP Gross Margin |
|||||||||||||||||||
|
Three Months Ended |
|
|
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
Years Ended December 31, |
||||||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Gross margin |
|
29.1 |
% |
|
|
38.2 |
% |
|
|
29.6 |
% |
|
|
37.1 |
% |
|
|
36.9 |
% |
Stock-based compensation |
|
0.3 |
% |
|
|
0.2 |
% |
|
|
0.5 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
Amortization of intangible assets |
|
0.9 |
% |
|
|
0.7 |
% |
|
|
0.4 |
% |
|
|
0.6 |
% |
|
|
0.5 |
% |
Amortization of inventory step-up |
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
Non-GAAP gross margin |
|
30.3 |
% |
|
|
39.1 |
% |
|
|
30.5 |
% |
|
|
37.9 |
% |
|
|
37.6 |
% |
Reconciliation of GAAP to non-GAAP Operating Expenses
|
Three Months Ended |
|
|
|
|
||||||||||||||
|
December 31, |
|
September 30, |
|
|
December 31, |
|
|
Years Ended December 31, |
|
|||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Operating expenses |
$ |
8,419 |
|
|
$ |
7,146 |
|
|
$ |
9,157 |
|
|
$ |
33,163 |
|
|
$ |
36,552 |
|
Stock-based compensation expense |
|
(1,175 |
) |
|
|
(494 |
) |
|
|
(1,305 |
) |
|
|
(3,574 |
) |
|
|
(4,797 |
) |
Amortization of intangible assets |
|
(653 |
) |
|
|
(654 |
) |
|
|
(668 |
) |
|
|
(2,614 |
) |
|
|
(2,671 |
) |
Severance and exit costs |
|
(64 |
) |
|
|
22 |
|
|
|
— |
|
|
|
(612 |
) |
|
|
— |
|
Non-GAAP operating expenses |
$ |
6,527 |
|
|
$ |
6,020 |
|
|
$ |
7,184 |
|
|
$ |
26,363 |
|
|
$ |
29,084 |
|
Airgain, Inc. (in thousands, except per share data) (unaudited) |
|||||||||||||||||||
Reconciliation of GAAP to non-GAAP Net Income (Loss) |
|||||||||||||||||||
|
Three Months Ended |
|
|
||||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
Years Ended December 31, |
||||||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Net loss |
$ |
(5,484 |
) |
|
$ |
(1,881 |
) |
|
$ |
(3,220 |
) |
|
$ |
(12,428 |
) |
|
$ |
(8,659 |
) |
Stock-based compensation expense |
|
1,209 |
|
|
|
523 |
|
|
|
1,403 |
|
|
|
3,681 |
|
|
|
4,978 |
|
Amortization of intangible assets |
|
742 |
|
|
|
742 |
|
|
|
757 |
|
|
|
2,969 |
|
|
|
3,026 |
|
Severance and exit costs |
|
64 |
|
|
|
(22 |
) |
|
|
— |
|
|
|
612 |
|
|
|
— |
|
Other income expense |
|
(47 |
) |
|
|
(34 |
) |
|
|
(12 |
) |
|
|
(109 |
) |
|
|
(11 |
) |
Income tax expense (benefit) |
|
44 |
|
|
|
4 |
|
|
|
(50 |
) |
|
|
128 |
|
|
|
84 |
|
Non-GAAP net loss income attributable to common stockholders |
$ |
(3,472 |
) |
|
$ |
(668 |
) |
|
$ |
(1,122 |
) |
|
$ |
(5,147 |
) |
|
$ |
(582 |
) |
Non-GAAP net loss income per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.33 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.06 |
) |
Diluted |
$ |
(0.33 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.06 |
) |
Weighted average shares used in calculating non-GAAP net loss income per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
10,455 |
|
|
|
10,430 |
|
|
|
10,225 |
|
|
|
10,392 |
|
|
|
10,190 |
|
Diluted |
|
10,455 |
|
|
|
10,430 |
|
|
|
10,225 |
|
|
|
10,392 |
|
|
|
10,190 |
|
Reconciliation of Net Loss to Adjusted EBITDA |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
|
|
|||||||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
|
Years Ended December 31, |
|
|||||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Net loss |
$ |
(5,484 |
) |
|
$ |
(1,881 |
) |
|
$ |
(3,220 |
) |
|
$ |
(12,428 |
) |
|
$ |
(8,659 |
) |
Stock-based compensation expense |
|
1,209 |
|
|
|
523 |
|
|
|
1,403 |
|
|
|
3,681 |
|
|
|
4,978 |
|
Depreciation and amortization |
|
903 |
|
|
|
900 |
|
|
|
930 |
|
|
|
3,630 |
|
|
|
3,701 |
|
Severance and exit costs |
|
64 |
|
|
|
(22 |
) |
|
|
— |
|
|
|
612 |
|
|
|
— |
|
Other (income) expense |
|
(47 |
) |
|
|
(34 |
) |
|
|
(12 |
) |
|
|
(109 |
) |
|
|
(11 |
) |
Income tax (benefit) expense |
|
44 |
|
|
|
4 |
|
|
|
(50 |
) |
|
|
128 |
|
|
|
84 |
|
Adjusted EBITDA |
$ |
(3,311 |
) |
|
$ |
(510 |
) |
|
$ |
(949 |
) |
|
$ |
(4,486 |
) |
|
$ |
93 |
|
Q1-2024 Financial Outlook |
||||||||||
|
|
|
|
|
|
|
||||
Reconciliations of GAAP to Non-GAAP Gross Margin, Operating Expense, Net Loss, EPS and to Adjusted EBITDA |
||||||||||
For the Three Months Ended March 31, 2024 |
||||||||||
(in millions, except per share data) |
||||||||||
|
|
|
|
|
|
|
||||
Gross Margin Reconciliation: |
|
|
|
Operating Expense Reconciliation: |
|
|
||||
GAAP gross margin |
|
|
40.1 |
% |
|
GAAP operating expenses |
|
$ |
8.1 |
|
Stock-based compensation |
|
|
0.2 |
% |
|
Stock-based compensation |
|
$ |
(1.1 |
) |
Amortization |
|
|
0.7 |
% |
|
Amortization |
|
$ |
(0.6 |
) |
Non-GAAP gross margin |
|
|
41.0 |
% |
|
Non-GAAP operating expenses |
|
$ |
6.4 |
|
|
|
|
|
|
|
|
||||
Net Loss Reconciliation |
|
|
|
Net Loss per Share Reconciliation(1): |
|
|
||||
GAAP net loss |
|
$ |
(2.5 |
) |
|
GAAP net loss per share |
|
$ |
(0.24 |
) |
Stock-based compensation |
|
$ |
1.1 |
|
|
Stock-based compensation |
|
|
0.11 |
|
Amortization |
|
$ |
0.8 |
|
|
Amortization |
|
|
0.07 |
|
Non-GAAP net loss |
|
$ |
(0.6 |
) |
|
Non-GAAP net loss per share |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
||||
Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
(2.5 |
) |
|
|
|
|
||
Stock-based compensation |
|
$ |
1.1 |
|
|
|
|
|
||
Depreciation and amortization |
|
$ |
0.9 |
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
(0.5 |
) |
|
|
|
|
||
(1) Amounts are based on 10.5 million basic weighted average shares outstanding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240306260517/en/
Airgain Contact
Michael Elbaz
Chief Financial Officer
Airgain, Inc.
investors@airgain.com
Airgain Investor Contact
Matt Glover and Chris Adusei-Poku
Gateway Group, Inc.
+1 949 574 3860
AIRG@gateway-grp.com
Source: Airgain, Inc.
FAQ
What were Airgain's (AIRG) sales for Q4 2023?
What was Airgain's (AIRG) full-year sales for 2023?
What is Airgain's (AIRG) financial outlook for Q1 2024?
Why did Airgain's (AIRG) net loss increase in Q4 2023?
Which markets experienced sales declines in Q4 2023 for Airgain (AIRG)?
