BigBear.ai Announces Fourth Quarter, And Full Year 2024 Results, And Provides 2025 Outlook
BigBear.ai (NYSE: BBAI) reported Q4 2024 financial results with revenue of $43.8 million, up 8% year-over-year from $40.6 million in Q4 2023. The company's gross margin improved to 37.4% from 32.1% in Q4 2023.
Key financial highlights include:
- Net loss of $108.0 million in Q4 2024 (vs $21.3 million in Q4 2023)
- Cash balance of $50.1 million as of December 31, 2024
- Ending backlog of $418 million, a 2.5x increase from 2023
- Exchanged $182.3 million in convertible notes, with $58 million already converted to equity
For 2025, BigBear.ai projects revenue between $160 million - $180 million with negative single-digit Adjusted EBITDA. The company received $64.7 million in gross proceeds during Q1 2025 from warrant exercises, reducing net debt from $150 million to $27 million and improving the debt-to-cash ratio from 4.0 to 1.2.
BigBear.ai (NYSE: BBAI) ha riportato i risultati finanziari del Q4 2024 con un fatturato di 43,8 milioni di dollari, in aumento dell'8% rispetto ai 40,6 milioni di dollari del Q4 2023. Il margine lordo dell'azienda è migliorato al 37,4% rispetto al 32,1% del Q4 2023.
I principali punti finanziari includono:
- Perdita netta di 108,0 milioni di dollari nel Q4 2024 (rispetto ai 21,3 milioni di dollari nel Q4 2023)
- Saldo di cassa di 50,1 milioni di dollari al 31 dicembre 2024
- Backlog finale di 418 milioni di dollari, un aumento di 2,5 volte rispetto al 2023
- Scambiati 182,3 milioni di dollari in note convertibili, con 58 milioni di dollari già convertiti in capitale
Per il 2025, BigBear.ai prevede un fatturato compreso tra 160 milioni e 180 milioni di dollari con un EBITDA rettificato negativo a una cifra. L'azienda ha ricevuto 64,7 milioni di dollari in proventi lordi durante il Q1 2025 da esercizi di warrant, riducendo il debito netto da 150 milioni a 27 milioni e migliorando il rapporto debito/cassa da 4,0 a 1,2.
BigBear.ai (NYSE: BBAI) reportó los resultados financieros del Q4 2024 con ingresos de 43.8 millones de dólares, un aumento del 8% en comparación con los 40.6 millones de dólares en el Q4 2023. El margen bruto de la empresa mejoró al 37.4% desde el 32.1% en el Q4 2023.
Los aspectos financieros clave incluyen:
- Pérdida neta de 108.0 millones de dólares en el Q4 2024 (frente a 21.3 millones de dólares en el Q4 2023)
- Saldo de caja de 50.1 millones de dólares a partir del 31 de diciembre de 2024
- Backlog final de 418 millones de dólares, un aumento de 2.5 veces respecto a 2023
- Intercambiados 182.3 millones de dólares en notas convertibles, con 58 millones de dólares ya convertidos en capital
Para 2025, BigBear.ai proyecta ingresos entre 160 millones y 180 millones de dólares con un EBITDA ajustado negativo de un solo dígito. La empresa recibió 64.7 millones de dólares en ingresos brutos durante el Q1 2025 por ejercicios de warrants, reduciendo la deuda neta de 150 millones a 27 millones y mejorando la relación deuda/efectivo de 4.0 a 1.2.
BigBear.ai (NYSE: BBAI)는 2024년 4분기 재무 결과를 보고하며, 수익이 4,380만 달러로, 2023년 4분기의 4,060만 달러에 비해 8% 증가했다고 발표했습니다. 회사의 총 이익률은 2023년 4분기 32.1%에서 37.4%로 개선되었습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 2024년 4분기 순손실 1억 8백만 달러 (2023년 4분기 2,130만 달러 대비)
- 2024년 12월 31일 기준 현금 잔고 5,010만 달러
- 2023년 대비 2.5배 증가한 4억 1,800만 달러의 미결제 잔고
- 1억 8,230만 달러의 전환사채를 교환했으며, 5,800만 달러는 이미 주식으로 전환됨
2025년을 위해 BigBear.ai는 1억 6천만 달러에서 1억 8천만 달러 사이의 수익을 예상하며, 조정된 EBITDA는 부정적인 한 자릿수로 예상하고 있습니다. 회사는 2025년 1분기 동안 워런트 행사로 6,470만 달러의 총 수익을 올리며, 순부채를 1억 5천만 달러에서 2,700만 달러로 줄이고, 부채 대비 현금 비율을 4.0에서 1.2로 개선했습니다.
BigBear.ai (NYSE: BBAI) a annoncé les résultats financiers du T4 2024 avec un chiffre d'affaires de 43,8 millions de dollars, en hausse de 8 % par rapport aux 40,6 millions de dollars du T4 2023. La marge brute de l'entreprise a augmenté à 37,4 % contre 32,1 % au T4 2023.
Les points financiers clés incluent :
- Perte nette de 108,0 millions de dollars au T4 2024 (contre 21,3 millions de dollars au T4 2023)
- Solde de trésorerie de 50,1 millions de dollars au 31 décembre 2024
- Backlog final de 418 millions de dollars, soit une augmentation de 2,5 fois par rapport à 2023
- Échange de 182,3 millions de dollars en obligations convertibles, dont 58 millions de dollars ont déjà été convertis en capitaux propres
Pour 2025, BigBear.ai prévoit un chiffre d'affaires compris entre 160 millions et 180 millions de dollars avec un EBITDA ajusté négatif à un chiffre. L'entreprise a reçu 64,7 millions de dollars de produits bruts au cours du T1 2025 grâce à des exercices de warrants, réduisant la dette nette de 150 millions à 27 millions et améliorant le ratio dette/trésorerie de 4,0 à 1,2.
BigBear.ai (NYSE: BBAI) hat die finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, mit einem Umsatz von 43,8 Millionen Dollar, was einem Anstieg von 8 % im Vergleich zu 40,6 Millionen Dollar im 4. Quartal 2023 entspricht. Die Bruttomarge des Unternehmens verbesserte sich von 32,1 % im 4. Quartal 2023 auf 37,4 %.
Wichtige finanzielle Highlights sind:
- Nettoverlust von 108,0 Millionen Dollar im 4. Quartal 2024 (gegenüber 21,3 Millionen Dollar im 4. Quartal 2023)
- Barguthaben von 50,1 Millionen Dollar zum 31. Dezember 2024
- Endbestand von 418 Millionen Dollar, ein Anstieg um das 2,5-fache im Vergleich zu 2023
- 182,3 Millionen Dollar an wandelbaren Anleihen getauscht, wobei 58 Millionen Dollar bereits in Eigenkapital umgewandelt wurden
Für 2025 prognostiziert BigBear.ai einen Umsatz zwischen 160 Millionen und 180 Millionen Dollar mit negativem einstelligen bereinigtem EBITDA. Das Unternehmen erhielt im 1. Quartal 2025 einen Bruttoerlös von 64,7 Millionen Dollar aus der Ausübung von Warrants, wodurch die Nettoverschuldung von 150 Millionen Dollar auf 27 Millionen Dollar gesenkt und das Verhältnis von Schulden zu Bargeld von 4,0 auf 1,2 verbessert wurde.
- Revenue grew 8% YoY to $43.8M in Q4 2024
- Gross margin improved to 37.4% from 32.1% YoY
- Backlog increased 2.5x to $418M
- Significant debt reduction: net debt decreased from $150M to $27M
- Received $64.7M from warrant exercises in Q1 2025
- Net loss increased to $108.0M in Q4 2024 from $21.3M in Q4 2023
- Projecting negative Adjusted EBITDA for 2025
- SG&A expenses increased to $22.2M from $18.2M YoY
- Recurring SG&A rose to $18.0M from $12.3M YoY
Insights
BigBear.ai's Q4 2024 results reveal meaningful financial restructuring and positive operational momentum despite mixed performance metrics. The company reported
The most significant development is BigBear.ai's dramatic balance sheet improvement. Through strategic debt restructuring, warrant exercises, and debt-to-equity conversions, the company has reduced its net debt from
Equally impressive is the
While net loss widened to
BigBear.ai's strategic repositioning shows clear signs of traction in the AI-powered decision intelligence market. The company has executed on three critical fronts: capital structure optimization, contract acquisition, and technology portfolio development.
The financial restructuring represents a strategic inflection point. By extending debt maturities from 2026 to 2029 and subsequently converting
The 2.5x backlog expansion to
The Pangiam acquisition, completed February 2024, appears strategically sound but has temporarily increased operational expenses. This targeted expansion into travel and transportation sectors diversifies the company's revenue streams beyond traditional defense contracts.
The guided negative Adjusted EBITDA for 2025 suggests continued prioritization of growth investments over near-term profitability—a rational approach given the expanding market opportunity in AI-powered intelligence solutions and BigBear.ai's strengthened financial position.
-
4Q 24 revenue of
$43.8 million $40.6 million 8% year-over-year -
Exchanged
$182.3 million 6.00% convertible senior notes due in 2026 for6.00% convertible senior secured notes due in 2029;$58 million $142.3 million -
Cash balance of
$50.1 million $64.7 million $58 million $150 million $27 million -
2025 Outlook provided between
$160 million $180 million
“2024 was a pivotal year for the business. We demonstrated momentum through major contract wins, expanding our backlog and growing our pipeline, maturing our technology portfolio, and restructuring our debt to strengthen our financial position for the long term. These efforts were driven by strong execution from our team,” said Kevin McAleenan, Chief Executive Officer, BigBear.ai.
“On the financial front, we’ve kicked off the first quarter of 2025 by significantly deleveraging our balance sheet. Through a combination of cash proceeds from warrant exercises and debt reductions resulting from conversions on our convertible notes, we’re in a strong position for growth in 2025 and beyond,” said Julie Peffer, Chief Financial Officer, BigBear.ai.
Financial Highlights
-
Revenue increased
8% to$43.8 million $40.6 million -
Gross margin was
37.4% in the fourth quarter of 2024 as compared to32.1% in the fourth quarter of 2023, primarily driven by year-end fringe and overhead true-up allocation adjustments in 4Q 24 of$2.7 million -
Primarily driven by the non-cash changes in fair value of
$93.3 million $108.0 million $21.3 million -
Non-GAAP Adjusted EBITDA* of
$2.0 million $3.7 million -
SG&A of
$22.2 million $18.2 million $18.0 million $12.3 million $2.7 million -
Ending backlog was
$418 million $250 million - The consolidated year-to-date results include results from Pangiam from the acquisition date of February 29, 2024 to December 31, 2024.
Financial Outlook
For the year-ended December 31, 2025, the Company projects:
-
Revenue between
$160 million $180 million - Adjusted EBITDA* — negative single digit millions
In the event that some form of US Government shutdown was to take place in 2025, or a substantial shift in government national security priorities, BigBear.ai would review its guidance as part of prudent financial planning and its efforts to build a long-term sustainable business.
The above information on Outlook, and other sections of this release contain forward-looking statements, which are based on the Company’s current expectations. Actual results may differ materially from those projected. It is the Company’s practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted, or adopted, as the case may be. For additional factors that may impact the Company’s actual results, refer to the “Forward-Looking Statements” section in this release.
_______________________________________ |
|
1 |
Net Debt is defined as principal outstanding on convertible notes, less cash and cash equivalents. |
2 |
Debt-to-Cash Ratio is defined as principal outstanding on convertible notes divided by cash and cash equivalents. |
*Adjusted EBITDA is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section in this press release for additional information and a reconciliation. |
Summary of Results for the Fourth Quarter and Year Ended
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
$ thousands (expect per share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
43,827 |
|
|
$ |
40,563 |
|
|
$ |
158,236 |
|
|
$ |
155,164 |
|
Cost of revenues |
|
27,422 |
|
|
|
27,547 |
|
|
|
113,016 |
|
|
|
114,563 |
|
Gross margin |
|
16,405 |
|
|
|
13,016 |
|
|
|
45,220 |
|
|
|
40,601 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
22,243 |
|
|
|
18,232 |
|
|
|
80,040 |
|
|
|
71,057 |
|
Research and development |
|
2,334 |
|
|
|
2,031 |
|
|
|
10,863 |
|
|
|
5,035 |
|
Restructuring charges |
|
(30 |
) |
|
|
42 |
|
|
|
1,287 |
|
|
|
822 |
|
Transaction expenses |
|
— |
|
|
|
1,284 |
|
|
|
1,450 |
|
|
|
2,721 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
85,000 |
|
|
|
— |
|
Operating loss |
|
(8,142 |
) |
|
|
(8,573 |
) |
|
|
(133,420 |
) |
|
|
(39,034 |
) |
Interest expense |
|
3,597 |
|
|
|
3,544 |
|
|
|
14,244 |
|
|
|
14,200 |
|
Net increase in fair value of derivatives |
|
93,317 |
|
|
|
9,395 |
|
|
|
108,149 |
|
|
|
7,424 |
|
Loss on extinguishment of debt |
|
3,440 |
|
|
|
— |
|
|
|
3,440 |
|
|
|
— |
|
Other (income) expense |
|
(475 |
) |
|
|
(306 |
) |
|
|
(2,194 |
) |
|
|
(393 |
) |
Loss before taxes |
|
(108,021 |
) |
|
|
(21,206 |
) |
|
|
(257,059 |
) |
|
|
(60,265 |
) |
Income tax expense |
|
13 |
|
|
|
50 |
|
|
|
35 |
|
|
|
101 |
|
Net loss |
$ |
(108,034 |
) |
|
$ |
(21,256 |
) |
|
$ |
(257,094 |
) |
|
$ |
(60,366 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net loss per share |
$ |
(0.43 |
) |
|
$ |
(0.14 |
) |
|
$ |
(1.10 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
250,575,733 |
|
|
|
156,818,532 |
|
|
|
233,604,500 |
|
|
|
149,234,917 |
|
Diluted |
|
250,575,733 |
|
|
|
156,818,532 |
|
|
|
233,604,500 |
|
|
|
149,234,917 |
|
Consolidated Balance Sheets as of
|
|||||||
|
|
|
|
||||
$ in thousands |
December 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
50,141 |
|
|
$ |
32,557 |
|
Accounts receivable, less allowance for credit losses |
|
38,953 |
|
|
|
21,949 |
|
Contract assets |
|
895 |
|
|
|
4,822 |
|
Prepaid expenses and other current assets |
|
3,768 |
|
|
|
4,449 |
|
Total current assets |
|
93,757 |
|
|
|
63,777 |
|
Non-current assets: |
|
|
|
||||
Property and equipment, net |
|
1,566 |
|
|
|
997 |
|
Goodwill |
|
119,081 |
|
|
|
48,683 |
|
Intangible assets, net |
|
119,119 |
|
|
|
82,040 |
|
Right-of-use assets |
|
9,263 |
|
|
|
4,041 |
|
Other non-current assets |
|
990 |
|
|
|
372 |
|
Total assets |
$ |
343,776 |
|
|
$ |
199,910 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity (deficit) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
8,455 |
|
|
$ |
11,038 |
|
Short-term debt, including current portion of long-term debt |
|
818 |
|
|
|
1,229 |
|
Accrued liabilities |
|
19,496 |
|
|
|
16,233 |
|
Contract liabilities |
|
2,541 |
|
|
|
879 |
|
Current portion of long-term lease liability |
|
1,068 |
|
|
|
779 |
|
Derivative liabilities |
|
170,515 |
|
|
|
37,862 |
|
Other current liabilities |
|
73 |
|
|
|
602 |
|
Total current liabilities |
|
202,966 |
|
|
|
68,622 |
|
Non-current liabilities: |
|
|
|
||||
Long-term debt, net |
|
134,287 |
|
|
|
194,273 |
|
Long-term lease liability |
|
9,120 |
|
|
|
4,313 |
|
Deferred tax liabilities |
|
— |
|
|
|
37 |
|
Total liabilities |
|
346,373 |
|
|
|
267,245 |
|
Stockholders’ equity (deficit): |
|
|
|
||||
Common stock, par value |
|
26 |
|
|
|
17 |
|
Additional paid-in capital |
|
625,130 |
|
|
|
303,428 |
|
Treasury stock, at cost 9,952,803 shares at December 31, 2024 and December 31, 2023 |
|
(57,350 |
) |
|
|
(57,350 |
) |
Accumulated deficit |
|
(570,524 |
) |
|
|
(313,430 |
) |
Accumulated other comprehensive income |
|
121 |
|
|
|
— |
|
Total stockholders’ equity (deficit) |
|
(2,597 |
) |
|
|
(67,335 |
) |
Total liabilities and stockholders’ equity (deficit) |
$ |
343,776 |
|
|
$ |
199,910 |
|
Consolidated Statements of Cash Flows for the Year Ended
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
$ in thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(108,034 |
) |
|
$ |
(21,256 |
) |
|
$ |
(257,094 |
) |
|
$ |
(60,366 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense |
|
3,133 |
|
|
|
1,965 |
|
|
|
11,873 |
|
|
|
7,901 |
|
Amortization of debt issuance costs |
|
508 |
|
|
|
506 |
|
|
|
2,025 |
|
|
|
2,018 |
|
Equity-based compensation expense |
|
5,053 |
|
|
|
6,079 |
|
|
|
21,127 |
|
|
|
18,671 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
85,000 |
|
|
|
— |
|
Non-cash lease expense |
|
167 |
|
|
|
147 |
|
|
|
720 |
|
|
|
597 |
|
Provision for doubtful accounts |
|
8 |
|
|
|
132 |
|
|
|
228 |
|
|
|
1,739 |
|
Deferred income tax (benefit) expense |
|
— |
|
|
|
35 |
|
|
|
(37 |
) |
|
|
88 |
|
Loss on extinguishment of debt |
|
3,440 |
|
|
|
— |
|
|
|
3,440 |
|
|
|
— |
|
Net increase (decrease) in fair value of derivatives |
|
93,317 |
|
|
|
9,395 |
|
|
|
108,149 |
|
|
|
7,424 |
|
Loss on sale of property and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
(Increase) decrease in accounts receivable |
|
(6,357 |
) |
|
|
6,949 |
|
|
|
(11,753 |
) |
|
|
6,403 |
|
Decrease (increase) in contract assets |
|
849 |
|
|
|
(4,370 |
) |
|
|
3,927 |
|
|
|
(3,510 |
) |
Decrease (increase) in prepaid expenses and other assets |
|
536 |
|
|
|
(282 |
) |
|
|
2,076 |
|
|
|
5,899 |
|
(Decrease) increase in accounts payable |
|
4,197 |
|
|
|
1,962 |
|
|
|
(4,027 |
) |
|
|
(4,384 |
) |
(Decrease) increase in accrued liabilities |
|
(10,483 |
) |
|
|
602 |
|
|
|
(2,873 |
) |
|
|
2,637 |
|
Increase (decrease) in contract liabilities |
|
28 |
|
|
|
(1,441 |
) |
|
|
514 |
|
|
|
(1,143 |
) |
(Decrease) increase in other liabilities |
|
(1,168 |
) |
|
|
(497 |
) |
|
|
(1,414 |
) |
|
|
(2,291 |
) |
Net cash used in operating activities |
|
(14,806 |
) |
|
|
(74 |
) |
|
|
(38,119 |
) |
|
|
(18,307 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Acquisition of business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
13,935 |
|
|
|
— |
|
Purchases of property and equipment |
|
(180 |
) |
|
|
— |
|
|
|
(484 |
) |
|
|
(2 |
) |
Capitalized software development costs |
|
(3,234 |
) |
|
|
(1,084 |
) |
|
|
(10,630 |
) |
|
|
(3,828 |
) |
Net cash provided by (used in) investing activities |
|
(3,414 |
) |
|
|
(1,084 |
) |
|
|
2,821 |
|
|
|
(3,830 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of shares for exercised RDO and PIPE warrants |
|
— |
|
|
|
— |
|
|
|
53,809 |
|
|
|
— |
|
Proceeds from issuance of Private Placement and Registered Direct Offering shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50,000 |
|
Payment of Private Placement and Registered Direct Offering transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,724 |
) |
Proceeds from short-term borrowings |
|
817 |
|
|
|
1,229 |
|
|
|
817 |
|
|
|
1,229 |
|
Repayment of short-term borrowings |
|
— |
|
|
|
— |
|
|
|
(1,229 |
) |
|
|
(2,059 |
) |
Payment of debt issuance costs to third parties |
|
(349 |
) |
|
|
— |
|
|
|
(349 |
) |
|
|
— |
|
Proceeds from exercise of options |
|
302 |
|
|
|
— |
|
|
|
421 |
|
|
|
— |
|
Issuance of common stock upon ESPP purchase |
|
760 |
|
|
|
645 |
|
|
|
1,367 |
|
|
|
1,176 |
|
Payments of tax withholding from the issuance of common stock |
|
765 |
|
|
|
(343 |
) |
|
|
(2,378 |
) |
|
|
(2,560 |
) |
Net cash provided by financing activities |
|
2,295 |
|
|
|
1,531 |
|
|
|
52,458 |
|
|
|
42,062 |
|
Effect of foreign currency rate changes on cash and cash equivalents |
|
482 |
|
|
|
— |
|
|
|
424 |
|
|
|
— |
|
Net increase (decrease) in cash and cash equivalents |
|
(15,443 |
) |
|
|
373 |
|
|
|
17,584 |
|
|
|
19,925 |
|
Cash and cash equivalents at the beginning of period |
|
65,584 |
|
|
|
32,184 |
|
|
|
32,557 |
|
|
|
12,632 |
|
Cash and cash equivalents at the end of the period |
$ |
50,141 |
|
|
$ |
32,557 |
|
|
$ |
50,141 |
|
|
$ |
32,557 |
|
EBITDA* and Adjusted EBITDA* for the Fourth Quarter and Year Ended
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
$ thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(108,034 |
) |
|
$ |
(21,256 |
) |
|
$ |
(257,094 |
) |
|
$ |
(60,366 |
) |
Interest expense |
|
3,597 |
|
|
|
3,544 |
|
|
|
14,244 |
|
|
|
14,200 |
|
Interest income |
|
(486 |
) |
|
|
(306 |
) |
|
|
(2,293 |
) |
|
|
(392 |
) |
Income tax expense (benefit) |
|
13 |
|
|
|
50 |
|
|
|
35 |
|
|
|
101 |
|
Depreciation and amortization |
|
3,132 |
|
|
|
1,965 |
|
|
|
11,872 |
|
|
|
7,901 |
|
EBITDA |
|
(101,778 |
) |
|
|
(16,003 |
) |
|
|
(233,236 |
) |
|
|
(38,556 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Equity-based compensation |
|
5,053 |
|
|
|
6,079 |
|
|
|
21,127 |
|
|
|
18,671 |
|
Employer payroll taxes related to equity-based compensation(1) |
|
244 |
|
|
|
75 |
|
|
|
985 |
|
|
|
440 |
|
Net increase in fair value of derivatives(2) |
|
93,317 |
|
|
|
9,395 |
|
|
|
108,149 |
|
|
|
7,424 |
|
Restructuring charges(3) |
|
(30 |
) |
|
|
42 |
|
|
|
1,287 |
|
|
|
822 |
|
Non-recurring strategic initiatives(4) |
|
1,517 |
|
|
|
545 |
|
|
|
6,459 |
|
|
|
3,025 |
|
Non-recurring litigation(5) |
|
23 |
|
|
|
2,250 |
|
|
|
1,142 |
|
|
|
2,250 |
|
Transaction expenses(6) |
|
— |
|
|
|
1,284 |
|
|
|
1,450 |
|
|
|
2,721 |
|
Non-recurring integration costs(7) |
|
175 |
|
|
|
— |
|
|
|
1,800 |
|
|
|
— |
|
Goodwill impairment(8) |
|
— |
|
|
|
— |
|
|
|
85,000 |
|
|
|
— |
|
Loss on extinguishment of debt(9) |
|
3,440 |
|
|
|
— |
|
|
|
3,440 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
1,961 |
|
|
$ |
3,667 |
|
|
$ |
(2,397 |
) |
|
$ |
(3,203 |
) |
(1) |
Includes employer payroll taxes due upon the vesting of equity awards granted to employees. |
(2) |
The increase in fair value of derivatives during the year ended December 31, 2024, relates to the The increase in fair value of derivatives during the year ended December 31, 2023 primarily relates to changes in the fair value of PIPE warrant and RDO warrants issued during the first and second quarters of 2023. |
(3) |
During the year ended December 31, 2024 and the year ended December 31, 2023, the Company incurred employee separation costs associated with a strategic review of the Company’s capacity and future projections to better align the organization and cost structure and improve the affordability of its products and services. |
(4) |
Non-recurring professional fees related to the execution of certain strategic initiatives of the Company. |
(5) |
Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. |
(6) |
Transaction expenses during the year ended December 31, 2024 and December 31, 2023 consist primarily of diligence, legal and other related expenses incurred associated with the Pangiam acquisition. Transaction costs incurred in 2022 are primarily related to our acquisition of ProModel Corporation as well as costs associated with evaluating other acquisition opportunities. |
(7) |
Non-recurring internal integration costs related to the Pangiam acquisition. |
(8) |
During the year ended December 31, 2024, the Company recognized a non-cash goodwill impairment charge primarily driven by a decrease in share price during the quarter compared to the share price of the equity issued as consideration for the purchase of Pangiam. |
(9) |
Loss on extinguishment of debt is related to the exchange of the |
| *EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section in this press release for additional information and a reconciliation. |
Adjusted EBITDA Reconciliation* for the Fourth Quarter and Year Ended
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
$ in thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
43,827 |
|
|
$ |
40,563 |
|
|
$ |
158,236 |
|
|
$ |
155,164 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
(108,034 |
) |
|
|
(21,256 |
) |
|
|
(257,094 |
) |
|
|
(60,366 |
) |
Interest expense |
|
3,597 |
|
|
|
3,544 |
|
|
|
14,244 |
|
|
|
14,200 |
|
Interest income |
|
(486 |
) |
|
|
(306 |
) |
|
|
(2,293 |
) |
|
|
(392 |
) |
Income tax expense |
|
13 |
|
|
|
50 |
|
|
|
35 |
|
|
|
101 |
|
Depreciation & amortization |
|
3,132 |
|
|
|
1,965 |
|
|
|
11,872 |
|
|
|
7,901 |
|
EBITDA |
$ |
(101,778 |
) |
|
$ |
(16,003 |
) |
|
$ |
(233,236 |
) |
|
$ |
(38,556 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Equity-based compensation |
|
5,053 |
|
|
|
6,079 |
|
|
|
21,127 |
|
|
|
18,671 |
|
Employer payroll taxes related to equity-based compensation(1) |
|
244 |
|
|
|
75 |
|
|
|
985 |
|
|
|
440 |
|
Net increase in fair value of derivatives(2) |
|
93,317 |
|
|
|
9,395 |
|
|
|
108,149 |
|
|
|
7,424 |
|
Restructuring charges(3) |
|
(30 |
) |
|
|
42 |
|
|
|
1,287 |
|
|
|
822 |
|
Non-recurring integration costs and strategic initiatives(4)(7) |
|
1,692 |
|
|
|
545 |
|
|
|
8,259 |
|
|
|
3,025 |
|
Non-recurring litigation(5) |
|
23 |
|
|
|
2,250 |
|
|
|
1,142 |
|
|
|
2,250 |
|
Transaction expenses(6) |
|
— |
|
|
|
1,284 |
|
|
|
1,450 |
|
|
|
2,721 |
|
Goodwill impairment(8) |
|
— |
|
|
|
— |
|
|
|
85,000 |
|
|
|
— |
|
Loss on extinguishment of debt(9) |
|
3,440 |
|
|
|
— |
|
|
|
3,440 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
1,961 |
|
|
$ |
3,667 |
|
|
$ |
(2,397 |
) |
|
$ |
(3,203 |
) |
Gross Margin |
|
37.4 |
% |
|
|
32.1 |
% |
|
|
28.6 |
% |
|
|
26.2 |
% |
Net Loss Margin |
|
(246.5 |
)% |
|
|
(52.4 |
)% |
|
|
(162.5 |
)% |
|
|
(38.9 |
)% |
Adjusted EBITDA Margin |
|
4.5 |
% |
|
|
9.0 |
% |
|
|
(1.5 |
)% |
|
|
(2.1 |
)% |
(1) |
Includes employer payroll taxes due upon the vesting of equity awards granted to employees. |
(2) |
The increase in fair value of derivatives during the year ended December 31, 2024, relates to the The increase in fair value of derivatives during the year ended December 31, 2023 primarily relates to changes in the fair value of PIPE warrant and RDO warrants issued during the first and second quarters of 2023. |
(3) |
During the year ended December 31, 2024 and the year ended December 31, 2023, the Company incurred employee separation costs associated with a strategic review of the Company’s capacity and future projections to better align the organization and cost structure and improve the affordability of its products and services. |
(4) |
Non-recurring professional fees related to the execution of certain strategic initiatives of the Company. |
(5) |
Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. |
(6) |
Transaction expenses during the year ended December 31, 2024 and December 31, 2023 consist primarily of diligence, legal and other related expenses incurred associated with the Pangiam acquisition. Transaction costs incurred in 2022 are primarily related to our acquisition of ProModel Corporation as well as costs associated with evaluating other acquisition opportunities. |
(7) |
Non-recurring internal integration costs related to the Pangiam acquisition. |
(8) |
During the year ended December 31, 2024, the Company recognized a non-cash goodwill impairment charge primarily driven by a decrease in share price during the quarter compared to the share price of the equity issued as consideration for the purchase of Pangiam. |
(9) |
Loss on extinguishment of debt is related to the exchange of the |
*EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section in this press release for additional information and a reconciliation. |
Recurring SG&A Reconciliation* for the Fourth Quarter and Year Ended
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
$ in thousands |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Selling, general and administrative |
$ |
22,243 |
|
|
$ |
18,232 |
|
|
$ |
80,040 |
|
|
$ |
71,057 |
|
Equity-based compensation allocated to selling, general and administrative expense |
|
(2,907 |
) |
|
|
(3,156 |
) |
|
|
(12,087 |
) |
|
|
(11,349 |
) |
Non-recurring integration costs and strategic initiatives (1)(2) |
|
(1,692 |
) |
|
|
(545 |
) |
|
|
(8,259 |
) |
|
|
(3,025 |
) |
Non-recurring litigation (3) |
|
(23 |
) |
|
|
(2,250 |
) |
|
|
(1,142 |
) |
|
|
(2,250 |
) |
Virgin Orbit AR Reserve |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,475 |
) |
Adjusted (recurring) selling, general and administrative expense |
$ |
17,621 |
|
|
$ |
12,281 |
|
|
$ |
58,552 |
|
|
$ |
52,958 |
|
(1) |
Non-recurring professional fees related to the execution of certain strategic initiatives of the Company. |
(2) |
Non-recurring internal integration costs related to the Pangiam acquisition. |
(3) |
Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. |
*EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section in this press release for additional information and a reconciliation. |
||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding BigBear.ai’s industry, future events, and other statements that are not historical facts. These statements are based on current expectations and beliefs concerning future developments and their potential effects on us and should not be relied upon as representing BigBear.ai’s assessment as of any date subsequent to the date of this release. There can be no assurance that future developments affecting us will be those that we have anticipated. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding; changes in government programs or applicable requirements or budgetary constraints, including any potential constraints as a result of recent or future federal government layoffs, including automatic reductions as a result of “sequestration” or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies, including government shutdowns or the ability of the
Non-GAAP Financial Measures
The financial information and data contained in this press release is unaudited. Some of the financial information and data contained in this press release, such as EBITDA, Adjusted EBITDA, and Recurring SG&A have not been prepared in accordance with
The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of BigBear.ai’s liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare BigBear.ai’s performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time.
Net Debt is defined as principal outstanding on convertible notes, less cash and cash equivalents.
Debt-to-Cash Ratio is defined as principal outstanding on convertible notes divided by cash and cash equivalents.
EBITDA is defined as net loss before interest expense, interest income, income tax (benefit) expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for equity-based compensation, employer payroll taxes related to equity-based compensation, net increase (decrease) in fair value of derivatives, restructuring charges, non-recurring integration costs and strategic initiatives, non-recurring litigation, transaction expenses, goodwill impairment, and loss on extinguishment of debt.
Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue.
Recurring SG&A is defined as selling, general and administrative expense further adjusted for equity-based compensation allocated to selling, general and administrative expense, non-recurring strategic integration costs and strategic initiatives, non-recurring litigation, and reserves on Virgin Orbit receivables.
Similar excluded expenses may be incurred in future periods when calculating these measures. BigBear.ai believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. BigBear.ai believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing BigBear.ai’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures.
Management uses EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Recurring SG&A as non-GAAP performance measures which are reconciled to the most directly comparable GAAP measure, in the tables below. The Company does not reconcile forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure (or otherwise describe such forward-looking GAAP measure) because it is not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. As a result, no guidance for the Company’s net (loss) income or reconciliation of the Company’s Adjusted EBITDA guidance is provided. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a potentially significant impact on its future net (loss) income.
We present reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the tables above.
About BigBear.ai
BigBear.ai is a leading provider of AI-powered decision intelligence solutions and services for national security, defense, travel, trade, and enterprise. Customers and partners rely on BigBear.ai’s predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250306486063/en/
BigBear.ai
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Media Contact
media@bigbear.ai
Source: BigBear.ai Holdings, Inc.
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