Airship AI Holdings Completes Business Combination with BYTE Acquisition Corp.
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Insights
The completion of the business combination between Airship AI Holdings, Inc. and BYTE Acquisition Corp. signifies a strategic move with direct implications for Airship AI's financial positioning and growth prospects. The transaction, valuing Airship AI at approximately $225 million pre-money, provides the company with access to public markets, thereby enhancing its financial flexibility. This is particularly significant given the company's announcement of a robust $163 million pipeline and the commencement of $10.9 million in government contracts.
From a financial perspective, Airship AI's reported 2022A revenue of $14.5 million with a 57.9% gross margin, combined with positive EBITDA, suggests a healthy operational performance. The forecast for the next twelve months (NTM) indicates substantial growth, with projected revenue of $39 million and an increased gross margin of 65%, alongside $9 million EBITDA. Such financial metrics indicate a strong potential for continued profitability and margin expansion, especially in the context of the growing edge AI market.
Airship AI operates within the edge AI market, which encompasses software and hardware that process data at the location it is generated. The market is currently valued at $7 billion, with projections indicating growth to over $40 billion by 2030. Airship AI's end-to-end solutions, including its Outpost AI edge device and Acropolis operating system, are tailored to meet the demands of a rapidly evolving market where real-time data processing and intelligence collection are increasingly crucial for both public safety and commercial operations.
The company's blue-chip customer base, spanning federal government agencies and Fortune 500 companies, demonstrates a strong market position. The recent delivery of firm fixed price contracts for the Department of Homeland Security underscores the company's capability to secure significant government contracts, a key driver for future revenue growth. This growth trajectory is supported by the company's strategic focus on leveraging existing hardware and AI advancements to enhance operational efficiency and decision-making for its clients.
The contracts awarded by the Department of Homeland Security to Airship AI reflect the increasing demand for integrated solutions in national security and border protection. Airship AI's predictive analytics and intelligence capabilities, particularly for real-time operations along U.S. borders, highlight the relevance of its technology in addressing critical security challenges. The firm fixed price contract model indicates a clear scope and budget for deliverables, which may offer a degree of financial predictability and stability for the company.
Furthermore, the company's focus on AI-driven edge video, sensor and data management solutions for intelligence collection aligns with the broader trend of digital transformation within the defense and security sector. The ability to integrate with clients' existing systems and provide actionable intelligence is a competitive advantage that can be expected to drive further adoption of Airship AI's technologies within both government and commercial sectors.
Combined Company to Begin Trading on Nasdaq Under “AISP” on December 22, 2023
Business Combination Strategically Positions Airship AI, a Robust AI-Driven Video, Sensor and Data Management Surveillance Platform for Government Agencies and Enterprises, to Accelerate Growth and Revenue
As Part of its
In connection with the Business Combination closing, the combined company has been renamed “Airship AI Holdings, Inc.” (the “Company”). Beginning at the open of trading on December 22, 2023, the Company’s common stock and warrants will trade on Nasdaq under the ticker symbols “AISP” and “AISPW,” respectively.
This transaction valued Airship AI at pre-money equity value of approximately
Airship AI Highlights
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Large and Rapidly Growing Size of Addressable Market
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$7 billion $40 billion - This growth is expected to be driven by strong demand for AI solutions in public safety, industrial, and logistics settings.
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Differentiated End-to-End Solution
- Airship AI leverages AI at the edge to help improve public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers.
- Solutions work with clients’ existing hardware and capitalize on rapidly growing use of AI to create efficiency, increase speed, reduce costs, and improve decision-making.
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Blue-Chip Customer Base
- Existing customers include federal government agencies across the Department of Homeland Security, Department of Justice, Department of Defense, and Intelligence Community, along with state and local law enforcement agencies and Fortune 500 companies FedEx and Home Depot.
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In December 2023 began delivery of multiple firm fixed price contracts worth
$10.9 million
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Strong Growth with Software Margin
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2022A:
$14.5 million 57.9% gross margin, positive EBITDA. -
NTM (Next Twelve Months, which denotes July 1, 2023 - June 30, 2024 forecast period):
$39 million 65% gross margin,$9 million - Opportunity for margin expansion with recently launched Edge products.
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2022A:
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Visible and Robust Pipeline
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Strong pipeline predominantly with the
U.S. government in addition to new growth opportunities within the commercial sector
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Strong pipeline predominantly with the
Management Commentary
“We believe that today’s milestone, combined with our visible and robust
“Most recently we began delivery of multiple firm fixed price contracts worth
“With a hard fought foothold with our blue-chip customer base, we are at an inflection point that now positions us to execute a multi-prong growth strategy that we expect will deliver a double-digit revenue growth rate with opportunity for margin expansion and positive EBITDA. In this next phase of our development, we expect to see growth from new opportunities within the commercial sector. The board of Airship AI would like to thank the team at BYTE for the successful completion of the Business Combination,” concluded Allen.
Sam Gloor, BYTE Chief Executive Officer and Chief Financial Officer, added, “We congratulate Airship AI on today’s accomplishment and look forward to their continued growth and evolution toward their goal of improving public safety and operational efficiency for public sector and commercial customers. As a public company we believe Airship AI is well positioned to execute on their strategy and we are excited to see them take this important next step. We thank the Airship AI team for their hard work and partnership in completing the Business Combination.”
1) Edge AI Hardware Market By Component, Valuates Reports
Advisors
Roth Capital Partners served as exclusive M&A advisor to Airship AI. Loeb & Loeb LLP acted as legal advisor to Airship AI and White & Case LLP acted as legal advisor to BYTE.
About Airship AI Holdings, Inc.
Founded in 2006, Airship AI is a
For more information, visit https://airship.ai.
Forward-Looking Statements
The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States 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,” “project,” “forecast,” “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, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of other financial, performance and operational metrics and projections of market opportunity; (2) references with respect to the anticipated benefits of the Business Combination and the projected future financial performance of Airship AI; (3) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (4) Airship AI’s unit economics; (5) the projected technological developments of Airship AI; (6) current and future potential commercial and customer relationships; (7) the ability to operate efficiently at scale; (8) anticipated investments in capital resources and research and development, and the effect of these investments; (9) the ability of the Company to issue equity or equity-linked securities in the future; and (10) the inability to maintain the listing of the Company’s common stock and warrants on Nasdaq following the Business Combination. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Airship AI. These forward-looking statements are subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Registration Statement on Form S-4, filed with the SEC on September 11, 2023, as amended from time to time, and the other documents that BYTE or the Company has filed, or will file, with the SEC relating to the Business Combination. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The risks and uncertainties above are not exhaustive, and there may be additional risks that Airship AI does not presently know or that Airship AI currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward looking statements reflect Airship AI’s expectations, plans or forecasts of future events and views as of the date of this press release. Airship AI anticipates that subsequent events and developments will cause Airship AI’s assessments to change. However, while Airship AI may elect to update these forward-looking statements at some point in the future, Airship AI specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Airship AI’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231221367082/en/
Airship AI Investor Contact:
Chris Tyson/Larry Holub
MZ North America
949-491-8235
AISP@mzgroup.us
Source: BYTE Acquisition Corp.
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