Guerrilla RF Reports Record First Quarter 2024 Results and Gross Margin Expansion

Rhea-AI Summary

Guerrilla RF (GUER) announced record revenues of $5.1 million for Q1 2024, a 59.4% increase from Q1 2023. Gross margin rose by 640 basis points sequentially to 63.2%. Operating loss reduced to $1.8 million, down from $3.7 million in the prior year. Net cash used in operating activities dropped to $0.8 million, and the backlog increased by 27.7% year-on-year to $8.3 million. Cash balance improved to $3.6 million. Revenue guidance for 2024 remains between $21.0 to $26.0 million. The company completed a $5.0 million private placement, acquiring GaN product portfolio from Gallium Semiconductor to speed up market entry by two years.

Positive

• Record Q1 2024 revenues of $5.1 million, a 59.4% increase YoY.
• Gross margin expanded by 640 basis points sequentially to 63.2%.
• Backlog increased by 27.7% compared to Q1 2023, reaching $8.3 million.
• Net cash used in operating activities decreased to $0.8 million, a $5.0 million reduction YoY.
• $3.6 million cash balance as of March 31, 2024.
• Private placement raised $5.0 million, with $3.0 million net cash proceeds.
• Acquired GaN product portfolio to accelerate market entry by two years.
• Revenue guidance for 2024 maintained at $21.0 to $26.0 million.

Negative

• Operating loss of $1.8 million in Q1 2024.
• Net loss of $3.4 million in Q1 2024.
• Adjusted EBITDA loss of $1.1 million.
• Continued high interest expenses at $1.7 million for Q1 2024.

• Record revenue quarter of $5.1 million

• Gross Margin expands 640 basis points sequentially over prior quarter

GREENSBORO, N.C.--(BUSINESS WIRE)-- Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company achieved record revenues of $5.1 million for the first quarter 2024, a 59.4% increase as compared to the first quarter of 2023.

Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company achieved record revenues of $5.1 million for the first quarter 2024, a 59.4% increase as compared to the first quarter of 2023. (Graphic: Business Wire)

“Following a challenging 2023, we accelerated our momentum by increasing revenue as a result of our strong foothold in the Automotive market and deeper penetration in the 5G Infrastructure market with previously announced satellite communications and point to multi-point communications shipments,” said Ryan Pratt, Founder and CEO. “This was an excellent quarter with over $5.1 million in revenue and a backlog increase of 27.7% from Q1 2023. We believe we are on target to achieve the $21.0 to $26.0 million revenue guidance we previously provided.”

Corporate Highlights

• Completed a $5.0 million private placement, with net cash proceeds of approximately $3.0 million after deduction of expenses and conversion of existing debt. We plan to use the new capital to accelerate the Company’s growth and strengthen its competitive position through new market penetration, expanded product offerings, additional R&D initiatives, and new capital equipment.

• Announced the acquisition of strategic GaN product portfolio and intellectual property of Gallium Semiconductor. We believe this acquisition will accelerate our penetration into this market by an estimated two years.

• Extended maturity of primary credit facility to 2026.

• Management reiterates 2024 revenue guidance of $21.0 to $26.0 million.

Financial Highlights

• Revenue for the first quarter of fiscal 2024 increased 59.4% as compared to the first quarter of fiscal 2023.

• Quarterly revenues increased 8.5% to $5.1 million, up from $4.7 million recorded in the fourth quarter 2023.

• Gross margin for the first quarter of fiscal 2024 was 63.2% of revenues as compared to 56.6% for the first quarter of fiscal 2023 and up 640 basis points from Q4 2023.

• Operating loss for the first quarter of fiscal 2024 was $1.8 million as compared to $3.7 million for the first quarter of fiscal 2023.

• Net cash used in operating activities reduced to $0.8 million (a $5.0 million reduction from first quarter 2023) as a result of increased sales, margin expansion and expense management efforts.

• Adjusted EBITDA loss (a non-GAAP measure) was $1.1 million for the first quarter of fiscal 2024. See EBITDA Reconciliation below.

• Backlog (a non-GAAP measure) increased at the end of the first quarter of fiscal 2024 to $8.3 million as compared to $6.5 million at the end of the first quarter of fiscal 2023.

• Cash balance as of March 31, 2024, was approximately $3.6 million compared to $0.8 million as of December 31, 2023.

Financial Results for Three Months Ended March 31, 2024

• Revenues were $5.1 million, as compared to $3.2 million in the prior year period.

• R&D expenses decreased to $2.3 million, as compared to $2.6 million for the prior year period.

• Sales and marketing expenses remained flat at $1.4 million, as compared to the prior year period.

• General and administrative expenses decreased slightly to $1.5 million, as compared to the prior year period.

   

GUERRILLA RF, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Guerrilla RF, Inc.
Balance Sheet
		March 31, 2024				December 31, 2023
Assets			Unaudited
Cash		$	3,600,710			$	781,318
Accounts receivable, net			2,819,814				2,079,111
Inventories			1,773,596				1,533,592
Prepaid expenses			540,911				458,313
Total Current Assets			8,735,031				4,852,334
Operating right-of-use assets			10,209,384				10,500,620
Property, plant, and equipment, net			3,332,955				3,659,084
Total Assets		$	22,277,370			$	19,012,038
Liabilities and Stockholders' Equity (Deficit)
Accounts payable and accrued expenses		$	3,590,654			$	2,099,537
Short-term debt			2,839,529				1,628,667
Derivative liabilities			-				158,000
Operating lease, current portion			731,952				745,969
Finance lease, current portion			939,975				978,543
Convertible notes			-				78,905
Convertible notes - related parties			-				700,189
Notes payable, current portion			-				10,948,668
Total Current Liabilities			8,102,110				17,338,478
Long-term debt			634,717				698,600
Operating lease			5,994,557				6,176,508
Finance lease			1,394,430				1,593,979
Notes payable			10,178,238				-
Total Liabilities			26,304,052				25,807,565
Common stock			995				789
Additional paid in capital			42,384,337				36,243,146
Accumulated deficit			(46,412,014	)			(43,039,462	)
Total Stockholders' Equity (Deficit)			(4,026,682	)			(6,795,527	)
Total Liabilities and Stockholders' Equity (Deficit)		$	22,277,370			$	19,012,038

Guerrilla RF, Inc.
Profit and Loss Statement		Q1 2024				Q1 2023
		Unaudited
Product revenue		$	5,089,773			$	3,040,409
Royalties and non-recurring engineering revenue			1,476				190,479
Total			5,091,249				3,230,888
Direct product cost			1,870,675				1,403,345
Gross Profit			3,220,574				1,827,543
Operating Expenses:
Research and development			2,251,533				2,586,169
Sales and marketing			1,352,909				1,361,949
General and administrative			1,454,695				1,546,163
Total operating expenses			5,059,137				5,494,281
Operating loss			(1,838,563	)			(3,666,738	)
Interest expense			(1,684,787	)			(341,857	)
Change in fair value of derivative liabilities			158,000				-
Other income (expense)			(7,202	)			7,177
Total other income (expense), net			(1,533,989	)			(334,680	)
Net loss		$	(3,372,552	)		$	(4,001,418	)

EBITDA and Adjusted EBITDA Reconciliation

References to “EBITDA” mean net loss, before considering interest expense, provision for income taxes, depreciation and amortization. References to Adjusted EBITDA excludes irregular or non-recurring items and are not directly related to the Company’s core operating performance. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. GAAP. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net income and other U.S. GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that may, or could, have a disproportionate positive or negative impact on our results for any particular period. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with U.S. GAAP. A reconciliation of non-U.S. GAAP EBITDA and Adjusted EBITDA to the most directly comparable U.S. GAAP measure in accordance with SEC Regulation G follows:

Guerrilla RF, Inc.
EBITDA Reconciliation		Q1 2024				Q1 2023
Net Loss		$	(3,372,552	)		$	(4,001,418	)
Interest expense			1,684,787				341,857
Depreciation and amortization			366,281

FAQ

What were Guerrilla RF's Q1 2024 revenues?

Guerrilla RF reported revenues of $5.1 million in Q1 2024.

How much did Guerrilla RF's gross margin expand in Q1 2024?

Gross margin expanded by 640 basis points sequentially to 63.2% in Q1 2024.

What is Guerrilla RF's revenue guidance for 2024?

Guerrilla RF's revenue guidance for 2024 is between $21.0 to $26.0 million.

How much did Guerrilla RF's operating loss decrease in Q1 2024?

Guerrilla RF's operating loss decreased to $1.8 million in Q1 2024 from $3.7 million in Q1 2023.

What was Guerrilla RF's net cash used in operating activities for Q1 2024?

Net cash used in operating activities for Q1 2024 was $0.8 million.

What was Guerrilla RF's cash balance as of March 31, 2024?

Guerrilla RF's cash balance as of March 31, 2024, was $3.6 million.

How much did Guerrilla RF's backlog increase in Q1 2024?

Guerrilla RF's backlog increased by 27.7% year-on-year to $8.3 million in Q1 2024.

What strategic acquisition did Guerrilla RF complete?

Guerrilla RF acquired the GaN product portfolio from Gallium Semiconductor.

How did Guerrilla RF fund its capital initiatives?

Guerrilla RF completed a $5.0 million private placement, resulting in $3.0 million net cash proceeds.

What was Guerrilla RF's net loss in Q1 2024?

Guerrilla RF's net loss was $3.4 million in Q1 2024.