Inseego Reports Fourth Quarter and Full Year 2024 Financial Results
Inseego (NASDAQ: INSG) reported Q4 2024 financial results with revenue of $48.1 million and positive Adjusted EBITDA of $5.4 million. The company achieved GAAP Operating Income of $1.8 million and GAAP gross margin of 37.3% for Q4 2024.
Key developments include the sale of their Telematics business for $52.7 million in cash and completion of convertible debt restructuring, exchanging $91.5 million of convertible notes. The company has repurchased or exchanged approximately $147 million, or 91% of aggregate principal amount, of the $162 million convertible notes outstanding as of December 31, 2023.
For Q1 2025, Inseego guides revenue between $30.0-$33.0 million and Adjusted EBITDA of $2.0-$3.0 million, indicating near-term headwinds. However, management expects year-on-year growth in 2025.
Inseego (NASDAQ: INSG) ha riportato i risultati finanziari del Q4 2024 con un fatturato di 48,1 milioni di dollari e un EBITDA rettificato positivo di 5,4 milioni di dollari. L'azienda ha raggiunto un reddito operativo GAAP di 1,8 milioni di dollari e un margine lordo GAAP del 37,3% per il Q4 2024.
Sviluppi chiave includono la vendita della loro attività di Telematica per 52,7 milioni di dollari in contanti e il completamento della ristrutturazione del debito convertibile, scambiando 91,5 milioni di dollari di note convertibili. L'azienda ha riacquistato o scambiato circa 147 milioni di dollari, ovvero il 91% dell'importo principale aggregato, delle note convertibili da 162 milioni di dollari in circolazione al 31 dicembre 2023.
Per il Q1 2025, Inseego prevede un fatturato compreso tra 30,0 e 33,0 milioni di dollari e un EBITDA rettificato di 2,0-3,0 milioni di dollari, indicando difficoltà a breve termine. Tuttavia, la direzione si aspetta una crescita anno su anno nel 2025.
Inseego (NASDAQ: INSG) informó los resultados financieros del Q4 2024 con ingresos de 48.1 millones de dólares y un EBITDA ajustado positivo de 5.4 millones de dólares. La compañía logró un ingreso operativo GAAP de 1.8 millones de dólares y un margen bruto GAAP del 37.3% para el Q4 2024.
Los desarrollos clave incluyen la venta de su negocio de Telemática por 52.7 millones de dólares en efectivo y la finalización de la reestructuración de deuda convertible, intercambiando 91.5 millones de dólares en notas convertibles. La compañía ha recomprado o intercambiado aproximadamente 147 millones de dólares, o el 91% del monto principal agregado, de las notas convertibles de 162 millones de dólares que estaban en circulación al 31 de diciembre de 2023.
Para el Q1 2025, Inseego guía ingresos entre 30.0-33.0 millones de dólares y un EBITDA ajustado de 2.0-3.0 millones de dólares, indicando vientos en contra a corto plazo. Sin embargo, la dirección espera un crecimiento interanual en 2025.
인시고 (NASDAQ: INSG)는 2024년 4분기 재무 결과를 보고하며 수익이 4,810만 달러이고 조정 EBITDA가 540만 달러로 긍정적이라고 발표했습니다. 회사는 2024년 4분기에 GAAP 운영 소득이 180만 달러, GAAP 총 마진이 37.3%를 달성했습니다.
주요 개발 사항으로는 5,270만 달러에 텔레매틱스 사업을 매각하고, 9,150만 달러의 전환사채 재구성을 완료한 것이 포함됩니다. 회사는 2023년 12월 31일 기준으로 발행된 1억 6,200만 달러의 전환사채 중 약 1억 4,700만 달러, 즉 91%를 재매입하거나 교환했습니다.
2025년 1분기 동안 인시고는 수익을 3,000만-3,300만 달러로 안내하고 조정 EBITDA는 200만-300만 달러로 예상하며 단기적인 어려움을 나타냅니다. 그러나 경영진은 2025년에 전년 대비 성장을 기대하고 있습니다.
Inseego (NASDAQ: INSG) a annoncé les résultats financiers du T4 2024 avec un chiffre d'affaires de 48,1 millions de dollars et un EBITDA ajusté positif de 5,4 millions de dollars. L'entreprise a réalisé un revenu d'exploitation GAAP de 1,8 million de dollars et une marge brute GAAP de 37,3 % pour le T4 2024.
Les développements clés incluent la vente de son activité de télématique pour 52,7 millions de dollars en espèces et l'achèvement de la restructuration de la dette convertible, échangeant 91,5 millions de dollars de billets convertibles. L'entreprise a racheté ou échangé environ 147 millions de dollars, soit 91 % du montant principal total, des 162 millions de dollars de billets convertibles en circulation au 31 décembre 2023.
Pour le T1 2025, Inseego prévoit un chiffre d'affaires compris entre 30,0 et 33,0 millions de dollars et un EBITDA ajusté de 2,0 à 3,0 millions de dollars, indiquant des vents contraires à court terme. Cependant, la direction s'attend à une croissance d'une année sur l'autre en 2025.
Inseego (NASDAQ: INSG) hat die Finanzzahlen für das 4. Quartal 2024 veröffentlicht, mit einem Umsatz von 48,1 Millionen Dollar und einem positiven bereinigten EBITDA von 5,4 Millionen Dollar. Das Unternehmen erzielte ein GAAP-Betriebsergebnis von 1,8 Millionen Dollar und eine GAAP-Bruttomarge von 37,3% für das 4. Quartal 2024.
Zu den wichtigsten Entwicklungen gehört der Verkauf ihres Telematikgeschäfts für 52,7 Millionen Dollar in bar sowie der Abschluss der Umstrukturierung von wandelbaren Anleihen, bei der 91,5 Millionen Dollar an wandelbaren Anleihen getauscht wurden. Das Unternehmen hat etwa 147 Millionen Dollar, d.h. 91% des aggregierten Nennbetrags, der zum 31. Dezember 2023 ausstehenden 162 Millionen Dollar an wandelbaren Anleihen zurückgekauft oder umgetauscht.
Für das 1. Quartal 2025 prognostiziert Inseego einen Umsatz zwischen 30,0 und 33,0 Millionen Dollar sowie ein bereinigtes EBITDA von 2,0-3,0 Millionen Dollar, was auf kurzfristige Herausforderungen hinweist. Das Management erwartet jedoch ein Wachstum im Jahr 2025 im Vergleich zum Vorjahr.
- Q4 2024 revenue of $48.1 million with positive Adjusted EBITDA of $5.4 million
- Sale of Telematics business for $52.7 million cash injection
- Successful debt restructuring reducing $147 million (91%) of convertible notes
- Strong Q4 GAAP gross margin of 37.3%
- Record quarterly MiFi X PRO sales with major North American carrier
- Projected Q1 2025 revenue decline to $30-33 million from Q4's $48.1 million
- Q1 2025 Adjusted EBITDA guidance shows decrease to $2-3 million from Q4's $5.4 million
- Management acknowledges near-term headwinds in first quarter
Insights
The Q4 2024 results present a complex picture for Inseego, with several significant developments that warrant careful analysis. The $48.1M revenue and $5.4M Adjusted EBITDA demonstrate solid operational execution, particularly with the 37.3% gross margin indicating healthy pricing power and cost management.
The company's strategic moves in Q4 2024 have fundamentally transformed its financial position. The $52.7M cash injection from the telematics business sale, combined with the restructuring of 91% of convertible notes, has substantially de-risked the balance sheet. This financial flexibility is important as Inseego focuses on its core 5G solutions business.
However, the Q1 2025 guidance of $30-33M revenue represents a concerning
The business highlights reveal encouraging traction in key growth areas:
- Record MiFi X PRO sales with a major North American carrier
- New award for next-generation indoor FWA device
- Strategic wins in public sector and medical device markets
The appointment of Juho Sarvikas as CEO, with his extensive background in mobile technology, signals a potential strategic shift toward expanding the company's solution portfolio and customer base. The focus on wireless broadband partnerships could open new revenue streams, particularly important given the projected near-term headwinds.
The debt restructuring's impact cannot be overstated - reducing $147M of $162M in convertible notes significantly improves the company's financial flexibility and reduces interest burden. This positions Inseego to potentially invest in R&D and market expansion, important for competing in the rapidly evolving 5G infrastructure market.
Q4 2024 revenue of
Q4 2024 positive Adjusted EBITDA of
Completed sale of telematics business for
Completed convertible debt restructurings with material reductions in debt
SAN DIEGO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises and SMBs, today reported its results for the fourth quarter and full year ended December 31, 2024.
“My first weeks at Inseego have been very positive, and we are already making progress towards positioning the company as the wireless broadband partner of choice within the wireless ecosystem,” stated Juho Sarvikas, Chief Executive Officer of Inseego. “Our fourth-quarter operational performance delivered encouraging results, reflecting strength in both revenue and Adjusted EBITDA. While we see some near-term headwinds in the first quarter, I am confident that we are on track to deliver year-on-year growth in 2025 as we focus on expanding both our solution portfolio and customer base. Together, as a team, we remain committed to driving long-term growth to create stockholder value."
“We continue to be focused on driving stockholder value and were pleased to close both the restructuring of our outstanding convertible notes and the sale of our Telematics business, receiving
Financial Highlights
- Revenue for Q4 2024 was
$48.1 million ; full year 2024 revenue was$191.2 million . - Adjusted EBITDA for Q4 2024 was
$5.4 million ; full year 2024 Adjusted EBITDA was$20.5 million . - GAAP gross margin for Q4 2024 was
37.3% ; full year 2024 GAAP gross margin was36.0% .
Capital Structure Improvements
- On November 6, 2024, the Company completed its capital structure management initiative and material debt reduction by exchanging
$91.5 million of principal value of the Company’s3.25% convertible notes due 2025 for long-term debt and equity; the Company has now repurchased or exchanged at a discount approximately$147 million , or91% of aggregate principal amount, of the$162 million of the convertible notes that were outstanding as of December 31, 2023. See separate press release issued on November 12, 2024 for further details.
Business Highlights
- Completed the sale of the Company’s Telematics business for
$52.7 million in cash. - Appointed Juho Sarvikas as the new Chief Executive Officer and Board member.
- Achieved highest quarterly MiFi X PRO sales ever with one major North American carrier who continues to see great success with our device especially with public sector customers.
- Received award letter from a large service provider for our next generation indoor FWA device.
- Ranged MiFi X PRO with a global communications solutions provider for business and government agencies.
- Executed large FWA order with a major Internet Service Provider who uses Inseego devices to deliver ultra-fast, SLA-guaranteed, symmetrical fixed wireless access to businesses.
- Completed transaction with a global medical device manufacturer to improve patient outcomes by providing reliable wireless connectivity to automatic external defibrillators.
- Selected in two competitive opportunities to be the hardware supplier to large nonprofit telecom companies that provide affordable broadband services to bridge the digital divide.
Q1 2025 Guidance
- Total revenue in the range of
$30.0 million to$33.0 million . - Adjusted EBITDA in the range of
$2.0 million to$3.0 million .
Conference Call Information
Inseego will host a conference call and live webcast today at 5:00 p.m. ET. To access the conference call:
- Online, visit https://investor.inseego.com/events-presentations
- Those without internet access may dial in by calling:
- In the United States, call 1-844-282-4463
- International parties can access the call at 1-412-317-5613
An audio replay of the conference call will be available one hour after the call through March 5, 2025. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 9063175 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company's website before the conference call begins.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com #Putting5GtoWork
©2025. Inseego Corp. All rights reserved. MiFi and the Inseego name and logo are registered trademarks of Inseego Corp. Other company, product, or service names mentioned herein are the trademarks of their respective owners.
Cautionary Note Regarding Forward-Looking Statements
Some of the information presented in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this news release related to our future business outlook, the future demand for our products, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. We, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from our expectations.
Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the Company’s dependence on a small number of customers for a substantial portion of our revenues; (2) the future demand for wireless broadband access to data and asset management software and services and our ability to accurately forecast; (3) the growth of wireless wide-area networking and asset management software and services; (4) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (5) our ability to develop sales channels and to onboard channel partners; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on our ability to source components and manufacture our products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (12) litigation, regulatory and IP developments related to our products or components of our products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, (18) the impact of import tariffs on our materials and products, and (19) the impact of geopolitical instability on our business.
These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law and our ongoing reporting obligations under the Securities Exchange Act of 1934, as amended.
Non-GAAP Financial Measures
Inseego Corp. has provided financial information in this press release that has not been prepared in accordance with GAAP. Adjusted EBITDA and non-GAAP operating costs and expenses, for example, exclude preferred stock dividends, share-based compensation expense, amortization of intangible assets purchased through acquisitions, amortization of discount and issuance costs related to our 2025 Notes and revolving credit facility, fair value adjustments on derivative instruments, and other non-recurring expenses. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, impairment of capitalized software, impairment of long-lived assets, debt restructuring costs and divestiture related costs, along with certain other non-recurring expenses and foreign exchange gains and losses.
Adjusted EBITDA, non-GAAP cost of revenues, and non-GAAP operating costs and expenses are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool. They are not intended to be used in isolation or as a substitute for cost of revenues, operating expenses, net loss, net loss per share or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider them to be an important supplemental performance measure.
We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operational performance. We use this view of our operating performance to compare it with the business plan and individual operating budgets and in the allocation of resources.
We believe that these non-GAAP financial measures are helpful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that using these non-GAAP financial measures also facilitates comparing our underlying operating performance with other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.
In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and the exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. Investors and potential investors are cautioned that material limitations are associated with using non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool.
Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures in this press release with our GAAP financial results.
Investor Relations Contact:
Matt Glover, Gateway Group: (949) 574-3860
IR@inseego.com
| INSEEGO CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Mobile solutions | $ | 25,499 | $ | 16,029 | $ | 98,930 | $ | 80,498 | |||||||
| Fixed wireless access solutions | 10,427 | 12,411 | 47,649 | 54,900 | |||||||||||
| Product | 35,926 | 28,440 | 146,579 | 135,398 | |||||||||||
| Services and other | 12,161 | 7,479 | 44,665 | 31,888 | |||||||||||
| Total revenues | 48,087 | 35,919 | 191,244 | 167,286 | |||||||||||
| Cost of revenues: | |||||||||||||||
| Product | 28,578 | 25,782 | 115,390 | 127,157 | |||||||||||
| Services and other | 1,565 | 794 | 7,057 | 4,353 | |||||||||||
| Total cost of revenues | 30,143 | 26,576 | 122,447 | 131,510 | |||||||||||
| Gross profit (loss) | 17,944 | 9,343 | 68,797 | 35,776 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Research and development | 5,564 | 5,356 | 20,596 | 19,725 | |||||||||||
| Sales and marketing | 3,775 | 2,929 | 15,951 | 16,632 | |||||||||||
| General and administrative | 4,545 | 3,527 | 17,240 | 15,853 | |||||||||||
| Depreciation and amortization | 2,270 | 5,283 | 12,368 | 18,408 | |||||||||||
| Impairment of capitalized software | — | — | 927 | 1,115 | |||||||||||
| Total operating costs and expenses | 16,154 | 17,095 | 67,082 | 71,733 | |||||||||||
| Operating income (loss) | 1,790 | (7,752 | ) | 1,715 | (35,957 | ) | |||||||||
| Other (expense) income: | |||||||||||||||
| (Loss)/Gain on debt restructurings, net | (16,541 | ) | — | (2,851 | ) | — | |||||||||
| Loss on extinguishment of revolving credit facility | — | — | (788 | ) | — | ||||||||||
| Interest expense, net | (1,220 | ) | (2,176 | ) | (10,906 | ) | (9,086 | ) | |||||||
| Other income (expense), net | 14 | 19 | (850 | ) | 70 | ||||||||||
| Income (Loss) before income taxes | (15,957 | ) | (9,909 | ) | (13,680 | ) | (44,973 | ) | |||||||
| Income tax provision | 518 | (1 | ) | 689 | 43 | ||||||||||
| Income (Loss) from continuing operations | (16,475 | ) | (9,908 | ) | (14,369 | ) | (45,016 | ) | |||||||
| Income from discontinued operations, net of income tax provision | 15,909 | (4,432 | ) | 18,941 | (1,169 | ) | |||||||||
| Net income (loss) | (566 | ) | (14,340 | ) | 4,572 | (46,185 | ) | ||||||||
| Preferred stock dividends | (844 | ) | (773 | ) | (3,269 | ) | (2,991 | ) | |||||||
| Net income (loss) attributable to common stockholders | $ | (1,410 | ) | $ | (15,113 | ) | $ | 1,303 | $ | (49,176 | ) | ||||
| Per share data: | |||||||||||||||
| Net earnings (loss) per share: | |||||||||||||||
| Basic and diluted: | |||||||||||||||
| Continuing operations | $ | (1.23 | ) | $ | (0.90 | ) | $ | (1.41 | ) | $ | (4.22 | ) | |||
| Discontinued operations | $ | 1.13 | $ | (0.38 | ) | $ | 1.51 | $ | (0.10 | ) | |||||
| Basic earnings (loss) per share (*) | $ | (0.10 | ) | $ | (1.28 | ) | $ | 0.10 | $ | (4.32 | ) | ||||
| Weighted-average shares used in computation of net earnings (loss) per share | |||||||||||||||
| Basic and diluted (*) | 14,032,056 | 11,809,306 | 12,535,756 | 11,372,069 | |||||||||||
(*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024
| INSEEGO CORP. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 39,596 | $ | 2,409 | |||
| Accounts receivable, net | 13,803 | 18,202 | |||||
| Inventories | 13,575 | 20,555 | |||||
| Prepaid expenses and other | 5,926 | 4,937 | |||||
| Current assets held for sale | — | 12,123 | |||||
| Total current assets | 72,900 | 58,226 | |||||
| Property, plant and equipment, net | 1,102 | 2,389 | |||||
| Intangible assets, net | 18,747 | 25,718 | |||||
| Goodwill | 3,949 | 3,949 | |||||
| Operating lease right-of-use assets | 2,855 | 4,022 | |||||
| Other assets | 446 | 1,256 | |||||
| Non-current assets held for sale | — | 26,237 | |||||
| Total assets | $ | 99,999 | $ | 121,797 | |||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 18,433 | $ | 23,408 | |||
| Accrued expenses and other current liabilities | 30,133 | 21,049 | |||||
| 2025 Convertible Notes, net | 14,905 | — | |||||
| Revolving credit facility, net | — | 4,094 | |||||
| Current liabilities held for sale | — | 7,360 | |||||
| Total current liabilities | 63,471 | 55,911 | |||||
| Long-term liabilities: | |||||||
| 2025 Convertible Notes, net | — | 159,912 | |||||
| Operating lease liabilities | 2,627 | 3,972 | |||||
| Deferred tax liabilities, net | 174 | 112 | |||||
| 2029 Senior Secured Notes, net | 41,830 | — | |||||
| Other long-term liabilities | 4,755 | 2,351 | |||||
| Non-current liabilities held for sale | — | 1,644 | |||||
| Total liabilities | 112,857 | 223,902 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ deficit: | |||||||
| Preferred stock (aggregate liquidation preference of | — | — | |||||
| Common stock | 15 | 12 | |||||
| Additional paid-in capital | 892,534 | 810,138 | |||||
| Accumulated other comprehensive loss | 218 | (5,327 | ) | ||||
| Accumulated deficit | (905,625 | ) | (906,928 | ) | |||
| Total stockholders’ deficit | (12,858 | ) | (102,105 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 99,999 | $ | 121,797 | |||
| INSEEGO CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 4,572 | $ | (46,185 | ) | ||
| Adjustments to reconcile Net income (loss) to net cash provided by operating activities | |||||||
| (Income) Loss from discontinued operations, net of tax | (18,941 | ) | 1,169 | ||||
| Depreciation and amortization | 12,529 | 18,709 | |||||
| Provision for expected credit losses | 216 | 302 | |||||
| Impairment of capitalized software | 927 | 1,115 | |||||
| Provision for excess and obsolete inventory | (54 | ) | 9,491 | ||||
| Write-off of capitalized inventory order fees | — | 1,275 | |||||
| Impairment of operating lease right-of-use assets | 138 | 469 | |||||
| Share-based compensation expense | 3,824 | 6,971 | |||||
| Amortization of debt discount and debt issuance costs | 4,399 | 1,953 | |||||
| Loss on extinguishment of revolving credit facility | 788 | — | |||||
| Loss on debt restructurings, net | 2,851 | — | |||||
| Deferred income taxes | 62 | 9 | |||||
| Non-cash operating lease expense | 1,035 | 1,038 | |||||
| Changes in assets and liabilities, net of effects of divestiture: | |||||||
| Accounts receivable | 4,670 | 3,068 | |||||
| Inventories | 6,923 | 4,272 | |||||
| Prepaid expenses and other assets | (71 | ) | 1,933 | ||||
| Accounts payable | (6,947 | ) | (802 | ) | |||
| Accrued expenses other liabilities | 10,966 | 235 | |||||
| Operating lease liabilities | (1,230 | ) | (1,272 | ) | |||
| Operating cash flows from continuing operations | 26,657 | 3,750 | |||||
| Operating cash flows from discontinued operations | 6,862 | 2,207 | |||||
| Net cash provided by operating activities | 33,519 | 5,957 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property, plant and equipment | (100 | ) | (224 | ) | |||
| Additions to capitalized software development costs and purchases of intangible assets | (4,961 | ) | (8,112 | ) | |||
| Investing cash flows from continuing operations | (5,061 | ) | (8,336 | ) | |||
| Investing cash flows from discontinued operations | 48,092 | (1,833 | ) | ||||
| Net cash provided by (used in) investing activities | 43,031 | (10,169 | ) | ||||
| Cash flows from financing activities: | |||||||
| Payments related to repurchases of 2025 Convertible Notes | (33,769 | ) | — | ||||
| Proceeds from issuance of short-term loan and warrants, net of issuance costs | 19,350 | — | |||||
| Repayments on short-term loan | (19,500 | ) | — | ||||
| Net repayments on asset-backed revolving credit facility | (4,882 | ) | (3,757 | ) | |||
| Net repayment of bank and overdraft facilities | — | (186 | ) | ||||
| Proceeds from a public offering, net of issuance costs | — | 6,057 | |||||
| Proceeds from stock option exercises and ESPP | 20 | 97 | |||||
| Financing cash flows from continuing operations | (38,781 | ) | 2,211 | ||||
| Financing cash flows from discontinued operations | — | — | |||||
| Net cash provided by (used in) financing activities | (38,781 | ) | 2,211 | ||||
| Effect of exchange rates on cash | (582 | ) | 1,169 | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 37,187 | (832 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 2,409 | 3,241 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 39,596 | $ | 2,409 | |||
| INSEEGO CORP. Supplemental 2024 Statement of Operations Data by Quarter (In thousands) (Unaudited) | |||||||||||||||||||
| Year Ended | Three Months Ended | ||||||||||||||||||
| December 31, 2024 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Mobile solutions | $ | 98,930 | $ | 25,499 | $ | 32,282 | $ | 25,879 | $ | 15,270 | |||||||||
| Fixed wireless access solutions | 47,649 | 10,427 | 9,723 | 13,317 | 14,182 | ||||||||||||||
| Product | 146,579 | 35,926 | 42,005 | 39,196 | 29,452 | ||||||||||||||
| Services and other | 44,665 | 12,161 | 12,027 | 12,424 | 8,053 | ||||||||||||||
| Total revenues | 191,244 | 48,087 | 54,032 | 51,620 | 37,505 | ||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Product | 115,390 | 28,578 | 33,592 | 30,507 | 22,713 | ||||||||||||||
| Services and other | 7,057 | 1,565 | 1,640 | 2,304 | 1,548 | ||||||||||||||
| Total cost of revenues | 122,447 | 30,143 | 35,232 | 32,811 | 24,261 | ||||||||||||||
| Gross profit (loss) | 68,797 | 17,944 | 18,800 | 18,809 | 13,244 | ||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||
| Research and development | 20,596 | 5,564 | 5,176 | 5,173 | 4,683 | ||||||||||||||
| Sales and marketing | 15,951 | 3,775 | 4,125 | 4,212 | 3,839 | ||||||||||||||
| General and administrative | 17,240 | 4,545 | 4,822 | 3,918 | 3,955 | ||||||||||||||
| Depreciation and amortization | 12,368 | 2,270 | 3,154 | 3,652 | 3,292 | ||||||||||||||
| Impairment of capitalized software | 927 | — | 507 | — | 420 | ||||||||||||||
| Total operating costs and expenses | 67,082 | 16,154 | 17,784 | 16,955 | 16,189 | ||||||||||||||
| Operating income (loss) | 1,715 | 1,790 | 1,016 | 1,854 | (2,945 | ) | |||||||||||||
| Other (expense) income: | |||||||||||||||||||
| (Loss)/Gain on debt restructurings, net | (2,851 | ) | (16,541 | ) | 12,366 | 1,324 | — | ||||||||||||
| Loss on extinguishment of revolving credit facility | (788 | ) | — | — | (788 | ) | — | ||||||||||||
| Interest expense, net | (10,906 | ) | (1,220 | ) | (5,731 | ) | (1,776 | ) | (2,179 | ) | |||||||||
| Other income (expense), net | (850 | ) | 14 | (72 | ) | (417 | ) | (375 | ) | ||||||||||
| Income (Loss) before income taxes | (13,680 | ) | (15,957 | ) | 7,579 | 197 | (5,499 | ) | |||||||||||
| Income tax provision | 689 | 518 | 36 | 118 | 17 | ||||||||||||||
| Income (Loss) from continuing operations | (14,369 | ) | (16,475 | ) | 7,543 | 79 | (5,516 | ) | |||||||||||
| Income from discontinued operations, net of income tax provision | 18,941 | 15,909 | 1,426 | 545 | 1,061 | ||||||||||||||
| Net income (loss) | 4,572 | (566 | ) | 8,969 | 624 | (4,455 | ) | ||||||||||||
| Preferred stock dividends | (3,269 | ) | (844 | ) | (827 | ) | (808 | ) | (790 | ) | |||||||||
| Net income (loss) attributable to common stockholders | $ | 1,303 | $ | (1,410 | ) | $ | 8,142 | $ | (184 | ) | $ | (5,245 | ) | ||||||
| INSEEGO CORP. Supplemental 2023 Statement of Operations Data by Quarter (In thousands) (Unaudited) | |||||||||||||||||||
| Year Ended | Three Months Ended | ||||||||||||||||||
| December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Mobile solutions | $ | 80,498 | $ | 16,029 | $ | 22,534 | $ | 18,895 | $ | 23,040 | |||||||||
| Fixed wireless access solutions | 54,900 | 12,411 | 11,114 | 19,505 | 11,870 | ||||||||||||||
| Product | 135,398 | 28,440 | 33,648 | 38,400 | 34,910 | ||||||||||||||
| Services and other | 31,888 | 7,479 | 7,709 | 7,983 | 8,717 | ||||||||||||||
| Total revenues | 167,286 | 35,919 | 41,357 | 46,383 | 43,627 | ||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Product | 127,157 | 25,782 | 42,788 | 30,620 | 27,967 | ||||||||||||||
| Services and other | 4,353 | 794 | 734 | 1,139 | 1,686 | ||||||||||||||
| Total cost of revenues | 131,510 | 26,576 | 43,522 | 31,759 | 29,653 | ||||||||||||||
| Gross profit (loss) | 35,776 | 9,343 | (2,165 | ) | 14,624 | 13,974 | |||||||||||||
| Operating costs and expenses: | |||||||||||||||||||
| Research and development | 19,725 | 5,356 | 5,200 | 5,822 | 3,347 | ||||||||||||||
| Sales and marketing | 16,632 | 2,929 | 3,893 | 4,575 | 5,235 | ||||||||||||||
| General and administrative | 15,853 | 3,527 | 3,429 | 4,281 | 4,616 | ||||||||||||||
| Depreciation and amortization | 18,408 | 5,283 | 3,848 | 4,327 | 4,950 | ||||||||||||||
| Impairment of capitalized software | 1,115 | — | 611 | — | 504 | ||||||||||||||
| Total operating costs and expenses | 71,733 | 17,095 | 16,981 | 19,005 | 18,652 | ||||||||||||||
| Operating income (loss) | (35,957 | ) | (7,752 | ) | (19,146 | ) | (4,381 | ) | (4,678 | ) | |||||||||
| Other (expense) income: | |||||||||||||||||||
| Interest expense, net | (9,086 | ) | (2,176 | ) | (2,894 | ) | (2,017 | ) | (1,999 | ) | |||||||||
| Other income (expense), net | 70 | 19 | 45 | 23 | (17 | ) | |||||||||||||
| Income (Loss) before income taxes | (44,973 | ) | (9,909 | ) | (21,995 | ) | (6,375 | ) | (6,694 | ) | |||||||||
| Income tax provision | 43 | (1 | ) | 30 | 15 | (1 | ) | ||||||||||||
| Income (Loss) from continuing operations | (45,016 | ) | (9,908 | ) | (22,025 | ) | (6,390 | ) | (6,693 | ) | |||||||||
| Income from discontinued operations, net of income tax provision | (1,169 | ) | (4,432 | ) | 220 | 1,454 | 1,589 | ||||||||||||
| Net income (loss) | (46,185 | ) | (14,340 | ) | (21,805 | ) | (4,936 | ) | (5,104 | ) | |||||||||
| Preferred stock dividends | (2,991 | ) | (773 | ) | (756 | ) | (739 | ) | (723 | ) | |||||||||
| Net income (loss) attributable to common stockholders | $ | (49,176 | ) | $ | (15,113 | ) | $ | (22,561 | ) | $ | (5,675 | ) | $ | (5,827 | ) | ||||
| INSEEGO CORP. Supplemental 2024 Reconciliation of GAAP Income (Loss) from Continuing Operations to Adjusted EBITDA (In thousands) (Unaudited) | |||||||||||||||||||
| Year Ended | Three Months Ended | ||||||||||||||||||
| December 31, 2024 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Income (Loss) from continuing operations | $ | (14,369 | ) | $ | (16,475 | ) | $ | 7,543 | $ | 79 | $ | (5,516 | ) | ||||||
| Income tax provision (benefit) | 689 | 518 | 36 | 118 | 17 | ||||||||||||||
| Interest expense, net | 10,906 | 1,220 | 5,731 | 1,776 | 2,179 | ||||||||||||||
| Loss on extinguishment of revolving credit facility | 788 | — | — | 788 | — | ||||||||||||||
| Loss/(Gain) on debt restructurings, net | 2,851 | 16,541 | (12,366 | ) | (1,324 | ) | — | ||||||||||||
| Other (income) expense, net | 850 | (14 | ) | 72 | 417 | 375 | |||||||||||||
| Depreciation and amortization | 12,529 | 2,308 | 3,193 | 3,691 | 3,337 | ||||||||||||||
| Share-based compensation expense | 3,823 | 1,109 | 1,193 | 834 | 687 | ||||||||||||||
| Debt restructuring costs | 1,322 | 201 | 669 | 452 | — | ||||||||||||||
| Impairment of operating lease right-of-use assets | 139 | — | 139 | — | — | ||||||||||||||
| Impairment of capitalized software | 927 | — | 507 | — | 420 | ||||||||||||||
| Adjusted EBITDA from continuing operations | 20,455 | 5,408 | 6,717 | 6,831 | 1,499 | ||||||||||||||
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.
| INSEEGO CORP. Supplemental 2023 Reconciliation of GAAP Income (Loss) from Continuing Operations to Adjusted EBITDA (In thousands) (Unaudited) | |||||||||||||||||||
| Year Ended | Three Months Ended | ||||||||||||||||||
| December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||||||
| Income (Loss) from continuing operations | $ | (45,016 | ) | $ | (9,908 | ) | $ | (22,025 | ) | $ | (6,390 | ) | $ | (6,693 | ) | ||||
| Income tax provision (benefit) | 43 | (1 | ) | 30 | 15 | (1 | ) | ||||||||||||
| Interest expense, net | 9,086 | 2,176 | 2,894 | 2,017 | 1,999 | ||||||||||||||
| Other (income) expense, net | (70 | ) | (19 | ) | (45 | ) | (23 | ) | 17 | ||||||||||
| Depreciation and amortization | 18,713 | 5,350 | 4,421 | 4,438 | 4,504 | ||||||||||||||
| Share-based compensation expense | 6,972 | 1,333 | 2,123 | 1,820 | 1,696 | ||||||||||||||
| Impairment of operating lease right-of-use assets | 469 | — | — | 469 | — | ||||||||||||||
| Inventory adjustments - E&O and contract manufacturer liability ** | 16,427 | 3,370 | 13,057 | — | — | ||||||||||||||
| Write-off of capitalized inventory order fees ** | 924 | — | 924 | — | — | ||||||||||||||
| Impairment of capitalized software | 1,115 | — | 611 | — | 504 | ||||||||||||||
| Adjusted EBITDA from continuing operations | 8,663 | 2,301 | 1,990 | 2,346 | 2,026 | ||||||||||||||
** These items are not adjusted from the period ending December 31, 2023 going forward
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.
FAQ
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