Mobix Labs, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
Revenue up
Acquisition strategy successfully expanding end markets and diversifying offerings
Increasing Customer Demand
“We are pleased to announce a successful fiscal fourth quarter that caps off Mobix Labs’ results as we complete our first year as a public company,” said Fabian Battaglia, CEO of Mobix Labs. “I’m proud of our team’s execution as we are quickly growing the breadth of our offerings and targeting synergistic accretive acquisitions. Integrating technologies and businesses is part of our core DNA, and shaping tomorrow’s connectivity is front and center for Mobix.”
“We were pleased with both our revenue growth of
Financial Highlights for Fourth Quarter of 2024
-
Revenue: Total revenue grew to
in the fourth quarter of 2024, a$3.0 million 44% increase from in the third quarter of 2024.$2.1 million -
Loss from Operations: GAAP loss from operations for the quarter was
, compared to a loss of$11.2 million for the third quarter of 2024. On a non-GAAP basis, adjusted loss from operations for the quarter was$9.3 million compared to a loss of$3.6 million for the third quarter of 2024.$4.1 million
Financial Highlights for Fiscal Year 2024
-
Revenue: Total revenue grew to
in 2024, a$6.4 million 426% increase from in 2023.$1.2 million -
Loss from Operations: GAAP loss from operations for the year was
, compared to a loss of$46.4 million in 2023. On a non-GAAP basis, adjusted loss from operations for the year was$35.5 million compared to a loss of$16.0 million in 2023.$18.7 million
Recent Business Highlights
- Signed a letter of intent to acquire Spacecraft Components Corp., a leader in high-precision, mission-critical components for aerospace, defense, and commercial applications. They are recognized for their cutting-edge engineering and manufacturing capabilities, which are vital to critical missile technology, submarines, naval ships, oil rigs, railcars, military and commercial jet aircraft, and many other applications. The acquisition would represent a significant strategic milestone for Mobix Labs as it expands its presence into new markets and strengthens its leadership in key industries.
- EMI Interconnect Solutions announced filtered ARINC connectors, which are setting a new standard in price, performance and customization. Also, EMI announced significant new customers in the aerospace and defense sectors for custom-filtered next-generation high-performance connectors used in flight guidance and cockpit display systems.
- Wireless Systems achieved strong revenue and increased margins during RaGE Systems’ first full quarter with Mobix. Continued production of present-generation radar imaging modules while also developing new generations of products to help our customers explore new product offerings. Also, expanded Multi-Spectral Imaging and Detection (“MSID”) programs by adding new capabilities to our customer-supported test facilities and demonstrated new capabilities and functionality for future programs.
-
Expanded relationship with UMASS Lowell in
Massachusetts to include research on infrastructure degradation, safety for the rail industry and also SATCOM applications.
Financial Outlook
Net revenues are expected to fall within a range of
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
- Adjusted Gross Profit, which is defined as GAAP Gross Profit excluding amortization of acquisition-related intangible assets, inventory write-offs and stock-based compensation expense; and,
- Adjusted Loss from Operations, which is defined as GAAP Loss from Operations excluding depreciation, amortization of acquisition-related intangible assets, merger and acquisition-related expenses, inventory write-offs and stock-based compensation expense.
The Company’s management believes it is useful to consider these non-GAAP financial measures, together with the corresponding GAAP financial measures, as they provide more transparency into current business trends, exclusive of the effects of certain non-cash expenses, acquisition-related charges, and items that may not be present in comparative fiscal periods. Management believes that, when considered together with reported GAAP financial measures, these non-GAAP financial measures are useful to investors and management in understanding the Company’s ongoing operations and operating trends and in analyzing the Company’s underlying financial performance.
These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the comparable GAAP measures. These non-GAAP financial measures may be different from similarly titled measures used by other companies. In the future, Mobix may consider whether other items should also be excluded in calculating the non-GAAP financial measures it uses. Management believes that the presentation of these non-GAAP financial measures provides investors with additional useful information to measure Mobix Labs’ financial and operating performance. In particular, these measures facilitate comparison of our operating performance between periods and may help investors to understand better our operating results. Internally, management uses these non-GAAP financial measures in assessing the Company's operating results and in planning and forecasting. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is contained in the financial tables to this press release.
Conference Call Information
Event: |
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Mobix Labs, Inc. Fourth Quarter 2024 Earnings Call |
Date: |
|
Thursday, December 19, 2024 |
Time: |
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2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time |
Webcast: |
|
|
Dial-in number: |
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https://register.vevent.com/register/BI37e4d59b857d4ae697e3f80cd43b40d1 |
Shortly after the completion of the conference call, an archived version of the webcast will be available on the Company’s investor relations website at investors.mobixlabs.com.
About Mobix Labs, Inc.
Mobix Labs designs, develops and sells components and systems for advanced wireless and wired connectivity, radio frequency (“RF”), switching and electromagnetic interference (“EMI”) filtering technologies. Our solutions are used in the consumer commercial, industrial, automotive, medical, aerospace, defense and other markets. To enhance our product portfolio, we also intend to pursue acquisitions of companies with existing revenue which can be scaled, and which possess technologies that accelerate the speed, accessibility, and efficiency of disruptive or more efficient communications solutions, and which will also allow us to expand into strategically aligned industries. Our wireless systems solutions include products for advanced RF and millimeter wave (“mmWave”) 5G communications, mmWave imaging, software defined radio and custom RF integrated circuits (“ICs”) targeting the commercial, industrial, and defense and aerospace sectors. Our interconnect products, including EMI filter inserts and filtered and non-filtered connectors, are designed for and are currently used in aerospace, military, defense and medical applications. Our True Xero active optical cables (“AOCs”) are designed to meet customer needs for high-quality active optical cable solutions at an affordable price. These innovative technologies are designed for large and rapidly growing markets where there is increasing demand for higher performance communication and filtering systems which utilize an expanding mix of both wireless and connectivity technologies.
Mobix Labs and the logo, are among the trademarks of Mobix Labs. Other trademarks are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Mobix Labs, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||||||||||
Three months ended September 30, | Year ended September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net revenue | $ |
2,954 |
|
$ |
433 |
|
$ |
6,442 |
|
$ |
1,224 |
|
||||
Cost of revenue |
|
1,282 |
|
|
432 |
|
|
3,890 |
|
|
1,620 |
|
||||
Gross profit |
|
1,672 |
|
|
1 |
|
|
2,552 |
|
|
(396 |
) |
||||
Research and development |
|
1,451 |
|
|
1,835 |
|
|
5,779 |
|
|
11,044 |
|
||||
Selling, general and administrative |
|
10,104 |
|
|
2,906 |
|
|
41,835 |
|
|
24,104 |
|
||||
Impairment of long-lived assets |
|
1,333 |
|
|
- |
|
|
1,333 |
|
|
- |
|
||||
Loss from operations |
|
(11,216 |
) |
|
(4,740 |
) |
|
(46,395 |
) |
|
(35,544 |
) |
||||
Interest expense |
|
350 |
|
|
2,169 |
|
|
1,582 |
|
|
3,355 |
|
||||
Change in fair value of earnout liability |
|
(1,280 |
) |
|
- |
|
|
(31,879 |
) |
|
- |
|
||||
Change in fair value of PIPE make-whole liability |
|
(708 |
) |
|
- |
|
|
(830 |
) |
|
- |
|
||||
Change in fair value of SAFEs |
|
- |
|
|
127 |
|
|
10 |
|
|
655 |
|
||||
Merger-related transaction costs expensed |
|
- |
|
|
- |
|
|
4,009 |
|
|
- |
|
||||
Private placement costs |
|
2,894 |
|
|
- |
|
|
2,894 |
|
|
- |
|
||||
Other non-operating losses, net |
|
(1,307 |
) |
|
- |
|
|
282 |
|
|
- |
|
||||
Loss before income taxes |
|
(11,165 |
) |
|
(7,036 |
) |
|
(22,463 |
) |
|
(39,554 |
) |
||||
Provision (benefit) for income taxes |
|
372 |
|
|
49 |
|
|
(2,429 |
) |
|
67 |
|
||||
Net loss and comprehensive loss |
|
(11,537 |
) |
|
(7,085 |
) |
|
(20,034 |
) |
|
(39,621 |
) |
||||
Deemed dividend |
|
- |
|
|
- |
|
|
661 |
|
|
- |
|
||||
Net loss available to common stockholders | $ |
(11,537 |
) |
$ |
(7,085 |
) |
$ |
(20,695 |
) |
$ |
(39,621 |
) |
||||
Net loss per common share: | ||||||||||||||||
Basic | $ |
(0.34 |
) |
$ |
(0.42 |
) |
$ |
(0.73 |
) |
$ |
(2.71 |
) |
||||
Diluted | $ |
(0.35 |
) |
$ |
(0.42 |
) |
$ |
(0.75 |
) |
$ |
(2.71 |
) |
||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic |
|
34,258,869 |
|
|
16,705,331 |
|
|
28,419,593 |
|
|
14,612,600 |
|
||||
Diluted |
|
34,956,411 |
|
|
16,705,331 |
|
|
29,483,021 |
|
|
14,612,600 |
|
||||
Mobix Labs, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Computation of Adjusted Loss from Operations: | ||||||||||||||||
GAAP loss from operations | $ |
(11,216 |
) |
$ |
(4,740 |
) |
$ |
(46,395 |
) |
$ |
(35,544 |
) |
||||
Depreciation |
|
115 |
|
|
112 |
|
|
472 |
|
|
449 |
|
||||
Amortization of acquisition related intangible assets |
|
426 |
|
|
210 |
|
|
1,543 |
|
|
841 |
|
||||
Merger & acquisition-related expenses |
|
2,088 |
|
|
19 |
|
|
5,579 |
|
|
90 |
|
||||
Inventory write-off |
|
- |
|
|
- |
|
|
125 |
|
|
- |
|
||||
Stock-based compensation expense |
|
3,615 |
|
|
1,089 |
|
|
21,383 |
|
|
15,476 |
|
||||
Impairment of long-lived assets |
|
1,333 |
|
|
- |
|
|
1,333 |
|
|
- |
|
||||
Adjusted loss from operations | $ |
(3,639 |
) |
$ |
(3,310 |
) |
$ |
(15,960 |
) |
$ |
(18,688 |
) |
||||
Three Months Ended | Year Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
GAAP gross profit: | ||||||||||||||||
GAAP net revenue | $ |
2,954 |
|
$ |
433 |
|
$ |
6,442 |
|
$ |
1,224 |
|
||||
GAAP cost of revenue |
|
1,282 |
|
|
432 |
|
|
3,890 |
|
|
1,620 |
|
||||
GAAP gross profit | $ |
1,672 |
|
$ |
1 |
|
$ |
2,552 |
|
$ |
(396 |
) |
||||
GAAP gross margin % |
|
56.6 |
% |
|
0.2 |
% |
|
39.6 |
% |
|
-32.4 |
% |
||||
Computation of Adjusted Gross Profit: | ||||||||||||||||
GAAP gross profit | $ |
1,672 |
|
$ |
1 |
|
$ |
2,552 |
|
$ |
(396 |
) |
||||
Amortization of acquisition-related intangible assets |
|
11 |
|
|
67 |
|
|
219 |
|
|
271 |
|
||||
Inventory write-off |
|
- |
|
|
- |
|
|
125 |
|
|
- |
|
||||
Stock-based compensation expense |
|
(12 |
) |
|
(3 |
) |
|
15 |
|
|
31 |
|
||||
Adjusted Gross Profit | $ |
1,671 |
|
$ |
65 |
|
$ |
2,911 |
|
$ |
(94 |
) |
||||
Adjusted Gross Margin % |
|
56.6 |
% |
|
15.0 |
% |
|
45.2 |
% |
|
-7.7 |
% |
||||
Mobix Labs, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||
September 30, |
||||||||
2024 |
2023 |
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ |
266 |
|
$ |
89 |
|
||
Accounts receivable, net |
|
2,813 |
|
|
53 |
|
||
Inventory |
|
1,725 |
|
|
319 |
|
||
Prepaid expenses and other current assets |
|
467 |
|
|
369 |
|
||
Total current assets |
|
5,271 |
|
|
830 |
|
||
Property and equipment, net |
|
1,177 |
|
|
1,859 |
|
||
Intangible assets, net |
|
15,211 |
|
|
5,287 |
|
||
Goodwill |
|
16,066 |
|
|
5,217 |
|
||
Operating lease right-of-use assets |
|
1,022 |
|
|
1,030 |
|
||
Deferred transaction costs |
|
- |
|
|
4,125 |
|
||
Other assets |
|
341 |
|
|
400 |
|
||
Total assets | $ |
39,088 |
|
$ |
18,748 |
|
||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ |
10,833 |
|
$ |
8,995 |
|
||
Accrued expenses and other current liabilities |
|
10,325 |
|
|
4,519 |
|
||
Deferred purchase consideration |
|
2,380 |
|
|
- |
|
||
Notes payable |
|
398 |
|
|
1,286 |
|
||
Notes payable - related parties |
|
1,743 |
|
|
3,793 |
|
||
Simple agreements for future equity |
|
- |
|
|
1,512 |
|
||
Operating lease liabilities, current |
|
428 |
|
|
318 |
|
||
Total current liabilities |
|
26,107 |
|
|
20,423 |
|
||
Notes payable, noncurrent |
|
200 |
|
|
- |
|
||
Notes payable - related parties, noncurrent |
|
1,082 |
|
|
- |
|
||
Earnout liability |
|
1,680 |
|
|
- |
|
||
Deferred tax liability |
|
320 |
|
|
86 |
|
||
Operating lease liabilities, noncurrent |
|
1,024 |
|
|
1,280 |
|
||
Other noncurrent liabilities |
|
3,145 |
|
|
- |
|
||
Total liabilities |
|
33,558 |
|
|
21,789 |
|
||
Redeemable convertible preferred stock |
|
- |
|
|
2,300 |
|
||
Stockholders' equity (deficit) | ||||||||
Common stock, |
|
- |
|
|
- |
|
||
Additional paid-in capital |
|
109,987 |
|
|
78,421 |
|
||
Accumulated deficit |
(104,457 |
) |
(83,762 |
) |
||||
Total stockholders' equity (deficit) |
|
5,530 |
|
|
(5,341 |
) |
||
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ |
39,088 |
|
$ |
18,748 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241219704692/en/
Investor Contact:
investors@mobixlabs.com
Source: Mobix Labs, Inc.