Mynd Announces 2024 First Half Results
Mynd.ai, Inc. (NYSE American: MYND) announced its H1 2024 financial results, showing mixed performance. Revenue decreased to $166.0 million from $222.5 million in the prior year, primarily due to reduced customer spending. However, gross margins improved by 100 basis points to 27.3%, driven by operational efficiencies. The company reported a net loss of $47.8 million, up from $15.7 million in the same period last year. Adjusted EBITDA loss improved slightly to $5.6 million from $6.1 million. Despite industry-wide softening demand, Mynd maintains a strong cash position of $69.4 million and is implementing cost-saving measures to navigate market challenges.
Mynd.ai, Inc. (NYSE American: MYND) ha annunciato i risultati finanziari per il primo semestre del 2024, evidenziando una performance mista. I ricavi sono diminuiti a $166,0 milioni rispetto a $222,5 milioni dell'anno precedente, principalmente a causa della riduzione della spesa dei clienti. Tuttavia, i margini lordi sono migliorati di 100 punti base, raggiungendo il 27,3%, grazie a maggiori efficienze operative. L'azienda ha registrato una perdita netta di $47,8 milioni, rispetto ai $15,7 milioni dello stesso periodo dell'anno scorso. La perdita EBITDA rettificata è migliorata leggermente, passando a $5,6 milioni da $6,1 milioni. Nonostante la domanda nel settore stia rallentando, Mynd mantiene una solida posizione di liquidità di $69,4 milioni e sta implementando misure di risparmio sui costi per affrontare le sfide del mercato.
Mynd.ai, Inc. (NYSE American: MYND) anunció sus resultados financieros del primer semestre de 2024, mostrando un rendimiento mixto. Los ingresos disminuyeron a $166,0 millones desde $222,5 millones en el año anterior, principalmente debido a la reducción en el gasto de los clientes. Sin embargo, los márgenes brutos mejoraron en 100 puntos base, alcanzando el 27,3%, impulsados por eficiencias operativas. La compañía reportó una pérdida neta de $47,8 millones, en comparación con $15,7 millones en el mismo período del año pasado. La pérdida de EBITDA ajustado mejoró ligeramente a $5,6 millones desde $6,1 millones. A pesar de la disminución de la demanda en la industria, Mynd mantiene una sólida posición de efectivo de $69,4 millones y está implementando medidas de ahorro de costos para enfrentar los desafíos del mercado.
Mynd.ai, Inc. (NYSE American: MYND)는 2024년 상반기 재무 결과를 발표하며 혼합된 성과를 나타냈습니다. 수익이 감소했습니다 $166.0 백만으로 작년의 $222.5 백만에서 줄어들었으며, 주로 고객 지출 감소 때문입니다. 그러나 총 마진이 개선되었습니다 100bp 증가하여 27.3%에 도달했으며, 이는 운영 효율성 덕분입니다. 회사는 $47.8 백만의 순손실을 보고했습니다, 작년 같은 기간의 $15.7 백만에서 증가했습니다. 조정된 EBITDA 손실은 $6.1 백만에서 $5.6 백만으로 약간 개선되었습니다. 업계 전반의 수요 감소에도 불구하고, Mynd는 $69.4 백만의 강력한 현금 보유를 유지하고 있으며, 시장 도전 과제를 극복하기 위해 비용 절감 조치를 시행하고 있습니다.
Mynd.ai, Inc. (NYSE American: MYND) a annoncé ses résultats financiers pour le premier semestre 2024, montrant des performances variées. Le chiffre d'affaires a diminué à 166,0 millions de dollars contre 222,5 millions de dollars l'année précédente, principalement en raison de la diminution des dépenses des clients. Cependant, les marges brutes se sont améliorées de 100 points de base pour atteindre 27,3%, grâce aux gains d'efficacité opérationnelle. La société a signalé une perte nette de 47,8 millions de dollars, contre 15,7 millions de dollars à la même période l'année dernière. La perte d'EBITDA ajusté s'est légèrement améliorée, tombant à 5,6 millions de dollars contre 6,1 millions de dollars. Malgré le ralentissement de la demande dans l'industrie, Mynd maintient une solide position de trésorerie de 69,4 millions de dollars et met en œuvre des mesures d'économie pour faire face aux défis du marché.
Mynd.ai, Inc. (NYSE American: MYND) hat die finanziellen Ergebnisse für das erste Halbjahr 2024 bekannt gegeben, die eine durchwachsene Leistung zeigen. Der Umsatz ist zurückgegangen auf $166,0 Millionen von $222,5 Millionen im Vorjahr, hauptsächlich aufgrund reduzierter Kundenausgaben. Dennoch verbesserten sich die Bruttomargen um 100 Basispunkte auf 27,3%, was auf betriebliche Effizienzen zurückzuführen ist. Das Unternehmen meldete einen Nettoverlust von $47,8 Millionen, verglichen mit $15,7 Millionen im gleichen Zeitraum des Vorjahres. Der angepasste EBITDA-Verlust verbesserte sich leicht auf $5,6 Millionen von $6,1 Millionen. Trotz der nachlassenden Nachfrage in der Branche hält Mynd eine starke liquide Mittelposition von $69,4 Millionen und setzt Kostenreduzierungsmaßnahmen um, um die Herausforderungen des Marktes zu bewältigen.
- Gross margins increased by 100 basis points to 27.3%
- Cash flow from operations improved by $5.0 million compared to the prior year
- Adjusted EBITDA loss improved by $0.5 million to $5.6 million
- Company maintains a strong cash position of $69.4 million
- Operational efficiencies led to cost savings in component pricing, freight, and duty
- Revenue decreased by 25.4% to $166.0 million
- Gross profit declined by 22.4% to $45.4 million
- Net loss increased significantly to $47.8 million from $15.7 million in the prior year
- Reduced spending by key customers due to budget uncertainty
- Softer industry demand and increased competition affecting sales
Insights
Mynd's H1 2024 results reveal a challenging period for the education technology sector. The company's revenue decline of
- Gross margin improvement of 100 basis points to
27.3% , indicating operational efficiencies - Cash flow from operations improved by
$5.0 million - Adjusted EBITDA loss narrowed by
$0.6 million
The valuation allowance against U.S. deferred tax assets significantly impacted net loss, which increased to
The education technology market is experiencing a significant shift post-COVID. The normalization of budgets after years of inflated funding due to pandemic-related relief programs is causing widespread uncertainty. This trend is likely to persist in the short term, affecting not just Mynd but the entire industry.
Mynd's strategy to focus on operational efficiencies and cost-saving measures is prudent given the current market conditions. The transition of final assembly to Mexico and reduced component costs are positive steps. However, the company needs to innovate rapidly to maintain its market leadership, especially in the face of increased competition. The mention of "groundbreaking tools and new technologies" is promising, but concrete product developments will be important for Mynd's long-term success in this evolving market landscape.
Gross Margins Increased 100 Basis Points to
H1 2024 Key Financial Milestones
- Revenue of
$166.0 million $222.5 million - Gross profit of
$45.4 million 22.4% decline from$58.5 million 27.3% primarily as a result of increased operational efficiencies - Cash flow from operations improvement of
$5.0 million $69.4 million - Adjusted EBITDA loss of
$5.6 million $6.1 million - Management continuing to implement cost saving measures to mitigate effects of education technology market headwinds
"We've observed a continued industry-wide softening demand trend throughout most of our key geographic markets primarily due to uncertainty around future budget allocations for many of our customers. After several years of unusually high funding as a result of COVID-related government relief programs, local education authorities are reacting to a broad normalization of budgets," said Vin Riera, Chief Executive Officer. "Nevertheless, we are confident in our business model and are well positioned to prioritize and streamline our operations and navigate the market challenges, as evidenced by our margin improvement. As we continue to drive operational efficiencies and take further actions to reduce overhead costs, we seek to maintain our market leadership in interactive flat panel displays ("IFPDs") within the global education market. We are dedicated to delivering hardware and software solutions with groundbreaking tools and new technologies for the education, business, and public sectors in line with our long-term strategic vision."
The Company generated revenue of
Gross profit was
Net loss of
"Like many of our competitors, we experienced headwinds stemming from the lower demand trends in the education technology sector, but we exited the period with
Forward-Looking Statements
This press release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect Mynd's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," "optimistic," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Mynd's Annual Report on Form 20-F, filed with the SEC on March 27, 2024, as such factors may be updated from time to time in Mynd's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including, but not limited to, the Company's brand recognition and market reputation; student enrollment in the Company's teaching facilities; the Company's growth strategies and ability to build long-term relationships with schools and other key market participants; the Company's future business development, results of operations and financial condition; trends and competition in the early childhood education markets in which the Company intends to operate; changes in its revenues and certain cost or expense items; the expected growth of the early childhood education market in the Company's targeted addressable markets; governmental policies relating to the Company's industry, including government funding of education opportunities, the Company's ability to implement cost saving initiatives to mitigate market headwinds and general economic conditions in the markets in which the Company intends to operate. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Mynd's filings with the SEC. While forward-looking statements reflect Mynd's good faith beliefs, they are not guarantees of future performance. Mynd disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law.
Discussion of non-GAAP Financial Measures
We believe that providing the non-GAAP ("Generally Accepted Accounting Principles") information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors not only to better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis, in addition to GAAP, and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based in part upon the achievement of consolidated revenue and Adjusted EBITDA targets.
Reconciliations with respect to the Non-GAAP figures included in this press release to such Non-GAAP figure's most comparable GAAP figure are included in the financial tables below.
About Mynd.ai, Inc.
Financial Tables Follow
Mynd.ai, Inc. UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands of | ||||
June 30, 2024 | December 31, 2023 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 69,377 | $ 91,784 | ||
Accounts receivable, net of allowance for credit losses of | 67,660 | 63,865 | ||
Inventories | 33,662 | 53,098 | ||
Prepaid expenses and other current assets | 12,432 | 14,666 | ||
Due from related parties | 2,319 | 2,759 | ||
Total current assets | 185,450 | 226,172 | ||
Non-current assets: | ||||
Goodwill | 45,545 | 46,924 | ||
Property, plant, and equipment, net | 14,896 | 11,878 | ||
Intangible assets, net | 48,647 | 51,450 | ||
Right-of-use assets | 7,882 | 7,491 | ||
Deferred tax assets, net | 16,659 | 56,381 | ||
Other non-current assets | 4,684 | 4,094 | ||
Total non-current assets | 138,313 | 178,218 | ||
Total assets | 323,763 | 404,390 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | 52,177 | 59,595 | ||
Accrued expenses and other current liabilities | 37,243 | 45,389 | ||
Loans payable, current | 21,292 | 31,942 | ||
Contract liabilities | 16,107 | 14,110 | ||
Accrued warranties | 15,449 | 17,871 | ||
Lease liabilities, current | 4,011 | 4,412 | ||
Due to related parties | 6,107 | 5,080 | ||
Current liabilities of discontinued operations | — | 163 | ||
Total current liabilities | 152,386 | 178,562 | ||
Non-current liabilities: | ||||
Loans payable, non-current | 57,741 | 64,859 | ||
Loans payable, related parties, non-current | 4,715 | 4,670 | ||
Contract liabilities, non-current | 21,054 | 21,762 | ||
Lease liabilities, non-current | 3,986 | 3,412 | ||
Deferred tax liabilities | 1,197 | 1,317 | ||
Other non-current liabilities | 3,814 | 4,250 | ||
Total non-current liabilities | 92,507 | 100,270 | ||
Total liabilities | 244,893 | 278,832 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Ordinary shares par value of 456,477,820 shares issued and outstanding as of both June 30, 2024 and December 31, 2023. 10,000,000 shares, designation. | 456 | 456 | ||
Additional paid-in capital | 474,501 | 473,590 | ||
Accumulated other comprehensive income | 3,724 | 3,513 | ||
Accumulated deficit | (401,630) | (353,890) | ||
Total Mynd.ai, Inc. shareholders' equity | 77,051 | 123,669 | ||
Non-controlling interest | 1,819 | 1,889 | ||
Total shareholders' equity | 78,870 | 125,558 | ||
Total liabilities and shareholders' equity | $ 323,763 | $ 404,390 | ||
Mynd.ai, Inc. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of | ||||
Six months ended June 30 | ||||
2024 | 2023 | |||
Revenue | $ 165,983 | $ 222,497 | ||
Cost of sales | 120,607 | 164,036 | ||
Gross profit | 45,376 | 58,461 | ||
Operating expenses: | ||||
General and administrative | 20,217 | 18,313 | ||
Research and development | 13,413 | 18,508 | ||
Sales and marketing | 22,497 | 30,315 | ||
Transaction related costs | 125 | 8,472 | ||
Restructuring | 1,218 | 2,170 | ||
Total operating expenses | 57,470 | 77,778 | ||
Operating loss | (12,094) | (19,317) | ||
Other income (expense): | ||||
Interest expense | (5,518) | (2,366) | ||
Interest income | 1,314 | 6 | ||
Gain on embedded derivative | 9,249 | — | ||
Other income (expense), net | (1,066) | 1,294 | ||
Total other income (expense) | 3,979 | (1,066) | ||
Net loss from continuing operations, before income taxes | (8,115) | (20,383) | ||
Income tax benefit (expense) | (39,631) | 5,143 | ||
Net loss from continuing operations | (47,746) | (15,240) | ||
Loss from discontinued operations, net of tax | (64) | (431) | ||
Net loss | $ (47,810) | $ (15,671) | ||
Net loss from continuing operations attributable to non-controlling interest | $ (70) | $ — | ||
Net loss attributable to ordinary shareholders of Mynd.ai, Inc. from continuing operations | (47,676) | (15,240) | ||
Net loss attributable to ordinary shareholders of Mynd.ai, Inc. | (47,740) | (15,671) | ||
Basic and Diluted | ||||
Net loss per share attributable to ordinary shareholders of Mynd.ai, Inc. from continuing operations | $ (0.10) | $ (0.04) | ||
Net loss per share attributable to ordinary shareholders of Mynd.ai, Inc. from discontinued operations | — | — | ||
Net loss per share attributable to ordinary shareholders of Mynd.ai, Inc. | (0.10) | (0.04) | ||
Weighted average shares outstanding used in calculating net loss per share | 456,477,820 | 426,422,220 | ||
Mynd.ai. Inc. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) | ||||
Six months ended June 30 | ||||
June 30, 2024 | June 30, 2023 | |||
Net loss | $ (47,810) | $ (15,671) | ||
Change in foreign currency translation adjustments | 211 | (1,920) | ||
Total comprehensive loss | (47,599) | (17,591) | ||
Less: comprehensive loss attributable to non-controlling interest | (70) | — | ||
Comprehensive loss attributable to Mynd.ai Inc. | $ (47,529) | $ (17,591) | ||
Mynd.ai, Inc. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||
Six months ended June 30 | ||||
2024 | 2023 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (47,810) | $ (15,671) | ||
Loss from discontinued operations, net of tax | 64 | 431 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 4,044 | 2,526 | ||
Deferred taxes | 39,480 | (5,143) | ||
Non-cash lease expense | 2,894 | 960 | ||
Non-cash interest expenses | 2,290 | — | ||
Amortization of RDEC credit | (588) | (372) | ||
Gain on embedded derivative | (9,249) | — | ||
Share-based compensation | 1,131 | — | ||
Change in fair value of earn out liabilities | 36 | 79 | ||
Loss on disposal of property, plant and equipment | 44 | — | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | (4,411) | (23,078) | ||
Inventories | 19,531 | 36,578 | ||
Prepaid expenses and other assets | 2,558 | (300) | ||
Prepaid subscriptions | — | 1,424 | ||
Due from related parties | 409 | 1,345 | ||
Accounts payable | (6,221) | (8,367) | ||
Accrued expenses and other liabilities | (8,495) | (8,408) | ||
Accrued warranties | (2,378) | 3,148 | ||
Due to related parties | 1,028 | (1,409) | ||
Contract liabilities | 1,397 | 5,484 | ||
Lease obligations - operating leases | (3,042) | (1,148) | ||
Net cash used in operating activities - continuing operations | (7,288) | (11,921) | ||
Net cash used in operating activities - discontinued operations | (64) | (429) | ||
Net cash used in operating activities | (7,352) | (12,350) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Acquisition of property, plant and equipment | (1,084) | (236) | ||
Internal-use software development costs | (3,499) | (1,556) | ||
Repayment of loan receivable, related party | — | 8,019 | ||
Net cash (used in) provided by investing activities | (4,583) | 6,227 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of Revolver | (16,770) | (29,000) | ||
Proceeds from Revolver | 6,000 | 28,000 | ||
Contingent consideration payments | — | (716) | ||
Repayment of Paycheck Protection Program Loan | (96) | (96) | ||
Proceeds from NetDragon group loans | — | 119 | ||
Net cash used in financing activities | (10,866) | (1,693) | ||
Net change in cash and cash equivalents | (22,801) | (7,816) | ||
Cash and cash equivalents, beginning of period | 91,784 | 29,312 | ||
Exchange rate effects | 394 | (268) | ||
Cash and cash equivalents, end of period | $ 69,377 | $ 21,228 | ||
Supplemental disclosure of non-cash investing and financing activities transactions: | ||||
Convertible notes issued in exchange for accrued PIK interest | $ 1,643 | $ — | ||
Decrease in goodwill due to measurement period adjustments relating to | $ 1,228 | $ — | ||
Lease assets acquired in exchange for lease liabilities | $ 3,555 | $ 550 | ||
Supplemental disclosure of cash transactions: | ||||
Cash paid for interest | $ 2,730 | $ — | ||
Cash refund, net of cash paid for taxes | $ 967 | $ 678 | ||
Mynd.ai. Inc. SUPPLEMENTAL FINANCIAL INFORMATION Reconciliation of Net Income to Adjusted EBITDA (in thousands) | |||
Six months ended June 30, | |||
2024 | 2023 | ||
Net loss | $ (47,810) | $ (15,671) | |
Loss from discontinued operations | 64 | 431 | |
Interest expense | 5,518 | 2,366 | |
Interest income | (1,314) | (6) | |
Income tax expense (benefit) | 39,631 | (5,143) | |
Depreciation and amortization | 4,044 | 2,526 | |
Share-based compensation | 1,131 | — | |
Other income (expense), net | 1,066 | (1,294) | |
Gain on embedded derivative | (9,249) | — | |
Transaction related costs1 | 125 | 8,472 | |
Restructuring costs2 | 1,218 | 2,170 | |
Adjusted EBITDA | $ (5,576) | $ (6,149) | |
(1) Transaction related costs are one-time non-recurring costs related to acquisition and disposal of businesses. | |||
(2) Restructuring costs relate to employee severance costs, contract termination costs, facility restructuring, and business restructuring efforts undertaken by management. |
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SOURCE Mynd.ai
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