Oblong Announces 20% Sequential Revenue Increase for Fourth Quarter of 2020
Oblong, Inc. (Nasdaq: OBLG) announced its fourth quarter and fiscal year 2020 results, showcasing strong financial growth. Q4 product sales surged over 50% sequentially to $1.6 million, while total revenue rose over 20% to $3.9 million. The gross profit margin improved to 59%. Oblong reported a net income of $1.2 million, contrasting with previous quarters' losses. The company also noted a non-cash gain of $3.1 million from debt extinguishment. With a cash balance of $5.3 million, Oblong entered 2021 optimistic about its Mezzanine™ collaboration suite.
- Product sales of Mezzanine collaboration suite increased over 50% to $1.6 million in Q4 2020.
- Total revenue rose over 20% sequentially to $3.9 million in Q4 2020.
- Gross profit margin increased to 59% in Q4 2020 from 51% in Q3 2020.
- Net income turned positive at $1.2 million compared to prior losses.
- Non-cash gain of $3.1 million recorded from debt extinguishment.
- Adjusted EBITDA loss of $0.4 million in Q4 2020, though improved from previous quarters.
Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the award-winning maker of multi-stream collaboration solutions, today reported financial results for the fourth quarter and fiscal year 2020.
Q4 2020 Financial Highlights
The Company reported the following financial results for the fourth quarter 2020:
-
Fourth quarter 2020 product sales from our flagship Mezzanine™ collaboration suite increased more than
50% sequentially to over$1.6 million , versus$1.1 million for the third quarter of 2020. -
Fourth quarter 2020 total revenue increased more than
20% sequentially to over$3.9 million , versus$3.3 million for the third quarter of 2020. -
Gross profit margin increased to
59% for the fourth quarter of 2020, compared sequentially to51% for the third quarter of 2020 and to40% for the second quarter of 2020. -
Cash balance at December 31, 2020 was
$5.3 million . As of December 31, 2020, the Company has no debt outstanding other than the Company’s$2.4 million PPP Loan, of which approximately$2.2 million is expected to be forgiven. -
Net income of
$1.2 million for the fourth quarter of 2020, compared sequentially to a net loss of$2.1 million for the third quarter of 2020 and to a net loss of$3.4 million for the second quarter of 2020. During the fourth quarter of 2020, the Company recorded a non-cash gain on debt extinguishment of$3.1 million . -
Adjusted EBITDA (“AEBITDA”) loss of
$0.4 million for the fourth quarter of 2020, compared sequentially to an AEBITDA loss of$1.0 million for the third quarter of 2020 and to an AEBITDA loss of$2.0 million for the second quarter of 2020. AEBITDA loss is a non-GAAP financial measure. See “Non-GAAP Financial Information” below for additional information regarding this non-GAAP financial measure, and “GAAP to Non-GAAP Reconciliation” for a reconciliation of this non-GAAP financial measure to net income (loss).
Additionally, on February 12, 2021, Oblong began trading on the Nasdaq Capital Market and all Series D and Series E Preferred Stock converted to common stock. As of February 12, 2021, the Company has no remaining preferred stock outstanding.
“We enter 2021 with a strong balance sheet, a pipeline for our innovative Mezzanine™ collaboration suite that is growing in terms of quality and quantity, and the best internal and partner sales organization in our company’s history,” commented Pete Holst, Chairman and CEO of Oblong. “Increasingly, enterprises are evaluating technology to boost productivity in anticipation of employees returning to work, and our solution is being actively considered as part of this growing trend. This, coupled with the strong sequential growth we delivered in the second half of 2020, give us significant and expanding optimism for the future.”
Conference Call Details
Management will host a conference call with the investment community today to discuss the Company’s financial results.
Date: |
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Tuesday, March 30, 2021 |
Time: |
|
4:30 p.m. Eastern Time (ET) |
Dial in Number for U.S. Callers: |
|
1-877-407-0792 |
Dial in Number for International Callers: |
|
1-201-689-8263 |
Please Reference Conference ID: |
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13717766 |
The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=143996.
Participating on the call will be Peter Holst, CEO and David Clark, CFO. To join the live conference call, please dial in to the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.
A replay will be available for two weeks starting on March 30, 2021 at approximately 7:30 p.m. ET. To access the replay, please dial 1-844-512-2921 in the U.S. and 1-412-317-6671 for international callers. The conference ID# is 13717766.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure, is defined as net income (loss) before depreciation and amortization, stock-based compensation, impairment charges, severance, income tax expense, merger expenses, and interest and other (income) expense, net. AEBITDA loss is not intended to replace operating loss, net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, AEBITDA loss is an important measure used by management to assess the operating performance of the Company and to compare such performance between periods. AEBITDA loss as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Therefore, AEBITDA loss should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow provided by (used in) operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net income (loss), operating loss or any other GAAP measure of liquidity or financial performance. A GAAP to non-GAAP reconciliation of net income (loss) to AEBITDA loss is shown under “GAAP to Non-GAAP Reconciliation” later in this release.
About Oblong, Inc.
Oblong (Nasdaq: OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 enterprise customers and is a Cisco Solutions Plus integration partner. For more information, visit Oblong’s website, Twitter and Facebook pages.
Forward-looking and cautionary statements
This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to (i) potential forgiveness of any portion of the PPP Loan, (ii) the Company’s potential future growth and financial performance and (iii) the success of its products and services. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the volatility of market price for our securities, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2020 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.
OBLONG, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) |
|||||||
|
December 31, 2020 |
|
December 31, 2019 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
5,058 |
|
$ |
4,602 |
||
Current portion of restricted cash |
158 |
|
|
— |
|
||
Accounts receivable, net |
3,166 |
|
|
2,543 |
|
||
Inventory |
920 |
|
|
1,816 |
|
||
Prepaid expenses and other current assets |
691 |
|
|
965 |
|
||
Total current assets |
9,993 |
|
|
9,926 |
|
||
Property and equipment, net |
573 |
|
|
1,316 |
|
||
Goodwill |
7,367 |
|
|
7,908 |
|
||
Intangibles, net |
10,140 |
|
|
12,572 |
|
||
Operating lease - right of use asset, net |
903 |
|
|
3,117 |
|
||
Other assets |
167 |
|
|
70 |
|
||
Total assets |
$ |
29,143 |
|
|
$ |
34,909 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt, net of discount |
$ |
2,014 |
|
|
$ |
2,664 |
|
Accounts payable |
313 |
|
|
647 |
|
||
Current portion deferred revenue |
1,217 |
|
|
1,901 |
|
||
Accrued expenses and other liabilities |
1,201 |
|
|
1,752 |
|
||
Current portion of operating lease liabilities |
830 |
|
|
1,294 |
|
||
Total current liabilities |
5,575 |
|
|
8,258 |
|
||
Long-term liabilities: |
|
|
|
||||
Long-term debt, net of current portion and net of discount |
403 |
|
|
2,843 |
|
||
Operating lease liabilities, net of current portion |
602 |
|
|
2,020 |
|
||
Deferred revenue, net of current portion |
506 |
|
|
— |
|
||
Other long-term liabilities |
— |
|
|
3 |
|
||
Total long-term liabilities |
1,511 |
|
|
4,866 |
|
||
Total liabilities |
7,086 |
|
|
13,124 |
|
||
Total stockholders’ equity |
22,057 |
|
|
21,785 |
|
||
Total liabilities and stockholders’ equity |
$ |
29,143 |
|
|
$ |
34,909 |
|
OBLONG, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share data) |
|||||||
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Year Ended |
||||||
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December 31, |
||||||
|
2020 |
|
2019 |
||||
Revenue |
$ |
15,333 |
|
|
$ |
12,827 |
|
Cost of revenue (exclusive of depreciation and amortization) |
7,280 |
|
|
7,427 |
|
||
Gross profit |
8,053 |
|
|
5,400 |
|
||
Operating expenses: |
|
|
|
||||
Research and development |
3,711 |
|
|
2,023 |
|
||
Sales and marketing |
3,392 |
|
|
1,936 |
|
||
General and administrative |
6,724 |
|
|
5,377 |
|
||
Impairment charges |
1,150 |
|
|
2,317 |
|
||
Depreciation and amortization |
3,140 |
|
|
1,321 |
|
||
Total operating expenses |
18,117 |
|
|
12,974 |
|
||
Loss from operations |
(10,064 |
) |
|
(7,574 |
) |
||
Interest and other expense, net |
371 |
|
|
187 |
|
||
Gain on extinguishment of debt |
(3,117 |
) |
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FAQ
What are Oblong's fourth quarter 2020 product sales figures?
Oblong's product sales for Q4 2020 increased over 50% sequentially to $1.6 million.
How did Oblong's total revenue perform in Q4 2020?
Total revenue for Oblong in Q4 2020 rose over 20% sequentially to $3.9 million.
What was Oblong's net income for the fourth quarter of 2020?
Oblong reported a net income of $1.2 million for Q4 2020.
How did Oblong's gross profit margin change in Q4 2020?
The gross profit margin increased to 59% in Q4 2020 from 51% in Q3 2020.
What is Oblong's current cash position?
Oblong reported a cash balance of $5.3 million as of December 31, 2020.
Oblong Inc.
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Software - Application
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United States of America
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