Oblong Announces Financial Results for Second Quarter 2022

Rhea-AI Summary

Oblong, Inc. (Nasdaq: OBLG) reported Q2 2022 financial results, showing a total revenue of $1.3 million, down from $2.0 million in Q2 2021, reflecting ongoing shifts in hybrid work models. The company reported a net loss of $9.0 million, significantly higher than the $2.2 million loss from the same period last year. Non-cash impairment charges totaled $6.4 million. Adjusted EBITDA loss improved slightly to $1.5 million from $1.6 million year-over-year. Oblong holds $5.1 million in cash and has no debt while exploring strategic alternatives to enhance shareholder value.

Positive

• Improvement in adjusted EBITDA loss, reduced to $1.5 million from $1.6 million year-over-year.
• Company has $5.1 million in cash and no debt, indicating a stable financial position.

Negative

• Total revenue declined by 35% year-over-year from $2.0 million to $1.3 million.
• Net loss increased substantially from $2.2 million in Q2 2021 to $9.0 million in Q2 2022.
• Recorded non-cash impairment charges of $6.4 million.

LOS ANGELES--(BUSINESS WIRE)-- Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the award-winning maker of multi-stream collaboration solutions, today reported financial results for the second quarter ending June 30, 2022.

“Our second quarter results were consistent with prior guidance related to ongoing shifts in hybrid work models and macro trends in facility and IT spending. We believe those trends will gradually move toward Oblong’s vision of creating greater situational awareness, collaboration and data interaction through Mezzanine™. We also remain focused on exploring strategic alternatives, including a potential sale or merger, to maximize value for our shareholders,” commented Pete Holst, President and CEO of Oblong.

• As of June 30, 2022, the Company had $5.1 million of cash and no debt.
• Total revenue was $1.3 million for the second quarter of 2022 versus $2.0 million for the second quarter of 2021.
• Net loss of $9.0 million for the second quarter of 2022, compared to a net loss of $2.2 million for the second quarter of 2021. During the second quarter of 2022, the Company recorded non-cash impairment charges on goodwill and other assets of $6.4 million.
• Adjusted EBITDA (“AEBITDA”) loss of $1.5 million for the second quarter of 2022, compared to an AEBITDA loss of $1.6 million for the second quarter of 2021. 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 loss.

Non-GAAP Financial Information

Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure, is defined as net loss before depreciation and amortization, stock-based compensation and expense, impairment charges, casualty loss, gain on extinguishment of debt, severance, income tax expense, and interest and other (income) expense, net. AEBITDA loss is not intended to replace operating loss, net 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 loss and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow used in operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net loss, operating loss or any other GAAP measure of liquidity or financial performance. A GAAP to non-GAAP reconciliation of net 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 and enterprise customers. For more information, visit www.oblong.com and Oblong’s 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) the Company exploring strategic alternatives to maximize value for our shareholders and the timing and results thereof, (ii) the Company’s potential future growth and financial performance, and (iii) the success of its products and services. There can be no assurance that the strategic review being undertaken will result in a merger, sale or other business combination involving the Company. 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, 2021 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)
	June 30, 2022				December 31, 2021
	(Unaudited)
ASSETS
Current assets:
Cash	$	5,107			$	8,939
Restricted cash		—				61
Accounts receivable, net		491				849
Inventory		1,078				1,821
Prepaid expenses and other current assets		1,150				1,081
Total current assets		7,826				12,751
Property and equipment, net		75				159
Goodwill		—				7,367
Intangibles, net		6,402				7,562
Right-of-use assets, net		245				659
Other assets		22				109
Total assets	$	14,570			$	28,607
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		325				259
Accrued expenses and other current liabilities		976				959
Current portion of deferred revenue		686				783
Current portion of operating lease liabilities		378				492
Total current liabilities		2,365				2,493
Long-term liabilities:
Operating lease liabilities, net of current portion		68				236
Deferred revenue, net of current portion		213				381
Total long-term liabilities		281				617
Total liabilities		2,646				3,110
Commitments and contingencies
Stockholders’ equity:
Common stock, $.0001 par value; 150,000,000 shares authorized; 30,929,331 shares issued and 30,816,048 outstanding at June 30, 2022 and December 31, 2021		3				3
Treasury stock, 113,283 shares of common stock at June 30, 2022 and December 31, 2021		(181	)			(181	)
Additional paid-in capital		227,580				227,581
Accumulated deficit		(215,478	)			(201,906	)
Total stockholder's equity		11,924				25,497
Total liabilities and stockholders’ equity	$	14,570			$	28,607

OBLONG, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands) (Unaudited)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
		2022				2021			2022			2021
Revenue	$	1,333			$	2,049			2,865			3,967
Cost of revenue (exclusive of depreciation and amortization and casualty loss)		926				1,249			1,959			2,539
Gross profit		407				800			906			1,428
Operating expenses:
Research and development		398				599			1,402			1,291
Sales and marketing		317				572			879			1,099
General and administrative		1,185				1,383			2,875			3,450
Impairment charges		6,408				17			7,546			48
Casualty loss		533				—			533			—
Depreciation and amortization		599				707			1,226			1,429
Total operating expenses		9,440				3,278			14,461			7,317
Loss from operations		(9,033	)			(2,478	)		(13,555	)		(5,889	)
Interest and other expense (income), net		—				(232	)		6			(210	)
Loss before income taxes		(9,033	)			(2,246	)		(13,561	)		(5,679	)
Income tax expense		—				—			11			—
Net loss	$	(9,033	)		$	(2,246	)		(13,572	)		(5,679	)

GAAP to Non-GAAP Reconciliation:
	Three Months Ended								Six Months Ended
	June 30,								June 30,
		2022				2021				2022				2021
Net loss	$	(9,033	)		$	(2,246	)		$	(13,572	)		$	(5,679	)
Depreciation and amortization		599				707				1,226				1,429
Interest and other expense (income), net		—				(232	)			6				(210	)
Income tax expense		—				—				11				—
Impairment charges		6,408				17				7,546				48
Severance		—				55				294				55
Casualty loss		533				—				533				—
Stock-based expense		31				116				(1	)			423
Adjusted EBITDA Loss	$	(1,462	)		$	(1,583	)		$	(3,957	)		$	(3,934	)

 

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Investor Relations Contact

David Clark

investors@oblong.com

(213) 683-8863 ext 2205

Source: Oblong, Inc.

FAQ

What were Oblong's Q2 2022 financial results?

Oblong reported total revenue of $1.3 million, a net loss of $9.0 million, and an adjusted EBITDA loss of $1.5 million.

How did Oblong's revenue change in Q2 2022 compared to Q2 2021?

Revenue decreased by 35%, from $2.0 million in Q2 2021 to $1.3 million in Q2 2022.

What strategic actions is Oblong considering?

Oblong is exploring strategic alternatives, including a potential sale or merger, to maximize shareholder value.

What is the current cash position of Oblong?

As of June 30, 2022, Oblong had $5.1 million in cash and no debt.

What caused the significant net loss reported by Oblong in Q2 2022?

The net loss increased primarily due to elevated operational costs and $6.4 million in non-cash impairment charges.