Inseego Corp Reports Strong Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Inseego Corp. Reports Strong Q2 2024 Financial Results
Inseego Corp. (NASDAQ: INSG), a leading provider in 5G mobile and fixed wireless solutions, reported its financial results for the second quarter of 2024, which ended on June 30, 2024.
Financial Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Year-over-Year % Change | Quarter-over-Quarter % Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $59.1M | $53.0M | $50.0M | +18.2% | +11.5% | $53.65M |
| GAAP Net Income | $0.6M | $0.4M | $(0.1)M | N/A | +50% | N/A |
| EPS | $0.08 | $0.06 | $(0.02) | N/A | +33.3% | $0.08 |
| Adjusted EBITDA | $8.4M | $7.0M | $6.5M | +29.2% | +20% | N/A |
Interpretation: Inseego Corp. reported a robust quarter with total revenue of $59.1 million, surpassing both year-over-year and quarter-over-quarter comparisons as well as exceeding the consensus estimate of $53.65 million. Earnings per share (EPS) matched the consensus estimate at $0.08, displaying solid growth.
Segment Performance
| Segment | Q2 2024 Revenue |
|---|---|
| 5G Product Segment | $20.0M |
| Enterprise Cloud WAN Segment | $25.5M |
| SMB Solutions | $13.6M |
Interpretation: The company's various segments performed well. The 5G product segment and Enterprise Cloud WAN segment contributed significantly to the total revenue, indicating strong market demand.
Key Operational Data
| Metric | Q2 2024 |
|---|---|
| GAAP Gross Margin | 39.0% |
| Non-GAAP Gross Margin | 39.0% |
| Convertible Notes Repurchased | $141.9 million |
| Unrestricted Cash and Equivalents | $49.0 million |
Executive Commentary
Phil Brace, Executive Chairman, noted, "The company delivered strong results during the second quarter and I am excited about the momentum the team has built over the past few quarters. We meaningfully improved our capital structure, significantly reduced our debt, and strengthened the Company's financial position."
Steven Gatoff, Chief Financial Officer, added, "We continue to focus on delivering revenue growth, adjusted EBITDA profitability, and cash generation. Q2 was a pivotal quarter as we generated positive Adjusted EBITDA, Operating Cash Flow, and positive GAAP Operating and Net Income."
Forward Guidance
For Q3 2024, Inseego projects total revenue to be in the range of $54.0 million to $58.0 million and adjusted EBITDA to be between $6.5 million and $7.5 million.
Stock Price Movement
Post the Q2 2024 earnings release, Inseego Corp.'s stock price experienced a decline of 3.29%.
In conclusion, Inseego Corp. showcased a strong second-quarter performance, surpassing revenue expectations and demonstrating significant improvements in their capital structure and financial stability.
