Clear Blue Technologies International (CBLU) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1,014,690, the strongest quarter since 2021, contributing to a trailing four-quarter revenue of $6,212,370, up 278% year-over-year.

• H1 2024 revenue was $1.8M, an 80% increase over H1 2023.

• The company expanded from two to four products, driving growth across lighting, telecom, and IoT/satellite markets.

• Bookings as of June 30, 2024, rose 31% to $3,237,789 compared to December 31, 2023.

• Management and founders have invested over $2.5 million in the past two years, demonstrating strong commitment.

Financial highlights

• Q2 2024 gross margin was 24%, down from 41% in Q2 2023, mainly due to a one-time $93,643 anti-dumping charge; adjusted gross margin was 33%.

• Trailing four-quarter gross margin improved to 43% from 37% year-over-year.

• Operating expenses for the six months ended June 30, 2024, were $2,443,710, down 1% year-over-year; for the quarter and trailing four quarters, up 5%.

• EBITDA for Q2 2024 improved by 54% year-over-year, from -$1.622 million to -$0.756 million; trailing four-quarter adjusted EBITDA improved by 54% to ($1.69M).

• Recurring revenue for the trailing four quarters was $779,000, up 21% year-over-year.

Outlook and guidance

• Management expects to achieve positive EBITDA within 12–18 months, targeting the end of 2025.

• Revenue for 2024 is guided just below $8 million, with strong growth expected to continue and cross $10 million in 2025.

• Majority of annual revenue is expected in Q3 and Q4/H2, with several large deals and strategic partnerships anticipated.

• Expanded product portfolio and diversified customer base are expected to drive significant order volumes and strong growth in H2 2024 and into 2025.

• Several long-term partners are approaching financing closings in Q3 or early Q4, supporting future growth.