DXN (DXN) Q4 2024 earnings summary

Executive summary

• Revenue for 4Q24 reached $3.8m, up 145% year-over-year; FY24 revenue rose 41% to $10.9m, driven by new modular data centre sales.

• Achieved positive net operating cash flow of $1.04m in 4Q24 and $327k for FY24, marking the first full year of positive operating cash flow.

• Completed exit from Sydney Data Centre, saving $1.4m annually in lease costs over the next nine years.

• Signed largest contract to date: $5.7m for four Cable Landing Stations for the East Micronesia Cable System.

• Board and management changes included new Chair, Managing Director, and Interim CFO appointments.

Financial highlights

• FY24 unaudited EBITDA is $402k, a turnaround from FY23's $4.9m loss; underlying EBITDA (excluding restructuring) is $1.2m.

• Cash balance at 30 June 2024 was $2.98m, up from $2.04m in the previous quarter.

• Product manufacturing and operating costs for 4Q24 were $1.46m, down from $1.79m in 4Q23.

• Staff costs for 4Q24 were $662k, and administration/corporate costs were $799k.

Outlook and guidance

• Strong demand expected for remote computing and subsea cable infrastructure, with anticipated growth from AI-driven high-density workloads.

• FY25 expected to be pivotal, with focus on core offerings, reduced cost base, and projected sales growth supporting profitability and positive cash flow.