Inseego (INSG) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked a significant turnaround with revenue from continuing operations at $54.0 million, strong profitability, and a major debt restructuring that reduced over 90% of outstanding convertible notes.

• Net income attributable to common stockholders was $8.1 million, compared to a net loss of $22.6 million in Q3 2023.

• Announced the sale of the telematics business for $52 million, classified as discontinued operations and expected to close in Q4 2024.

• Operational focus shifted to 5G product pipeline, channel expansion, and continued investment in product roadmap.

• CEO search is ongoing, with expectations to fill the role by end of Q1 2025.

Financial highlights

• Q3 2024 total revenue was $61.9 million, with $54.0 million from continuing operations and $7.9 million from discontinued operations.

• Adjusted EBITDA reached $9.3 million, with a record margin of 15% for the quarter.

• Gross margin for Q3 2024 was 34.8% for continuing operations, up from negative 5.2% in Q3 2023.

• Net income for Q3 2024 was $8.1 million, with EPS of $0.66 basic.

• Cash and cash equivalents at September 30, 2024, were $12.0 million.

Outlook and guidance

• Q4 2024 revenue from continuing operations is guided at $43–$47 million, a 25% year-over-year increase at the midpoint.

• Adjusted EBITDA for Q4 is expected at $3–$4 million, over 50% growth year-over-year at the midpoint.

• Gross margin percentage is expected to increase in Q4 due to a higher proportion of FWA and services revenue.

• No significant change in operating expenses anticipated for 2025.

• Guidance excludes results from the telematics business, which is classified as discontinued operations.