SuperCom (SPCB) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $27.6 million in 2024, a 134% increase from 2020 and the highest in seven years, with four consecutive years of growth.

• Gross profit rose 31% year-over-year to $13.4 million, with gross margin expanding to 48.4%, the strongest since 2021.

• Reported first full year of GAAP profitability since 2015, with net income of $661,000, reversing a $4 million net loss in 2023.

• EBITDA increased 31% year-over-year to $6.3 million, marking the 10th consecutive quarter of positive EBITDA.

• Secured over 20 new U.S. electronic monitoring contracts, expanded into seven new states, and won major national contracts in Israel and Europe.

Financial highlights

• Non-GAAP net income rose to $6.33 million, up 99% year-over-year, with non-GAAP EPS at $3.66.

• Q4 2024 revenue was $6.33 million, up from $5.7 million in Q4 2023; gross profit for the quarter was $2.7 million, with a margin of 42.7%.

• Q4 GAAP net loss was $1.86 million, primarily due to $2 million in one-time items, including doubtful debt write-down.

• Debt reduced by 32% since end of 2023, from $34 million to $23 million.

• Raised over $16 million in gross proceeds through offerings and warrant exercises.

Outlook and guidance

• Anticipates continued expansion in the U.S. and Europe, leveraging strong market demand and a robust sales pipeline.

• Expects further gross margin improvement as project scale increases, especially in the U.S.

• Actively monitoring acquisition opportunities to accelerate U.S. growth and vertical integration.

• Management expects to scale business, expand global reach, and continue delivering public safety solutions, citing strong momentum and a diversified recurring revenue base.