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Guerrilla RF Reports Record First Quarter 2024 Results and Gross Margin Expansion

$GUER--Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company ac...

Business Wire
  • Record revenue quarter of $5.1 million
  • Gross Margin expands 640 basis points sequentially over prior quarter

GREENSBORO, N.C.: $GUER--Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company achieved record revenues of $5.1 million for the first quarter 2024, a 59.4% increase as compared to the first quarter of 2023.

“Following a challenging 2023, we accelerated our momentum by increasing revenue as a result of our strong foothold in the Automotive market and deeper penetration in the 5G Infrastructure market with previously announced satellite communications and point to multi-point communications shipments,” said Ryan Pratt, Founder and CEO. “This was an excellent quarter with over $5.1 million in revenue and a backlog increase of 27.7% from Q1 2023. We believe we are on target to achieve the $21.0 to $26.0 million revenue guidance we previously provided.”

Corporate Highlights

  • Completed a $5.0 million private placement, with net cash proceeds of approximately $3.0 million after deduction of expenses and conversion of existing debt. We plan to use the new capital to accelerate the Company’s growth and strengthen its competitive position through new market penetration, expanded product offerings, additional R&D initiatives, and new capital equipment.
  • Announced the acquisition of strategic GaN product portfolio and intellectual property of Gallium Semiconductor. We believe this acquisition will accelerate our penetration into this market by an estimated two years.
  • Extended maturity of primary credit facility to 2026.
  • Management reiterates 2024 revenue guidance of $21.0 to $26.0 million.

Financial Highlights

  • Revenue for the first quarter of fiscal 2024 increased 59.4% as compared to the first quarter of fiscal 2023.
  • Quarterly revenues increased 8.5% to $5.1 million, up from $4.7 million recorded in the fourth quarter 2023.
  • Gross margin for the first quarter of fiscal 2024 was 63.2% of revenues as compared to 56.6% for the first quarter of fiscal 2023 and up 640 basis points from Q4 2023.
  • Operating loss for the first quarter of fiscal 2024 was $1.8 million as compared to $3.7 million for the first quarter of fiscal 2023.
  • Net cash used in operating activities reduced to $0.8 million (a $5.0 million reduction from first quarter 2023) as a result of increased sales, margin expansion and expense management efforts.
  • Adjusted EBITDA loss (a non-GAAP measure) was $1.1 million for the first quarter of fiscal 2024. See EBITDA Reconciliation below.
  • Backlog (a non-GAAP measure) increased at the end of the first quarter of fiscal 2024 to $8.3 million as compared to $6.5 million at the end of the first quarter of fiscal 2023.
  • Cash balance as of March 31, 2024, was approximately $3.6 million compared to $0.8 million as of December 31, 2023.

Financial Results for Three Months Ended March 31, 2024

  • Revenues were $5.1 million, as compared to $3.2 million in the prior year period.
  • R&D expenses decreased to $2.3 million, as compared to $2.6 million for the prior year period.
  • Sales and marketing expenses remained flat at $1.4 million, as compared to the prior year period.
  • General and administrative expenses decreased slightly to $1.5 million, as compared to the prior year period.

     

GUERRILLA RF, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

 

Guerrilla RF, Inc.

Balance Sheet

 

March 31, 2024

December 31, 2023

Assets

 

Unaudited

 

Cash

$

3,600,710

 

$

781,318

 

Accounts receivable, net

 

2,819,814

 

 

2,079,111

 

Inventories

 

1,773,596

 

 

1,533,592

 

Prepaid expenses

 

540,911

 

 

458,313

 

Total Current Assets

 

8,735,031

 

 

4,852,334

 

 

Operating right-of-use assets

 

10,209,384

 

 

10,500,620

 

Property, plant, and equipment, net

 

3,332,955

 

 

3,659,084

 

Total Assets

$

22,277,370

 

$

19,012,038

 

 

Liabilities and Stockholders' Equity (Deficit)

 

 

Accounts payable and accrued expenses

$

3,590,654

 

$

2,099,537

 

Short-term debt

 

2,839,529

 

 

1,628,667

 

Derivative liabilities

 

-

 

 

158,000

 

Operating lease, current portion

 

731,952

 

 

745,969

 

Finance lease, current portion

 

939,975

 

 

978,543

 

Convertible notes

 

-

 

 

78,905

 

Convertible notes - related parties

 

-

 

 

700,189

 

Notes payable, current portion

 

-

 

 

10,948,668

 

Total Current Liabilities

 

8,102,110

 

 

17,338,478

 

 

Long-term debt

 

634,717

 

 

698,600

 

Operating lease

 

5,994,557

 

 

6,176,508

 

Finance lease

 

1,394,430

 

 

1,593,979

 

Notes payable

 

10,178,238

 

 

-

 

Total Liabilities

 

26,304,052

 

 

25,807,565

 

 

Common stock

 

995

 

 

789

 

Additional paid in capital

 

42,384,337

 

 

36,243,146

 

Accumulated deficit

 

(46,412,014

)

 

(43,039,462

)

Total Stockholders' Equity (Deficit)

 

(4,026,682

)

 

(6,795,527

)

Total Liabilities and Stockholders' Equity (Deficit)

$

22,277,370

 

$

19,012,038

 

Guerrilla RF, Inc.

Profit and Loss Statement

Q1 2024

Q1 2023

Unaudited

Product revenue

$

5,089,773

 

$

3,040,409

 

Royalties and non-recurring engineering revenue

 

1,476

 

 

190,479

 

Total

 

5,091,249

 

 

3,230,888

 

 

Direct product cost

 

1,870,675

 

 

1,403,345

 

 

Gross Profit

 

3,220,574

 

 

1,827,543

 

 

Operating Expenses:

Research and development

 

2,251,533

 

 

2,586,169

 

Sales and marketing

 

1,352,909

 

 

1,361,949

 

General and administrative

 

1,454,695

 

 

1,546,163

 

Total operating expenses

 

5,059,137

 

 

5,494,281

 

 

Operating loss

 

(1,838,563

)

 

(3,666,738

)

 

Interest expense

 

(1,684,787

)

 

(341,857

)

Change in fair value of derivative liabilities

 

158,000

 

 

-

 

Other income (expense)

 

(7,202

)

 

7,177

 

Total other income (expense), net

 

(1,533,989

)

 

(334,680

)

Net loss

$

(3,372,552

)

$

(4,001,418

)

EBITDA and Adjusted EBITDA Reconciliation

References to “EBITDA” mean net loss, before considering interest expense, provision for income taxes, depreciation and amortization. References to Adjusted EBITDA excludes irregular or non-recurring items and are not directly related to the Company’s core operating performance. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. GAAP. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net income and other U.S. GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that may, or could, have a disproportionate positive or negative impact on our results for any particular period. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with U.S. GAAP. A reconciliation of non-U.S. GAAP EBITDA and Adjusted EBITDA to the most directly comparable U.S. GAAP measure in accordance with SEC Regulation G follows:

Guerrilla RF, Inc.

EBITDA Reconciliation

Q1 2024

Q1 2023

 

 

 

Net Loss

$

(3,372,552

)

$

(4,001,418

)

Interest expense

 

1,684,787

 

 

341,857

 

Depreciation and amortization

 

366,281

 

 

39,832

 

EBITDA

 

(1,321,484

)

 

(3,619,729

)

Share-based compensation

 

396,197

 

 

268,640

 

Change in fair value of derivative liabilities

 

(158,000

)

 

-

 

Adjusted EBITDA

$

(1,083,287

)

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