Core Viewpoint - Ondas Holdings Inc. held its Q4 2024 earnings conference call, discussing financial performance and future outlook, emphasizing the importance of non-GAAP financial measures for understanding business trends [1][2]. Financial Performance - The company reported its Q4 2024 earnings, highlighting key financial metrics that reflect its operational performance [1]. - Non-GAAP financial measures were referenced, indicating that these metrics provide valuable insights into the underlying trends of the business, supplementing GAAP measures [2]. Management Commentary - The call featured insights from various company executives, including the Chairman and CEO, Interim CFO, and Presidents of different divisions, indicating a collaborative approach to discussing the company's performance and strategy [1]. - The management reiterated the significance of forward-looking statements, acknowledging the inherent risks and uncertainties that could affect actual results [1].

Financial Data and Key Metrics Changes - Revenues increased 173% quarter-over-quarter to $4.1 million for Q4 2024, compared to $1.5 million for Q3 2024, but decreased 18% from $5 million for Q4 2023 [32] - OAS revenues were $3.6 million, an increase of 260% from Q3 2024 and a 10% increase from Q4 2023 [33] - Operating loss was $8.5 million for Q4 2024, compared to $12.6 million for Q4 2023 [36] - Cash held was $30 million as of December 31, 2024, compared to $15 million as of December 31, 2023 [40] Business Line Data and Key Metrics Changes - OAS secured two major programs with a military customer in the Middle East, significantly increasing its total addressable market (TAM) [12] - Ondas Networks revenues were relatively flat compared to Q3 2024 and down from Q4 2023, primarily due to extended timelines related to the 900 megahertz activity [32] - The company closed the year with a $10 million backlog primarily with OAS, reinforcing the strength of its pipeline [16] Market Data and Key Metrics Changes - The defense market is seeing massive demand growth, particularly for the Iron Drone Raider platform, which is positioned as a market-defining solution for drone interception [13] - The company is engaging with new defense and homeland security customers through government-to-government channels and direct marketing efforts [14] Company Strategy and Development Direction - The company aims to drive growth with existing programs and customers while expanding into new customer programs, particularly in defense and homeland security [20][21] - A strategic partnership with Palantir Technologies was announced to leverage their Foundry AI platform for operational efficiencies [26][28] - Ondas Networks is focused on advancing private wireless networks to critical rail operating and safety systems [86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in projecting at least $20 million in revenues from OAS, supporting total revenue expectations of $25 million for Ondas Holdings in 2025 [17] - The company anticipates 2025 to be an acceleration year with record revenue growth driven by existing programs and new customer opportunities [19][25] Other Important Information - Operating expenses decreased to $9.4 million for Q4 2024, down from $14.4 million in Q4 2023, primarily due to cost savings [35] - The company raised $35 million in Q4 2024, providing a strong liquidity position for expansion [18] Q&A Session Summary Question: Visibility into the $20 million revenue projection - Management expects to realize the $10 million backlog in revenue in the first and second quarters, with active engagement with military and public safety customers [96] Question: Update on Dubai customer shipments - No units were shipped in Q4, but advanced dialogue is ongoing regarding future shipments [98] Question: First responder opportunity in the U.S. market - There is significant interest in the Optimus platform, with a successful pilot program conducted for a major public safety customer [104] Question: Gross margins outlook - Expected gross margins to recover, projected to be in the 40% range in the first half of the year, potentially reaching 50% or better in the second half [111] Question: Clarification on the partnership with Palantir - The partnership involves integrating Palantir's Foundry AI into Ondas' operations, with potential for further collaboration in the future [120]

Fourth Quarter & Full Year 2024 Earnings Release NASDAQ: ONDS | March 12, 2025 Copyright 2025. All rights reserved. Nasdaq : ONDS Nasdaq: ONDS Disclaimer This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Ondas Holdings Inc. ...

Ondas Holdings Inc. (ONDS) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -55.56%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.15, delivering a surprise of -7.14%.Over the last four quarters, the company has sur ...

Business Segments and Operations - Ondas Holdings operates through two main segments: Ondas Networks, providing wireless connectivity solutions, and Ondas Autonomous Systems (OAS), focusing on drone and automated data solutions[20][21]. - The FullMAX platform enables significant increases in data throughput for mission-critical applications, targeting North American freight rail operators to upgrade legacy systems[23][24]. - Ondas Networks is developing partnerships with Siemens Mobility to market FullMAX-based networking technology for the North American Rail Industry, focusing on the Advanced Train Control System protocol[29]. - OAS achieved the first-ever FAA Type Certification for the Optimus 1-EX UAV on September 25, 2023, allowing for beyond-visual-line-of-sight operations without a human operator on-site[28]. - The company aims to expand fleet deployments of the Optimus System™ in the US and internationally, targeting critical infrastructure and public safety applications[32]. - The FullMAX platform is designed for long-term use, with customers typically deploying networks that last 10-15 years, creating ongoing revenue opportunities through software and hardware maintenance agreements[33][34]. - The company’s strategy includes monetizing its software-based intellectual property through embedded FullMAX software sales and Software-as-a-Service arrangements[33]. - OAS markets its drone solutions through direct sales and channel marketing strategies, focusing on large customers with active drone programs[38]. Market Opportunities and Growth - The total addressable market (TAM) for OAS is estimated to exceed $100 billion, encompassing the global defense and civil UAV market as well as the drone services market[58]. - The North American rail network consists of 140,000 miles of track and 25,000 locomotives, with an estimated addressable market of approximately $1.3 billion for private railroad networks[57]. - The drone services market is projected to grow from $32.1 billion in 2025 to $213.9 billion by 2032, driven by regulatory clarity and increased integration of drones into national airspace[59]. - The C-UAS technology market is valued at $3.1 billion in 2025 and is expected to grow at a compound annual growth rate of 27.2%, reaching $10.6 billion by 2030[60]. - The company anticipates further expansion in its customer pipeline across the U.S., Middle East, and Europe due to increasing demand for autonomous drone solutions[77]. Product Development and Innovation - The Optimus System™ is a fully autonomous drone platform designed for high-resolution aerial data collection and analysis, applicable in security, surveillance, and supervision across various sectors[44]. - The Iron Drone Raider™ system, acquired in March 2023, is a counter-drone solution aimed at military, government, and enterprise customers, addressing the growing threat of small drones[48][49]. - The Optimus System™ enables continuous asset digitization and real-time monitoring, enhancing data-driven decision-making for mission-critical operations[47]. - The integration of Kestrel™ with the Optimus System™ allows for Beyond Visual Line of Sight (BVLOS) operations, expanding deployment potential in complex airspace environments[45]. - The company holds a total of eight issued patents in the U.S. and six issued international patents, with expiration dates ranging from 2029 to 2041[190]. - The company has applied for patent protection for existing and proposed products, including FullMAX systems and Iron Drone Raider™, which are critical for product functionality[191]. - The OAS segment holds a total of six issued patents in the U.S. and 22 international issued patents, with expiration dates ranging from 2034 to 2048[86]. Financial Performance and Risks - As of December 31, 2024, the company had an accumulated deficit of approximately $236 million, up from $198 million in 2023, indicating significant operating losses since inception[108]. - The company expects operating expenses to increase significantly as it pursues growth strategies, including substantial investments in research, development, and marketing[109]. - Three customers accounted for approximately 52%, 26%, and 10% of revenue in 2024, highlighting dependence on a small number of customers[89]. - Revenue recognition is unpredictable, with significant portions deferred into future periods due to various factors affecting deployment and acceptance of products[203]. - The company may require additional capital to fund growth if business growth falls short of expectations, with potential reliance on equity or debt offerings[201]. - The lengthy sales cycle for new customers can range from one to three years, leading to potential cancellations or changes in product plans[129]. - The company has incurred significant operating losses and cannot assure that it will achieve or sustain profitability in the future[108]. Strategic Partnerships and Collaborations - Ondas Holdings is pursuing external opportunities for growth through partnerships, joint ventures, and acquisitions to enhance its product offerings for critical infrastructure customers[32]. - The company relies on strategic partnerships, such as with Siemens Mobility, to accelerate the adoption of its wireless technology, which is critical for revenue growth[113]. - Airobotics has expanded its collaboration in the UAE, deploying additional Optimus Systems for public safety, conducting thousands of autonomous flights monthly in densely populated areas[68]. - Airobotics received a purchase order from a major semiconductor manufacturer to extend the deployment of the Optimus System™ for aerial security at a critical fabrication facility[69]. - Airobotics secured $9 million in purchase orders for Iron Drone Raider™ system deployments and upgrades in the third quarter[74]. - Airobotics expanded its market reach in Europe through partnerships with HHLA Sky and C-Astral Aerospace, anticipating new customer orders in 2025[72]. Regulatory and Compliance Challenges - The company operates in a highly regulated environment, with potential costs arising from compliance with federal, state, local, and foreign laws and regulations[172]. - Changes in regulatory conditions affecting critical infrastructure industries could adversely impact customers' ability to implement the company's technologies[173]. - The company faces uncertainty regarding the expansion of drone solutions sales due to evolving regulations from the FAA and other governmental agencies[174]. - The company is subject to various government regulations, and failure to comply could result in sanctions that negatively impact business operations[178]. - The company is subject to rigorous data protection and privacy laws, with potential reputational damage and litigation risks if compliance is perceived to be inadequate[180]. Operational Risks and Challenges - The company faces risks related to project performance delays, which could result in additional costs and impact revenue recognition[123]. - The company relies on third-party contractors for manufacturing, which exposes it to risks related to quality control and supply chain disruptions[124]. - The company faces risks related to contractor performance, which could jeopardize its ability to fulfill obligations and affect service quality[125]. - Material delays or defaults in customer payments could adversely impact the company's financial condition and ability to cover project expenditures[127]. - The company maintains warranty obligations for its products, which could lead to variable costs and potential financial impacts if product failure rates exceed estimates[136]. - The company is exposed to potential product liability claims due to defects or failures in its products, which could harm its financial condition and reputation[133]. - The company is focused on maintaining safety standards at project sites, as failures in safety procedures could lead to significant losses and impact future project opportunities[128]. Human Resources and Talent Management - The company relies on key personnel, including the CEO and CFO, for business operations, and their loss could negatively impact business strategies[147]. - Competition for skilled personnel is intense, particularly in Silicon Valley, which may affect the company's ability to attract and retain talent[148]. Market and Economic Conditions - General economic conditions, both global and regional, may impact the company's stock price and overall performance[217]. - The market for electronic components is experiencing a global shortage, particularly in semiconductors, which could impact product delivery and development[157]. - The absence of long-term supply contracts exposes the company to price fluctuations for raw materials and components, potentially increasing operating costs[158]. Stock and Financial Market Risks - The company’s common stock is listed on Nasdaq under the symbol "ONDS," with a risk of being quoted only on OTC Markets if the listing is not sustained[212]. - Limited trading activity in the company's common stock may result in significant price fluctuations, impacting the ability to sell shares at desired prices[210]. - The market price of the common stock may fluctuate unpredictably due to various factors, including overall market performance and significant corporate announcements[213]. - The company may issue up to 300,000,000 shares of common stock, which could lead to substantial dilution for existing stockholders[218]. - The issuance of additional shares may cause the price of the common stock to decline, especially if a substantial portion is resold into public markets[218]. - Concentration of ownership may lead to interests that differ from those of other investors, potentially affecting corporate strategies[216]. - Securities class action litigation could arise following periods of market volatility, potentially harming the company's financial condition[214].

Revenue Expectations - Ondas Holdings anticipates record revenue of at least $25 million in 2025, with the Ondas Autonomous Systems (OAS) business unit expected to contribute at least $20 million[1]. - The Company expects a revenue target of $25 million for 2025, representing nearly 250% growth year over year from 2024[29]. - The OAS business unit is expected to generate at least $20 million in revenue, exceeding previous expectations of $15-18 million[29]. Financial Performance - Full year 2024 revenues were $7.2 million, down from $15.7 million in 2023, primarily due to extended customer timelines and war-related disruptions[22]. - Revenues for the year ended December 31, 2024, were $7,192,694, a significant decrease from $15,691,430 in 2023, representing a decline of approximately 54.3%[51]. - Gross profit for the year ended December 31, 2024, was $0.3 million, or 5%, compared to $6.4 million, or 41%, in 2023[23]. - Gross profit for 2024 was $345,183, down from $6,381,174 in 2023, indicating a gross margin drop from 40.7% to 4.8%[51]. - The net loss attributable to common stockholders for 2024 was $(42,419,462), compared to $(46,358,617) in 2023, showing an improvement of approximately 8.5%[51]. - Net loss decreased to $38.0 million for the year ended December 31, 2024, from a net loss of $44.8 million in 2023[26]. - Adjusted EBITDA loss narrowed to approximately $28.5 million for the year ended December 31, 2024, compared to $29.7 million for 2023[27]. - Adjusted EBITDA for the year ended December 31, 2024, was $(28,521,379), slightly better than $(29,678,672) in 2023[56]. Operating Expenses - Operating expenses decreased to $35.0 million for the year ended December 31, 2024, compared to $46.1 million in 2023, reflecting cost savings and integration synergies[25]. - Total operating expenses decreased to $34,954,487 in 2024 from $46,110,474 in 2023, a reduction of about 24.3%[51]. - The Company's operating loss narrowed to $34.6 million for the year ended December 31, 2024, compared to a loss of $39.7 million for 2023, reflecting a decrease in operating expenses[26]. Cash Flow and Assets - Cash increased to $30.0 million as of December 31, 2024, up from $15.0 million in 2023, due to raising $50.2 million in financing[28]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $29,999,321, up from $15,022,000 at the end of 2023, reflecting an increase of 99.9%[53]. - The company reported a net cash flow provided by financing activities of $50,178,620 in 2024, significantly higher than $18,730,150 in 2023[53]. - Total current assets increased to $47.5 million as of December 31, 2024, from $23.6 million in 2023[48]. - Total liabilities rose to $73.7 million as of December 31, 2024, compared to $47.1 million in 2023[49]. - Total stockholders' equity decreased to $16.6 million as of December 31, 2024, from $33.1 million in 2023[49]. Strategic Developments - The partnership with Palantir is expected to enhance operational capabilities and support the growth strategy for OAS[1]. - The leadership team was strengthened with Oshri Lugassi appointed as Co-CEO of OAS and Markus Nottelmann as CEO of Ondas Networks[1]. - OAS is focusing on expanding programs in Israel and the UAE while securing new military customers and critical infrastructure clients in the U.S.[5]. Market Conditions - The Company anticipates fluctuations in bookings and revenue growth due to variability in expected orders and timing of new customer additions[30]. - Ondas Networks generated $1.9 million in revenue for 2024, down from $6.7 million in 2023, due to extended network adoption timelines[15]. - Cash flows used in operating activities were $(33,469,623) for 2024, compared to $(34,019,519) in 2023, indicating a marginal improvement[53]. - The company incurred interest expense of $(3,620,258) in 2024, down from $(4,154,759) in 2023, a reduction of about 12.8%[51].

Drone Technology Advancements - Rapid advancements in drone technology, including AI, ML, and improved sensor technology, are enhancing drone capabilities for complex tasks with greater precision and efficiency [1] - Integration of AI and ML enables real-time data analysis, optimized flight paths, and autonomous decision-making [1] - Advancements in battery technology and propulsion systems have improved drone endurance and range, allowing longer operation and greater coverage [1] Agricultural Applications - Drones are increasingly used in precision farming for crop health monitoring, water and fertilizer optimization, and real-time data provision, driving market demand in agriculture [1] - The US agricultural drone market is valued at USD $2.74 billion in 2024, projected to grow at a CAGR of 25% to reach $10.45 billion by 2030 [7] - ZenaDrone 1000 is being developed for agricultural applications, including spraying fertilizers, herbicides, and pesticides, with potential dual-use for wildfire management [2][6] Urban Air Mobility (UAM) and Transportation - Urban air mobility and passenger drones represent a transformative opportunity for the transportation sector, with potential to redefine urban mobility [2] - Companies are developing drone-based urban transport solutions, creating new market segments [2] Regulatory and Certification Developments - ZenaDrone has applied for FAA Part 137 certification for agricultural aircraft operations, enabling commercial use in crop spraying and wildfire management [2][3] - FAA Part 137 certification requires meeting safety, operational, and knowledge standards, with a process that can take several months [3] Wildfire Management - Wildfire devastation in the US is estimated to cost between $394 billion and $893 billion annually, driven by climate change and increasing severity of wildfires [4] - Drones are being developed for wildfire management, offering potential to mitigate environmental and economic impacts [4][6] Company-Specific Developments - ZenaTech's ZenaDrone 1000 offers autonomous multifunction capabilities, including stable flight, heavy lift, and industrial-grade hardware [8] - AgEagle Aerial Systems received an order for 60 RedEdge-P Multispectral Sensors, marking a significant milestone in 2024 [8][18] - Palladyne AI successfully demonstrated its Pilot AI platform's ability to autonomously control drone navigation and target tracking [5][18] - ParaZero Technologies launched the SafeAir Raptor, a safety system compatible with Anzu Robotics' drone models, meeting FAA regulations [9][10] - Ondas Holdings' Airobotics subsidiary received a purchase order for its Iron Drone Raider, featuring AI-driven navigation for defense applications [11][12] Market Growth and Opportunities - The global drones market is expected to achieve remarkable growth by 2032, driven by technological advancements and expanding applications across industries [2] - Increased adoption of drones for mapping, crop monitoring, spraying, and livestock management is supported by government incentives and technological advancements [17]

Core Points - Ondas Holdings Inc. held its Q3 2024 earnings conference call on November 12, 2024, featuring key executives including the Chairman and CEO, Interim CFO, and Presidents of Ondas Networks and Autonomous Systems [1][2]. Group 1: Company Overview - The conference call was structured to provide insights into the company's performance and future outlook, with a focus on financial results and strategic initiatives [2][3]. - Management emphasized the importance of non-GAAP financial measures, which are intended to offer investors a clearer view of underlying trends, despite not being in accordance with generally accepted accounting principles [4][5]. Group 2: Financial Performance - The company plans to discuss its financial results in detail, including reconciliations of non-GAAP measures to GAAP measures, which are available in the press release [4]. - The call included a reminder that forward-looking statements made during the call are subject to risks and uncertainties that could lead to actual results differing from those projected [3].

Financial Data and Key Metrics Changes - In Q3 2024, revenues were approximately $1.5 million, down from approximately $2.7 million in Q3 2023, primarily due to extended timelines at Ondas Networks related to 900 MHz activities [23][24] - Gross margin for Q3 2024 was $48,000, or 3%, compared to $555,000, or 21%, in Q3 2023, reflecting a change in revenue mix [24] - Operating expenses increased to $8.7 million in Q3 2024 from $6.5 million in Q3 2023, leading to an operating loss of $8.7 million compared to $5.9 million in the prior year [25][26] Business Line Data and Key Metrics Changes - Ondas Autonomous Systems (OAS) secured $14.4 million in orders for Iron Drone Raider and Optimist platforms, marking the largest bookings quarter in the company's history [9][10] - Ondas Networks is experiencing fluctuations in revenue due to the uncertainty around customer activity and the timing of commercial rollouts in the 900 MHz network [21][22] Market Data and Key Metrics Changes - The expansion into global military markets has significantly increased the Total Addressable Market (TAM) for OAS, with tangible engagement from additional military customers [12][56] - The railroad sector is showing increased interest in the 900 MHz network, with orders from Metra and a Class I railroad in Chicago indicating a positive trend for future deployments [16][18] Company Strategy and Development Direction - The company is focusing on military, homeland security, and public safety markets, with plans to expand distribution capabilities for Iron Drone and Optimus systems [46][56] - There is a strong emphasis on enhancing operational capabilities and customer engagement, particularly in the defense sector, to capitalize on the growing demand for autonomous systems [70][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about significant revenue growth in Q4 2024 and 2025, driven by fulfilling backlog orders and expanding customer bases [8][68] - The company is preparing for increased production capacity and marketing efforts to support growth in both Iron Drone and Optimus systems [70][71] Other Important Information - The company held cash and cash equivalents of $2.9 million as of September 30, 2024, down from $15 million at the end of 2023, with plans to improve cash utilization in Q4 [26][30] - Ondas has requested an additional 180-day compliance period from NASDAQ to regain compliance with minimum bid price requirements [74] Q&A Session Summary Question: Can you explain the combat success related to Iron Drone and the timeline for future orders? - Management indicated that while specific details on combat success in Israel cannot be disclosed, they expect orders in 2025 as they deliver on current orders and integrate systems [77][80] Question: Do you need additional certifications for autonomous drones in the U.S.? - No additional certifications are needed beyond the regulatory processes already in place, as the company has received FAA type certification [81][82] Question: What is the expected gross margin on the $14 million of orders? - The gross margin for the $14 million in orders is expected to be north of 50% [83] Question: Will the $14 million of orders be recognized in Q4 and Q1? - Yes, most of the $14 million in orders will be recognized in Q4 and Q1 [85] Question: How much do the rails need to spend to clear the spectrum, and what is the liquidity outlook? - Management noted that railroads intend to meet FCC deadlines for retiring legacy networks, and they are working on a multistage capital plan to ensure liquidity [99][103]

Ondas Holdings Inc. (ONDS) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.14%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.14, delivering a surprise of 17.65%.Over the last four quarters, the company has surp ...