DIH Holding(DHAI) - 2024 Q2 - Quarterly Results

Financial & Operational Highlights DIH reported strong Q1 FY2025 results, achieving 24% revenue growth, improved gross margin, and a significantly narrowed net loss Q1 FY2025 Key Financial Metrics (vs. Q1 FY2024) | Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $16.2M | $13.0M | +24% | | Gross Margin | 53.5% | 41.5% | +12.0 p.p. | | Net Loss | ($0.6M) | ($2.9M) | +$2.3M | - Revenue growth was strong in key strategic markets, with both Europe, Middle East and Africa (EMEA) and the Americas regions growing by 54% year-over-year[2][3] - Recurring service revenue demonstrated robust growth, increasing by 49% over the prior year period, reaching $3.5 million[2][3] - The CEO attributed improved gross margin and net income to increased account penetration and enhanced productivity from workflow efficiencies[2] Detailed Financial Performance Analysis Analysis reveals Q1 FY2025 revenue growth driven by EMEA device sales, significant gross profit surge, and increased operating expenses Revenue Analysis Q1 FY2025 total revenue increased 24.1% to $16.2 million, driven by device and service revenue growth, particularly in EMEA and Americas Q1 FY2025 Revenue Breakdown (in millions) | Revenue Stream | Q1 FY2025 | YoY Growth | | :--- | :--- | :--- | | Device Revenue | $12.3 | +18% | | Service Revenue | $3.5 | +49% | | Total Revenue | $16.2 | +24% | - The primary driver for the increase in device revenue was higher sales volume in the EMEA region[3] Profitability Analysis Gross profit surged 60.6% to $8.7 million, with gross margin expanding to 53.5%, driven by higher sales and improved cost of sales Gross Profit Comparison (in millions) | Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | $8.7 | $5.4 | +60.6% | | Gross Margin | 53.5% | 41.5% | +12.0 p.p. | Operating Expenses Total operating expenses increased to $10.3 million, with SG&A rising 48.2% due to professional fees, compensation, and overhead, while R&D also grew Operating Expenses Comparison (in millions) | Expense Category | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | SG&A | $8.7 | $5.8 | +48.2% | | R&D | $1.6 | $1.4 | +14.3% | | Total Operating Expenses | $10.3 | $7.3 | +41.8% | - The increase in SG&A was driven by costs related to public company reporting, performance-based pay, and overhead to support growth[3] Fiscal Year 2025 Outlook DIH reiterated its FY2025 revenue guidance of $74 million to $77 million, projecting 15% to 20% growth over FY2024 FY2025 Full-Year Guidance | Metric | Guidance Range | Projected Growth vs. FY2024 | | :--- | :--- | :--- | | Revenue | $74M - $77M | ~15% - 20% | Consolidated Financial Statements Detailed consolidated financial statements present DIH's financial position as of June 30, 2024, and performance for the quarter Consolidated Balance Sheets As of June 30, 2024, DIH reported total assets of $38.2 million, total liabilities of $72.2 million, and a total deficit of $34.0 million Key Balance Sheet Items (in thousands) | Account | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,749 | $3,225 | | Total current assets | $29,375 | $27,056 | | Total assets | $38,209 | $35,735 | | Total current liabilities | $48,240 | $44,954 | | Total liabilities | $72,204 | $68,281 | | Total deficit | ($33,995) | ($32,546) | Consolidated Statements of Operations For Q1 FY2025, DIH reported $16.2 million in revenue and a net loss of $0.6 million, a significant improvement from the prior year Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Revenue | $16,187 | $13,045 | | Gross Profit | $8,666 | $5,397 | | Operating Loss | ($1,654) | ($1,878) | | Net Loss | ($614) | ($2,913) | | Net Loss Per Share | ($0.02) | ($0.12) | Consolidated Statements of Comprehensive Loss The company reported a comprehensive loss of $2.3 million for the quarter, including net loss and other comprehensive losses Comprehensive Loss Summary (in thousands) | Component | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net Loss | ($614) | ($2,913) | | Other Comprehensive (Loss) Income | ($1,679) | $421 | | Comprehensive Loss | ($2,293) | ($2,492) | Consolidated Statements of Changes in Equity (Deficit) The total deficit increased to $34.0 million, primarily due to net loss and other comprehensive loss, partially offset by recapitalization and warrant issuance Reconciliation of Total Deficit (in thousands) | Description | Amount | | :--- | :--- | | Balance, March 31, 2024 | ($32,546) | | Net loss | ($614) | | Transaction relates to reverse recapitalization | $710 | | Issuance of warrants | $362 | | Other comprehensive income, net of tax | ($1,907) | | Balance, June 30, 2024 | ($33,995) | Consolidated Statements of Cash Flows Net cash used in operating activities increased to $2.0 million, with financing activities providing $1.8 million, resulting in a net cash decrease of $0.5 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,010) | ($475) | | Net cash used in investing activities | ($235) | ($15) | | Net cash provided by (used in) financing activities | $1,774 | ($1,936) | | Net (decrease) in cash | ($476) | ($2,413) | | Cash, end of period | $2,749 | $762 |