Mobix Labs(MOBX) - 2024 Q2 - Quarterly Results

Executive Summary & Highlights Mobix Labs reported strong sequential revenue growth and gross margin expansion in Q3 2024, driven by strategic acquisitions and increasing customer demand - CEO Fabian Battaglia emphasized the successful acquisition of RaGE Systems, a growing M&A pipeline, and increasing customer demand as key drivers for the quarter[1] - President and CFO Keyvan Samini highlighted the 80% sequential revenue growth, gross margin expansion, and the closing of an additional private placement, with the company seeking more financing to fuel its acquisition strategy and fulfill strong customer demand[1] Financial Performance This section details Mobix Labs' financial results for Q3 2024, including key highlights, statements of operations, balance sheets, and non-GAAP reconciliations Financial Highlights for Third Quarter of 2024 Mobix Labs achieved $2.1 million in Q3 2024 revenue, an 80% sequential increase, with a $9.3 million GAAP loss and $4.1 million non-GAAP adjusted loss from operations Q3 2024 Financial Highlights (vs Q2 2024) | Metric | Q3 2024 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $2.1 million | $1.1 million | +80% | | GAAP Loss from Operations | $9.3 million | $8.6 million | Increased Loss | | Non-GAAP Adjusted Loss from Operations | $4.1 million | $4.1 million | Unchanged | Condensed Consolidated Statements of Operations For Q3 2024, the company reported $2.1 million in net revenue and a $7.7 million net loss, or ($0.25) per basic share, compared to $10.0 million net loss in the prior year Statement of Operations (Three Months Ended June 30, in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Revenue | $2,058 | $80 | | Loss from Operations | $(9,348) | $(9,739) | | Net Loss | $(7,679) | $(10,004) | | Net Loss per Share (Basic) | $(0.25) | $(0.65) | Condensed Consolidated Balance Sheets As of June 30, 2024, Mobix Labs reported $41.3 million in total assets, $32.7 million in total liabilities, and $8.5 million in positive stockholders' equity Balance Sheet Summary (in thousands) | Metric | June 30, 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | $4,070 | $830 | | Total Assets | $41,277 | $18,748 | | Total Current Liabilities | $25,501 | $20,423 | | Total Liabilities | $32,741 | $21,789 | | Total Stockholders' Equity (Deficit) | $8,536 | $(5,341) | Business Operations & Strategy Mobix Labs actively pursues growth through strategic acquisitions, partnerships, and new product development, including the RaGE Systems acquisition and 5G base station collaboration - Completed the acquisition of RaGE Systems, a leader in radio frequency and mmWave design, affirming the company's global acquisition strategy[3] - Announced intent to acquire J-Mark Connectors Inc. to enhance sales strategy and gross margins, specifically targeting the military, aerospace, and defense sectors[3] - Introduced new filtered D-sub and EMI filtered connectors designed for high-reliability applications in defense, aerospace, and medical markets[4][5] - Formed a strategic partnership with TalkingHeads Wireless (THW) to develop energy-efficient 5G base stations, combining THW's AI technology with Mobix Labs' portfolio of ICs, antennas, and optical components[5] - Selected as a connector supplier for the U.S. Navy's Standard Missile-6 program and has completed its initial product delivery[5] Financial Outlook The company projects continued sequential revenue growth for Q4 2024, providing specific guidance for consolidated revenues Q4 2024 Revenue Outlook | Metric | Projected Range | | :--- | :--- | | Consolidated Revenues | $2.6 - $3.2 million | Non-GAAP Financial Measures Mobix Labs utilizes non-GAAP financial measures, such as Adjusted Loss from Operations, to provide clearer insights into business trends by excluding non-cash and acquisition-related expenses - The company uses non-GAAP measures to exclude items like amortization of acquisition-related intangibles, merger expenses, and stock-based compensation to better reflect current business trends[7][8] Reconciliation of GAAP Loss from Operations to Adjusted Loss from Operations (in thousands) | Description | Three Months Ended June 30, 2024 | | :--- | :--- | | GAAP loss from operations | $(9,348) | | Stock-based compensation expense | $3,622 | | Merger & acquisition-related expenses | $976 | | Amortization of acquisition related intangible assets | $481 | | Depreciation | $127 | | Adjusted loss from operations | $(4,142) | Company Information and Disclosures This section outlines Mobix Labs' business in semiconductor and wireless solutions, including its focus areas and standard forward-looking statement disclosures - Mobix Labs specializes in four key areas: EMI Interconnect Solutions, Active Optical Cables (AOC) for AI data centers, 5G IC Solutions, and Wireless Systems Solutions[13] - The report includes a standard safe harbor statement regarding forward-looking information, cautioning that actual results may differ materially from projections due to various known and unknown risks and uncertainties[15][16]