BigBear.ai(BBAI)2024-11-05 21:15Revenue and Financial Performance - Revenue increased 22.1% to $41.5 million in Q3 2024 compared to $34.0 million in Q3 2023[1][4] - Q3 2024 revenue increased to $41.505 million, up from $33.988 million in Q3 2023, representing a 22.1% growth[26] - Nine months ended September 30, 2024 revenue was $114.409 million, slightly down from $114.601 million in the same period of 2023[26] - Full-year 2024 revenue guidance affirmed between $165 million and $180 million[1][16] Gross Margin - Gross margin improved to 25.9% in Q3 2024 from 24.7% in Q3 2023[1][4] - Q3 2024 gross margin improved to 25.9%, up from 24.7% in Q3 2023[26] - Nine months ended September 30, 2024 gross margin improved to 25.2%, up from 24.1% in the same period of 2023[26] Net Loss and Income - Net loss of $12.2 million in Q3 2024 compared to net income of $4.0 million in Q3 2023[1][4] - Q3 2024 net loss was $12.176 million, compared to a net income of $3.999 million in Q3 2023[26] - Net loss for the nine months ended September 30, 2024, was $(149,060) thousand, compared to $(39,110) thousand for the same period in 2023[21] - Nine months ended September 30, 2024 net loss widened to $149.060 million, compared to $39.110 million in the same period of 2023[26] Adjusted EBITDA - Non-GAAP Adjusted EBITDA of $0.9 million in Q3 2024, up from $0.2 million in Q3 2023[1][6] - Q3 2024 Adjusted EBITDA improved to $948 thousand, up from $157 thousand in Q3 2023[26] - Nine months ended September 30, 2024 Adjusted EBITDA was $(4.358) million, an improvement from $(6.870) million in the same period of 2023[26] - Q3 2024 Adjusted EBITDA margin improved to 2.3%, up from 0.5% in Q3 2023[26] - Nine months ended September 30, 2024 Adjusted EBITDA margin improved to (3.8)%, up from (6.0)% in the same period of 2023[26] Contracts and Backlog - Ending backlog of $437 million as of September 30, 2024[6] - Awarded a 5-year $165 million contract for U.S. Army's GFIM-OE production services[7] - Received a shared IDIQ contract with FAA worth up to $2.4 billion over 10 years[8] Operational Highlights - Deployed biometric boarding solution veriScan at Denver International Airport, impacting 46,600 international passengers[9] - Demonstrated ConductorOS AI orchestration platform at DoD's RDER T-REX24-2 event[10] Balance Sheet and Liquidity - Total assets increased to $354,083 thousand as of September 30, 2024, compared to $199,910 thousand as of December 31, 2023, reflecting significant growth[20] - Cash and cash equivalents rose to $65,584 thousand as of September 30, 2024, up from $32,557 thousand as of December 31, 2023, indicating improved liquidity[20] - Goodwill increased to $118,621 thousand as of September 30, 2024, compared to $48,683 thousand as of December 31, 2023, due to business acquisitions[20] - Total stockholders' equity improved to $98,433 thousand as of September 30, 2024, from a deficit of $(67,335) thousand as of December 31, 2023[20] Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024, was $(23,313) thousand, compared to $(18,233) thousand for the same period in 2023[21] - Acquisition of business, net of cash acquired, amounted to $13,935 thousand in the nine months ended September 30, 2024[21] - Proceeds from issuance of shares for exercised RDO and PIPE warrants, Private Placement, and Registered Direct Offering shares totaled $53,809 thousand in the nine months ended September 30, 2024[21] - Net increase in cash and cash equivalents for the nine months ended September 30, 2024, was $33,027 thousand, compared to $19,552 thousand for the same period in 2023[21] Non-GAAP Financial Measures - BigBear.ai uses non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Recurring SG&A to provide supplemental information about financial performance[32][36] - Adjusted EBITDA is defined as EBITDA adjusted for equity-based compensation, restructuring charges, and other non-recurring items[36] - Adjusted EBITDA Margin is calculated as Adjusted EBITDA as a percentage of Revenue[37] - Recurring SG&A excludes equity-based compensation, non-recurring strategic initiatives, and litigation costs[37] - BigBear.ai does not reconcile forward-looking non-GAAP measures to GAAP due to unpredictability of certain GAAP elements[40] - The company believes non-GAAP measures offer useful insights for comparing financial results across periods and with other companies[34][38] - Non-GAAP measures exclude significant expenses and income required by GAAP, limiting their comparability[39] - BigBear.ai provides reconciliations of non-GAAP measures to the most directly comparable GAAP measures[41] Company Overview - The company operates in AI-powered decision intelligence solutions for national security, digital identity, and supply chain management[43] - BigBear.ai is publicly traded on the NYSE under the symbol BBAI[43] Impairment and Other Expenses - Goodwill impairment of $85,000 thousand was recorded in the nine months ended September 30, 2024[21]