BurTech Acquisition (BRKH) - 2025 Q1 - Quarterly Results

Executive Summary Blaize reported strong Q1 2025 financial results, exceeding revenue guidance, driven by significant customer traction and commercial momentum in smart infrastructure, defense, and mobility sectors Company Introduction and Q1 2025 Overview Blaize, a leader in energy-efficient AI inference at the edge, announced strong Q1 2025 financial results, exceeding revenue guidance and demonstrating significant customer traction and commercial momentum across smart infrastructure, defense, and mobility sectors. The company is executing on mission-critical challenges globally - Blaize reported strong customer traction and commercial momentum in Q1 2025 across smart infrastructure, defense, and mobility[2] - CEO Dinakar Munagala highlighted the deployment of real systems solving mission-critical challenges in perimeter defense, smart ports, and AI-powered city infrastructure, with strong customer demand in the U.S., South Korea, and the Gulf region[3] - Key achievements include converting pipeline into execution across key markets, selection by CBIST for South Korea's Chungbuk Digital Innovation Hub, finalizing purchase orders with Turbo Federal for defense, and exceeding Q1 revenue guidance[4] Recent Business Announcements and Updates Blaize is actively converting strategic engagements into revenue-generating opportunities by advancing from pilot programs to real deployments in key global markets. This includes leading a smart city AI deployment in South Korea, commercializing defense engagements with Turbo Federal, and deepening engagement with a Gulf region Ministry of Defense for mission-critical AI - Blaize was selected by CBIST to lead the Chungbuk Digital Innovation Hub, providing edge AI infrastructure for smart city deployment in South Korea's Chungcheongbuk-do province[5] - The collaboration with Turbo Federal for defense has progressed to the commercialization phase, with purchase orders for deploying Blaize-powered servers and AI Studio software for perimeter security and real-time inference[8] - Blaize is deepening engagement with a national Ministry of Defense in the Gulf Region, progressing through proof-of-concept and field qualification for trusted AI inference capabilities in situational awareness[8] - Blaize plans to announce a new vertical AI solution platform in Q3 2025 to simplify and accelerate deployment for smart city, defense, and infrastructure customers, extending its edge AI leadership[7] Financial Performance and Outlook This section details Blaize's Q1 2025 financial performance, including revenue growth and increased net loss, alongside forward-looking guidance for Q2 and Fiscal Year 2025 First Quarter 2025 Financial Highlights Blaize reported significant revenue growth in Q1 2025, primarily driven by product shipments for smart city applications, while experiencing an increased net loss and Adjusted EBITDA loss due to non-recurring business combination expenses and investments in go-to-market strategy Q1 2025 Financial Metrics | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | YoY Change | | :----------------------- | :-------------------- | :-------------------- | :--------- | | Revenue | $1.0 | $0.549 | +83% | | Net Loss | $(147.8) | $(16.7) | -785% | | Adjusted EBITDA Loss | $(15.4) | $(7.5) | -105% | | Cash & Cash Equivalents (as of March 31, 2025) | $45.0 | N/A | N/A | - The 83% year-on-year revenue growth was driven by product shipments for smart city applications, contrasting with Q1 2024 revenues from strategic consulting fees[6] - The increase in net loss was primarily due to non-recurring expenses and non-cash adjustments related to the business combination with BurTech Acquisition Corporation in January 2025[6] - The increase in Adjusted EBITDA loss was mainly due to investments in go-to-market and customer support strategy, software tools, and public company expenses[6] Financial Outlook Blaize provided forward-looking guidance for Q2 2025 and the full Fiscal Year 2025, projecting continued revenue growth and anticipated Adjusted EBITDA losses, along with estimates for stock-based compensation and weighted average shares outstanding Financial Guidance | Metric | Q2 2025 Guidance (in millions) | Fiscal Year 2025 Guidance (in millions) | | :------------------------ | :----------------------------- | :------------------------------------ | | Total Revenue | $1.5 - $1.7 | $19 - $50 | | Adj EBITDA Loss | $13 - $14 | $40 - $55 | | Stock Based Compensation | Approximately $10 | Approximately $35 | | Weighted Average Shares Outstanding | 90 | 99 | Non-GAAP Financial Measures This section defines Adjusted EBITDA as a non-GAAP financial measure, outlining its rationale and providing a detailed reconciliation from net loss Definition and Rationale This section defines Adjusted EBITDA as a non-GAAP financial measure, explaining its components and why management uses it to assess underlying operating performance, despite its limitations compared to GAAP measures - Adjusted EBITDA is a non-GAAP financial measure, not considered a measure of financial performance or liquidity under GAAP[12] - Adjusted EBITDA is defined as EBITDA further adjusted for items not reflective of underlying operations, including stock-based compensation, non-recurring inventory cost realignments, and other non-recurring expenses. Net loss is the most directly comparable GAAP measure[13] - Management uses Adjusted EBITDA to assess operating results and believes it's an important supplemental measure for investors and analysts, but cautions that it may not be comparable to similarly titled metrics from other companies and should not be used in isolation[14] Net Loss to Adjusted EBITDA Reconciliation This section provides a detailed reconciliation table, illustrating the adjustments made to Net Loss to arrive at Adjusted EBITDA for the quarters ended March 31, 2025, and March 31, 2024 Net Loss to Adjusted EBITDA Reconciliation Table | Dollars in Thousands | Quarter Ended March 31, 2025 | Quarter Ended March 31, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | | Net loss | (147,761) | (16,743) | | Depreciation and amortization | 191 | 253 | | Provision for income taxes | 162 | 162 | | Other expenses | 109,578 | 8,444 | | EBITDA | (37,830) | (7,884) | | Stock-based compensation | 11,040 | 337 | | Non-cash inventory cost realignment adjustments | (625) | (25) | | Other non-recurring expenses | 12,035 | 45 | | Adjusted EBITDA | (15,380) | (7,527) | - Other non-recurring expenses, primarily legal, accounting, and consulting fees related to the merger, were excluded to provide a more meaningful comparison of ongoing operating performance[16] Condensed Consolidated Financial Statements This section presents Blaize's condensed consolidated balance sheets, statements of operations, and cash flows for the relevant periods, reflecting the company's financial position and performance Condensed Consolidated Balance Sheets The balance sheet provides a snapshot of Blaize's financial position as of March 31, 2025, compared to December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets | (Amounts in thousands) | As of March 31, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------- | :---------------------- | | Assets | | | | Total current assets | $93,544 | $73,690 | | Total assets | $100,203 | $80,516 | | Liabilities & Equity | | | | Total current liabilities | $38,439 | $188,143 | | Total liabilities | $50,432 | $190,979 | | Total stockholders' equity (deficit) | $16,710 | $(110,463) | - Total assets increased from $80.5 million at December 31, 2024, to $100.2 million at March 31, 2025[23] - Total current liabilities significantly decreased from $188.1 million to $38.4 million, largely due to changes in warrant liabilities and convertible notes[23] - Stockholders' equity shifted from a deficit of $(110.5) million to a positive $16.7 million, reflecting the impact of the business combination and related financial adjustments[23] Condensed Consolidated Statements of Operations The statement of operations details Blaize's revenues, costs, and expenses, resulting in a net loss for the three months ended March 31, 2025, compared to the same period in 2024, highlighting significant increases in other expenses due to fair value changes Condensed Consolidated Statements of Operations | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total revenue | $1,007 | $549 | | Total operating expenses | $39,028 | $8,686 | | Loss from operations | $(38,021) | $(8,137) | | Total other expense, net | $(109,578) | $(8,444) | | Net loss | $(147,761) | $(16,743) | | Net loss per share - basic and diluted | $(1.61) | $(1.23) | - Revenue increased by 83% year-over-year, from $549 thousand in Q1 2024 to $1,007 thousand in Q1 2025, driven by hardware sales[25] - Net loss significantly widened from $(16.7) million in Q1 2024 to $(147.8) million in Q1 2025, primarily due to a substantial increase in "Total other expense, net," which included large changes in fair value of convertible notes and warrant liabilities[25] - Research and development expenses increased from $4.1 million to $13.1 million, and selling, general and administrative expenses increased from $4.0 million to $13.4 million, reflecting increased investments and public company costs[25] Condensed Consolidated Statements of Cash Flows The cash flow statement shows a net cash outflow from operating activities in Q1 2025, an increase in cash used in investing activities, and a net cash inflow from financing activities, resulting in a net decrease in cash and cash equivalents for the period Condensed Consolidated Statements of Cash Flows | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(15,944) | $(7,363) | | Net cash used in investing activities | $(661) | $(177) | | Net cash provided by financing activities | $11,343 | $11,372 | | Net change in cash, cash equivalents and restricted cash | $(5,262) | $3,832 | | Cash, cash equivalents and restricted cash at end of period | $45,226 | $7,045 | - Net cash used in operating activities increased from $(7.4) million in Q1 2024 to $(15.9) million in Q1 2025[27] - Financing activities provided $11.3 million in cash in Q1 2025, primarily from the merger and PIPE financing, net of transaction costs[27] - Non-cash disclosures include the conversion of $314.3 million of convertible notes to common stock and net exercise of $75.1 million of warrants for common stock[27] Company Information and Disclosures This section offers an overview of Blaize, including its core business, a cautionary statement regarding forward-looking information, and essential investor and media contact details About Blaize Blaize specializes in full-stack programmable processor architecture and low-code/no-code software platforms for energy-efficient AI processing at the edge and in data centers, delivering real-time insights with low power consumption - Blaize provides full-stack programmable processor architecture and low-code/no-code software for energy-efficient AI processing at the edge and in data centers[11] - Solutions deliver real-time insights and decision-making capabilities with low power consumption, high efficiency, minimal size, and low cost[11] - Headquartered in El Dorado Hills, CA, Blaize has over 200 employees worldwide with subsidiaries in India, UK, and UAE[11] Cautionary Statement Regarding Forward-Looking Statements This section serves as a legal disclaimer, advising readers that the press release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections, and Blaize assumes no obligation to update these statements - The press release contains forward-looking statements based on current expectations and assumptions, subject to risks and uncertainties[17] - Numerous factors, including changes in business conditions, market dynamics, and the benefits of the business combination, could cause actual future events to differ materially[18] - Readers are cautioned not to place undue reliance on forward-looking statements, and Blaize assumes no obligation to update or revise them, except as required by law[18] Investor and Media Contacts This section provides contact information for investors and media inquiries related to Blaize Holdings, Inc - Investors can contact ir@blaize.com[21] - Media inquiries can be directed to Leo Merle at info@blaize.com[21]