VirTra Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - VirTra, Inc. reported a significant decline in revenue for both the fourth quarter and full year of 2024, attributed to federal budget delays and grant disbursement pauses impacting contract execution [4][11][12] - Despite the revenue decline, the company experienced strong bookings momentum, with a backlog expanding to $22.0 million by the end of 2024, indicating potential for future revenue growth [7][8][19] Financial Performance - Total revenue for Q4 2024 was $5.4 million, down 50% from $10.9 million in Q4 2023, while full-year revenue decreased by 32% to $26.4 million from $38.8 million [4][12] - Gross profit for Q4 2024 was $3.7 million, representing a gross margin of 68.5%, compared to $9.2 million and 84.4% in Q4 2023 [4][12] - The company reported a net loss of $0.9 million in Q4 2024, compared to a net income of $3.5 million in the same quarter of the previous year [4][16] Operational Highlights - Bookings for Q4 2024 totaled $12.2 million, a 37% increase from Q3 2024, with a significant portion recorded in December, setting the stage for revenue conversion in early 2025 [8][19] - The company secured contracts with government and law enforcement agencies in Europe and Latin America, enhancing its international presence [8] - VirTra completed key milestones in the U.S. Army's Integrated Visual Augmentation System (IVAS) program, finishing the final development phase ahead of schedule [9] Management Commentary - The CEO emphasized the importance of navigating the federal funding environment and the company's efforts to advocate for clearer funding structures for law enforcement training [7] - The CFO highlighted the strong Q4 bookings and the growing backlog, which positions the company well for future revenue growth despite current challenges [19] Future Outlook - The company anticipates continued variability in federal funding cycles but remains optimistic about the long-term need for de-escalation and tactical training [11] - Management is focused on improving operational efficiency and converting backlog into revenue as market conditions evolve [19]