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Intrusion(INTZ) - 2024 Q3 - Earnings Call Transcript
INTZIntrusion(INTZ)2024-11-15 18:58

Financial Data and Key Metrics Changes - In Q3 2024, revenues were 1.5million,reflectinga31.5 million, reflecting a 3% sequential increase and a 2% year-over-year increase [19] - Shield revenue increased by 49% sequentially, driven by a new contract with the U.S. Department of Defense [14][20] - Gross profit margin was 77%, slightly up from 76% in Q2 2024 and down from 78% in Q3 2023 [21] - The net loss for Q3 2024 was 2.1 million, an improvement of 1.1millionfromalossof1.1 million from a loss of 3.2 million in Q3 2023 [25] Business Line Data and Key Metrics Changes - Shield revenues represented 30% of total revenues in Q3 2024 [21] - Consulting revenue totaled 1.1million,adecreaseof1.1 million, a decrease of 0.1 million sequentially, remaining flat year-over-year [21] Market Data and Key Metrics Changes - Strong demand for products in the Philippines and the broader Asia Pacific region, with a growing pipeline of high-quality opportunities [8][9] - Near zero churn rate with Shield customers, indicating strong customer retention [7] Company Strategy and Development Direction - The company is focused on sustainable growth and profitability, with continued investment in R&D to enhance product capabilities [15][18] - Plans to replicate the success of the U.S. Department of Defense contract in other regions [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue goals for Q4 2024 and Q1 2025, driven by recent customer wins and a strong pipeline [17][18] - The cybersecurity market is expected to grow due to increasing challenges faced by organizations [10] Other Important Information - The company received a notice from NASDAQ regarding non-compliance with the $1 minimum bid price requirement, with 180 days to regain compliance [16] - The longest-serving Board member announced retirement, with a search for a replacement underway [12][13] Q&A Session Summary Question: When did the large Shield client exit? - Management confirmed that the last revenue from the initial Shield client was in the first quarter of the previous year, which will help revenue growth optics as it anniversaries [30] Question: What size are the new Shield logos? - Management noted that new clients vary in size, with increasing opportunities for larger deals due to a growing reputation in the Asia Pacific region [31] Question: Any impact from election results on government business? - Management does not expect significant impact from politics but acknowledges ongoing cybersecurity threats that create market opportunities [35] Question: Increased opportunities for election integrity solutions? - Management has received inquiries but no solid signed business yet, indicating ongoing concerns about election security [39] Question: Any read on CIOs' capital spending plans post-election? - Management stated it is too early to comment but will gather insights from upcoming industry events [41]