Ondas(US:ONDS)2025-03-12 19:12Financial Data and Key Metrics Changes - Revenues increased 173% quarter-over-quarter to $4.1 million for Q4 2024, compared to $1.5 million for Q3 2024, but decreased 18% from $5 million for Q4 2023 [32] - OAS revenues were $3.6 million, an increase of 260% from Q3 2024 and a 10% increase from Q4 2023 [33] - Operating loss was $8.5 million for Q4 2024, compared to $12.6 million for Q4 2023 [36] - Cash held was $30 million as of December 31, 2024, compared to $15 million as of December 31, 2023 [40] Business Line Data and Key Metrics Changes - OAS secured two major programs with a military customer in the Middle East, significantly increasing its total addressable market (TAM) [12] - Ondas Networks revenues were relatively flat compared to Q3 2024 and down from Q4 2023, primarily due to extended timelines related to the 900 megahertz activity [32] - The company closed the year with a $10 million backlog primarily with OAS, reinforcing the strength of its pipeline [16] Market Data and Key Metrics Changes - The defense market is seeing massive demand growth, particularly for the Iron Drone Raider platform, which is positioned as a market-defining solution for drone interception [13] - The company is engaging with new defense and homeland security customers through government-to-government channels and direct marketing efforts [14] Company Strategy and Development Direction - The company aims to drive growth with existing programs and customers while expanding into new customer programs, particularly in defense and homeland security [20][21] - A strategic partnership with Palantir Technologies was announced to leverage their Foundry AI platform for operational efficiencies [26][28] - Ondas Networks is focused on advancing private wireless networks to critical rail operating and safety systems [86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in projecting at least $20 million in revenues from OAS, supporting total revenue expectations of $25 million for Ondas Holdings in 2025 [17] - The company anticipates 2025 to be an acceleration year with record revenue growth driven by existing programs and new customer opportunities [19][25] Other Important Information - Operating expenses decreased to $9.4 million for Q4 2024, down from $14.4 million in Q4 2023, primarily due to cost savings [35] - The company raised $35 million in Q4 2024, providing a strong liquidity position for expansion [18] Q&A Session Summary Question: Visibility into the $20 million revenue projection - Management expects to realize the $10 million backlog in revenue in the first and second quarters, with active engagement with military and public safety customers [96] Question: Update on Dubai customer shipments - No units were shipped in Q4, but advanced dialogue is ongoing regarding future shipments [98] Question: First responder opportunity in the U.S. market - There is significant interest in the Optimus platform, with a successful pilot program conducted for a major public safety customer [104] Question: Gross margins outlook - Expected gross margins to recover, projected to be in the 40% range in the first half of the year, potentially reaching 50% or better in the second half [111] Question: Clarification on the partnership with Palantir - The partnership involves integrating Palantir's Foundry AI into Ondas' operations, with potential for further collaboration in the future [120]