Telos(TLS) - 2023 Q4 - Earnings Call Presentation

4Q 2023 Financial Performance - Security Solutions ("SS") revenue decreased by 32% year-over-year, reaching $20.7 million, but increased 4% sequentially[6,47] - Secure Networks ("SN") revenue increased by 20% year-over-year, reaching $20.4 million, and increased 25% sequentially, exceeding guidance due to a $7.8 million product delivery accelerated from 1Q 2024[7,47] - GAAP gross margin was 34.3%, compared to guidance of 35.1% to 36.4%[8,47] - The company delivered $41.1 million of revenue, exceeding guidance of $30 million to $34 million[22] - Adjusted EBITDA was above the high end of the guidance range due to better than forecasted gross profit[11] FY 2023 Financial Performance - Full year revenue was $145.4 million, a decrease of 33% year-over-year[25] - GAAP gross margin was 36.4%, a decrease of 3 bps year-over-year, while cash gross margin was 39.5%[25] - Adjusted EBITDA was a loss of $5.4 million, with an adjusted EBITDA margin of -3.7%[25] 1Q 2024 Outlook - Revenue is projected to be in the range of $28 million to $29 million, representing a year-over-year decrease of 21% to 18%[16] - Adjusted EBITDA is expected to be a loss of $5.5 million to $5.0 million[16] - Security Solutions is expected to contribute approximately 62% of revenue[30] Business Highlights - Prime partners received awards on new programs worth up to $525 million to Telos' Security Solutions business over five years[14,32]