Fourth Quarter & Full Year 2024
Earnings Release
NASDAQ: ONDS | April 1, 2024 Copyright 2024. All rights reserved.
Disclaimer
This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Ondas Holdings Inc. ("Ondas" or the "Company") cautions readers that forward-looking statements are predictions based on its current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company's actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, the risks discussed under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC"), in the Company's Quarterly Reports on Form 10-Q filed with the SEC, and in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Leadership Team
Eric is an entrepreneur with over 25 years of management and investing experience.
ERIC BROCK
CHAIRMAN & CEO
YISHAY CURELARU
CFO
Yishay is an experienced financial executive with over 10 years experience with entrepreneurial growth companies.
TIM TENNE
CEO
Tim brings over 30 years of experience in military and commercial aerospace operations, regulatory, and leadership.
Agenda
Ondas on track to accelerate momentum in 2024
• Introduction
• Financial Review & Outlook
• Business Update
• Ondas Networks
• Ondas Autonomous Systems (OAS)
• Closing Remarks
• Q&A
Introduction
Strengthening our business platform
• Joe Popolo, CEO of Charles & Potomac Capital LLC joins Ondas Holdings Board of Directors
• Largest single investor in the company
• Experienced corporate executive; long history as operator and investor driving significant business growth and shareholder value creation
• Incentives directly aligned with shareholders
• Charles & Potomac led recently announced $8.6 million funding
• In addition to leading $15 million funding at Ondas Networks in Q3 2023
• Established Ondas Autonomous Holdings Inc. (OAH)
• Owns 100% of drone businesses (American Robotics & Airobotics)
• Provides additional operational and financial flexibility supporting growth plan
Overview
2023 was a breakout year for Ondas
• Platform adoption drove significant revenue growth
• Generated $15.7 million in revenue (more than 7-fold growth YoY)
• Ondas Networks generated $6.7 million of revenue
• OAS generated $9.0 million of revenue
• Ondas Networks growth driven by FCC 900 MHz mandate
• Field activity with Class I rails advanced; ATCS and network integration advancing
• Pipeline is growing with 900 MHz migration deadlines nearing
• New Class I networks; new opportunities in passenger and transit emerging
• OAS installing world's first autonomous drone fleets in cities
• Groundbreaking Urban Drone Infrastructure fleet expansion begins in Dubai
• Received FAA Type Certificate for our Optimus UAV; validates system quality and supports increased customer engagement
• Built US leadership and launched expansion; MassDOT and others pending
• Iron Drone Raider responding to urgent military and security needs
Financial Review
Q4 2023
SELECT P&L DATA
Revenues, net
Cost of goods sold
Gross profit
Total operating expenses
Operating loss
SUPPLEMENTAL INFO:
Depreciation expense
Amortization of Intangible Assets
Stock-based compensation
Impairment of long-term equity investment
Impairment of right of use asset and leasehold improvements
Impairment of goodwill
Three Months Ended December 31,2023
2022
$
4,961,285
$ 478,912
3,233,661 210,083
1,727,624 268,829
14,373,559
34,785,186
$
(12,645,935)
$
(34,516,357)
$
196,209 1,043,501
$
169,263
843,795 1,490,701
411,048 1,500,000 2,511,305
- -
Total
$
5,662,063
-
$
19,419,600 21,923,359
KEY FINANCIAL INSIGHTS:
• P&L reflects early stage of initial platform adoption for Ondas Networks and OAS
• Strong year-over-year growth driven by record product shipments at Ondas Networks and OAS
• Gross margin lower on product mix; expected to remain variable
• OPEX improvement driven by strong expense controls and lower non-cash charges
• Sharp decline in recurring cash operating expenses due to strong cost controls and operating leverage across the businesses
Adjusted EBITDA(1)
$
(6,983,872)
$
(12,592,998)
• Adjusted EBITDA loss sharply lower; narrowed 45% year-over-year
Financial Review
KEY FINANCIAL INSIGHTS:
FY 2023
SELECT P&L DATA
Revenues, net
Cost of goods sold
Gross profit
Total operating expenses
Operating loss
SUPPLEMENTAL INFO:
Depreciation expense
Amortization of Intangible Assets
Stock-based compensation
Impairment of long-term equity investment
Impairment of right of use asset and leasehold improvements
Impairment of goodwill
Total
Adjusted EBITDA(1)
Twelve Months Ended December 31,2023
2022
$
15,691,430
$ 2,125,817
9,310,256 1,016,654
6,381,174 1,109,163
46,110,474 70,538,685
$
(39,729,300)
$
(69,429,522)
$
844,833 4,147,092 1,047,398 1,500,000 2,511,305
$
449,458 3,570,090 5,857,435
- -
- 19,419,600
$
10,050,628
$ 29,296,583
$
(29,678,672)
$
(40,132,939)
• Generated 7-fold revenue growth
• Growth driven by record revenue at both business units
• Ondas Networks growth driven by product revenues/shipments
• OAS growth driven by Optimus fleet adoption
• Gross profit strengthened in 2023
• OPEX improvement driven by expense controls and lower non-cash charges
• Recurring cash operating expenses reduced as R&D spending declined and sales & marketing increased with OPEX shifting to focus on driving platform adoption and revenue growth
• Adjusted EBITDA loss sharply lower; narrowed 25% year-over-year
Financial Review
FY 2023
SELECT CASH FLOW DATA
Twelve Months Ended December 31,
Net cash used in operating activities
Net cash provided by (used in) investing activities Net cash provided by financing activities Decrease in cash
Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period
15,022,000 $ 29,775,096
$
KEY FINANCIAL INSIGHTS:
• Cash balance of $15.0 million
• Operating cash burn includes working capital investment of $3.9 million
• Cash provided by financing includes:
• $24 million net proceeds raised during the third quarter at Ondas Holdings (convertible notes) and Ondas Networks (preferred stock)
• Cash repayment of indebtedness of $5.5 million
Balance Sheet
FY 2023
KEY FINANCIAL INSIGHTS:
SELECT BALANCE SHEET DATAASSETS
Cash and restricted cash
Total assets
LIABILITIES AND STOCKHOLDERS' DEFICIT Other debt
Convertible notes, current Convertible notes, long-term Total Debt
Total liabilities
Redeemable noncontrolling interests
Total stockholders' equity
Total liabilities and stockholders' equity
• New investment at Ondas Holdings and Ondas Networks
• Convertible notes amortize monthly through maturity via equity issuance or cash payments; unless amortization is deferred
• Convertible notes mature in April 2025 and July 2025
• Pro forma cash balance as of December 31, 2023 equal to $23.4 million, adjusted for $8.6 million financing secured in February 2024 (net of fees)
10
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Ondas Holdings Inc. published this content on 01 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2024 12:40:17 UTC.