Business
Inseego Reports Fourth Quarter and Full Year 2022 Financial Results
FWA business up 122% year-over-year, making up 30% of revenue Cloud software up 6% year-over-year, making up 27% of revenue Gross margin expands to 30% on
About this update from Inseego Corp.
[{"type":"text","content":"\nFWA business up 122% year-over-year, making up 30% of revenue\n\nCloud software up 6% year-over-year, making up 27% of revenue\n\nGross margin expands to 30% on continued ramp in FWA and cloud software revenues\n\n SAN DIEGO--(BUSINESS WIRE)--\nInseego Corp. (Nasdaq: INSG) (the “Company”), a leader in 5G edge cloud solutions for the enterprise, today reported its results for the fourth quarter and year ended December 31, 2022. The Company reported fourth quarter net revenue of $52.9 million, GAAP operating loss of $14.2 million, GAAP net loss of $15.3 million, GAAP net loss of $0.14 per share, adjusted EBITDA of negative $3.0 million, and non-GAAP net loss of $0.11 per share. Unrestricted cash and cash equivalents at quarter end was $7.1 million. On a full year basis, 2022 net revenue was $245.3 million.\n\n“The fourth quarter proved to be a transformative period for Inseego, as our FWA business experienced significant growth,” said Ashish Sharma, CEO of Inseego. “This resulted in a 390 basis point increase in gross margin to 30%, despite a decline in our hotspot sales. In 2023, we are committed to achieving positive EBITDA and cash flow. This is driven by the ramp in our FWA business and the significant savings realized from our cost reduction initiatives implemented in 2022.”\n\nBusiness Highlights\n\n\nFWA revenue comprised 30% of revenue in Q4, up 122% year-over-year\n\n\nCloud software comprised 27% of revenue in Q4, up 6% year-over-year\n\n\nEnterprise FWA customer base grows to well over 1,000 at year-end\n\n\nIn Q4, 90% of enterprise FWA sales included cloud software\n\n\nIn Q4, new enterprise customers deployed FWA for multi-location retail and restaurants, construction, home builders, and the SD-WAN market\n\n\n\n\nNext generation 5G mobile hotspot launch with T-Mobile in the fourth quarter\n\n\n“We entered 2023 with strong momentum in our FWA business, which we expect to lead to further improvement in gross margin,” said Bob Barbieri, CFO of Inseego. “In the fourth quarter, we consumed more cash than initially anticipated due to the combined impacts of lower hotspot sales, the timing of payments made to suppliers and some one-time expenses related to our cost initiatives. We have worked diligently to streamline our organization and cost structure in 2022. As a result, we expect to achieve positive cash flow in Q2 an...