Ondas Inc · NASDAQ:ONDS
Ondas — Q3 2023 Earnings Presentation
25 slides from Ondas's earnings presentation, November 2023
Slide 1: Third Quarter 2023 Earnings Release
Third Quarter 2023 Earnings Release Nasdaq : ONDS NASDAQ: ONDS | November 2023 Copyright 2023. All rights reserved.
Slide 2: Disclaimer
Nasdaq: ONDS 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,
Slide 3: Non-GAAP Financial Measure
Nasdaq: ONDS Non-GAAP Financial Measure As required by the rules of the Securities and Exchange Commission (“SEC”), we provide a reconciliation of EBITDA, the non-GAAP financial measure, contained in this presentation to the most directly comparable measure under GAAP, which reconciliation is set fo
Slide 4: Opening Remarks
Nasdaq: ONDS Opening Remarks Tailwinds strengthening; value increasing 4
Slide 5: Leadership Team
Nasdaq: ONDS Leadership Team ERIC BROCK MEIR KLINER STEWART KANTOR TIM TENNE CHAIRMAN, CEO PRESIDENT PRESIDENT & CFO CEO & INTERIM CFO Meir is an entrepreneur with over 20 Stewart brings over 20 years of Tim brings over 30 years of Eric is an entrepreneur with over 25 years of proven track record in
Slide 6: Agenda
Nasdaq: ONDS Agenda Ondas on track for a breakout 2023 • Introduction • Financial Review & Outlook • Business Update • Ondas Networks • Ondas Autonomous Systems (OAS) • Closing Remarks • Q&A 6
Slide 7: Introduction
Nasdaq: ONDS Introduction Strong 2023 marks transition to platform adoption • $2.7M revenue delivered in Q3; $10.7M revenue year-to-date • Ondas Networks generated record $2.4 million revenue in Q3 • Strengthened balance sheet with $25M in growth capital raised from private and institutional investo
Slide 8: Financial Review
Nasdaq: ONDS Financial Review Q3 2023 KEY FINANCIAL INSIGHTS: Three Months Ended SELECT P&L DATA September 30, • P&L reflects early stage of initial (Unaudited) 2023 2022 platform adoption for Ondas Networks Revenues, net $ 2,665,190 $ 632,489 and OAS Cost of goods sold 2,110,312 233,001 Gross profi
Slide 9: Financial Review
Nasdaq: ONDS Financial Review YTD Q3 2023 KEY FINANCIAL INSIGHTS: SELECT CASH FLOW DATA Nine Months Ended September 30, • Cash balance of $21.0 million (Unaudited) 2023 2022 • Operating cash burn includes working Net cash used in operating activities $ (28,108,744) $ (26,198,673) capital investment
Slide 10: Balance Sheet
Nasdaq: ONDS Balance Sheet Q3 2023 KEY FINANCIAL INSIGHTS: SELECT BALANCE SHEET DATA September 30, December 31, • Balance sheet fortified by new 2023 2022 ASSETS (Unaudited) investment at Ondas Holdings and Cash, cash equivalents and restricted cash $ 21,011,891 $ 29,775,096 Ondas Networks Total ass
Slide 11: Financial Outlook
Nasdaq: ONDS Financial Outlook Continue to see significant growth in 2024 and beyond • Maintain $15 million revenue target for full year 2023 • Expect ~ $4.2 – $4.4 million in revenue for Q4 2023 • OAS is on path to achieve original targets set at close of Airobotics acquisition in January • Continu
Slide 12: Ondas Networks
ONDAS
Slide 13: 900 MHz Migration in Motion
Nasdaq: ONDS 900 MHz Migration in Motion The dot16 adoption cycle starting in Rail and 900 MHz RAILROADS FOCUSED ON 900 MHz LAUNCH $2.4 MILLION RECORD CLASS I RAILS MOMENTUM VOLUME BUILDING Record Revenue in Q3 Engaged in field activity to Another record volume of Industry momentum building support
Slide 14: Preparing for 900 MHz Upgrade
Nasdaq: ONDS Preparing for 900 MHz Upgrade 2025 deadlines support expected order ramp • Ondas and Siemens engaged in field and purchasing groups • Rail operations teams (e.g., C&S groups) with budgets and responsibility for network operations • Initial deployments focused on critical network and hig
Slide 15: Outlook for Ondas Networks
Nasdaq: ONDS Outlook for Ondas Networks Production ramp accelerates; tracking major orders for 900 MHz New photo • Grow revenue and orders • Continue production capacity expansion in advance of expected volume orders • Secure major volume orders in Q4 2023; build inventory in front of 900 MHz migrat
Slide 16: Autonomous Systems
AUTONOMOUS SYSTEMS AIR@BOTICS ! [RON = L ROBOTICS
Slide 17: Customer & Strategic Activity
Nasdaq: ONDS Customer & Strategic Activity Laying foundation for global platform adoption and scaled operations • Business scaling globally on multiple continents • Fleet expansion in Dubai continues with $2.6 million order for immediate delivery of additional Optimus Drone Systems from a local gove
Slide 18: Advancing Iron Drone Raider
Nasdaq: ONDS Advancing Iron Drone Raider Demand for Counter-UAS solutions is accelerating • Advancing development of Iron Drone Raider for Israeli Defense Force (IDF) • Engaged with Israeli defense contractors to support integrated solution • Leveraging work connected to Israeli Innovation Authority
Slide 19: Customer & Strategic Activity
Nasdaq: ONDS Customer & Strategic Activity Advancing Product & Customer Pipeline • Airobotics Optimus-1EX drone FAA Type Certification secured; supports scaling with customers globally • Second sUAS to receive Type Certification for system; only certified drone platform designed for security and dat
Slide 20: American Robotics
Nasdaq: ONDS American Robotics Autonomous platforms drive growth opportunity • Best-in-class automated security and data solutions • Accurate, reliable, real-time security and data • Automation required to scale • Drive adoption of Optimus platform TIM TENNE – AMERICAN ROBOTICS CEO • Marketing and c
Slide 21: Outlook for OAS
Nasdaq: ONDS Outlook for OAS Revenue ramp continues; on track to achieve 2023 objectives • Grow revenue and orders • Continue to deliver on fleet deployments in UAE; expect to announce additional customer engagements in 2024 • Expect to announce additional milestones relating to U.S. expansion of Op
Slide 22: Wrapping up a Record Year
Nasdaq: ONDS Wrapping up a Record Year Leverage winner-take-most platforms • Ondas is monetizing the significant investments in our FullMAX(TM) and Optimus platforms • Activity with Siemens and Class I Rails highlights improved visibility around customer adoption and deployment timelines • Fleet dep
Slide 23: Q&A
Q&A Nasdaq : ONDS Second Quarter 2023 Earnings Release | November 2023 Copyright 2023. All rights reserved.
Slide 24: Appendix: EBITDA Reconciliation
Nasdaq: ONDS Appendix EBITDA RECONCILIATION: Three Months Ended September 30, (Unaudited) 2023 2022 Net loss $ (7,292,461) $ (13,578,341) Depreciation expense 235,999 153,159 Amortization of debt discount/interest expense 1,358,440 29,597 Amortization of Intangible Assets 1,064,798 904,059 Stock-bas
Slide 25: Thank You
Nasdaq: ONDS THANK YOU NASDAQ: ONDS | November 2023 Copyright 2023. All rights reserved. Nasdaq : ONDS 25