Inseego Corp. · NASDAQ:INSG
Inseego — Q4 2024 Earnings Presentation
27 slides from Inseego's earnings presentation, Feb 19, 2025
Slide 1: Q4 and 2024 Earnings Results
Q4 AND 2024 EARNINGS RESULTS February 19, 2025
Slide 2: New CEO Juho Sarvikas | Leadership Rooted in Wireless Innovation
New CEO Juho Sarvikas | Leadership Rooted in Wireless Innovation On January 6, 2025, Juho Sarvikas, the former President of Qualcomm North America joined Inseego as CEO and board member. x Proven Leadership in Wireless Technology – As CEO, Juho Sarvikas brings a strategic vision focused on leveragin
Slide 3: Inseego Financial Profile | Compelling Improvements & Trajectory
Scalable Business Model Healthy Total Gross Margin Profile Successfully Resolved Convertible Debt Overhang Return to Profitability Generating Free Cash Flow Return to Revenue Growth Diversified Hardware & SaaS Revenue Streams Divested Telematics Portfolio to Focus on Key 5G Growth Areas Inseego Fina
Slide 4: Q4 2024 Financial Results | Beat Guidance
Q4 2024 RESULTS * (Feb 19, 2025) GUIDANCE (Nov 12, 2024) $48.1m $43m - $47m TOTAL REVENUE (continuing operations) $5.4m $3.0m - $4.0m ADJ EBITDA (continuing operations) 11% 7 - 8% Implied margin 4 * Q4 2024 Results represent total Company results from Continuing Operations (which excludes the Telema
Slide 5: Q4 2024 Financial Results | Selected Key Highlights
Strong Revenue From Continuing Operations of $48.1m, growing +34% YoY vs. Q4 2023 on robust performance in both Product and Services & Other portfolios Q4 2024 Financial Results | Selected Key Highlights Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, t
Slide 6: Q4 2024 Business Highlights
x Achieved highest quarterly MiFi X PRO sales ever with one major North American carrier who continues to see great success with our device, especially with public sector customers. x Completed rigorous hiring process for new CEO to lead Inseego in its next phase of growth following the company’s su
Slide 7: Return to Growth Trajectory
135.4 146.6 31.9 44.7 167.3 191.2 2023 2024 34.9 38.4 33.6 28.4 29.5 39.2 42.0 35.9 8.7 8.0 7.7 7.5 8.1 12.4 12.0 12.2 43.6 46.4 41.4 35.9 37.5 51.6 54.0 48.1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Product Revenue Services & Other Revenue Total Revenue | Return to Growth Tra
Slide 8: Compelling Portfolio | Increasing High-Value Services Contribution
Compelling Portfolio | Increasing High - Value Services Contribution Revenue mix continues to shift to higher - profitability Services & Other offerings. Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, that is, they are pro forma for the sale of the Tel
Slide 9: Gross Margin | Expanding Contribution
32.4% 9 32.0% 29.2% 35.6% 35.4% 36.5% 34.8% 37.4% Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2024 2024 2024 2024 2023 2023 2023 2023 Gross Margin | Expanding Contribution The Company has materially improved its gross margins through a combination of improved pricing, operational efficiencies, and new channel distribut
Slide 10: Operating Expense Efficiency | Improving Operations at Scale
3.6 2.9 2.4 2.8 3.6 2.8 3.7 8% 6% 6% 8% 5% 3.1 10% 6% 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2023 2023 2023 2024 2024 2024 2024 5.0 4.3 3.6 2.7 3.7 4.2 4.0 3.7 11% 9% 9% 7% 10% 8% 7% 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2023 2023 2023 2024 2024 2024 2024 Operating Expense Efficiency | Improving Operations at Sc
Slide 11: Profitability | Meaningful Shift and Expansion in Adj EBITDA Generation
2.0 11 2.3 2.0 2.3 1.5 6.8 6.7 5.4 4.6% 5.1% 4.9% 6.4% 4.0% 11.2% Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, that is, they are pro forma for the sale of the Telematics operations. The Company has significantly improved and delivered meaningful adju
Slide 12: Balance Sheet
December 31, December 31, 2023 2024 ASSETS $2,409 $39,596 Cash and cash equivalents 18,202 13,803 Accounts receivable, net 20,555 13,575 Inventory 4,937 5,926 Prepaid expenses and other 12,123 — Current assets held for sale 58,226 72,900 Total current assets 2,389 1,102 Property, plant and equipment
Slide 13: Telematics Business Sale
The Company signed an agreement on September 16, 2024 to sell its remaining Telematics operations to an affiliate of Convergence Partners, an international investment management firm, for $52 million in Cash. • The transaction closed on November 27, 2024, at which time the full $52 million purchase
Slide 14: Convertible Notes Restructuring
CONVERTIBLE NOTES RESTRUCTURING The Company began 2024 with $162m face value of its 3.25% Convertible Notes due May 1, 2025. Through a successful restructuring in Q3 and Q4 2024, the Company exchanged $147m (or 91%) of the Convertible Notes for: (1) The warrants are exercisable on a cash basis, whic
Slide 15: Company Guidance | Q1 2025
Q1 2025 GUIDANCE Q1 2024 Actual $30m - $33m $37.5m Revenue $2m - $3m $1.5m Adj EBITDA 15 On the Company’s February 19, 2025 Earnings Call, management provided the following guidance for Total Revenue and Adjusted EBITDA from Continuing Operations for Q1 2025: Company Guidance | Q1 2025 (ISSUED: FEB
Slide 16: Inseego Investment Highlights | Compelling Trajectory
$24b TAM across the Mobile Broadband and Fixed Wireless Access markets Improved financial profile with return to revenue growth, profitability and free cash flow generation Addressed convertible overhang, reducing debt and right - sizing capital structure Unique positioning of products built to meet
Slide 17: Appendix
APPENDIX • Telematics Sale | Pro Forma Historical Financial Info • Reconciliation of non - GAAP numbers
Slide 18: Telematics Sale Pro Forma Historical Financial Information
TELEMATICS SALE Pro Forma Historical Financial Information
Slide 19: Inseego P&L – By Quarter | 2024
Inseego P&L – By Quarter | 2024 As a result of the Sale of the Telematics B usiness in November 2024, all results for Telematics are classified below in the 2024 financial results as Discontinued Operations and all other line items within the Statement of Operations consist solely of the results fro
Slide 20: Inseego P&L – By Quarter | 2023
Inseego P&L – By Quarter | 2023 ($ thousands) March 31, June 30, September 30, December 31, December 31, 2023 2023 2023 2023 2023 Twelve Months Ended 20 Three Months Ended Revenues: $ 23,040 $ 18,895 $ 22,534 $ 16,029 $ 80,498 Mobile solutions 11,870 19,505 11,114 12,411 54,900 Fixed wireless access
Slide 21: Non-GAAP Numbers Reconciliations to GAAP Financials
NON - GAAP NUMBERS Reconciliations to GAAP Financials
Slide 22: Income (Loss) From Continuing Operations to Adjusted EBITDA | 2024
Income (Loss) From Continuing Operations to Adjusted EBITDA | 2024 22 NON - GAAP TO GAAP RECONCILIATION Three Months Ended Year Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 ($ thousands) $ (5,516) $ 79 $ 7,543 $ (16,475) $ (14,369) Income (loss) from cont
Slide 23: Income (Loss) From Continuing Operations to Adjusted EBITDA | 2023
NON - GAAP TO GAAP RECONCILIATION 23 Income (Loss) From Continuing Operations to Adjusted EBITDA | 2023 March 31, June 30, September 30, December 31, December 31, ($ thousands) 2023 2023 2023 2023 2023 $ (6,693) $ (6,390) $ (22,025) $ (9,908) $ (45,016) Loss from continuing operations (1) 15 30 (1)
Slide 24: Continuing Operations Gross Margin & OpEx | Three Months Ended December 31, 2024
Continuing Operations Gross Margin & OpEx | Three Months Ended December 31, 2024 24 NON - GAAP TO GAAP RECONCILIATION Non - GAAP Purchased intangibles amortization Debt Restructuring Costs Share - based compensation expense GAAP ($ thousands) $ 48,087 $ - $ - $ - $ 48,087 Revenues 30,092 - - 51 30,1
Slide 25: Continuing Operations Gross Margin & OpEx | Year Ended December 31, 2024
NON - GAAP TO GAAP RECONCILIATION 25 Continuing Operations Gross Margin & OpEx | Year Ended December 31, 2024 Non - GAAP Purchased intangibles amortization ROU Asset Impairment Debt Restructuring Costs Impairment of Capitalized Software Share - based compensation expense GAAP ($ thousands) $ 191,244
Slide 26: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements about expected future events that are forward - looking and subject to risks and uncertainties. For these statements, we claim the safe harbor for “forward - looking statements” within the meaning of the Private Securities Litigation Reform
Slide 27: www.inseego.com
www.inseego.com NASDAQ: INSG