Inseego Corp. · NASDAQ:INSG
Inseego — Q3 2024 Earnings Presentation
26 slides from Inseego's earnings presentation, Nov 12, 2024
Slide 1: Q3 2024 Earnings Results
Q3 2024 EARNINGS RESULTS November 12, 2024
Slide 2: 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 Divesting Telematics Portfolio to Focus on Key Growth in 5G Areas Inseego
Slide 3: Q3 2024 Financial Results | Beat Guidance
Q3 2024 RESULTS * (Nov 12, 2024) GUIDANCE (Aug 7, 2024) $61.9m $54m - $58m TOTAL REVENUE (continuing + discontinued operations) $9.3m $6.5m - $7.5m ADJ EBITDA (continuing + discontinued operations) 15% 12 - 13% Implied margin 3 * Q3 2024 Results represent total Company results from Continuing Operat
Slide 4: Q3 2024 Financial Highlights
Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, that is, they are pro forma for the sale of the Telematics operations. Inseego has delivered consecutive quarters of both revenue and profitability beat - and - raise dynamics against guidance, reflecting
Slide 5: Q3 2024 | Selected Business Highlights
x Hosted inaugural Channel Partner Advisory Council with key, strategic partners. x Onboarded 12 new Inseego Ignite partners , several of which produced immediate revenue. x Launched the multi - carrier certified 5G indoor router FX3110 to the Inseego Ignite channel program and closed new channel de
Slide 6: Return to Growth Trajectory
34.9 38.4 33.6 28.4 29.5 39.2 42.0 8.7 8.0 7.7 7.5 8.1 12.4 12.0 43.6 46.4 41.4 35.9 37.5 51.6 54.0 Q1 2023 Q2 2023 Q3 2023 Product Revenue Q4 2023 Q1 2024 Q2 2024 Q3 2024 Services & Other Revenue Total Revenue | Return to Growth Trajectory ($ millions) Q3 2024 revenue grew +31% YoY and +5% QoQ with
Slide 7: Compelling Portfolio | Increasing High-Value Services Contribution
80% 83% 81% 79% 79% 76% 78% 20% 17% 19% 21% 21% 24% 22% Q3 Q2 Q1 Q4 Q3 Q2 Q1 2024 2024 2024 2023 2023 2023 2023 Product Revenue Mix Services & Other Revenue Mix 7 Compelling Portfolio | Increasing High - Value Services Contribution Revenue mix continues to shift to higher - profitability Services &
Slide 8: Gross Margin | Expanding Positive Contribution
32.4% 8 32.0% 29.2% 35.6% 35.4% 36.5% 34.8% Q3 Q2 Q1 Q4 Q3 Q2 Q1 2024 2024 2024 2023 2023 2023 2023 Gross Margin | Expanding Positive Contribution Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, that is, they are pro forma for the sale of the Telematics
Slide 9: Operating Expense Efficiency | Improving Operations at Scale
Operating Expense Efficiency | Improving Operations at Scale 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. Disciplined cost management and economies of scale are now resulting in i
Slide 10: Profitability | Meaningful Shift and Expansion in Adj EBITDA Generation
2.0 2.3 2.0 2.3 1.5 6.8 6.7 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Profitability | Meaningful Shift and Expansion in Adj EBITDA Generation Comments and results reference the Company’s Continuing Operations unless otherwise mentioned, that is, they are pro forma for the sale of the T
Slide 11: Balance Sheet
December 31, September 30, 2023 2024 ASSETS $2,409 $11,972 Cash and cash equivalents 18,202 15,612 Accounts receivable, net 20,555 18,118 Inventory 4,937 3,627 Prepaid expenses and other 12,123 35,771 Current assets held for sale 58,226 85,100 Total current assets 2,389 1,303 Property, plant and equ
Slide 12: Telematics Sale to Convergence Partners
• 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 Telematics business operates across the UK, European Union, Australia, and New Zea
Slide 13: 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 14: Company Guidance | Q4 2024
Q4 2024 GUIDANCE (Continuing Ops) Q3 2024 Actual (Continuing Ops) Q4 2023 Actual (Continuing Ops) $43m - $47m $54.0m $35.9m Revenue from Continuing Operations $3m - $4m $6.7m $2.3m Adj EBITDA from Continuing Operations 14 In September 2024, the Company entered into an agreement to sell its Telematic
Slide 15: Inseego Investment Highlights | Compelling Trajectory
$24b TAM across the Mobile Broadband and Fixed Wireless Access markets Improved financial profile with return to revenue growth, profitability and free cash flow generation Addressed convertible overhang, reducing debt and right - sizing capital structure Unique positioning of products built to meet
Slide 16: Appendix
APPENDIX • Telematics Sale | Pro Forma Historical Financial Info • Reconciliation of non - GAAP numbers
Slide 17: Telematics Sale: Additional Pro Forma Historical Financial Information
TELEMATICS SALE Additional Pro Forma Historical Financial Information
Slide 18: Inseego Pro Forma P&L – Continuing Operations | 2024
Inseego Pro Forma P&L – Continuing Operations | 2024 TELEMATICS SALE | ADDITIONAL PRO FORMA HISTORICAL FINANCIAL INFORMATION As a result of the Share Purchase Agreement executed in the 3rd quarter under which the Company agreed to sell its Telematics Business, all results for Telematics are classifi
Slide 19: Inseego Pro Forma P&L – Continuing Operations | 2023
Inseego Pro Forma P&L – Continuing Operations | 2023 TELEMATICS SALE | ADDITIONAL PRO FORMA HISTORICAL FINANCIAL INFORMATION As a result of the Share Purchase Agreement executed in the 3rd quarter under which the Company agreed to sell its Telematics Business, all results for Telematics are classifi
Slide 20: Non-GAAP Numbers: Reconciliations to GAAP Financials
NON - GAAP NUMBERS Reconciliations to GAAP Financials
Slide 21: Income (Loss) From Continuing Operations to Adjusted EBITDA | 2024
Income (Loss) From Continuing Operations to Adjusted EBITDA | 2024 NON - GAAP TO GAAP RECONCILIATION ($ thousands) 21
Slide 22: Income (Loss) From Continuing Operations to Adjusted EBITDA | 2023
NON - GAAP TO GAAP RECONCILIATION Income (Loss) From Continuing Operations to Adjusted EBITDA | 2023 ($ thousands) 22
Slide 23: Continuing Operations Gross Margin & OpEx | Three Months Ended September 30, 2024
Continuing Operations Gross Margin & OpEx | Three Months Ended September 30, 2024 ($ thousands) 23 Non - GAAP Purchased intangibles amortization ROU Asset Impairment Debt Restructuring Costs Impairment of Capitalized Software Share - based compensation expense GAAP $54,032 $54,032 Revenues 35,209 -
Slide 24: Continuing Operations Gross Margin & OpEx | Nine Months Ended September 30, 2024
Non - GAAP Purchased intangibles amortization ROU Asset Impairment Debt Restructuring Costs Impairment of Capitalized Software Share - based compensation expense GAAP $143,157 $143,157 Revenues 92,229 - - - - 75 92,304 Cost of revenues 50,928 50,853 Gross Margin 35.6% 35.5% Gross Margin % Operating
Slide 25: Safe Harbor Statement
Safe Harbor Statement The following 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 Litigati
Slide 26: www.inseego.com
www.inseego.com NASDAQ: INSG