Ondas Inc · NASDAQ:ONDS
Ondas — Q1 2023 Earnings Presentation
22 slides from Ondas's earnings presentation, May 15, 2023
Slide 1: First Quarter 2023 Earnings Release
First Quarter 2023 Earnings Release Copyright 2023. All rights reserved. NASDAQ: ONDS | May 2023
Slide 2: Disclaimer
Nasdaq: ONDS 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," "intend
Slide 3: Non-GAAP Financial Measure
Nasdaq: ONDS 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 forth in the table included
Slide 4: Leadership Team
Nasdaq: ONDS STEWART KANTOR PRESIDENT Stewart brings over 20 years of experience in the wireless industry to Ondas Networks . ERIC BROCK CHAIRMAN & CEO Eric is an entrepreneur with over 25 years of management and investing experience . DEREK REISFIELD CFO Derek is an experienced executive with over
Slide 5: Ondas on track for breakout 2023
Nasdaq: ONDS Ondas on track for breakout 2023 Agenda • Introduction • Financial Review & Outlook • Business Update • Ondas Networks • Ondas Autonomous Systems (OAS) • Closing Remarks • Q&A 5
Slide 6: Introduction: Record revenue signals strong start to 2023
Nasdaq: ONDS Introduction Record revenue signals strong start to 2023 • $2.6M revenue delivered in Q1; exceeding all of 2022 • AAR formalized IEEE 802.16 technology as the greenfield 900 MHz wireless platform; 900 MHz timelines likely to accelerate rail customer order activity • OAS urban autonomous
Slide 7: Q1 2023 Financial Review
Nasdaq: ONDS 7 Q1 2023 Financial Review Placeholder KEY FINANCIAL INSIGHTS: • P&L reflects preparation for larger commercial rollouts in 2023 for Ondas Networks and OAS • OPEX includes one - off and non - recurring costs: • Elevated spending at AR, pre - OAS integration • Separation costs; including
Slide 8: Select Cashflow Data
Nasdaq: ONDS Select Cashflow Data 8 Financial Review KEY FINANCIAL INSIGHTS: • Q1 cash utilization reflects elevated operating loss which includes certain one - off and non - recurring costs • Cash used in investing activities includes cash acquired with Airobotics • Cash used in financing activitie
Slide 9: Financial Outlook
Nasdaq: ONDS Financial Outlook Significant revenue growth expected in 2023 • Reaffirming $26 – $30 million revenue target for 2023 • Tracking towards low end due to near - term supply chain challenges at Ondas Networks • Due to higher - than - expected EBITDA loss in Q1, we now expect full year EBIT
Slide 10: Business Unit Review
Nasdaq: ONDS Business Unit Review 10 10
Slide 11: Ondas Networks
ONDAS
Slide 12: 900 MHz Activity Accelerating
Nasdaq: ONDS 900 MHz Activity Accelerating Revenue growth begins in first quarter; reflecting start of dot16 adoption cycle starting in Rail and 900 MHz ATCS and interconnect traffic now being carried by two Class I Rails and a commuter rail in the Southwest Generated $1.1 million revenue 12 RAILROA
Slide 13: AAR Announces dot16 Selection
Nasdaq: ONDS AAR Announces dot16 Selection 13 13 RECENT EVENTS ENERGIZE INDUSTRY AROUND dot16 • American Railway Engineering & Maintenance - of - Way Association (AREMA) subsequently ratified dot16 as specification for 900 MHz network • Key deadlines confirmed and shared publicly with the industry b
Slide 14: Ondas and Siemens preparing to meet rising demand
Nasdaq: ONDS Ondas and Siemens are preparing to meet rising demand in front of Rail deployment deadlines Legacy narrowband networks are poised for upgrade; high capacity 900 MHz network is increasingly attractive • Deadlines to vacate legacy 900 MHz band is rapidly approaching • Other rail suppliers
Slide 15: Ondas Autonomous Systems
Lk AMERICAN ROBOTICS AUTONOMOUS SYSTEMS : a AIRG@BOTICS [RO NE ardenna
Slide 16: Customer & Financial Activity
Nasdaq: ONDS Significant revenue ramp demonstrates 2023 projected growth Revenue growth commences • Delivered $1.5M revenue in Q1 • Expect growth through 2023 via backlog and new customer orders Fleet installations continue • Additional Optimus systems installed for Dubai Police • Installed first Op
Slide 17: Strategic Activity: M&A, Cost-Cutting, Joint Venture and MOUs
Nasdaq: ONDS M&A, Cost - Cutting, Joint Venture and MOUs M&A • Completed acquisition of Airobotics, developer of Optimus • Acquired assets of Iron Drone, a leading counter - drone solution Focused on Operational Efficiency • Integrated American Robotics and Airobotics to establish Ondas Autonomous S
Slide 18: Outlook for OAS
Nasdaq: ONDS 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 orders in 2023 • Expect to announce milestones relating to U.S. expansion of Optimus and Iron Drone, with focus on indust
Slide 19: Closing – Record Year Ahead
Nasdaq: ONDS Leverage winner - take - most platforms Closing – Record Year Ahead • On path to monetize the significant investments in FullMAX and Optimus platforms o AAR announcements improve visibility around customer demand and timelines o Fleet deployments of Optimus will demonstrate long - term
Slide 20: Q&A
Nasdaq: ONDS 20 Q&A First Quarter 2023 Earnings Release | May 2023 Copyright 2023. All rights reserved. Nasdaq : ONDS
Slide 21: Appendix: EBITDA Reconciliation
Nasdaq: ONDS Appendix 21 See the “Non - GAAP Financial Measure” section above. Three Months Ended March 31, EBITDA RECONCILIATION: 2022 2023 $ (10,010,399) $ (14,455,551) Net loss 39,634 252,544 Depreciation expense 19,066 1,802,872 Amortization of debt discount/interest expense 855,326 978,838 Amor
Slide 22: Thank you
Thank you Copyright 2023. All rights reserved. NASDAQ: ONDS | May 2023