Iteris (ITI) investor relations material

Executive summary

• Achieved record Q1 revenue of $45.8M, up 5.1% year over year, with growth in both product and service revenues.

• Net new bookings reached $48.8M, driving record trailing 6-month net bookings of $102.1M and record backlog of $126.8M, up 2.4% year over year.

• Net income for the quarter was $0.4M, down from $2.1M in the prior year, due to higher operating expenses.

• Strong customer adoption of the Clear Mobility platform, new sensor launches, and strategic partnerships expanded market reach.

• Annual recurring revenue represented 26% of total revenue, up from 24.5% a year ago.

Financial highlights

• Gross profit was $17.3M (37.9% margin), up 3% year over year, but gross margin declined 70 basis points.

• Adjusted EBITDA was $2.9M (6.3% margin), down from $4.0M (9.2%) in the prior year.

• Cash and cash equivalents at quarter end were $21.4M, down from $25.9M in the prior quarter.

• Operating income was $0.3M, down from $2.0M in Q1 FY2024.

• Adjusted net income was $2.8M ($0.06 per share), down from $4.0M ($0.09 per share) year over year.

Outlook and guidance

• FY25 revenue expected between $188M and $194M, representing 11% organic growth at midpoint.

• FY25 adjusted EBITDA margin expected at 8%-10%, a 150 bps improvement at midpoint.

• Q2 revenue guidance of $44M-$48M, 6% organic growth at midpoint; Q2 adjusted EBITDA margin expected at 6%-7%.

• Vision 2027 targets: $245M-$265M revenue and 16%-19% adjusted EBITDA margin, 14% 5-year organic CAGR.

• Management expects continued investment in software and R&D, and possible release of deferred tax asset valuation allowance if profitability is sustained.