Airgain (AIRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $15.2 million, up 6.7% sequentially but down 4.1% year-over-year, driven by consumer market recovery, embedded antenna sales, and new product launches including Wi-Fi 7 and Lantern FWA.

• First shipments of Lantern FWA and Wi-Fi 7 antennas to Tier 1 partners marked key milestones, with AirgainConnect Fleet and Lighthouse trials ongoing.

• Asset tracker and 5G antenna design wins expanded, with a strong pipeline in enterprise and transportation sectors.

• Automotive market faced inventory challenges, but RECON13 5G antenna and AC-Fleet product trials showed promise.

• Strategic shift from component manufacturing to integrated wireless solutions, focusing on asset tracking and 5G connectivity.

Financial highlights

• Q2 2024 sales: $15.2 million, up $1 million sequentially but down 4.1% year-over-year; six-month sales: $29.4 million (down 8.9%).

• Gross margin improved to 41.5% non-GAAP and 40.5% GAAP, up both sequentially and year-over-year, driven by higher-margin products.

• Operating expenses were $6.9 million non-GAAP and $8.7 million GAAP; first half 2024 OpEx down 3% from prior year.

• Adjusted EBITDA was -$0.4 million; non-GAAP EPS was -$0.05; GAAP net loss was $2.5 million ($0.23/share).

• Cash balance at quarter-end was $8.4 million, up $1.2 million sequentially, aided by $2.5–$3.0 million ATM proceeds.

Outlook and guidance

• Q3 2024 sales projected at $15.25–$16.75 million, with 5% sequential growth at midpoint, led by consumer market and AC-Fleet launch.

• Non-GAAP gross margin expected at 41–44%, midpoint 42.5%; GAAP gross margin guidance: 40–43%.

• Operating expenses forecasted at $6.9 million non-GAAP; non-GAAP EPS at -$0.01 and adjusted EBITDA breakeven at midpoint.

• Management expects industry headwinds to dissipate in H2 2024, with demand softness becoming more customer-specific.

• Existing cash and cash equivalents expected to meet working capital needs for at least the next 12 months.