Beam Global (BEEM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $14.8 million, up 2% sequentially, with commercial customers accounting for 31% of sales; six-month revenue totaled $29.4 million, down 5% year-over-year due to federal order timing.

• Gross margin improved to 16% (18% excluding non-cash items) in Q2, up from 10% in Q1 and 2.8% in Q2 2023, driven by cost reductions and Amiga acquisition benefits.

• Net loss for Q2 was $4.9 million ($0.34/share); excluding non-cash items, net loss was $2.1 million ($0.14/share); six-month net loss was $8.0 million, including $4.2 million in non-cash expenses.

• Cash balance at Q2 end was $8.7 million, up from $5.0 million in Q1 but down from $10.4 million at year-end 2023, supported by improved collections.

• The company continues to invest in sales, marketing, and product development, focusing on U.S. and European expansion.

Financial highlights

• Q2 2024 revenue: $14.8 million, up 2% sequentially but down 17% year-over-year due to lower federal sales; six-month revenue: $29.4 million.

• Q2 gross profit: $2.4 million (16% margin); six-month gross profit: $3.8 million (13% margin), up from a gross loss in the prior year.

• Q2 operating expenses: $7.1 million, up from $4.5 million in Q1, mainly due to non-cash contingent consideration for the Amiga acquisition.

• Working capital at Q2 end: $16 million; net of non-cash items: $21.4 million.

• Cash used in operating activities for six months ended Q2 2024: $0.1 million, a significant improvement from the prior year.

Outlook and guidance

• Management targets further gross margin improvements as price increases, cost reductions, and European savings take effect.

• Positive cash flow is a visible goal for late 2024, contingent on margin gains and stable expenses.

• Anticipates meaningful revenue from new products, including BeamSpot, in 2025.

• Sufficient liquidity to fund operations for at least twelve months, with access to a $100 million credit line and committed equity facility.

• Management expects continued losses for a period but aims for profitability as revenues and margins grow.