Clear Blue Technologies International (CBLU) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1,014,690, the strongest quarter since 2021, contributing to trailing four-quarter revenue of $6,212,370, up 278% year-over-year.

• H1 2024 revenue was $1.8M, an 80% increase over H1 2023.

• Bookings as of June 30, 2024, rose 31% to $3,237,789 compared to December 31, 2023.

• Expanded from two to four products, driving growth across lighting, telecom, and IoT segments.

• Recurring revenue for the trailing four quarters was $779,149, up 21% year-over-year.

Financial highlights

• Q2 2024 gross margin was 24%, down from 41% in Q2 2023 due to a one-time $93,643 anti-dumping charge; adjusted gross margin was 33%.

• Trailing four-quarter gross margin improved to 43% from 37% year-over-year.

• Operating expenses for the six months ended June 30, 2024, were $2,443,710, down 1% year-over-year.

• EBITDA for the trailing four quarters improved by 54% to ($1,690,000); Q2 2024 EBITDA was ($721,000), an 8% improvement from Q2 2023.

• Bookings at June 30 were $3.2M, up 30% from December.

Outlook and guidance

• Management expects to reach positive EBITDA within 12-18 months, targeting end of 2025.

• Revenue guidance for 2024 is just below $8M, with strong growth expected to continue and cross $10M in 2025.

• Majority of 2024 revenue anticipated in Q3 and Q4, with several large deals and strategic partnerships in the pipeline.

• Expanded product portfolio and diversified customer base are expected to drive significant order volumes and strong growth in H2 2024 and into 2025.

• Several long-term partners are approaching financing closings in Q3 or early Q4, supporting future growth.