Intrusion (INTZ) Q4 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of sequential revenue growth, driven by new customer wins, a large U.S. Department of Defense contract, and expanding pipeline with near-zero churn among Shield customers.

• Signed 20 new Shield customers in 2024, reflecting growing demand in the U.S. and Asia-Pacific.

• Strengthened balance sheet by raising $14.5 million, eliminating $10.1 million of Series A Preferred Stock, and becoming virtually debt-free.

• Regained NASDAQ compliance for minimum bid price after share price improvement.

• Expanded cybersecurity offerings with launches of Shield Command Hub and Shield Sentinel, leveraging AI for enhanced protection.

Financial highlights

• Q4 2024 revenue was $1.7 million, up 11% sequentially and 23% year-over-year; FY 2024 revenue reached $5.8 million, a 3% increase from 2023.

• Consulting revenue for Q4 was $1.3 million, up $0.3 million sequentially and $0.4 million year-over-year.

• Shield revenue for Q4 was $0.4 million, down $0.1 million sequentially and year-over-year; full-year Shield revenue was $1.6 million, down 5%.

• Gross profit margin was 75% for Q4 2024 (vs. 79% Q4 2023) and 77% for FY 2024 (vs. 78% FY 2023).

• Net loss from operations for Q4 2024 was $1.9 million, a $0.5 million improvement year-over-year; FY 2024 net loss was $7.8 million, a $6.1 million improvement from 2023.

Outlook and guidance

• Focus remains on accelerating revenue growth, improving profitability, and expanding product portfolio.

• Management anticipates continued growth in customer base and sales pipeline amid rising cybersecurity demand.

• No plans to raise additional capital in 2025 unless a compelling inorganic opportunity arises.

• Sales team now focused on larger deals ($100,000+), with smaller deals routed through resale partners.