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 near-zero churn among Shield customers.

• Ended 2024 in the strongest financial position in recent years, virtually debt-free, with enough cash to fund operations through 2025 and beyond.

• Strengthened balance sheet by raising $14.5 million and eliminating $10.1 million of Series A Preferred Stock, removing dilution concerns and going concern opinion.

• Focus shifting from capital raising and cost control to accelerating business growth, expanding product offerings, and targeting larger deals.

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

Financial highlights

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

• Gross profit margin was 75% in Q4 2024 (down from 79% in Q4 2023) and 77% for the full year (down from 78% in 2023).

• Operating expenses for 2024 were $12.9 million, down 21% or $3.5 million from 2023.

• Net loss for Q4 2024 was $2 million ($0.36/share), a $0.9 million improvement year-over-year; full-year net loss was $7.8 million ($1.63/share), a $6.1 million or 44% improvement from 2023.

• Weighted average shares outstanding increased to 6.2 million in Q4 2024 from 1.6 million in Q4 2023.

Outlook and guidance

• No plans to raise additional capital in 2025; focus on revenue growth, profitability, and larger deal sizes.

• Pipeline reflects a shift toward larger deals ($100,000+), with increased focus on U.S. and Asia-Pacific markets.

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

• Continued investment in R&D and sales/marketing to accelerate growth.