nLIGHT (LASR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $50.5 million, up 13% sequentially but down 5% year-over-year, driven by strong Aerospace & Defense growth and a strategic partnership with EOS in additive manufacturing.

• Products gross margin improved to 30%, exceeding guidance, with overall gross margin at 23.5%-24%.

• Adjusted EBITDA loss narrowed to $1.6 million, at the upper end of guidance, supported by higher gross margins and disciplined expenses.

• Ended the quarter with $115 million in cash and investments, and no debt.

• Over 90% of total revenue was generated from non-China customers.

Financial highlights

• Q2 2024 revenue was $50.5 million, up 13% sequentially but down 5.2% year-over-year; products revenue was $34.5 million, development revenue $16.1 million.

• Gross margin increased to 23.5%-24%, with products margin at 30%-30.3% and development margin at 8.7%-9%.

• GAAP net loss was $11.7 million ($0.25/share); non-GAAP net loss was $4.6 million ($0.10/share).

• Adjusted EBITDA was ($1.6M), down from ($0.2M) in Q2 2023.

• Cash provided by operations year-to-date was $7.1 million, compared to a use of $3.5 million last year.

Outlook and guidance

• Q3 2024 revenue expected between $53 million and $58 million, with midpoint at $55.5 million.

• Q3 product gross margin expected at 28%-32%, development margin at 8%, overall gross margin 22%-26%.

• Adjusted EBITDA for Q3 expected between -$2 million and +$1 million.

• Full-year 2024 revenue expected to be around $210 million, with optimism for year-over-year growth.

• Management expects existing liquidity sources to be sufficient for at least the next 12 months.