Omniq (OMQS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $19.1 million, up 4% sequentially but down 6% year-over-year, driven by technology upgrades, SaaS expansion, and strategic partnerships.

• Gross margin improved to 26% in Q2 2024 from 19% in Q2 2023, reflecting a shift toward higher-margin service and subscription orders.

• Operating expenses decreased by 14% year-over-year and 10% sequentially, supporting improved profitability.

• Cash and cash equivalents rose by 56% sequentially to $1.4 million at Q2 end, indicating stronger liquidity.

• Uplisted to OTCQB in August 2024 after delisting from Nasdaq in May 2024, reflecting changes in market visibility and governance.

Financial highlights

• Gross profit for Q2 2024 was $4.9 million, up 26% year-over-year; six-month gross profit rose 4% to $9.9 million.

• Net loss for Q2 2024 was $3.0 million, improved from $3.9 million in Q2 2023; six-month net loss narrowed to $5.1 million from $7.4 million.

• Adjusted EBITDA for the six months ended June 30, 2024, was $(963)K, a significant improvement from $(2.4)M in 2023.

• Basic loss per share for Q2 2024 was ($0.28), improved from ($0.49) in Q2 2023.

• Working capital deficit stood at $48 million and accumulated deficit at $119 million as of June 30, 2024.

Outlook and guidance

• Management is focused on regaining profitability through cost reductions, prioritizing high-margin product lines, and expanding SaaS and Fintech offerings.

• Plans to double sales in Israel within 12 months and expand Fintech offerings to Europe and the U.S.

• Committed to rejoining a national exchange as soon as criteria are met.

• Management believes key supplier Blue Star will continue to provide favorable credit terms.