Omniq (OMQS) Q3 2024 earnings summary

Executive summary

• Achieved key milestones in AI-based machine vision, access control, and fintech solutions, including new deployments and strategic partnerships with major industry players.

• Revenue for the nine months ended September 30, 2024, was $56 million, down 14% year-over-year due to decreased demand.

• Net loss for the nine months was $6.7 million, an improvement from $11.7 million in the prior year period.

• Cost reduction initiatives led to a 17% decrease in operating expenses year-over-year.

• OMNIQ's stock was delisted from Nasdaq and now trades on the OTCQB as of May 2024.

Significant events and developments

• Selected by NEC for facial recognition technology at critical checkpoints, with active deployments and expectations for large future projects.

• Advanced access control technology deployed in medical centers, enabling differentiated parking access without manual enforcement.

• CodeBlock payment software, acquired last quarter, is being sold internationally and will launch in the US in 2025; secured partnerships with Ingenico and SHVA.

• Acquisition of CodeBlocks Ltd. for approximately $1.2 million, payable in installments through January 2025.

• Divestiture of 50% equity interest in Neway Distribution LTD.

Financial highlights

• Q3 2024 revenue was $18.5 million, up 7.6% from Q3 2023.

• Q3 2024 net loss was $1.6 million, a 62.9% improvement from Q3 2023.

• Gross profit slightly decreased to $3.95 million from $4 million year-over-year.

• Basic loss per share for the nine months was ($0.63), improved from ($1.50) year-over-year.

• Cash at September 30, 2024, was $1.2 million, with a working capital deficit of $50 million.