Optiva (OPT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $11.4M with a 56% gross margin and a net loss of $5.6M; cash on hand at quarter end was $17.1M.

• Bookings TCV for Q2 2024 totaled $13.2M, with over $106M in new bookings TCV in the last two years.

• Recognized for innovation, winning the 2024 Enterprise eSIM Solution of the Year award and achieving ISO 27001 certification.

• Secured major BSS upgrade contracts with Tier 1 operators and extended multi-year contracts with other Tier 1 customers.

• Over 60% of LTM revenue from new and upgrade customers, reflecting strong customer engagement.

Financial highlights

• Q2 2024 revenue was $11.4M, nearly flat year-over-year; gross margin declined to 56% from 65% in Q2 2023.

• Net loss for Q2 2024 was $5.6M, compared to $1.3M in Q2 2023; EPS loss was $0.90 versus $0.21.

• Adjusted EBITDA margin was -15% in Q2 2024, with a loss of $1.7M, compared to -3% and a $0.3M loss in Q2 2023.

• Cash balance at quarter end was $17.1M, up from $13.0M a year ago.

• Cash from operations for Q2 2024 was $5.2M.

Outlook and guidance

• Maintains a qualified pipeline exceeding $300M, with management expecting to execute on revenue backlog in subsequent quarters.

• Full-year 2024 revenue is expected to be consistent with 2023 due to project delays, mainly affecting one-time software and services revenue.

• Annual recurring revenue is forecasted to remain on plan despite delays.

• Focused on cloud transformation, digital innovation, and SaaS/cloud solutions to drive future growth.