SEALSQ (LAES) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined to $11 million from $30 million in 2023, reflecting a strategic shift from legacy semiconductors to quantum-resistant chips and customer inventory normalization post-COVID.

• H1 2024 revenue was $4.8 million, down from $14.8 million year-over-year, due to excess inventories and delayed orders for next-gen chips.

• The company invested $5 million in post-quantum security technology in 2024 and plans $7.2 million for 2025, focusing on scaling and strategic acquisitions.

• Raised over $80 million in funding during 2024, ending the year with over $85 million in cash and no bank debt or convertible loans.

• Bookings reached $6.8 million as of March 2025, with a projected contract pipeline of $93 million over the next three years.

Financial highlights

• FY24 revenue was $11 million, down from $30 million in FY23, reflecting the transition to new product lines and market normalization.

• Net loss for 2024 was $21 million, primarily due to reduced demand during the product transition.

• R&D expenditure increased by 26% year-over-year, totaling $1 million more than 2023.

• Gross profit for H1 2024 was $0.9 million, down from $7.8 million in H1 2023.

• Cash reserves exceeded $90 million in early 2025, with a clean balance sheet and no overhanging warrants.

Outlook and guidance

• Anticipates significant revenue growth in 2025, driven by new chip revenue, chip personalization services, and strategic acquisitions.

• Full impact of growth expected in 2026 with the commercial launch of new post-quantum products in Q4 2025.

• Market for post-quantum cybersecurity projected to grow from $302.5 million in 2024 to $1.8 billion in 2025 at a 44.2% CAGR.

• 2025 R&D spending will focus on certification costs and integration of acquired technologies.

• Growth drivers include expansion of Matter certification, adoption of new IoT security standards, and PKI market strength.