SEALSQ (LAES) Q4 2024 earnings summary

Executive summary

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

• H1 2024 revenue was $4.8 million, down from $14.8 million year-over-year, with net loss for H1 2024 at $10.8 million and full-year net loss at $21 million.

• The company invested $5 million in post-quantum security technology in 2024, with $2.4 million in R&D in H1 2024, and plans $7.2 million for 2025.

• Raised over $80 million in funding, ending 2024 with over $85 million in cash and no bank debt or convertible loans; cash position was $18.9 million as of June 30, 2024.

• Strategic acquisitions and expansion into high-growth markets are underway, including investments in quantum and AI startups and new chip launches.

Financial highlights

• FY24 revenue was $11 million, down from $30 million in FY23, with gross profit for H1 2024 at $0.9 million, and net loss for 2024 at $21 million.

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

• Cash reserves peaked at over $90 million in early 2025.

• Operating loss widened to $8.9 million in H1 2024, with total operating expenses at $9.8 million.

• Earnings per share (basic and diluted) were $(0.37) for H1 2024.

Outlook and guidance

• Significant revenue increase anticipated in 2025, with full impact of growth expected in 2026 after new product certifications.

• Growth drivers include new chip revenue, chip personalization services, strategic acquisitions, and expansion of Matter certification and IoT security standards.

• Projected contract pipeline stands at $93 million over three years, with bookings of $6.8 million as of March 2025 and a $71 million pipeline as of September 2024.

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