Sequans Communications (SQNS) Q4 2024 earnings summary

Executive summary

• Achieved a major transformation in 2024, highlighted by the $200 million Qualcomm deal, which secured the future of the 4G IoT business and advanced 5G RedCap and eRedCap solutions.

• Q4 2024 revenue reached $11 million, up 8.9% sequentially and 130% year-over-year; full-year revenue was $36.8 million, up 9.4% from 2023.

• Q4 product revenue doubled sequentially, while license/services revenue declined due to Qualcomm deal timing.

• Strengthened financial position enabled new customer wins and expansion of the design win pipeline, now representing $250 million in future revenue.

• Net loss for Q4 was $2.7 million, a significant improvement from $17.3 million loss in Q4 2023.

Financial highlights

• Full-year 2024 revenue rose 9% to $36.8 million from $33.6 million in 2023.

• Gross margin for 2024 was 75.5%, up from 71.8% in 2023, driven by a shift toward chipset sales.

• Product gross margin improved to 35.1% from 6.2% in 2023.

• IFRS operating profit reached $69.5 million, up from a $29.8 million loss in 2023, mainly due to a $152.9 million gain from the Qualcomm transaction.

• Cash and equivalents at year-end were $62.1 million, after repaying $85 million in debt and other obligations.

Outlook and guidance

• Q1 2025 revenue expected between $7–8 million, with product revenue about 50% of total, reflecting seasonality.

• Remaining $8 million in Qualcomm-related licensing revenue to be recognized through 2025.

• Net cash operating expenses targeted below $10 million per quarter in 2025.

• Non-IFRS operating income break-even targeted by 2026, supported by ramping Monarch2 and Calamity2 shipments and new product launches.