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/eRedCap solutions.

• Product revenue doubled sequentially in Q4, with total revenue of $11 million, up 9% from the previous quarter and 130% year-over-year.

• Strengthened financial position enabled new customer wins and project acquisitions, validating technology leadership in IoT.

• Design win pipeline stands at $250 million, with most projects expected to move into production in 2025–2026, spanning smart metering, telematics, security, eHealth, and industrial applications.

• 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 increased 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.

• IFRS operating profit of $69.5 million for 2024, up from a $29.8 million loss in 2023, mainly due to a $152.9 million gain from the Qualcomm transaction.

• Q4 2024 revenue was $11 million, up 130% year-over-year and 9% sequentially; product revenue was $4.7 million, up 19% year-over-year and doubled sequentially.

• Cash and short-term deposits at Q4 end were $62.1 million, after repaying $85 million in debt and other obligations.

Outlook and guidance

• Q1 2025 revenue expected to be $7–8 million, with product revenue contributing about 50%, 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, with $7 million in government R&D funding expected.

• On track to achieve non-IFRS operating income break-even by 2026, supported by ramping Monarch2 and Calamity2 shipments.