Viridien (VIRI) Q1 2022 earnings summary

Executive summary

• Q1 reported revenue was $175.4M, down 16% YoY; operating income improved to $11.1M from a $20.6M loss, while net loss narrowed to $18.5M from $85.3M.

• Stronger Geoscience and Earth Data activity was offset by a seasonally soft Sensing & Monitoring quarter; 2022 financial objectives were confirmed, with stronger client spending expected in H2.

Financial highlights

• Reported gross profit rose to $38.7M from $6.9M; gross margin was 22%, versus 3% YoY.

• Continuing-operations net loss was $16.3M versus $96.8M; discontinued-operations loss was $2.2M versus income of $11.5M; total net loss was $18.5M versus $85.3M.

• Net cost of financial debt declined to $25.7M from $34.4M; other financial income was a $6.9M gain versus a $38.4M loss.

• Operating cash flow was $129.8M versus $104.7M; net cash flow was a $68.4M inflow versus $28.4M.

Outlook and guidance

• 2022 financial objectives were confirmed; increased tenders at March-end are expected to accelerate client decisions and spending, particularly in H2.

• Strengthening business conditions are expected to support growth into 2023 and beyond.