Viridien (VIRI) Q3 2022 earnings summary

Executive summary

• Q3 2022 revenue was $254.9 million vs. $210.4 million YoY; operating income rose to $27.7 million from $20.6 million, while net loss narrowed to $1.6 million from $16.1 million.

• Nine-month reported revenue reached $658.5 million, up 11% YoY; operating income was $97.3 million and net loss was $4.0 million.

Financial highlights

• Nine-month gross profit was $181.2 million vs. $74.0 million; gross margin was 28% vs. 13% of reported revenue.

• Reported nine-month net loss from continuing operations was $1.6 million vs. $154.2 million; discontinued operations recorded a $2.4 million loss vs. $2.1 million income.

• Reported revenue included a positive $48.7 million IFRS 15 adjustment; segment revenue before the adjustment was $609.8 million, down 5% YoY.

Outlook and guidance

• A strong Q4 was anticipated, led by Earth Data sales; market growth was expected to support expansion into 2023 and beyond.

• Sensing & Monitoring was expected to see significant growth in 2023; near-term project shifts and macro and geopolitical volatility weighed on activity.

• Priorities included capturing the expected upcycle, growing revenue and reducing debt, supported by technology differentiation and development of beyond-core businesses.