NUBURU Inc, a trailblazer in high-power and high-brightness industrial blue laser technology, found itself grappling with a significant setback as it unveiled its financial results for the third quarter (Q3) ending September 30, 2023. This revelation promptly led to a substantial decline in the company’s stock value commencing trading at $0.21 on Friday. The downturn saw a stark contrast from the prior day’s closing at $0.30, reflecting a somber market sentiment surrounding NUBURU’s recent financial developments.
At the time of this publication, NUBURU Inc stock (BURU) has witnessed a decline.
NUBURU Inc
Current Price: $0.19
Change : -0.14
Change (%): (-42.39%)
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NUBURU Q3 2023 Financial Results
Comparing the third quarter of 2023 to the same period in 2022, NUBURU reported total revenue of $0.2 million, marking a substantial 78% quarter-over-quarter decrease from $0.9 million. This decline was predominantly attributed to a reduction in laser system sales during the period.
The total gross profit (loss) for Q3 2023 stood at $(0.9) million, a slight improvement from the previous quarter’s $(1.0) million. The decrease in cost of revenue was a result of a scaled-back production of laser systems, aligning with the company’s strategic focus on the manufacturing of the BL series. This decrease, however, was offset by a corresponding decline in revenues.
Gross margin for the quarter recorded at (497)% starkly contrasted with the previous quarter’s (111)% figure, primarily driven by diminishing revenue and partially offset by lower cost of revenues following the retirement of the AO series.
Total operating expenses experienced a notable uptick, reaching $4.2 million compared to $2.9 million. This increase was chiefly attributed to heightened professional fees related to legal, compliance, and accounting matters associated with being a public company. Additionally, increased research and development personnel expenses and the addition of a new Chief Marketing and Sales Officer in March 2023 further contributed to this surge.
Net loss for the quarter amounted to $5.1 million, or $0.14 per share, compared to the previous year’s $3.9 million, or $0.71 per share, primarily a consequence of the surge in total operating expenses.
EBITDA(1) for Q3 2023 stood at $(4.8) million, compared to $(3.8) million in the same period last year.
Capital expenditures experienced a notable uptick, reaching $0.3 million from the previous quarter’s $0.1 million. This increase was primarily driven by expanding production capabilities to support additional product lines.
Free cash flow(1) for Q3 2023 recorded at $(4.9) million, compared to $(2.7) million, with the decline attributed to decreasing revenue and the increase in total operating expenses.
As of September 30, 2023, NUBURU reported cash and cash equivalents totaling $1.6 million.
Revised Full Year 2023 Financial Outlook
In light of these challenging financial results, NUBURU revised its outlook for the full year 2023. The company now anticipates total revenue of $2.1 million, EBITDA(1) in the range of $(18) million and $(21) million, and free cash flow(1) to be in the range of $(17) million and $(20) million. Despite these adjustments, the company remains optimistic about its ability to secure adequate capital to support its business plan.
Investors and stakeholders are closely monitoring NUBURU’s strategic moves as the company navigates these financial headwinds and works towards a more stable financial future.
