Airgain Inc, a prominent provider of wireless connectivity solutions, announced its financial results for the third quarter (Q3) ended September 30, 2023, triggering a significant downturn in the company’s stock value.
At the time of this publication, Airgain Inc stock (AIRG) has witnessed a decline.
Airgain Inc
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Airgain Inc Q3 2023 Financial Results:
Sales Overview:
In the third quarter of 2023, Airgain reported total sales of $13.7 million, experiencing a 13.5% decline compared to the second quarter of the same year, where sales reached $15.8 million. The enterprise market contributed $6.8 million, the consumer market $4.4 million, and the automotive market $2.5 million. Sequentially, enterprise sales fell by $0.5 million, consumer sales by $1.8 million, while automotive sales increased by $0.2 million. Year-over-year, the sales for the third quarter declined by 28.7%, or $5.5 million, from $19.2 million in the same quarter the previous year. This was primarily attributed to lower sales of $2.9 million from the consumer market and $2.6 million from the automotive market.
Gross Profit and Margin:
The GAAP gross profit for Q3 2023 was $5.2 million, a decrease from $6.3 million in Q2 2023 and $7.4 million in Q3 2022. Non-GAAP gross profit for the same period was $5.4 million. The GAAP gross margin was 38.2%, down from 39.7% in Q2 2023, while the non-GAAP gross margin was 39.1%. These figures were compared to 40.4% and 39.4% in the same quarter a year ago, respectively.
Operating Expenses:
GAAP operating expenses for the third quarter of 2023 amounted to $7.1 million, a decrease from $8.5 million in Q2 2023 and $8.7 million in Q3 2022. Non-GAAP operating expenses for the same period were $6.0 million, compared to $6.5 million in Q2 2023 and $7.0 million in Q3 2022.
Net Loss:
The GAAP net loss for Q3 2023 was $1.9 million or $(0.18) per share, based on 10.4 million shares. This represents a slight improvement from the net loss of $2.2 million or $(0.21) per share in Q2 2023. However, compared to the same quarter a year ago, the net loss increased from $1.3 million or $(0.13) per share. The non-GAAP net loss for Q3 2023 was $0.7 million or $(0.06) per share, compared to a non-GAAP net loss of $0.1 million or $(0.01) per share in Q2 2023.
Adjusted EBITDA:
Adjusted EBITDA for the third quarter of 2023 was ($0.5) million, in contrast to break-even for Q2 2023 and $0.8 million for Q3 2022.
Financial Outlook for Q4 2023:
For the fourth quarter of 2023, Airgain anticipates GAAP sales in the range of $9.25 million to $10.75 million, with a midpoint of $10.0 million. The GAAP gross margin is expected to be in the range of 37.3% to 40.3%, and GAAP operating expenses are projected to be approximately $7.5 million. The anticipated GAAP net loss per share is $0.34 at the midpoint.
On the non-GAAP side, the expected non-GAAP gross margin is in the range of 38.5% to 41.5%, with non-GAAP operating expenses at approximately $6.0 million. The non-GAAP net loss per share is projected to be $(0.19) at the midpoint. Additionally, the adjusted EBITDA is anticipated to be a loss of $1.8 million.
Investors and stakeholders are closely monitoring Airgain Inc as it navigates through these financial challenges, with the company expressing confidence in its strategies to improve performance moving forward.
