Inseego Corp, a leading provider of 5G edge cloud solutions, released its financial results for the third quarter (Q3) ending September 30, 2023. The company reported total revenue of $48.6 million for the quarter, alongside a GAAP operating loss of $18.4 million and a GAAP net loss of $21.8 million, equating to a net loss of $0.19 per share. Adjusted EBITDA stood at $4.0 million, with a non-GAAP net loss of $0.16 per share. The company’s cash and cash equivalents at the end of the quarter amounted to $18.9 million. Following the announcement, Inseego’s stock experienced a notable decline.
At the time of this publication, Inseego Corp stock (INSG) has witnessed a decline.
Inseego Corp
Current Price: $0.32
Change : -0.20
Change (%): (-38.56%)
Volume: 1.6M
Source: Tomorrow Events Market Data
Recent business highlights include 5G revenue accounting for 54.0% of the total revenue in Q3 2023. Additionally, cloud software revenue constituted 30.0% of the quarter’s revenue. The company’s 5G Fixed Wireless Access (FWA) revenue experienced a significant 29.0% year-over-year growth, attributed to the addition of over 56,000 new enterprise and SMB customers in the past year. GAAP margin stood at 3.9%, while non-GAAP gross margin increased from 26.4% to 33.0% year-over-year, driven by a shift towards higher-margin products in the revenue mix.
Operating expenses reached their lowest point in over two years, showcasing the company’s efforts to streamline operations. Inseego achieved its third consecutive quarter of positive cash flow and adjusted EBITDA. Noteworthy additions to the team include Steven Gatoff, who joined as Chief Financial Officer in September, and Philip Brace, who joined the Board of Directors in the same month. Additionally, Steve Harmon took on the role of Chief Revenue Officer in October.
Steven Gatoff, Chief Financial Officer of Inseego, commented, “We continue to optimize and align our spend with near-term customer demand and our revenue trajectory. We’re focused on managing the decline of legacy 4G revenue as we look to drive growth in 5G. In the current quarter, we see our recent cost savings actions helping to alleviate some of the revenue pressures and we are focused on delivering profitability as we manage through the transition.”
Looking ahead to Q4 2023, the company anticipates a decline in 4G mobile hotspot revenue as the product category reaches end-of-life. Total revenue for the quarter is projected to fall within the range of $40.0 million to $42.0 million, with adjusted EBITDA expected to range from positive $1.5 million to $2.0 million.
On October 31, Tomorrow Events reported the appointment of Steve Harmon as Chief Revenue Officer of Inseego Corp, a role newly created within the company, on October 30. This announcement had an immediate and substantial impact on the company’s stock value, propelling it up by an impressive 26% at the time of reporting.
The Q3 results of Inseego Corp, marked by robust 5G revenue and strategic additions to its leadership team, position the company for continued growth and profitability in the dynamic wireless technology sector. The positive market response to the appointment of Steve Harmon further underscores the confidence in Inseego’s future prospects.
