ConnectM Files 10-Q, Announces Third Quarter 2024 Financial Results

In This Article:

~ Results In-Line with Previously Announced Third Quarter Preliminary Results ~

~ Third Quarter Revenue Increased 39% to $6.1 Million YoY and 11% from Second Quarter 2024 ~

~ FY2024 Projected Revenue of $20.0 Million, Representing a 20% YoY Increase ~

~ On Track to Achieve Operating Cash Flow Breakeven by The First Quarter of 2025 ~

MARLBOROUGH, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) (“ConnectM” or the “Company”), a technology company focused on the electrification economy, has filed its 10-Q with the Securities and Exchange Commission (the “SEC”) and released its financial results for the quarter ended September 30, 2024.

Third Quarter and First Nine Months 2024 Financial Results

  • Revenue for the third quarter of 2024 increased to $6.1 million compared to $4.4 million in the same year ago period. Revenue in the first nine months of 2024 increased 12% to $17.3 million, when compared to $15.5 million in the same prior year period.

    • Cost of revenue for the third quarter of 2024 increased to $4.2 million compared to $3.7 million in the same year ago period. Cost of revenue in the first nine months of 2024 was $11.0 million, in line with $11.0 million in the same prior year period.

  • Net loss attributable to shareholders for the third quarter of 2024 was $12.2 million compared to $2.6 million in the comparable prior year period. For the first nine months of 2024, net loss attributable to shareholders increased to $17.0 million, as compared to a net loss of $5.0 million in the comparable prior year period.

2024 Operational Updates

  • Successfully completed De-SPAC and began trading on the Nasdaq Global Market in July 2024.

  • Launched AI-powered heat pump integrated with ConnectM's Energy Intelligence Network powered by the Company’s proprietary data model, for residential and light commercial use, optimized for performance, energy efficiency and reducing customer costs.

  • Entered into agreement to acquire a controlling interest in DeliveryCircle, a nationwide technology enabled final mile delivery company which connects businesses looking for a last-mile delivery solution. This strategic acquisition expands ConnectM’s Transportation & Logistics segment in the United States.

  • Eliminated $13.7 million of debt with debt-to-equity swap to deleverage the balance sheet.

Subsequent Events

  • Entered into Managed Services Agreement (“MSA”) with Devlin Energy, expanding ConnectM’s business portfolio mix and revenue generation with an array of residential and commercial distributed energy capabilities.

  • Completed acquisition of Green Energy Gains Inc., a Massachusetts Home Performance Contractor of energy and weatherization assessments, and instrumental in the distribution and installation of ConnectM’s electric heat pumps, augmenting the Company’s Building Electrification segment.

  • ConnectM’s AI-powered heat pump received AHRI’s (Air-Conditioning Heating and Refrigeration Institute) Cold Climate Certification, awarded to products that demonstrate superior heating efficiency.