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nLight Inc (LASR) Q4 2024 Earnings Call Highlights: Navigating Challenges with Aerospace and ...

In This Article:

  • Total Revenue (Q4 2024): $47.4 million, a decrease of 9% from $51.9 million in Q4 2023.

  • Product Revenue (Q4 2024): $31.7 million, down from $37.9 million in Q4 2023.

  • Development Revenue (Q4 2024): Increased by 12% year over year to $15.7 million.

  • Total Revenue (Full Year 2024): $198.5 million, a decrease of 5% from $209.9 million in 2023.

  • Aerospace and Defense Revenue (2024): Increased 20% year over year to $109.5 million.

  • Gross Margin (Q4 2024): 2%, negatively impacted by non-routine charges; adjusted gross margin would have been approximately 15%.

  • Product Gross Margin (Q4 2024): 1%, adjusted for non-routine charges would have been approximately 20%.

  • Development Gross Margin (Q4 2024): 6%, compared to 9% in Q4 2023.

  • Non-GAAP Operating Expenses (Q4 2024): $17.7 million, compared to $17.4 million in Q4 2023.

  • GAAP Net Loss (Q4 2024): $25 million or $0.51 per share, compared to a net loss of $13.2 million or $0.28 per share in Q4 2023.

  • Cash Equivalents and Investments (End of 2024): $100.9 million, compared to $113.1 million at the end of 2023.

  • Inventory (End of 2024): Decreased to $40.8 million from $52.1 million at the end of 2023.

  • Funded Backlog (End of 2024): $167 million, 55% higher than at the end of 2023.

  • Q1 2025 Revenue Guidance: Expected to be in the range of $45 million to $51 million.

  • Q1 2025 Gross Margin Guidance: Total gross margin expected to be in the range of 13% to 17%.

  • Q1 2025 Adjusted EBITDA Guidance: Expected to be in the range of approximately negative $6 million to negative $3 million.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Revenue from Aerospace and Defense grew to more than 60% of total sales by the end of 2024, becoming the primary growth driver.

  • Aerospace and Defense markets grew 20% year over year to a record $110 million.

  • Backlog increased by more than 50% year over year in 2024 to a record $167 million.

  • nLight Inc (NASDAQ:LASR) is well-aligned with the Department of Defense's critical priorities, such as directed energy and laser sensing.

  • The company has a strong pipeline of directed energy programs and laser sensing opportunities, expecting at least 25% revenue growth in Aerospace and Defense in 2025.

Negative Points

  • Total revenue in the fourth quarter of 2024 decreased by 9% compared to the fourth quarter of 2023.

  • Commercial markets faced challenges with revenue down 25% year over year due to competition from China and muted global manufacturing demand.

  • Total gross margin in the fourth quarter was only 2%, significantly impacted by non-routine charges related to inventory reserves.

  • GAAP net loss for the fourth quarter was $25 million, or $0.51 per share, compared to a net loss of $13.2 million in the fourth quarter of 2023.

  • The company faces execution challenges and timing issues with the delivery of defense products, impacting revenue recognition.