In This Article:
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Full Year Revenue Growth: 6.5% increase.
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Q4 Revenue: $38.9 million.
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Annual Revenue: $153.3 million.
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Adjusted EBITDA: $0.2 million for the year, $1.2 million in Q4.
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Cash from Operations in Q4: $6.5 million.
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Cash on Balance Sheet: $31.9 million at year-end, up from $23.1 million at the end of Q3.
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Contracted Revenue Backlog: $495 million at year-end.
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Gross Margin: 20% in Q4, 18% for the full year.
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Total Operating Expenses: $11.2 million in Q4, $43.7 million for the year.
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Adjusted Working Capital: $66.2 million at year-end.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Quarterhill Inc (QTRHF) achieved a 6.5% revenue growth for the full year 2024.
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The company generated positive adjusted EBITDA of $0.2 million for the year, including $1.2 million in Q4.
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Quarterhill Inc (QTRHF) achieved $6.5 million in positive cash from operations in Q4, marking significant progress in cash flow management.
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The company's contracted revenue backlog stood at $495 million at the end of the year, providing good visibility into future revenue.
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Quarterhill Inc (QTRHF) expanded its focus on software development, aiming to drive higher margins and create more defensible proprietary offerings.
Negative Points
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Adjusted EBITDA margins were impacted by three legacy tolling contracts, with only one resolved in 2024.
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Gross margin percentage decreased to 18% for the full year compared to 21% in 2023, primarily due to reserves taken for certain tolling projects.
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Total operating expenses for Q4 2024 were $11.2 million, indicating a need for further cost management.
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The company experienced a sequential dip in revenue and adjusted EBITDA in Q1 due to seasonal factors.
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Quarterhill Inc (QTRHF) is still in active discussions to resolve a couple of challenging tolling contracts, which could impact future financial performance.
Q & A Highlights
Q: Can you discuss the mix of bookings in Q4 and how it breaks down between new contracts and renewals, particularly in tolling versus enforcement? A: Charles Myers, CEO: The tolling business saw significant growth, primarily due to a $40 million base contract with ACTC, which was an add-on to an existing contract. This reflects strong customer relationships and system performance. We are actively bidding on new contracts and expect a strong year in 2025.
Q: Have you noticed any changes in tolling project interest due to the change in the US Federal administration? A: Charles Myers, CEO: We haven't seen any significant impact from the change in administration. Infrastructure spending remains a priority, and we expect continued positive momentum in tolling projects.