From Nasdaq: 2024-11-14 12:41:00

Inseego (INSG) shares plummeted 40.36% to $10.83 after disappointing Q3 2024 results. INSG reported a loss of 7 cents per share, missing estimates. Revenues of $54 million increased 30.6% YoY but fell short of the $56 million estimate. INSG’s stock has surged 393.6% year-to-date compared to the sector’s 30% rise.

Total revenues in Q3 2024 rose 30.6% YoY to $54 million. Strong carrier mobile hotspot products and rising SaaS subscriptions drove growth. Product revenues increased 25% YoY to $42 million. Services and other revenues were $12 million, up 56% YoY. INSG plans to discontinue its Telematics business to enhance liquidity.

INSG reported a gross profit of $18.8 million in Q3 2024, a significant improvement. Adjusted EBITDA from continuing operations was $6.7 million, a 12.4% margin increase from the year-ago quarter. Operating cash flow was $12.1 million. The company restructured 91% of outstanding convertible notes.

As of Sept. 30, 2024, INSG had $12 million in cash and cash equivalents. Operating cash flow was $12.1 million in Q3. INSG expects total revenues between $43-47 million in Q4 with adjusted EBITDA between $3-4 million. Current Zacks Rank: #3 (Hold).

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Read more at Nasdaq: Inseego Shares Fall on Q3 Earnings Miss, Revenues Increase Y/Y