Yahoo Finance Inseego Corp (INSG) Reports Q3 2023 Financial Results: Net Loss of $21. ...
Inseego Corp (NASDAQ:INSG) reported a net loss of $21.8 million in Q3 2023.
The company delivered a positive adjusted EBITDA of $4.0 million for the same quarter.
5G FWA revenue represented 23.0% of total revenue and grew 29.0% year-over-year.
Operating expenses dropped to the lowest in over two years.
On November 2, 2023, Inseego Corp (NASDAQ:INSG), a leader in 5G edge cloud solutions, released its financial results for the third quarter of 2023. The company reported a total revenue of $48.6 million, a GAAP operating loss of $18.4 million, and a GAAP net loss of $21.8 million. Despite the net loss, Inseego Corp (NASDAQ:INSG) delivered a positive adjusted EBITDA of $4.0 million for Q3 2023. The company's cash and cash equivalents at the end of the quarter were $18.9 million.
Company Performance and Challenges
Inseego Corp (NASDAQ:INSG) is transitioning from 4G to 5G and is focused on maintaining profitability during this period. The company is facing supply chain challenges that are impacting its business in the short term. However, it is well-positioned to capitalize on the newly developing 5G FWA market. In the past year, the company's enterprise and SMB customer base has grown by almost 56,000 customers, driven by its 5G FWA and cloud portfolio.
Financial Achievements and Key Details
In Q3 2023, 5G revenue accounted for 54.0% of total revenue, and cloud software revenue was 30.0% of the total revenue. The company's 5G FWA revenue grew by 29.0% YoY, driven by over 56,000 new enterprise and SMB customers signed up during the last year. The GAAP margin was 3.9%, and the Non-GAAP gross margin increased YoY from 26.4% to 33.0% as the revenue mix continued to shift to higher-margin products. The company also delivered its third straight quarter of positive cash flow and adjusted EBITDA.
Q4 2023 Guidance
For Q4 2023, Inseego Corp (NASDAQ:INSG) anticipates total revenue to be in the range of $40.0 million to $42.0 million. The adjusted EBITDA for Q4 2023 is expected to be in the range of positive $1.5 million to $2.0 million. The company expects 4G mobile hotspot revenue to decline as the product category goes end-of-life.
Conclusion
Inseego Corp (NASDAQ:INSG) is making strides in the 5G market, with a significant increase in its 5G FWA revenue. Despite the net loss reported in Q3 2023, the company has maintained a positive adjusted EBITDA and has seen a growth in its customer base. The company's focus on higher-margin products has resulted in an increase in its Non-GAAP gross margin. As Inseego Corp (NASDAQ:INSG) continues its transition to 5G, it remains focused on maintaining profitability and capitalizing on the growing 5G FWA market.
Explore the complete 8-K earnings release (here) from Inseego Corp for further details.
This article first appeared on GuruFocus.
