Executive Summary

Calendar Q4 2023 (three months ended Dec 31, 2023) delivered strong top-line and profitability: revenue $19.81M (+25% YoY), gross margin 53.5% (+370 bps YoY), and net income $1.95M vs a $1.25M loss in Q4 2022, driven by device sales and mix .
Orders booked in the quarter were ~~$19.15M, with broad-based strength across EMEA (~~$10.67M) and Americas (~~$5.07M); indirect channel orders led (~~$12.03M) .
Expense intensity remains elevated from public-company readiness (SG&A) and prior inventory reserve actions; sequentially, Q1 2024 revenue was $19.36M with lower profitability (gross margin 50.7%, net loss $4.77M) as installations/timing and overhead weighed on results .
No earnings call transcript or S&P Global consensus estimates were available; management reiterated momentum and platform strategy in the period, and later issued FY2025 revenue guidance of $74–$77M (+15–20% YoY) .

What Went Well and What Went Wrong

What Went Well
- Material YoY acceleration and operating leverage in Q4: revenue +25% YoY to $19.81M, gross margin to 53.5%, operating income ~$2.33M (vs. -$0.65M YoY) on strong devices volume and mix .
- Healthy order intake ~$19.15M with broad geographic support (EMEA ~$10.67M; Americas ~$5.07M; APAC ~~$3.42M), and strength in indirect channel (~~$12.03M) supporting forward visibility .
- Management tone: “another strong quarter…positive momentum…expanding into new markets and geographies,” highlighting sales execution and platform strategy (Chairman/CEO) .
What Went Wrong
- Operating expenses remain elevated from public-company preparations (audit, legal, IT), pressuring full-period SG&A; Q4 SG&A was ~$6.18M and R&D ~$2.09M .
- Cost environment still challenging (inflation, overhead/parts) and prior inventory reserve actions documented in the period’s MD&A; FX tailwinds helped but volatility persists .
- Balance sheet conservatism necessary: cash and cash equivalents were $2.84M at Dec 31, 2023, with current revolving credit facilities at $10.31M and current debt maturities $1.14M, keeping liquidity management in focus .

Financial Results

Metric	Q4 2022 (3 mo ended Dec 31, 2022)	Q4 2023 (3 mo ended Dec 31, 2023)	Q1 2024 (3 mo ended Mar 31, 2024)
Revenue ($M)	$15.84	$19.81	$19.36
Gross Profit ($M)	$7.89	$10.60	$9.81
Gross Margin %	49.8%	53.5%	50.7%
Operating Income (Loss) ($M)	$(0.65)	$2.33	$(0.24)
Net Income (Loss) ($M)	$(1.25)	$1.95	$(4.77)
Diluted EPS ($)	N/A	N/A	$(0.16)

Notes: Q4 2022 and Q4 2023 are computed as 9M minus 6M (calendar quarter Oct–Dec) from company filings; citations show the source periods used . Q1 2024 reflects the three months ended Mar 31, 2024 .

Segment revenue (Q4 2023):

Devices: $15.70M
Services: $3.16M
Other: $0.96M

KPIs (Q4 2023):

Sales orders (total): ~$19.15M; EMEA ~$10.67M; Americas ~$5.07M; APAC ~$3.42M
Orders by channel: Direct ~$7.12M; Indirect ~$12.03M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	FY2025	N/A	$74–$77	New (initiated)

Note: FY2025 guidance was provided on July 15, 2024 for the year following the reported quarter .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2023 calendar)	Trend
Supply chain & inflation	Documented cost increases in freight/components and elevated conversion costs; monitoring with no major mitigations executed to date .	Ongoing inflation/overhead impacts referenced in MD&A; FX provided some tailwind .	Steady (watch cost discipline)
FX impact	Multi-currency operations with translational risk; FX volatility noted .	Favorable FX impact noted in period (Euro) .	Slight tailwind
Public company readiness costs	Higher audit/legal/IT spend described as drivers of SG&A .	SG&A remained elevated during the period due to public-company prep .	Steady to easing post-listing
Product/commercial momentum	Sales orders and device-led growth across regions .	“Another strong quarter… positive momentum… expanding into new markets/geos” (CEO) .	Improving
Regional trends	EMEA strength; Americas/APAC steady .	Orders: EMEA ~$10.67M; Americas ~$5.07M; APAC ~$3.42M .	Broad-based
R&D execution	Rebalancing toward software focus and cost efficiency .	R&D run-rate consistent; shift toward software continues .	Steady
Liquidity & financing	Use of credit facilities; subsequent cap raises considered .	Cash $2.84M; revolver $10.31M; current maturities $1.14M at 12/31/23 .	Focused on liquidity mgmt

Management Commentary

“We are excited to announce another strong quarter… We continue to see increased opportunity and positive momentum in expanding the business into new markets and geographies.” – Jason Chen, Chairman & CEO (on nine months ended Dec 31, 2023) .
“Fiscal 2024 was a critical inflection year… significant commercial growth while… completing our initial public offering… generating positive operating cash flow… strong foundation for our growth strategy.” – Jason Chen (FY2024 results release) .

Q&A Highlights

No earnings call transcript was found for the quarter; therefore, Q&A highlights and guidance clarifications are not available [earnings call transcript search returned none].

Estimates Context

Wall Street consensus (S&P Global) for Q4 2023 calendar-quarter revenue/EPS was unavailable (no SPGI mapping for ATAK); as a result, comparisons vs estimates cannot be provided. Values retrieved from S&P Global could not be obtained due to ticker mapping limitations.*

Key Takeaways for Investors

Device-led growth and improved mix produced a clean quarter: revenue +25% YoY, gross margin +370 bps YoY, and return to net income in Q4 2023 calendar quarter .
Orders of ~$19.15M and strong indirect channel underpin forward revenue cadence; EMEA remains a solid growth engine .
Expense/overhead normalization is the next lever: SG&A remains elevated from public-company setup; monitor operating leverage as growth scales .
Sequential softness in Q1 2024 profitability shows timing/installation and overhead sensitivity; watch gross margin and opex discipline near term .
Liquidity management prudent: low cash and reliance on revolving facilities/current maturities suggest continued focus on working capital and financing flexibility .
Strategic execution (portfolio breadth, regional expansion) and FY2025 revenue guide of $74–$77M suggest mid-teens-to-20% growth trajectory if orders convert on plan .
With no Street consensus or call transcript, stock catalysts hinge on delivery vs guidance, order conversion pace, and evidence of sustained margin expansion.

References:

Nine months ended Dec 31, 2023 press release and financials .
Six months ended Sep 30, 2023 financials and sales orders .
FY2024 Q4 and FY2024 results (three months ended Mar 31, 2024) and FY2025 guidance .
Cost/FX commentary (MD&A) .

DIH HOLDING US, INC. (ATAK)·Q4 2023 Earnings Summary