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Datavault AI Inc. (DVLT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 results beat S&P Global consensus: revenue $0.90M vs $0.70M and EPS $0.67 vs -$0.97, implying a significant upside surprise; coverage is thin (2 estimates) which can magnify beats/misses.* [Values retrieved from S&P Global]
  • FY 2024 preliminary results: revenue rose 28% YoY to $2.674M, gross profit turned positive to $0.376M, but GAAP net loss widened to $51.409M driven by a $29.120M non-cash loss from warrant liability revaluation and elevated OpEx ($21.514M).
  • Management set a 2026 revenue target of $40–$50M and disclosed an executed plan to raise $15M in senior secured convertible notes to fund strategy, CSI asset purchase, and IP/licensing initiatives.
  • Strategic catalysts include IBM Partner Plus onboarding, a multi‑year NYIAX partnership and licensing, and progress toward closing the CompuSystems (CSI) asset acquisition (outside date extended to May 15, 2025).

What Went Well and What Went Wrong

What Went Well

  • Q4 revenue and EPS beat consensus, signaling improving execution and potential traction ahead of the 2026 target.* [Values retrieved from S&P Global]
  • FY24 gross profit swung to +$0.376M from a prior-year gross loss of ($3.457M), aided by normalization of 2023 inventory reserves and mix.
  • Management articulated a clear growth roadmap with 2026 revenue goal ($40–$50M), funding plan ($15M converts), and strategic partnerships (IBM Partner Plus, NYIAX licensing) that can open distribution and monetization channels.

Quote: “Datavault AI is redefining the landscape of data monetization and valuation, and our 2025 momentum is a testament to our vision.” — CEO Nathaniel T. Bradley

What Went Wrong

  • FY24 GAAP net loss expanded to $51.409M, largely due to a $29.120M non‑cash loss from warrant liability revaluation; operating expenses rose to $21.514M.
  • Going concern risk persists; management expects continued operating losses and the need to raise additional capital over the next 12 months.
  • Customer concentration remains high: top four customers represented ~76% of 2024 revenue (29%, 19%, 18%, 10%), highlighting execution risk as the company transitions toward software/licensing.

Financial Results

Q4 2024 vs Estimates (S&P Global)

MetricQ4 2024 ActualQ4 2024 ConsensusSurprise
Revenue ($USD)$902,000*$700,000*+$202,000 / +28.9%*
Primary EPS$0.67*-$0.97*+$1.64*

Values marked with * retrieved from S&P Global.

Quarterly Trend – Last 3 Quarters

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD)$345,000*$1,172,000*$902,000*
Gross Margin (%)3.2%*19.3%*24.6%*
EBITDA ($USD)-$5,377,000*-$5,232,000*-$6,321,000*
Net Income ($USD)-$42,665,000*-$5,092,000*-$6,359,000*

Values marked with * retrieved from S&P Global.

YoY – Q4 2024 vs Q4 2023

MetricQ4 2023Q4 2024
Revenue ($USD)$420,000*$902,000*
Gross Margin (%)-79.5%*24.6%*
EBITDA ($USD)-$4,607,000*-$6,321,000*
Net Income ($USD)-$6,363,000*-$6,359,000*

Values marked with * retrieved from S&P Global.

Full-Year (Preliminary) – FY 2024 vs FY 2023

MetricFY 2023FY 2024 (Prelim)
Revenue ($USD)$2,083,000 $2,674,000
Gross Profit ($USD)($3,457,000) $376,000
Total Operating Expenses ($USD)$18,000,000 $21,514,000
Change in Fair Value of Warrant Liability ($USD)$4,510,000 (gain) ($29,120,000) (loss)
Net Loss ($USD)($18,721,000) ($51,409,000)
Net Loss Attributable to Common ($USD)($25,081,000) ($67,726,000)

Balance Sheet Snapshot (Preliminary)

MetricDec 31, 2023Dec 31, 2024 (Prelim)
Total Assets ($USD)$4,823,000 $100,625,000
Total Liabilities ($USD)$9,733,000 $14,899,000
Stockholders’ Equity ($USD)($5,157,000) $85,726,000

Note: FY24 results are preliminary and subject to audit adjustments.

Segment reporting: The company does not provide segment financials; it operates two synergistic platforms (Data Science and Acoustic Science) but does not present segment revenue.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2026—$40–$50M target Initiated
Liquidity (Financing)2025 Plan—$15M Senior Secured Convertible Notes (two closings) Initiated
CSI Asset Purchase TimelineClosing Outside DatePrior outside date earlier in 2025Outside date extended to May 15, 2025 Extended
DividendsOngoingNo dividends plannedNo dividends; retain earnings for growth Maintained

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found in the document set searched (Mar–Apr 2025 window). We substitute filing-based themes.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
AI/Data platform strategyCompany narrative centers on Data Vault AI SaaS/licensing and agents (DataValue, DataScore, Data Vault Bank). Reinforced in 10-K; focus on Web3.0, tokenization, monetization. Consistent, maturing story
Acoustic/ADIO & WiSAADIO data-over-sound + WiSA wireless ecosystem integration highlighted. Continued emphasis on ADIO + WiSA licensing optionality. Steady, platform build-out
Partnerships/licensingStrategic push to expand IP/licensing; Dolby license referenced in business update (post-Q4). IBM Partner Plus; NYIAX multi-year IP/licensing (post-Q4 business update). Accelerating into 2025
M&A/CSI acquisitionCSI purchase agreement (Dec 2024) disclosed; amendments later. Outside date extended to May 15, 2025. In process; timeline extended
Funding/liquidityOngoing capital needs; going concern risk. $15M convertible notes plan to support 2025 strategy. Funding pipeline progressing
Financial discipline2023 inventory reserve impacted gross loss; 2024 gross profit positive. FY24 gross profit improved; OpEx elevated for growth. Margin better, OpEx heavy
Legal/IPCommitment to IP enforcement and licensing economics. Reinforced (Fish & Richardson, GT, Houlihan Lokey retained). Active enforcement/licensing

Management Commentary

  • Strategic positioning: “Datavault AI is a pioneering technology licensing company… to redefine how data is managed, valued, and monetized… through two synergistic platforms (Data Science and Acoustic Science).”
  • Growth roadmap and funding: “The financing will support the planned closing of certain assets from CompuSystems Inc. (CSI) as well as the future expansion of our intellectual property portfolio… Our Web 3.0 solutions are gaining market traction… driving our business… 2026 revenue target of $40–$50 million.” — CEO Nathaniel T. Bradley
  • Partnerships momentum: IBM Partner Plus (integration with CLEAR and IBM watsonx) and NYIAX partnership (IDE/Data Vault integration; ADIO into NYIAX exchange) to enable data asset trading and ultrasonic advertising.
  • Business mix shift: Expect greater software/licensing contribution over time vs hardware legacy.

Q&A Highlights

No Q4 2024 earnings call transcript was available in the searched window; therefore, no Q&A to report. Key clarifications instead came via filings:

  • 2026 revenue target and $15M convert financing program announced in the April 1, 2025 business update.
  • CSI asset purchase outside date extended to May 15, 2025 via Third Amendment.

Estimates Context

  • With two S&P Global estimates in Q4 2024, DVLT beat revenue ($0.902M vs $0.700M) and EPS ($0.67 vs -$0.97).* Potential estimate resets may focus on: (a) sustainability of revenue traction into 2025, (b) cadence and monetization from NYIAX/IBM channels, and (c) updated dilution/interest from convert financing and warrant liability volatility.* [Values retrieved from S&P Global]
  • FY24 GAAP outcomes were strongly affected by non-cash warrant liability revaluation (loss of $29.120M), which can create large volatility in reported EPS vs operating fundamentals.

Key Takeaways for Investors

  • Near-term: The Q4 beat vs consensus and FY24 gross profit improvement are encouraging, but GAAP results remain volatile due to warrant liability revaluation; funding progress and CSI closing milestones will be key trading catalysts.* [Values retrieved from S&P Global]
  • 2025 setup: Track execution of the $15M convertible notes, CSI asset purchase, and the commercialization ramp through IBM Partner Plus and NYIAX; these underpin revenue scale into 2026.
  • Medium-term thesis: If licensing channels and IP enforcement/commercialization deliver, DVLT’s mix shift to software/licensing could structurally raise margins; however, customer concentration and going concern risks require continued capital access and disciplined OpEx.
  • Risk monitor: Dilution from financing, warrant liability fair-value swings, and timing risk around CSI closing and partner integrations.
  • Valuation implications: Thin sell-side coverage and small absolute revenue base mean estimate dispersion and outsized stock reactions to news flow are likely; use milestones (financing closes, CSI progress, partner deal wins) as checkpoints.*

Values marked with * retrieved from S&P Global.

Document Discovery Notes

  • 8‑K Item 2.02 (Results of Operations and Financial Condition) dated March 31, 2025 containing FY 2024 preliminary results was read in full.
  • FY 2024 Form 10‑K (filed March 31, 2025) was reviewed for strategy, risk, customer concentration, and liquidity/gong-concern disclosures.
  • Business update 8‑K with Exhibit 99.1 press release (April 2, 2025) providing 2026 target, financing plan, and partnership updates was read.
  • No Q4 2024 earnings call transcript or Q4 2024 press release was found in the available document set for the quarter-end period searched (Mar–Apr 2025).