Executive Summary

Third consecutive quarter of sequential revenue growth: Q4 revenue $1.68M, up 11% q/q and 23% y/y, driven by a large U.S. DoD contract (Shield + consulting) and new customer additions; gross margin moderated to 75% on mix, while net loss improved to $(2.0)M with EPS $(0.36) versus $(1.80) y/y .
Balance sheet reset is the key catalyst: ~$14.5M raised across late Dec/early Jan and elimination of ~$10.1M notional Series A preferred; cash rose to $4.9M at 12/31/24, and management says they’re virtually debt-free, removing going-concern and 2025 dilution fears absent compelling M&A .
Strategic initiatives to accelerate growth: AWS Marketplace listing for Shield Cloud, revamped channel program, increased digital marketing; sales focus shifting to $100K+ deals as pipeline mix skews larger .
Product innovation continues: AI-driven Shield Command Hub and new Shield Sentinel (100Gb monitoring) launched; early paying customer feedback positive with additional units shipping in Q1 .
Estimates context: Wall Street (S&P Global) consensus not available at time of analysis; no formal quantitative guidance provided. We therefore cannot score beat/miss vs estimates at this time (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well
- “Third consecutive quarter of sequential revenue growth,” underpinned by the DoD award and 20 new Shield logos in 2024; near-zero churn sustained .
- Balance sheet repair: ~~$14.5M proceeds, elimination of Series A preferred (~~$10.1M notional), virtually debt-free, and removal of going-concern language—improved customer conversations and strategic flexibility .
- Product momentum: AI-enhanced Shield Command Hub and new Shield Sentinel targeting large enterprises/telecoms; units shipping in Q1 to initial paying customer .
What Went Wrong
- Gross margin compression to 75% (from 79% y/y) due to mix; shield revenue down $0.1M y/y and q/q to $0.4M in Q4; mix-dependent variability likely to continue .
- Growth cadence impacted by deal slippage and onboarding delays; management cites need to improve time-to-revenue and forecast reliability .
- No formal guidance; shield ARPU variability persists (deals range from $5K–$10K up to a few hundred thousand annually), complicating predictability until larger-deal focus scales .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$1.37	$1.50	$1.68
Gross Profit ($USD Millions)	$1.08	$1.16	$1.26
Gross Margin %	79%	77%	75%
Operating Expenses ($USD Millions)	$3.50 (implied: $3.2M in Q4’24, down $0.3M y/y)	$3.20	$3.20
Operating Loss ($USD Millions)	$(2.39)	$(2.04)	$(1.90)
Net Loss ($USD Millions)	$(2.82)	$(2.05)	$(1.96)
Diluted EPS ($)	$(1.80)	$(0.35)	$(0.36)
Cash and Equivalents ($USD Millions, period-end)	$0.14	$1.05	$4.90

Segment/Revenue Mix (Q4 2024):

Consulting Revenue: $1.3M; up $0.3M q/q and up $0.4M y/y .
Shield Revenue: $0.4M; down $0.1M q/q and y/y; prior-year customer loss offset by new logos and DoD contract .

KPIs and Balance Sheet:

New Shield logos signed in 2024: 20; near-zero churn .
DoD contract: $2.0M (Shield + consulting); expected additions/expansions over coming quarters .
Capital actions (Dec/Jan): ~$14.5M proceeds; elimination of ~$10.1M notional Series A preferred; virtually debt-free; baby-shelf limitation removed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company revenue/EPS/margins	2025/near-term	None provided	None provided	No formal guidance disclosed
Capital raising	2025	N/A	No intention to raise capital in 2025 absent compelling inorganic opportunity	Statement of intent (not numeric guidance)
Sales/Go-to-market	2025	N/A	Focus on $100K+ direct deals; channel program revamp; AWS Marketplace listing in process	Strategic shift, execution update

Notes: Management did not issue quantitative revenue, margin, OpEx, OI&E, tax rate, or segment guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Balance sheet/liquidity	Q2: financings to bolster liquidity; net loss improvement q/q . Q3: cash $1.1M; debt-to-equity conversion aided interest expense .	~$14.5M proceeds; elimination of ~$10.1M Series A; virtually debt-free; removal of going-concern; enhanced flexibility (baby shelf no longer applies) .	Strong positive inflection in liquidity and risk profile.
Federal/DoD traction	Q2: first large-scale Shield adoption by government . Q3: $2.0M DoD award; zero churn; 7 new logos .	DoD contract a material driver of Q4 revenue; management expects additions/expansions .	Pipeline expanding; federal cycle “fluid,” slight elongation possible near-term .
APAC momentum	Q3: strong demand in Philippines/APAC; growing pipeline .	Continued pipeline expansion; broader opportunities cited .	Sustained positive momentum.
Product & AI	Q3: AI features in Shield Command Hub; frequent updates .	AI-driven Command Hub emphasized; new Shield Sentinel (100Gb) shipping to paying customer .	Broadening portfolio for larger enterprises/telecom.
Go-to-market	Q2: sales focus, expanding logos . Q3: ongoing POCs; cost control .	AWS Marketplace listing in process; channel revamp; heavier digital marketing; focus ≥$100K deals .	Pivot to scale/larger contract mix.
Churn/retention	Q3: near-zero churn maintained .	Near-zero churn reiterated .	Stable retention.
Listing/compliance	Q3: NASDAQ minimum bid notice received .	NASDAQ compliance regained on recent share-price improvement .	Listing overhang eased.

Management Commentary

“We are virtually debt-free, have eliminated the Series A preferred stock and have enough cash in the bank to fund our operations through fiscal year 2025 and beyond.” — CEO Tony Scott .
“We are in the process of making our Shield Cloud product available in the AWS marketplace… We are increasing our digital marketing… [and] revamping our channel program…” — CEO Tony Scott .
“In the fourth quarter of 2024, revenues were $1.7 million, an increase of 11% sequentially and 23% when compared to the prior year period… Consulting revenue… $1.3 million… Shield revenue… $0.4 million.” — CFO Kimberly Pinson .

Q&A Highlights

Inorganic opportunities: No active deals; would consider acquisitions/tech that broaden portfolio and reduce customer confusion around capabilities .
Marketing/promotion: Plan to materially increase visibility via social media/influencers, leveraging new financial flexibility; spend expected to rise but remains efficient .
Deal sizes and mix: Historical variability ($5K–$10K to a few hundred thousand annually); sales team refocused on ≥$100K deals; larger pipeline mix now .
Federal demand outlook: Cyber remains a priority despite administrative changes; some elongation possible for new awards; steady on existing contracts .
Cash deployment and hiring: Intend to invest cash prudently; considering selective sales hires and channel leadership to accelerate growth .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 revenue and EPS, but the request could not be fulfilled at this time (consensus unavailable). As such, we cannot determine beat/miss vs Wall Street for Q4 2024 based on S&P Global.
Implication: Sell-side coverage may be thin; investors should anchor on sequential and y/y trends and watch for estimate initiation/updates post-balance sheet reset.

Key Takeaways for Investors

Balance sheet transformation reduces existential risk and dilution concerns, enabling management to pivot from financing to growth execution; this is the near-term narrative driver .
Revenue trajectory improving (Q2→Q3→Q4); watch for acceleration as DoD contract expands and AWS Marketplace/channel initiatives ramp; mix will dictate margins (consulting vs. Shield) .
Margin volatility tied to mix (75% in Q4 vs 79% y/y); sustained Shield growth would be margin-accretive over time; track Shield revenue and mix disclosures .
Larger-deal focus (≥$100K) and channel revamp aim to improve deal quality and forecasting; evidence of pipeline skewing larger is encouraging .
Product portfolio broadened (AI-driven Command Hub, Shield Sentinel) to address large-scale environments—early customer traction noted; look for multi-unit deployments in 1H25 .
Listing overhang removed (NASDAQ compliance regained), and going-concern language withdrawn—positive for customer confidence and partner engagement .
Near-term watch items: formal guidance cadence (none yet), Shield ARR/mix transparency, federal award timing, operating expense discipline as marketing/sales investments step up .

Detailed Quantitative Exhibits

Q4 2024 Revenue Detail (as disclosed)

Segment	Q4 2024 ($USD Millions)	q/q Change ($)	y/y Change ($)
Consulting	$1.30	+$0.30	+$0.40
Shield	$0.40	$(0.10)	$(0.10)

KPIs and Capital Actions

KPI / Action	Detail
New Shield logos (2024)	20
Shield churn	Near-zero
DoD award	$2.0M; combined Shield + consulting
Cash & equivalents (12/31/24)	$4.9M
Capital raises (Dec/Jan)	~$14.5M proceeds; elimination of ~$10.1M Series A preferred (notional)
Debt/compliance	Virtually debt-free; going-concern removed; NASDAQ compliance regained

Notes: Management referenced use of non-GAAP measures on calls generally; no non-GAAP figures were reported in these earnings materials .

INTRUSION INC (INTZ)·Q4 2024 Earnings Summary