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II

iQSTEL Inc (IQST)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net revenue was $96.0M, a record high and up 77% q/q from $52.0M in Q3, driving FY 2024 net revenue to $277.0M (+91.6% y/y vs $144.5M in 2023) .
  • Management reiterated scale ambitions and set FY 2025 revenue guidance at $340.0M, citing momentum, synergies and uplisting plans to accelerate growth .
  • Gross revenue reached $300.0M in 2024 on a preliminary basis, with $23.0M intercompany, underscoring integration benefits across subsidiaries .
  • Margins improved through Q3 (gross margin 3.72% vs 2.68% in Q1) on operational consolidation, with the Telecom Division profitable and covering core expenses .
  • Potential catalysts: record Q4 execution, FY 2025 guidance initiation ($340.0M), revenue-per-share milestone (> $1.32 RPS), and ongoing Nasdaq uplisting preparations .

What Went Well and What Went Wrong

What Went Well

  • Record quarterly performance: “Q4 net revenue reached an unprecedented $96 million,” the highest in company history, up 77% q/q .
  • Acceleration into 2025: Management initiated FY 2025 revenue guidance at $340.0M, aligning with a roadmap toward $1B by 2027 .
  • Operational synergy: 2024 gross revenue of $300.0M (with ~$23.0M intercompany) demonstrates effective cross-subsidiary collaboration .

What Went Wrong

  • FY 2024 revenue finished at 95% of the $290.0M target (net revenue $277.0M) despite a strong Q4 finish; the full target was not fully met .
  • Nine-month operating loss of $0.536M (through Q3) and $1.5M in nine-month interest expense reflect integration and financing costs prior to Q4 scale-up .
  • Non-operating items (largely non-cash, interim charges) drove a six-month net loss of $2.544M as of Q2, highlighting transitional impacts from M&A and financing structure .

Financial Results

Quarterly P&L Snapshot

MetricQ1 2024Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$51.41 $78.64 $52.00 $96.00
Gross Profit ($USD Millions)$1.379 $2.164 $2.000 N/A
Gross Margin (%)2.68% 2.75% 3.72% N/A

Notes:

  • Q4 margin/gross profit not disclosed in the Q4 press release; margin cadence improved into Q3 via consolidation and platform unification .
  • Q4 revenue growth was +77% q/q vs Q3, per management disclosure .

FY 2024 Revenue and Synergy KPIs

MetricFY 2024
Net Revenue ($USD Millions)$277.0
Gross Revenue ($USD Millions)$300.0
Intercompany Revenue ($USD Millions)$23.0
Full-Year y/y Net Revenue Growth+91.6% (vs $144.5M in 2023)
Revenue Per Share (RPS)> $1.32 (preliminary, as of Dec 18, 2024)

Cross-reference:

  • Nine-month revenue reached $184.0M as of Q3; Q4’s $96.0M took full-year net revenue to $277.0M .
  • Telecom Division posted Q3 profit and covered core expenses; consolidation expected to further enhance margins .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024$290.0M target Actual $277.0M (95% of forecast) Lower vs target (missed ~5%)
RevenueFY 2025N/A$340.0M Initiated (Raised outlook vs 2024 actual)

Additional commentary:

  • Management reiterated the path to $1B revenue by 2027 and highlighted synergy-driven growth post uplisting .
  • No explicit quarterly guidance for margins/OpEx/tax disclosed in Q4 releases; Telecom Division maintained profitability into Q3 .

Earnings Call Themes & Trends

Note: No formal Q4 2024 earnings call transcript was available in the documents catalog; themes are sourced from Q2/Q3 releases and Q4 press releases.

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q4 2024)Trend
Organic growth & scaleSix-month revenue $130.05M (+126% y/y); Q2 revenue $78.64M; strong 2H seasonality Nine-month revenue $184.0M; consolidation to enhance efficiency Record Q4 revenue $96.0M; FY revenue $277.0M Uptrend in scale and quarterly cadence
Margin/Operating leverageGross margin 2.75% in Q2; non-operating items weighed on net income Gross margin improved to 3.72% in Q3; Telecom Division profitable Margin not disclosed for Q4; synergy (intercompany) highlighted Improving through Q3; Q4 margin transparency pending
Financing/Convertible notesStrategy to minimize dilution via interest-bearing loans Stockholders’ equity $8.1M; uplisting readiness 12-month extension of key convertible notes in Oct’24 to Q1 FY-2026 Strengthened liquidity runway and uplisting path
AI/Cybersecurity initiativesNA in Q2 releaseAIRWEB.ai launched; cybersecurity service planned Q1 FY-2025 Continued emphasis on AI/cyber as high-margin growth drivers Building product stack; poised to monetize
Uplisting to NasdaqPreparing plan; achieved corporate requirements Final IB selection underway; equity surpasses minimum Messaging continues; growth and guidance support case Advancing toward uplisting
RPS/Shareholder metricsProjected FY 2024 RPS ~ $1.50 (illustrative) NARPS exceeded $1.32 as of Dec 18 (prelim.) RPS improving with revenue scale

Management Commentary

  • “We have set an incredible commercial pace… $277 million in revenue for 2024… record-breaking $96 million revenue in Q4… These results validate our business strategy, the strength of our team, and the unwavering trust of our shareholders.” — CEO Leandro Iglesias .
  • “Our $1 billion revenue target for 2027 isn’t just a goal—it’s our roadmap… With robust organic expansion and a transformative acquisition on the horizon post-Nasdaq listing, we are ready to redefine market leadership.” — CEO Leandro Iglesias .
  • “We are laying the groundwork for our Nasdaq up-listing, showcasing exactly what national markets value: explosive growth.” — CEO Leandro Iglesias .

Q&A Highlights

  • No formal Q4 2024 earnings call transcript was published in the available catalog; therefore analyst Q&A highlights and clarifications are unavailable based on primary source documents [List: earnings-call-transcript returned 0; SearchDocuments returned no call transcripts].

Estimates Context

  • We attempted to retrieve Q4 2024 Wall Street consensus estimates (Revenue, EPS) via S&P Global, but data was unavailable due to request limits. As such, a beat/miss vs consensus cannot be determined at this time.
  • Given the absence of EPS disclosure in Q4 materials and unavailability of consensus, investors should anchor on disclosed actuals and FY 2025 guidance for near-term narrative .
  • If you would like, we can re-run S&P Global consensus once access resets to quantify any variance to estimates.

Financial Detail and Adjustments (Context)

  • Six-month (H1) net loss of $2.544M was driven primarily by $2.727M in non-operating items (non-cash fair value changes, audit/accounting tied to expanded subsidiaries, interest expense, consulting) — management does not expect the bulk to recur, highlighting a transitional period tied to QXTEL M&A and uplisting readiness .
  • Through Q3, operating loss narrowed to $56,553, with the Telecom Division generating $548,274 in profit in Q3 and covering core expenses .
  • Intercompany revenue of ~$23.0M (out of $300.0M gross) illustrates subsidiary collaboration and consolidated scale .

Key Takeaways for Investors

  • Q4 2024 execution reset the quarterly revenue bar at $96.0M; sequential momentum and synergy support FY 2025 guidance of $340.0M .
  • Margins improved into Q3 with consolidation; watch for Q4 margin disclosure and Telecom Division operating income trends to confirm sustained operating leverage .
  • Financing runway improved via 12-month note extensions to Q1 FY-2026, supporting growth without heightened dilution risk near term .
  • FY 2024 net revenue finished at $277.0M (95% of $290.0M target); the 2025 guidance implies renewed growth acceleration despite the modest 2024 shortfall .
  • The narrative is shifting toward monetizing high-margin AI/cyber offerings layered onto a scaled Telecom base; track product adoption and incremental margin in FY 2025 .
  • With uplisting progress and RPS > $1.32, the story remains levered to scale and valuation normalization; near-term trading catalysts include any margin disclosures, acquisition updates, and uplisting milestones .

Appendix: Source Documents

  • Q4 2024 8-K 2.02 earnings press release and exhibits (Jan 6, 2025) .
  • Q4 2024 earnings press release (Jan 6, 2025) .
  • Q4 2024 guidance press release (Dec 18, 2024) .
  • Q3 FY-2024 shareholder letter press release (Nov 14, 2024) .
  • Q2 FY-2024 press release and financial highlights (Aug 14, 2024) .
  • Convertible notes extension press release (Oct 21, 2024) .