Executive Summary

Q1 2022 revenue rebounded sequentially to $13.3M (+27% QoQ) while declining 11% YoY versus the pandemic-peak Q1 2021; gross margin compressed to 31.5% (from 33.0% in Q4), and net loss improved to ($2.5)M with diluted EPS of ($0.06) .
The company maintained the #1 Amazon market share (~40%) for cable modems and gateways and doubled Walmart.com share to ~8%, supported by reestablished retail orders and higher ASP/MAP; management emphasized channel and product execution amid supply chain headwinds .
Liquidity and working capital: cash was $10.5M, inventory $30.0M, and bank credit line usage $7.1M; management expects cash to improve over the year as inventory sells through and receivables convert .
Risk catalyst: Nasdaq minimum bid price deficiency notice received April 25, 2022; management is monitoring and considering options while targeting sustainable growth and improved profitability trajectory .

What Went Well and What Went Wrong

What Went Well

Maintained #1 Amazon market share (~40%) for cable modems/gateways in Q1 and doubled Walmart.com share to ~8%; “We are encouraged by our first quarter results… strong performance with key retailers” .
Retail orders normalized: “resumed purchasing as evidenced by a 100%+ growth in Q1 orders when compared to last quarter” (CEO prepared remarks) .
Software-driven transformation advances: deferred revenue reached $832k and the company is “on track to exceed its goal of 100,000 Minim Intelligent Networks… now expects to hit this milestone mid-year” ; “just recently exceeded 80,000 Minim Intelligent Networks…” (President prepared remarks) .

What Went Wrong

Gross margin contracted to 31.5% (from 33.0% in Q4) due to component price inflation and supply chain disruptions; the team is using pricing actions and supplier diversification to mitigate the impact .
Mesh WiFi category entrance “more challenging than expected” (President), requiring shifts in marketing channels and greater brand awareness investment to drive scale .
Despite improved sequential loss, Q1 printed a net loss of ($2.5)M and diluted EPS of ($0.06); the company also disclosed receipt of a Nasdaq minimum bid deficiency notice, adding near-term market structure risk .

Financial Results

Metric	Q3 2021	Q4 2021	Q1 2022
Revenue ($USD Millions)	$15.0	$10.5	$13.3
Gross Margin (%)	29.9%	33.0%	31.5%
Net Income (Loss) ($USD Millions)	$1.7	($3.1)	($2.539)
Diluted EPS ($USD)	$0.04	($0.07)	($0.06)
Adjusted EBITDA ($USD Millions)	($1.4)	($3.1)	($1.664)

Year-over-year comparative (Q1 2021 vs Q1 2022):

Metric	Q1 2021	Q1 2022
Revenue ($USD Millions)	$15.018	$13.299
Net Income (Loss) ($USD Millions)	($0.546)	($2.539)
Diluted EPS ($USD)	($0.02)	($0.06)

KPIs and working capital trends:

KPI	Q3 2021	Q4 2021	Q1 2022
Amazon Cable Modem/Gateway Market Share (%)	41% (FY 2021 basis referenced)	–	~40% (Q1 position maintained)
Walmart.com Share (Cable Modem/Gateway) (%)	–	~4%	~8%
Average Selling Price (ASP) ($USD)	~$118	$95	$121
Amazon MAP ($USD)	–	$149	$164
Deferred Revenue ($USD Millions)	$1.2	$0.735	$0.832
Inventory ($USD Millions)	$23.2	$32.503	$29.957
Cash & Equivalents ($USD Millions)	$19.4	$12.570	$10.049 (plus $0.5 restricted = $10.5)
Bank Credit Line Outstanding ($USD Millions)	$7.1	$5.065	$7.072
Accounts Payable ($USD Millions)	–	$12.458	$8.208

Note: Minim reports as a single consumer networking/software business; no segment-level disclosure is provided in Q1 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Margin	FY 2022	–	Target to maintain ≥30% margin structure via pricing and mix	Maintained target level
Seasonality	Q2–Q3 2022	–	Expect predictable retail seasonality to continue	Maintained
Cash Trajectory	FY 2022	–	Cash expected to improve over the year as inventory sells through and AR collected; Q4→Q1 down, Q1→Q2 increase expected	Directional improvement
Inventory Levels	H1 2022	–	Managing down from elevated levels; balancing supply risk vs liquidity	Lowering
Revenue Outlook	FY 2022	–	Aspire to grow revenue relative to 2021	Positive aspiration (not formal guidance)
Profitability Trajectory	H2 2022	–	Expect to “turn the corner” on EBITDA profitability over the rest of the year, subject to pricing/cost/inflation	Improving trend

No formal numeric ranges were issued. Management provided directional commentary on margins, seasonality, cash, inventory, revenue ambition, and profitability trajectory .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2021)	Previous Mentions (Q4 2021)	Current Period (Q1 2022)	Trend
Supply chain & component inflation	Margin pressure; pricing actions; hedging via inventory/chips	Inventory buildup, factory shutdowns; tapering production; manage liquidity	China shutdowns complicate components; continue to burn down inventory from higher levels	Persistent headwind; mitigations ongoing
Pricing strategy	6% avg increases across 60% of portfolio	Maintain ~30% gross margin in Q4 via pricing/mix	Competitor price hikes create room; targeting ≥30% margins; pricing “what the market will bear”	Supportive for margin defense
Channel performance (Amazon/Walmart)	#2 Amazon; growing share; strong Best Buy	Expect Q1 QoQ growth; e-commerce focus	#1 Amazon (~40%); Walmart.com share doubled to ~8%; +110% QoQ sales in largest retail channel	Strengthening online and retail rebound
Mesh WiFi category	Launched MH7600; initial Amazon competition	Product delays impacted deferred revenue timing	Entrance “more challenging than expected”; shifting marketing; brand-building	Work-in-progress; strategy adjustment
Software transformation & deferred revenue	4 intelligent products; deferred revenue growth	Roadmap: app on any network; deferred revenue anomalies explained	80k+ intelligent networks; targeting 100k mid-year; deferred revenue $832k	Building recurring base
International expansion	India, Africa (MultiChoice), TIP/OpenWiFi	–	Paid trials with ISPs in Indonesia (800k subs) and India (300k subs)	Early traction; pipeline developing
Regulatory/listing	–	Investor engagement; not concerned about delisting	Nasdaq minimum bid deficiency notice disclosed	Listing risk elevated
Profitability/EBITDA	Target adj. EBITDA profitability in 2022	Adj. EBITDA -$3.1M; focus on improvement	Adj. EBITDA improved to -$1.664M; expect to turn corner over the year	Improving, but still negative

Management Commentary

“For Q1 2022, Minim GAAP revenue was $13.3 million up 27% compared to last quarter… Minim continues to outperform” (CEO) .
“We spent the quarter in the number one position for cable modem and gateway sales… with an estimated 40% market share [Amazon].” (President & CMO) .
“Our gross margin in Q1 was 31.5% down from 33% in Q4… Adjusted EBITDA came in at ($1.7) million, an improvement compared to ($3.1) million last quarter.” (CEO) .
“We exited Q1 with $30 million in inventory… Cash came in at $10.5 million exiting the quarter… we continue to expect our cash position to improve over the course of the year as we sell through.” (CEO) .
“Consumers continue to demand advanced connectivity solutions, evidenced by WiFi 6 mesh adoption… and connected devices per US broadband home grew from 13 to 16 last year.” (President & CMO, press release) .

Q&A Highlights

Supply chain: Shutdowns in China and chip shortages persist; strategy to manage down inventory from higher levels while hedging supply risk (CEO) .
Seasonality: Expect predictable retail seasonality to continue; no change anticipated (President & CMO) .
Margins and pricing: Confident in protecting ≥30% margins via pricing aligned to market competitiveness; environment remains fluid given component costs (President & CMO) .
Profitability timeline: Focused on turning the corner on EBITDA profitability as H2 seasonal tailwinds and pricing/cost actions flow through (CFO) .
Growth ambition and pipeline: Aspire to grow revenue vs 2021; launches of Motorola Q11 (AX3000) and Q14 (WiFi 6E) planned for summer, paired with enhanced motosync features (CEO/President) .
Policy tailwinds: Administration’s broadband affordability initiatives expand addressable market for premium value offerings and long-term CLTV strategy (CEO) .
Insider alignment/listing concerns: Board evaluating options; CEO highlighted prior $500k personal investment; ongoing monitoring of stock and compliance (CEO) .

Estimates Context

S&P Global consensus estimates for Q1 2022 were unavailable for MINM; we attempted to retrieve consensus via S&P Global’s GetEstimates but found no CIQ mapping for the ticker. As a result, no vs-estimates comparison is included for revenue or EPS [SpgiEstimatesError in tool output].
Given the absence of published consensus, investors should focus on sequential performance, margin trajectory, and management’s directional outlook .

Key Takeaways for Investors

Sequential revenue recovery (+27% QoQ) and improved adjusted EBITDA signal execution despite macro and supply chain headwinds; focus turns to sustaining margin defense and H2 profitability ramp .
Channel strength persists: #1 Amazon share and Walmart.com share gains provide a credible path to continued sell-through as retail orders normalize .
Pricing actions and competitor hikes create room to protect ≥30% margins, but component cost volatility requires ongoing vigilance; monitor Q2/Q3 margin prints closely .
Liquidity hinges on inventory sell-down; management expects cash improvement through 2022 as inventory and payables normalize; watch working capital cadence and LOC usage .
Product catalysts: Upcoming Q11/Q14 (WiFi 6/6E) and broader motosync distribution/feature upgrades aim to expand CLTV and deferred revenue—key to the medium-term software thesis .
International trials (Indonesia/India) and TIP/OpenWiFi platform align with low-cost router deployment opportunities—potential optionality for FY23+ .
Near-term risk: Nasdaq minimum bid deficiency notice; potential corporate actions under consideration; investor day in June and continued disclosures may act as sentiment catalysts .

MINIM, INC. (MINM)·Q1 2022 Earnings Summary