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META MATERIALS INC. (MMAT)·Q1 2024 Earnings Summary
Executive Summary
- Q1 2024 revenue rose to $3.27M, up 132% year over year and 40.9% sequentially, with gross margin expanding to 78% on stronger development work for a G10 central bank .
- EPS was $(1.21), improving versus $(5.06) in Q1 2023; operating loss narrowed meaningfully amid a large reduction in operating expenses year over year .
- Liquidity remains constrained: cash and restricted cash were $6.96M at quarter-end, working capital deficit was $7.9M, and management disclosed substantial doubt about going concern, evaluating strategic alternatives including divestitures or sale of the company .
- Post-quarter, the board approved an ~80% workforce reduction; META estimated severance-related charges of ~$2.3M and warned of potential facility shutdowns or bankruptcy absent new cash inflows—an acute stock narrative catalyst .
What Went Well and What Went Wrong
What Went Well
- Strong top-line and margin recovery: revenue grew 132% YoY to $3.27M, with gross margin up to 78% driven by central-bank contract services, resulting in a $1.87M YoY increase in gross profit .
- Cost discipline: total operating expenses fell to $8.49M from $19.23M YoY, reflecting realignment actions; management noted meaningful declines in G&A, D&A, stock comp, and R&D spending versus Q1 2023 .
- Management reiterated focus on core businesses (authentication, wide area motion imagery, battery materials, transparent conductive films): “substantial progress has been made in restructuring our corporate structure to decrease operating expenses and concentrate on key areas with significant revenue potential” .
What Went Wrong
- Liquidity strain and going concern: cash and restricted cash were $6.96M with a $7.9M working capital deficit; management disclosed “substantial doubt” about continuing as a going concern absent new capital or asset sales .
- Customer concentration risk: two customers represented ~91% of revenue (79.8% and 11.5%), heightening execution risk if programs slip .
- Post-quarter severity increased: the ~80% workforce reduction, estimated $2.3M in severance costs, and explicit warning of possible bankruptcy underscore acute balance-sheet fragility and ongoing funding risk .
Financial Results
Notes: Operating margin is calculated from cited revenue and GAAP loss from operations for each period .
Segment/Revenue Mix
Geography (Revenue)
KPIs and Balance Sheet/Liquidity