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OI

Oblong, Inc. (OBLG)·Q4 2024 Earnings Summary

Executive Summary

  • Revenue of $0.563M declined 40% year over year and 3% sequentially; gross profit was $0.135M and net loss improved to $0.884M on streamlined operations and expected annual savings of $1.2M .
  • Cash was $5.0M with no debt at year-end; management reiterated confidence in liquidity runway into mid-2026 and continued exploration of strategic alternatives (M&A, reverse mergers, asset sales) .
  • Adjusted EBITDA loss of $0.929M was roughly flat year over year (vs $0.899M in Q4 2023) and better versus Q3 ($0.966M), reflecting cost discipline offsetting revenue pressure .
  • Post-quarter, the Board authorized a $0.5M stock buyback (up to ~25% of shares at then-current prices), adding a capital allocation catalyst while strategic review continues .

What Went Well and What Went Wrong

What Went Well

  • Liquidity and capital structure: $5.0M cash and zero debt at 12/31/24; regained full compliance with Nasdaq listing standards in September 2024, supporting balance sheet strength and listing stability .
  • Cost actions: Streamlined operations driving expected annual savings of $1.2M; management emphasized efficiency focus while maintaining liquidity into mid-2026 .
  • Loss moderation: Net loss improved to $0.884M in Q4 from $1.040M in Q3 and $1.221M in Q4 2023; AEBITDA improved vs Q3, aided by lower operating loss and cost controls .

What Went Wrong

  • Top-line pressure: Revenue fell to $0.563M (vs $0.578M in Q3 and $0.944M in Q4 2023), highlighting demand softness against the prior year and sequentially .
  • Margin compression vs prior year: Gross profit declined to $0.135M from $0.289M YoY; gross margin of ~24% vs ~31% in Q4 2023, reflecting weaker scale and mix effects .
  • AEBITDA flat YoY: Adjusted EBITDA loss of $0.929M was similar to Q4 2023 ($0.899M) despite opex reductions, indicating persistent revenue headwinds and limited operating leverage at current scale .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$0.944 $0.611 $0.578 $0.563
Net Loss ($USD Millions)$(1.221) $(0.983) $(1.040) $(0.884)
Diluted EPS ($USD)$(2.663)*$(1.377)*$(11.253)*$(0.794)*
Gross Profit ($USD Millions)$0.289 $0.120 $0.079 $0.135
Gross Margin %30.6% 19.6% 13.7% 24.0%
Adjusted EBITDA Loss ($USD Millions)$(0.899) N/A$(0.966) $(0.929)
Cash and Equivalents ($USD Millions)$5.990 $5.858 $5.619 $4.965

Note: * Values retrieved from S&P Global.

Additional details:

  • Operating loss: $(0.929)M in Q4 2024 vs $(1.276)M in Q4 2023 and $(1.072)M in Q3 2024 .
  • Non-GAAP reconciliation items in Q4 2024 included stock-based compensation $0.031M and interest income $(0.045)M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Liquidity runwayThrough mid-2026Not previously quantified“On track to maintain liquidity into mid-2026” New qualitative liquidity outlook
Operating expense savingsFY 2025Not providedExpected annual savings of $1.2M New (cost savings)
RevenueFY 2025Not providedNot providedMaintained: none provided
Margins (gross/EBITDA)FY 2025Not providedNot providedMaintained: none provided
OpExFY 2025Not providedFocus on efficiency; see $1.2M savings Clarified emphasis on cost discipline
OI&E / Tax rateFY 2025Not providedNot providedMaintained: none provided
Capital allocationProgram (authorized 4/22/25)N/A$0.5M stock buyback authorization New program

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in company filings or press materials; themes reflect press releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Nasdaq complianceReverse split (1-for-40) executed Aug 2024 to regain compliance; compliance confirmed Sept 2024 Management reiterates full compliance regained Completed and stable
LiquidityCash $5.6M at 9/30/24; additional $0.231M warrants exercised in Oct Cash ~$5.0M at 12/31/24; zero debt; confident liquidity into mid-2026 Stable with runway
Strategic alternativesExploring M&A, reverse mergers, asset sales to focus and expand liquidity Continued exploration of mergers/reverse mergers/asset sales to unlock value Ongoing review
Cost disciplineStreamlining operations; AEBITDA loss $1.0M in Q3 Expected annual savings $1.2M; AEBITDA loss $0.929M Improving efficiency
Product/CustomerMezzanine platform for Fortune 500 and enterprise customers referenced in each release Mezzanine positioning reiterated Consistent narrative

Management Commentary

  • “As of December 31, 2024, our financial footing remains strong, with $5.0 million in cash and zero debt…streamlined operations…expected annual savings of $1.2 million…on track to maintain liquidity into mid-2026…exploring…business combinations and reverse mergers…[and] a potential sale of certain assets…” — Peter Holst, CEO .
  • Q3 echo: “With this solid financial position, we believe we’re on track to maintain momentum into mid-2026…regained full compliance with Nasdaq’s listing standards…exploring…M&A, reverse mergers…sale of certain assets…” — Peter Holst, CEO .
  • Buyback program: “$500,000 stock buyback program…demonstrates our confidence in the Company’s intrinsic value…With a strong balance sheet, including $5.0 million in cash and no debt…” — Peter Holst, CEO .

Q&A Highlights

  • Not applicable: no Q4 2024 earnings call transcript was available in company filings or press materials.

Estimates Context

  • Consensus availability: S&P Global Wall Street consensus for Q4 2024 was unavailable for EPS and revenue; therefore, no beat/miss determination can be made. Actual revenue reported was $0.563M . Values retrieved from S&P Global.
MetricConsensus (Q4 2024)Actual (Q4 2024)
Revenue ($USD Millions)N/A*$0.563
EPS ($USD)N/A*$(0.794)*

Note: * Values retrieved from S&P Global.

Key Takeaways for Investors

  • Liquidity runway and zero-debt profile reduce near-term financing risk; management guides to mid-2026 liquidity based on current cash and efficiency initiatives .
  • Revenue softness persists (YoY and sequential declines), limiting operating leverage; sustained demand improvement is needed to translate cost cuts into EBITDA inflection .
  • AEBITDA loss improved vs Q3; continued cost discipline (expected $1.2M annual savings) is a tangible lever for cash preservation and margin stabilization .
  • Strategic review (M&A/reverse mergers/asset sales) remains the primary narrative driver; any transaction could materially alter the revenue base and operating profile .
  • The $0.5M buyback authorization provides a tactical capital allocation tool and potential stock support while deal-making progresses .
  • Listing stability: reverse split and compliance resolution de-risked delisting overhang, supporting investor confidence in market access .
  • Near-term: focus on cash discipline and updates from strategic alternatives; medium-term: monitor revenue trajectory in core Mezzanine business and any accretive transactions that can scale operating leverage .

Appendix: Prior Quarter Details (for trend analysis)

  • Q3 2024: Revenue $0.578M; gross profit $0.079M; operating loss $(1.072)M; net loss $(1.040)M; AEBITDA loss $(0.966)M; cash $5.619M .
  • Q2 2024: Revenue $0.611M; gross profit $0.120M; operating loss $(1.018)M; net loss $(0.983)M; cash $5.858M .
  • Q4 2023 (YoY comparator): Revenue $0.944M; gross profit $0.289M; operating loss $(1.276)M; net loss $(1.221)M; AEBITDA loss $(0.899)M; cash $5.990M .

All non-cited quantitative values marked with an asterisk are retrieved from S&P Global.