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OI

Odysight.ai Inc. (ODYS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $1.304M, with gross margin of ~35.4%, driving FY 2024 revenue to $3.964M (+31% YoY) and FY gross margin to 29% from 17% YoY .
  • Backlog stood at ~$15M at year-end (vs ~$16M at 9/30), reflecting inaugural Aerospace revenues and a strategic pivot from Medical to Aerospace and Transportation .
  • Management emphasized launching a SaaS model for AI-based video analytics to expand monetization and reach; operating expenses rose with I4.0 product development and scaling .
  • No numeric guidance or Wall Street consensus (EPS/Revenue) was available for Q4; result narrative centered on price/mix improvements and new aerospace programs rather than beats/misses versus estimates .

What Went Well and What Went Wrong

What Went Well

  • Inaugural Aerospace revenues and strategic wins (IAF, NASA, Safran, Israel Railways) contributed to a >450% increase in backlog to ~$15M and revenue growth (+31% YoY) . “We expect that this trend will continue… our next step is to offer our pioneering solutions… on a SaaS model” — CEO Yehu Ofer .
  • Gross margin improved to 29% in FY 2024 (from 17% in FY 2023) driven by Industry 4.0 revenues and higher unit sale prices to a Fortune 500 healthcare customer .
  • Strengthened liquidity: $18.5M cash at 12/31/24, plus $23.7M gross proceeds from Feb-2025 offering; net cash position of ~$39M as of 2/28/25 (post-period) .

What Went Wrong

  • Operating loss widened in Q4 (derived) as OpEx increased with scaling and new product development; FY OpEx rose 23% to $13.7M .
  • Continued net losses: FY 2024 net loss was $(11.8)M; quarterly net loss in Q4 (derived) was $(3.56)M .
  • Customer concentration risk remains: “A substantial portion of our current revenue comes from a limited number of customers,” heightening execution risk as the company transitions sectors .

Financial Results

Quarterly performance vs prior quarter

MetricQ3 2024Q4 2024
Revenue ($USD)$1,292,000 $1,304,000
Cost of Revenues ($USD)$887,000 $843,000
Gross Profit ($USD)$405,000 $461,000
Gross Margin %31.3% (derived from 405/1,292) 35.4% (derived from 461/1,304)
Operating Loss ($USD)$(3,016,000) $(3,763,000) (derived from FY − 9M)
Net Loss ($USD)$(2,867,000) $(3,556,000) (derived from FY − 9M)
EPS ($USD)$(0.23) n/a (not disclosed)

Notes: Q4 values are derived by subtracting nine-month totals from full-year totals using reported figures .

Annual comparison (YoY)

MetricFY 2023FY 2024
Revenue ($USD)$3,033,000 $3,964,000
Cost of Revenues ($USD)$2,524,000 $2,807,000
Gross Profit ($USD)$509,000 $1,157,000
Gross Margin %17% 29%
Operating Loss ($USD)$(10,633,000) $(12,507,000)
Net Loss ($USD)$(9,445,000) $(11,767,000)

Revenue mix (Products vs Services)

Metric9M 2024Q3 2024
Development Services ($USD)$843,000 $105,000
Products ($USD)$1,817,000 $5,000
Total Revenues ($USD)$2,660,000 $110,000

KPIs and balance metrics

MetricQ3 2024Q4 2024
Backlog ($USD)~$16.0M ~$15.0M
Remaining Performance Obligations (RPO) ($USD)~$16.0M n/a (not disclosed)
Cash Balance ($USD)$21.2M (as of 9/30/24) $18.5M (as of 12/31/24)
Contract Liabilities (Total, $USD)$2,094,000 $2,075,000 (short $702k + long $1,373k)

Results vs Estimates (Wall Street Consensus)

MetricQ4 2024 ActualQ4 2024 ConsensusSurprise
Revenue ($USD)$1,304,000 n/a*n/a*
EPS ($USD)n/an/a*n/a*

*Values retrieved from S&P Global. Consensus coverage was unavailable.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025n/an/an/a
Gross Margin %FY 2025n/an/an/a
OpExFY 2025n/an/an/a
Operating Income/LossFY 2025n/an/an/a
OI&EFY 2025n/an/an/a
Tax RateFY 2025n/an/an/a
Segment-specificFY 2025n/an/an/a
DividendsFY 2025n/an/an/a

Odysight.ai did not provide numeric guidance in its Q4/FY 2024 press release; disclosures focused on backlog, sector transition, and capital position .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found in company filings or our document catalog for ODYS.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
AI/technology initiativesFocused R&D in Industry 4.0 (I4.0) domains; increased stock-based comp and materials for I4.0 projects Emphasis on launching SaaS model for AI-based video analytics and ML algorithms Increasing tech commercialization focus
Aerospace contractsPO >$10M with leading defense contractor; orders for IAF Apache and Seahawk upgrades; repeat NASA orders; Safran engines order Inaugural Aerospace revenues; backlog concentrated on Aerospace; expectation of continued trend Strengthening pipeline and revenue contribution
Supply chain/macro risksReliance on single suppliers and components noted; concentration risk Reiterated broader risk factors incl. supplier reliance and geopolitical risks in Israel Ongoing risk disclosure
R&D executionR&D expenses +15% YoY for 9M; continued investment in product development FY OpEx +23% YoY tied to expansion and I4.0 product development Elevated investment continues
Sector transitionFrom Medical toward Aerospace and Transportation Transition “already yielding positive results”; aerospace-led backlog Transition advancing

Management Commentary

  • CEO Yehu Ofer: “We are excited with the increasing recognition… in the Aerospace industry… Our next step is to offer our pioneering solutions… on a Software-as-a-Service (SaaS) model… expand into transportation and energy” .
  • CFO Einav Brenner (FY): “Strong revenue growth and expanding backlog underscore the effectiveness of our strategic initiatives… uplisting to Nasdaq and $23.7M gross proceeds have strengthened our financial position” .
  • CFO Einav Brenner (Q3): “We continue to improve our financial performance, as reflected by the significant signed agreement exceeding $10 million and our backlog level” .

Q&A Highlights

No Q4 2024 earnings call transcript available; therefore, no Q&A highlights or guidance clarifications were disclosed in primary sources.

Estimates Context

  • Wall Street consensus (S&P Global) was unavailable for ODYS Q4 2024 revenue and EPS; only actuals are recorded (e.g., Q4 revenue $1.304M) with no estimate series present* .
  • Estimate models may need to incorporate: (1) aerospace revenue ramp, (2) SaaS model potential, (3) higher OpEx run-rate tied to I4.0, and (4) customer concentration and fulfillment timing.

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • The aerospace-led pivot is gaining traction: inaugural revenues, multi-program wins, and a ~$15M year-end backlog provide near-term visibility .
  • Pricing/mix improvements and I4.0 revenues drove margin expansion; Q4 gross margin (~35%) was higher than Q3, supporting a trajectory toward scalable monetization as SaaS rolls out .
  • Liquidity remains solid, with $18.5M cash at year-end and subsequent $23.7M gross capital raise; however, OpEx intensity (R&D and G&A) is elevating burn and pushes out profitability .
  • Customer concentration and supplier reliance are key execution risks; diversification of revenue sources and successful backlog-to-revenue conversion will be stock-moving milestones .
  • Near-term trading implications: headlines on new aerospace deployments, SaaS launch details, and backlog conversions could catalyze momentum; absence of guidance/consensus may amplify volatility around announcements .
  • Medium-term thesis: watch for (i) recurring SaaS revenues, (ii) additional defense/transportation contracts, (iii) margin leverage from scale and software mix, and (iv) balance between growth investment and cash runway .
  • Monitoring list: quarterly backlog/RPO updates, segment mix evolution, any disclosure of ARR or SaaS KPIs, and customer diversification metrics in future filings .