Odysight.ai Inc. (SCTC)·Q2 2024 Earnings Summary

Executive Summary

• Q2 showed a sharp step-up in revenue and gross profit: revenue rose to $1.18M, up 75% YoY and up meaningfully QoQ from $0.19M; gross profit swung to +$0.51M from a loss last year, supported by higher unit pricing to a Fortune 500 healthcare customer and lower material costs .
• Management highlighted a cash balance of ~$13.5M at 6/30 and subsequently raised ~$10.3M via a July private placement to accelerate growth and pursue a Nasdaq uplisting, bolstering liquidity and execution runway .
• Strategic momentum continued in aerospace/defense with purchase orders tied to IAF Apache and Seahawk platforms, and an inaugural order from Safran Aircraft Engines, reinforcing the PdM/CBM thesis in aviation .
• No formal financial guidance or sell-side estimates were available; near-term catalysts include defense program conversions, industrial/I4.0 traction, and listing progress. S&P Global consensus estimates were unavailable for SCTC at this time.

What Went Well and What Went Wrong

• What Went Well

  • Gross profit inflected positive as cost reductions and improved pricing drove margin expansion; Q2 gross profit was $0.51M vs a loss in Q2’23, with management attributing drivers to unit price increases and lower material costs .
  • Commercial traction in aerospace/defense: POs linked to IAF Apache prototype and Seahawk upgrades, plus the first order from Safran Aircraft Engines, broaden exposure and validation across platforms .
  • Balance sheet reinforcement: ~$13.5M cash at Q2-end and ~$10.3M gross proceeds raised in July to accelerate growth and support uplisting efforts .

• What Went Wrong

  • Operating losses persist, albeit narrowing: Q2 operating loss was $(2.36)M vs $(3.12)M YoY; net loss remained $(2.18)M, reflecting continued R&D and G&A investments .
  • Customer concentration remains a risk; management notes substantial reliance on a limited number of customers, including a Fortune 500 healthcare customer .
  • No published numeric guidance and no earnings call transcript; limited external estimate coverage complicates near-term modeling and “beat/miss” framing .

Financial Results

Segment revenue breakdown

KPIs and balance sheet indicators

Notes: Cash Balance at 6/30 includes cash, cash equivalents and restricted cash (~$13.55M per cash flow statement) .

Guidance Changes

No formal quantitative guidance was issued in Q2 materials .

Earnings Call Themes & Trends

No Q2 earnings call transcript was available; themes derived from filings and press releases.

Management Commentary

• “I am proud of Odysight.ai’s achievements in the first half of 2024, as evidenced by the meaningful purchase orders from the IAF, Israel Ministry of Defense and Safran.” — Yehu Ofer, CEO .
• “Odysight.ai continues to improve its financial performance, reflected by upward trending aerospace revenue… [the $10.3M private placement] provid[es] the capital to accelerate our growth.” — Einav Brenner, CFO .
• “This order represents a critical turning point… We are proud to have purchase orders for systems to be installed on Boeing and Lockheed Martin aerial platforms….” — Yehu Ofer, on Seahawk PO >$1M .
• “This order signifies our entry into the realm of experimental design and development of aviation engines.” — Yehu Ofer, on Safran Aircraft Engines order .

Q&A Highlights

No Q2 earnings call transcript was published for SCTC; therefore, Q&A highlights and any clarifications typically provided on a call are unavailable [ListDocuments showed no earnings-call-transcript for SCTC].

Estimates Context

• S&P Global/Capital IQ consensus estimates for revenue/EPS and target price were unavailable for SCTC at this time. As a result, “vs. estimates” comparisons cannot be assessed for Q2 2024. Values retrieved from S&P Global were unavailable due to missing mapping.

Where relevant, internal comparisons vs prior periods are provided from company filings.

Key Takeaways for Investors

• Revenue inflection and margin proof point: Q2 revenue of $1.18M and gross profit of $0.51M demonstrate improved pricing and production cost discipline; monitor durability into H2 as aerospace revenues scale .
• Pipeline-to-revenue conversion: Multiple aerospace/defense POs (IAF Apache prototype, Seahawk upgrade, Safran) validate product-market fit in high-value PdM/CBM niches; watch for follow-on orders and program rollouts .
• Liquidity and runway: ~$13.5M cash at Q2-end plus ~$10.3M raised in July supports R&D, commercialization, and potential uplisting costs; reduces near-term financing risk .
• Risks: Continued operating losses and customer concentration warrant focus on diversification and operating leverage as volumes scale .
• Near-term catalysts: Additional defense awards, industrial I4.0 deployments, and progress toward a Nasdaq uplisting (which could broaden investor base and coverage) .
• What to monitor: QoQ revenue cadence, gross margin sustainability, backlog/RPO growth, and any formalization of guidance or sell-side coverage to frame expectations .

Supporting detail and sources:

• Q2 2024 results (10-Q): revenue, margins, losses, segment mix .
• Q1 2024 results (10-Q) for trend context .
• H1/Q2 earnings press release (8-K 2.02) .
• Private placement and uplisting context .
• Press releases on defense/aviation orders (Apache, Seahawk, Safran) .