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SKYX Platforms Corp. (SKYX)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $23.7M, up 6.8% year over year and 6.7% quarter over quarter; management highlighted four consecutive quarterly revenue increases in 2024 and reiterated expectations to be cash flow positive in H2 2025 .
  • Versus Wall Street consensus, revenue was a slight beat (+$0.08M, +0.3%), while EPS missed (actual -$0.1147 vs -$0.0775 consensus, a -$0.0372 delta); mix shifts and timing of higher-margin “blades” weighed on Q4 gross margin, which management expects to improve as the full assortment arrives by Q2 2025 .
  • Strategic execution advanced: deepening retail partnerships (Home Depot, Wayfair), builder and hotel channel traction, and leadership hires (Huey Long, Greg St. John) to accelerate e-commerce and retail rollout .
  • Regulatory and supply chain positioning strengthened: code-standardization efforts gained momentum, and tariff risk mitigation via Vietnam/Cambodia/Taiwan sourcing was reaffirmed, reducing potential macro headwinds .
  • Near-term stock catalysts: confirmation of margin recovery as “blade” products scale, additional builder/hotel orders, expanded Home Depot/Wayfair footprint, and updates on code standardization/licensing initiatives .

What Went Well and What Went Wrong

  • What Went Well

    • Four straight quarterly revenue increases in 2024 culminating in a Q4 record $23.7M; FY revenue +48% to $86.3M, with reduced G&A and lower net loss per share .
    • Channel expansion: collaborations with Home Depot and Wayfair for advanced and smart plug & play products; builder/hotel momentum including JIT distribution and luxury developments .
    • Management confidence and strategic clarity: “Razor & Blade” model with recurring revenue potential; quote: “We expect significant projects and order growth, resulting in becoming cash flow positive in the second half of 2025.” .

  • What Went Wrong

    • Gross margin dipped in Q4; management attributed this to product mix and timing, with improvement expected once the full assortment and higher-margin “blades” are blended in by Q2 .
    • EPS missed consensus despite revenue beat, reflecting margin pressure and operating mix in the quarter* [GetEstimates].
    • Cash used in operating activities increased year over year at FY level ($18.3M vs $13.0M), reflecting growth investments even as management reduced G&A and improved working capital dynamics .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$22.17 $21.40 $22.20 $23.70
Diluted EPS ($USD)-$0.1338*-$0.0750*-$0.0833*-$0.1147*
Gross Margin %29.9%*30.7% 30.9% 23.6%*
Gross Profit ($USD Millions)$6.63*$6.58 $6.80 $5.60*
  • Segment breakdown: Not applicable; SKYX does not report discrete segment revenues. Management commentary indicates revenue mix across e-commerce, retail (Home Depot/Wayfair), and professional/builder channels .

KPIs (Annual)

KPIFY 2023FY 2024
Revenue ($USD Millions)$58.79 $86.28
Gross Profit ($USD Millions)$18.04 $24.59
Gross Margin %30.7%*28.5%*
Net Loss ($USD Millions)-$39.73 -$35.77
Net Loss per Share ($USD)-$0.45 -$0.36
Cash, Cash Equivalents & Restricted Cash ($USD Millions)$22.43 $15.50

Note: *Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash flow positiveFY 2025“Cash flow positive during 2025” “Cash flow positive during H2 2025” Maintained, timing specified
Homes/units with productsQ1 2025 & 2025~15,000 homes by end of 2024; “tens of thousands” in 2025 20,000 homes/units by end of Q1 2025; additional tens of thousands in 2025 Raised near-term penetration
Gross margin trajectory1H 2025Margin improving with JV/product mix in late 2024/2025 Q4 margin dipped; expect significant improvement as assortment completes by Q2 and “blades” ramp Near-term weaker; medium-term improving
Tariffs impact2025Mitigation via Vietnam/Taiwan; prepared for tariff scenarios New tariffs should not affect business; options in Vietnam/Cambodia/Taiwan Reaffirmed mitigation

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Retail partnerships (Home Depot, Wayfair)Announced HD collaboration; products to website/stores ~100 HD stores; online performance to inform store rollout Ongoing expansion; increasing assortment; in-store programs under development Broadening presence
Builder/hotel channelPreparing assortment for builders; targeting multi-product rollout Florida builder order timing; hotels interest; faster installs via plug & play 20,000 units by Q1; hotels (Shaner Group) and developers detailed; distribution via JIT Accelerating
Gross marginQ2 margin 30.7%; improving mix Q3 margin 30.9%, sequential improvement Q4 margin dip; expecting rebound by Q2 as blades arrive Short-term dip, medium-term recovery
Supply chain/tariffsBackup manufacturing (Vietnam/Taiwan), Ruee collaboration Tariff scenario planning; factories outside China Tariff mitigation confirmed (Cambodia/Vietnam/Taiwan); minimal expected impact Risk mitigated
Regulatory/code standardizationFiled mandatory NEC; ANSI/NEMA approvals; leadership team Process lengthy; progressing; insurance recommendation path Additional safety org support anticipated; confidence in mandatory standardization Momentum building
Technology/licensing (GE, Gen 3)5-year GE licensing partnership; recessed light patents Gen 3 timing; licensing via GE; WiFi/AI performance benefits Continued GE collaboration; product roadmap tied to assortment rollout Advancing roadmap

Management Commentary

  • “We grew our revenue 48% in 2024, from $58.8 million in ’23 to $86.3 million in 2024… We expect significant projects and order growth, resulting in becoming cash flow positive in the second half of 2025.” — Steven Schmidt .
  • “We continue to focus on our Razor & Blade model… advanced ceiling electrical outlet (Razor) and smart home plug and play products (Blades)… opportunities for recurring revenues through interchangeability, upgrades, monitoring and subscriptions.” — Steven Schmidt .
  • “Our code team… believes [we] met all the criteria to become mandatory… we anticipate major support from additional safety organizations.” — Rani Kohen .
  • “Adjusted EBITDA loss per share… $(0.13) in 2024 vs $(0.17) in 2023… gross profit increased 36% YoY.” — Leonard Sokolow .

Q&A Highlights

  • Tariffs: Sourcing diversification already in place (Vietnam, Taiwan, Cambodia); management expects minimal impact despite new tariffs .
  • Gross margin dip: Driven by product mix/timing; higher-margin “blades” (fans, wall sconces, recessed lights, exit/emergency) expected to lift margins as full assortment arrives by Q2 2025 .
  • Retail rollout: HD and Wayfair assortments expanding monthly; in-store programs being developed; online traction expected to precede broader store placement .
  • E-commerce leadership: Huey Long (ex-Amazon/Walmart/Ashley) joining to scale 60-site platform and B2B penetration; software and conversion initiatives planned .
  • Builder channel: Expect ~20,000 units/homes by end of Q1 2025 and “tens of thousands” more in 2025; hotel owners engaged (e.g., Shaner Group) .

Estimates Context

Metric (Q4 2024)ConsensusActualSurprise
Revenue ($USD Millions)$23.60*$23.68*+$0.08 (+0.3%)*
EPS ($USD)-$0.0775*-$0.1147*-$0.0372*
  • Revenue was a slight beat; EPS missed meaningfully. The miss aligns with management’s commentary on margins and product mix timing (assortment not fully blended yet) .
    Note: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue trajectory remains positive; Q4 delivered record sales with retail and builder channels expanding—watch for confirmation of margin recovery as “blades” scale by Q2 2025 .
  • EPS miss reflects near-term margin pressure; management expects gross margins to rise with higher-margin products and JV collaborations—monitor SKU mix and cadence of arrivals .
  • Supply chain/tariff risk appears mitigated through diversified manufacturing, reducing macro downside risk to execution .
  • Regulatory tailwinds (NEC mandatory standardization efforts) and potential insurance recommendations could create a structural adoption catalyst; track updates from the code team .
  • Strategic hires and partnerships (Home Depot, Wayfair, JIT, GE Licensing) should enhance distribution, brand presence, and potential licensing revenue over time .
  • Near-term trading setup: Any tangible updates on margin recovery, builder/hotel orders, and store rollouts could re-rate the stock; conversely, delays in assortment arrivals may pressure profitability near term .
  • Medium-term thesis: Platform, patents, and “Razor & Blade” model with recurring revenue potential support scaling across retail/professional channels; licensing (GE) and code standardization are upside optionality .

Disclosures:

  • Quarterly/annual financial values with an asterisk were retrieved from S&P Global.
  • All other facts and figures are cited from SKYX’s Q4 2024 earnings materials, press releases, and 8-K filings: earnings call transcripts , Q4 press release/8-K , preannouncement release/8-K , and prior quarters Q2/Q3 2024 materials .