Executive Summary

Q1 2023 revenue was $2.77M, down 29% year over year; gross margin compressed to 2.6%, and net loss improved to $(7.39)M versus $(12.50)M in Q1 2022 as fair value changes and other income offset operating losses .
Management cut full‑year 2023 standalone guidance to $11–$13M revenue and $(12.5)–$(10.5)M Adjusted EBITDA, down from prior $14–$17M revenue and $(8.5)–$(6.5)M Adjusted EBITDA; they also provided scenarios including the Optimum acquisition and full‑year pro forma ranges .
Strategic focus remains on closing the Optimum Design Associates acquisition and launching a new customer portal (delays noted for both), with expected operational synergies once completed .
Multiple Nasdaq non‑compliance notices (MVLS, bid price, MVPHS) create listing risk and potential stock overhang; liquidity and going‑concern disclosures highlight financing needs as catalysts for investor reaction .
No Q1 2023 earnings call transcript was located; results were communicated via the 8‑K press release and 10‑Q .

What Went Well and What Went Wrong

What Went Well

“We continued to see strong customer engagement for our software-accelerated platform across multiple industries,” said CEO Joy Weiss, underscoring demand resilience despite macro softness .
Adjusted EBITDA loss improved year over year to $(4.09)M from $(7.73)M, reflecting lower operating expenses and cost actions versus the prior year .
Strategic M&A: Agreement to acquire Optimum Design Associates to add profitable revenue and engineering resources, with expected acceleration of customer time‑to‑market via combined capabilities .

What Went Wrong

Revenue fell 29% year over year on component shortages, a large customer’s NPI program ending, and macro caution; gross margin declined to 2.6% on higher direct materials costs .
Delay in launching the new customer portal and delays in securing financing to close the Optimum deal pushed out timelines, leading to guidance reduction .
Liquidity constraints: cash fell to $2.23M, working capital deficiency widened to $33.5M, and Nasdaq non‑compliance notices (MVLS, bid price, MVPHS) increased listing risk .

Financial Results

Metric	Q1 2022	Q3 2022	Q1 2023
Revenue ($USD Millions)	$3.897	$2.393	$2.773
Gross Profit ($USD Millions)	$0.245	$0.284	$0.073
Gross Margin %	6.3%	—	2.6%
Net Loss ($USD Millions)	$(12.501)	$(76.511)	$(7.387)
Diluted EPS ($USD)	$(1.85)	$(7.59)	$(0.28)
Adjusted EBITDA ($USD Millions)	$(7.734)	$(3.816)	$(4.087)

Notes:

Segment: Single operating segment; substantially all revenue is domestic .
No Wall Street consensus: S&P Global consensus data was unavailable for TMPO; estimates comparison could not be provided.

KPIs and Balance Sheet (Sequential)

Metric	Q4 2022 (Dec 31, 2022)	Q1 2023 (Mar 31, 2023)
Cash and Equivalents ($USD Millions)	$7.113	$2.227
Restricted Cash ($USD Millions)	$0.320	$0.320
Accounts Receivable ($USD Millions)	$2.633	$1.934
Inventory ($USD Millions)	$2.578	$2.342
Contract Liabilities ($USD Millions)	$2.595	$2.552
Working Capital Deficiency ($USD Millions)	$31.1	$33.5
Loan Payable – Current ($USD Millions, FV)	$20.977	$18.275

Non‑GAAP: Adjusted EBITDA excludes stock‑based compensation, fair value changes (warrants, debt, earnouts), M&A costs, restructuring, depreciation and amortization, and other one‑time charges; definitions and reconciliations provided in the press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2023 (Standalone TMPO)	$14.0–$17.0M	$11.0–$13.0M	Lowered
Adjusted EBITDA	FY 2023 (Standalone TMPO)	$(6.5)–$(8.5)M	$(12.5)–$(10.5)M	Lowered
Revenue	FY 2023 (Including Optimum close by 6/30/23)	N/A	$15.6–$19.6M	New scenario
Adjusted EBITDA	FY 2023 (Including Optimum)	N/A	$(11.0)–$(8.0)M	New scenario
Revenue	FY 2023 (Pro forma as if Optimum closed 1/1/23)	N/A	$21.3–$25.3M	New scenario
Adjusted EBITDA	FY 2023 (Pro forma as if Optimum closed 1/1/23)	N/A	$(9.0)–$(6.0)M	New scenario

Drivers cited: macro caution among customers/vendors, portal launch delay, and financing delays for Optimum closing affecting timelines .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2022)	Current Period (Q1 2023)	Trend
Technology initiatives (customer portal)	Next major release scheduled for Q1 2023 to enhance self‑service and automation .	Portal trials to launch, but delay contributed to slower than expected sales; features include real‑time PCBA pricing and supply visibility .	Delay; execution risk rising
Supply chain (components)	Significant shortages impacted revenue; strategy to manage inventories .	Continued shortages pressured direct materials and margins, elongating revenue recognition timelines .	Persistent headwind
Macro/customer caution	Focus on growth post‑business combination; modest increases in marketing planned .	Heightened caution among customers/vendors cited in guidance reduction .	Deteriorated
Regulatory/listing	Public listing completed; no warnings noted .	Nasdaq MVLS, bid price, and MVPHS deficiency notices received; potential transfer to Capital Market noted .	Negative risk
M&A (Optimum)	No specific target named; intent for disciplined inorganic investments .	Signed Securities Purchase Agreement; benefits outlined; closing contingent on financing/approvals .	Strategic priority; financing risk

Management Commentary

“We continued to see strong customer engagement for our software‑accelerated platform across multiple industries… We look forward to closing the Optimum transaction and further extending our engagement opportunity across the entire new product design and manufacturing process.” — Joy Weiss, CEO .
Growth strategy centers on enhancing a software‑accelerated PCBA platform and data‑driven automation; management sees M&A as a lever to scale and improve margins in a fragmented industry .
Liquidity and going‑concern disclosure: negative operating cash flow, low cash, and upcoming obligations necessitate additional debt/equity financing to support operations and close the Optimum deal .

Q&A Highlights

No Q1 2023 earnings call transcript or Q&A session was located; results commentary and guidance were provided via press release and 10‑Q filings .

Estimates Context

S&P Global (Capital IQ) consensus estimates were unavailable for TMPO during Q1 2023; SPGI mapping for the ticker was not present, so comparisons to consensus EPS/revenue could not be made. As a result, estimate beats/misses cannot be assessed for this quarter.

Key Takeaways for Investors

Operating momentum mixed: revenue down 29% YoY and gross margin at 2.6%, but net loss improved YoY and Adjusted EBITDA loss narrowed as cost actions took hold .
Guidance reset is material; near‑term delivery depends on portal execution and component availability, with macro caution cited as a driver of the cut .
Optimum acquisition is central to the thesis (profitable revenue, engineering depth, cross‑sell), but closing hinges on financing and regulatory approvals; pro forma ranges imply meaningful uplift if executed .
Liquidity risk elevated: $2.23M cash, $33.5M working capital deficiency, and reliance on external financing to continue as a going concern; watch for funding announcements/terms .
Listing risk: multiple Nasdaq deficiency letters (MVLS, bid price, MVPHS) could pressure investor sentiment and create technical trading risks; management may consider transfer to Capital Market .
Concentration risk remains: one customer accounted for 46% of Q1 revenue, underscoring volatility in demand and importance of diversification .
Near‑term trading implications: headline sensitivity to financing progress and acquisition milestones; medium‑term thesis depends on integrating Optimum and delivering portal‑enabled efficiency gains that stabilize margins and drive growth .

Tempo Automation Holdings, Inc. (TMPO)·Q1 2023 Earnings Summary