Executive Summary

Q4 2023 revenue of approximately $0.42M came in far below prior company guidance of $1.0–$1.4M, implying a material shortfall versus expectations; EPS was approximately -$0.22, according to automated coverage citing company filings, while the company did not furnish a Q4-specific 8-K earnings release or call transcript .
Management pre-released preliminary full-year 2023 results on March 25, 2024—total revenue expected $1.9–$2.1M and net loss $17.7–$19.7M—confirming muted year-end trends and setting up a 2024 pivot focused on WiSA E licensing and cost control .
Positive strategic momentum continued on WiSA E: 3 signed licensing agreements by March 2024 with expectations for more in 1H24; engineering added features to reduce OEM integration costs (4-channel RX, SRC), though revenue contributions were weighted to 2024+ .
Key factors behind the Q4 underperformance versus guidance include revenue pulled forward into Q3 and promotional pricing in consumer audio; management also recorded a $1.4M Q3 inventory reserve tied to legacy HT chips, impacting margin structure heading into Q4 .

What Went Well and What Went Wrong

What Went Well

WiSA E commercial traction: 3 licensing agreements signed by March 25, 2024, with expectations for 3 additional by end of Q2 2024; “The company expects some of the licensees to start production in Q3’24” .
Product enhancements lower OEM integration costs: 4-channel RX output and software sample-rate converter (SRC) aimed at reducing bill-of-materials and time-to-market for partners .
Growing funnel/engagement: Following WiSA E launch, management held 60+ meetings with ~33 companies; 13 display brands engaged, 7 reviewing the licensing agreement by mid-November 2023 .
- Quote: “We are increasingly confident about prospects for WiSA E’s adoption as the leading wireless audio technology” .

What Went Wrong

Revenue shortfall vs guidance: Q4 2023 revenue around $0.42M versus prior guidance of $1.0–$1.4M; management indicated some revenue was pulled into Q3, diminishing Q4 .
Margin pressure and inventory actions: In Q3, WiSA recognized a $1.4M inventory reserve related to legacy HT chips, driving a -217% gross margin in Q3 and complicating exit-rate margins heading into Q4 .
Consumer audio softness and promotional pricing: Management cited lower pricing to convert inventory to cash, suppressing margins; seasonality didn’t offset the pull-in from Q4 to Q3 sufficiently .

Financial Results

Note: WiSA did not furnish a standalone Q4 2023 8-K 2.02 with detailed quarterly P&L. The best available sources are: (a) preliminary full-year 2023 update on March 25, 2024 (Item 2.02), (b) quarterly press releases (Q2, Q3 2023), and (c) an automated earnings note citing company filings for Q4 2023. Where S&P Global consensus is unavailable, it is noted.

Revenue time series (USD Millions)

Metric	Q4 2022	Q2 2023	Q3 2023	Q4 2023
Revenue ($MM)	$0.9	$0.4	$0.8	$0.42

EPS and margins

Metric	Q4 2022	Q2 2023	Q3 2023	Q4 2023
EPS (Diluted) ($)	N/A (not disclosed in press release)	N/A	N/A (focus on revenue/margins)	-0.22
Gross Margin (%)	2%	-47%	-217% (includes $1.4M inventory reserve)	N/A (not disclosed)
Notes	—	Inventory reserve weighed on margins in 1H23	Reserve tied to legacy HT chips	Company did not furnish Q4-specific margin detail (no 8-K 2.02 found)

Actuals vs guidance/estimates (Q4 2023)

Metric	Prior Guidance/Consensus	Actual	Delta
Revenue ($MM)	$1.0–$1.4 (company guidance from Aug 2023)	$0.42	Significant miss; below low end
EPS ($)	S&P Global consensus unavailable (no mapping)	-0.22	N/A

KPIs and operating indicators

KPI	Q2 2023	Q3 2023	Q4 2023 (current period context)
Q4 revenue guidance	$1.0–$1.4MM	Implicit seasonality; product launches (Platin Milan)	Actual ~$0.42MM; pull-forward to Q3 noted
WiSA E licensing	N/A	13 display brands engaged; 7 reviewing license	3 licenses signed by 3/25/24; more expected in 1H24
Cost actions	2H23 cash opex ~$0.5M lower YoY	Q4 opex -$0.5M vs Q3; Q1’24 -$1.1M vs Q3’23 expected	Continued focus per 3/25 release

Segment breakdown: Not disclosed as formal segments. Management discusses “Components/Modules” vs “Consumer Audio” mix and shifting focus to WiSA E licensing; Q3 2024 later showed components driving growth, but that is outside Q4 2023 scope .

Guidance Changes

Metric	Period	Previous Guidance	Current/Reported	Change
Revenue	Q4 2023	$1.0–$1.4MM (Aug 15, 2023 PR)	~$0.42MM actual (3rd-party automated report citing filings)	Lower than guided
Cash OpEx	Q4 2023	Expect Q4 cash opex -$0.5M vs Q3’23 (Nov 15, 2023 PR)	Reinforced cost reduction focus; prelim FY 2023 net loss $17.7–$19.7M	Maintained cost-down trajectory
WiSA E licensing	1H 2024	Expect more license agreements	3 signed by 3/25/24; +3 targeted by end Q2’24	Raised specificity

Earnings Call Themes & Trends

Note: No Q4 2023 earnings call transcript was found. Trend analysis uses Q2 and Q3 2023 disclosures and the March 25, 2024 update as the “current period” context.

Topic	Previous Mentions (Q2 2023)	Previous Mentions (Q3 2023)	Current Period (Q4 2023 context)	Trend
WiSA E licensing momentum	Pre-orders for WiSA E dev kits; seasonality expected; Q4 guide $1.0–$1.4MM	60+ meetings; 13 display brands; 7 reviewing license	3 signed licenses by 3/25/24; more expected in 1H24	Improving traction
Supply chain/inventory	Expect rev growth; lower pricing on speakers aided sell-through	$1.4M inventory reserve on legacy HT chips	Inventory actions weighed on margins into Q4 (no Q4 margin disclosed)	Reserve taken; margin drag
Consumer demand/seasonality	Seasonality cited for H2 lift	Platin Milan 5.1.4 launched ahead of holiday season	Revenue pulled into Q3; Q4 fell short despite seasonality	Weaker-than-planned Q4
Cost reductions	2H23 cash opex ~$0.5M lower YoY	Q4 cash opex -$0.5M q/q; Q1’24 -$1.1M vs Q3’23 expected	Continued emphasis on lean operations	Progressing
Product/technology	WiSA E dev kits; DS-enabled soundbar planned	CES demos; Milan soundbar shipped; WiSA E embedded demo planned	Added 4-channel RX and SRC features to WiSA E	Enhancing platform

Management Commentary

“Our WiSA E initiatives gained significant traction… We are increasingly confident about prospects for WiSA E’s adoption as the leading wireless audio technology” — Brett Moyer, CEO .
“In Q3 2023… we recognized a $1.4 million inventory reserve primarily related to our legacy HT semiconductor chips” .
“Total revenue for the full year 2023 is expected to be in the range of $1.9 million to $2.1 million… net loss… $17.7 million to $19.7 million” (preliminary) .
Feature update: “WiSA Technologies… announces the addition of two features to its WiSA E wireless immersive audio software stack… [that] can also save both money and time to market” .

Q&A Highlights

Note: No Q4 2023 call transcript located. Pertinent Q3 Q&A takeaways shaping Q4 context:

Timing of WiSA E revenue: “You can anticipate midyear to… Q3 time frame for WiSA E to start impacting revenue” (i.e., 2024), so limited immediate P&L relief in Q4 2023 .
Q4 setup vs guidance: “We did pull in some revenue from Q4 into Q3,” tempering Q4 potential despite seasonality .
Margins: Near-term gross margin expected in “low teens” on consumer audio while converting inventory to cash; large HT inventory reserve depresses near-term margin profile .

Estimates Context

S&P Global/Capital IQ consensus estimates could not be retrieved due to a missing company mapping; as a result, consensus EPS and revenue for Q4 2023 are unavailable via our S&P Global data connection. Values not shown are therefore unavailable.
Available indicator: Prior company guidance for Q4 revenue was $1.0–$1.4M; reported revenue was roughly $0.42M, implying a significant downside versus company expectations .

Key Takeaways for Investors

Q4 2023 missed prior revenue guidance materially; management cited revenue pull-forward into Q3 and ongoing promotional pricing to monetize inventory—near-term downside catalysts that likely pressured sentiment .
Strategic pivot intact: WiSA E licensing progress (3 signed by March 2024, more targeted) and added platform features should begin to influence revenue mix from 2H24, improving scalability and margin potential over time .
Cost discipline remains a lever; cash OpEx reductions outlined for Q4 and Q1’24 help extend runway amid a revenue transition period .
Monitor conversion of the WiSA E pipeline (TV/display OEMs, soundbars, speakers) and production ramps timing; execution on these will determine 2024–2025 trajectory .
Stock narrative likely hinges on: (1) tangible license-to-production conversions, (2) stabilization of consumer audio sell-through without heavy discounting, and (3) evidence of margin normalization as inventory actions fade .

Sources and document status:

Q4 2023 8-K 2.02 and call transcript: No Q4-specific 8-K 2.02 press release or transcript was found in our document corpus; we relied on the company’s March 25, 2024 8-K (Item 2.02) preliminary FY 2023 update and prior Q2–Q3 2023 disclosures. Q4 EPS and revenue figures are taken from an automated earnings summary that cites company filings. We searched WISA 8-K 2.02, press releases, and transcripts across company IR and third-party sources and did not locate a Q4-specific press release or transcript .

WISA TECHNOLOGIES, INC. (WISA)·Q4 2023 Earnings Summary