The following is a summary of the Quarterhill Inc. (QTRHF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Quarterhill Inc. reported an upsurge in Q4 revenue by 46% to $58.5 million and an annual increase of 22% to $194.3 million.
The company's adjusted EBITDA saw an improvement in Q4 to $3.2 million, and annually to $3.8 million.
Revenue backlog escalated to over $520 million by the end of the year, promising future revenue generation.
The company experienced a decline in the Gross margin percentage in Q4 and annually, attributed to tolling implementation expense overruns.
SG&A expenses were $9.2 million in Q4, more manageable than the $11.9 million in Q4 of 2022. SG&A as a percentage of revenue for Q4 also noted a significant improvement to 16%.
Quarterhill Inc. held cash and cash equivalents of $56.6 million as of December 2023.
Cash used in continuing operations in Q4 was reported as $1.6 million.
Business Progress:
Major changes took place in the Quarterhill Inc. leadership team, with new appointments and sale of WiLAN, thus simplifying its business model.
Considerable progress was noted in terms of business integration as they aim to streamline under the 'Quarterhill' name, with ongoing efforts to identify and exit non-performing businesses.
Quarterhill Inc. expanded its enforcement business, closing businesses in two states in 2023 adhering to a $5.3 million contract in Tennessee.
The company's focus for 2024 centers around growing its Intelligent Transportation Systems (ITS), specifically their tolling and enforcement units.
Anchoring its future plans around tolling opportunities in Europe, and expanding software application capabilities via a focused R&D strategy. They aim for penetration into transportation ITS base verticals, principally logistics.
Company's acquisition of Red Fox is envisioned to generate approximately $1.4 million of adjusted EBITDA in 2024.
Lastly, Quarterhill Inc. indicates a transition to US dollar reporting with Q1 2024 results as it aligns with the majority of its revenue channels. This paired with a prospective listing on a senior U.S. exchange.
More details: QUARTERHILL INC IR
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