• Record revenue quarter of $5.1 million

• Gross Margin expands 640 basis points sequentially over prior quarter

GREENSBORO, N.C. — (BUSINESS WIRE) — May 14, 2024 — Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company achieved record revenues of $5.1 million for the first quarter 2024, a 59.4% increase as compared to the first quarter of 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240514638774/en/

Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the first quarter 2024 ended March 31, 2024. The Company achieved record revenues of $5.1 million for the first quarter 2024, a 59.4% increase as compared to the first quarter of 2023. (Graphic: Business Wire)

“Following a challenging 2023, we accelerated our momentum by increasing revenue as a result of our strong foothold in the Automotive market and deeper penetration in the 5G Infrastructure market with previously announced satellite communications and point to multi-point communications shipments,” said Ryan Pratt, Founder and CEO. “This was an excellent quarter with over $5.1 million in revenue and a backlog increase of 27.7% from Q1 2023. We believe we are on target to achieve the $21.0 to $26.0 million revenue guidance we previously provided.”

Corporate Highlights

• Completed a $5.0 million private placement, with net cash proceeds of approximately $3.0 million after deduction of expenses and conversion of existing debt. We plan to use the new capital to accelerate the Company’s growth and strengthen its competitive position through new market penetration, expanded product offerings, additional R&D initiatives, and new capital equipment.

• Announced the acquisition of strategic GaN product portfolio and intellectual property of Gallium Semiconductor. We believe this acquisition will accelerate our penetration into this market by an estimated two years.

• Extended maturity of primary credit facility to 2026.

• Management reiterates 2024 revenue guidance of $21.0 to $26.0 million.

Financial Highlights

• Revenue for the first quarter of fiscal 2024 increased 59.4% as compared to the first quarter of fiscal 2023.

• Quarterly revenues increased 8.5% to $5.1 million, up from $4.7 million recorded in the fourth quarter 2023.

• Gross margin for the first quarter of fiscal 2024 was 63.2% of revenues as compared to 56.6% for the first quarter of fiscal 2023 and up 640 basis points from Q4 2023.

• Operating loss for the first quarter of fiscal 2024 was $1.8 million as compared to $3.7 million for the first quarter of fiscal 2023.

• Net cash used in operating activities reduced to $0.8 million (a $5.0 million reduction from first quarter 2023) as a result of increased sales, margin expansion and expense management efforts.

• Adjusted EBITDA loss (a non-GAAP measure) was $1.1 million for the first quarter of fiscal 2024. See EBITDA Reconciliation below.

• Backlog (a non-GAAP measure) increased at the end of the first quarter of fiscal 2024 to $8.3 million as compared to $6.5 million at the end of the first quarter of fiscal 2023.

• Cash balance as of March 31, 2024, was approximately $3.6 million compared to $0.8 million as of December 31, 2023.

Financial Results for Three Months Ended March 31, 2024

• Revenues were $5.1 million, as compared to $3.2 million in the prior year period.

• R&D expenses decreased to $2.3 million, as compared to $2.6 million for the prior year period.

• Sales and marketing expenses remained flat at $1.4 million, as compared to the prior year period.

• General and administrative expenses decreased slightly to $1.5 million, as compared to the prior year period.