• Record revenue quarter of $6.1 million, 61.7% increase over prior year period

• Gross Margin expands 631 basis points over prior year quarter to 65.3%

• Closed on $22 million private placement, strengthening financial condition

GREENSBORO, N.C. — (BUSINESS WIRE) — August 13, 2024 — Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the quarter ended June 30, 2024.

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Guerrilla RF Reports Record Second Quarter 2024 Results and Gross Margin Expansion. (Graphic: Business Wire)

“During the quarter we continued to execute on our growth plans, releasing 12 new products into production and expanding our opportunities in the Catalog Markets and Infrastructure Markets with the acquisition of a GaN device portfolio. Even though we are seeing weakness in the Automotive Market, increased 5G deliveries enabled us to reach a new revenue record of $6.1 million for the quarter. We anticipate the Automotive Market weakness to continue throughout 2024 and, as a consequence, are reducing our revenue guidance by 5% to $20.0 million to $25.0 million for the full year 2024. Having generated $11.2 million in revenue for the first half of 2024, I believe we are well positioned to meet our revised revenue guidance of $20 million to $25 million for 2024 even though Q3 is historically our softest quarter,” said Ryan Pratt, Founder and CEO. “As we scale the business, we are keenly focused on achieving sustainable positive EBITDA and operating cash flow. During the second quarter, we continued to progress towards EBITDA breakeven with an Adjusted EBITDA loss of under $500,000. The management team is pleased with this progress towards EBITDA breakeven as it targets achieving sustained positive operating cashflow.”

Second Quarter Highlights

• Revenue for the current quarter increased 61.7% to $6.1 million as compared to $3.8 million in the year ago quarter.

• Gross margin for the current quarter increased 631 basis points to 65.3% of revenues as compared to 59.0% for the year ago quarter.

• Operating loss for the current quarter was $1.2 million as compared to $3.4 million for the year ago quarter.

• Net cash used in operating activities narrowed to $1.2 million as compared to $3.1 million in the year ago period.

• Adjusted EBITDA loss (a non-GAAP measure) was $0.5 million for the current quarter as compared to an Adjusted EBITDA loss of $2.7 million for the year ago quarter.

• Product backlog (a non-GAAP measure) was $5.0 million at the end of the current quarter as compared to $5.5 million for the year ago quarter.

• Automotive Market product sales continued to be soft during the current quarter, declining to 31% of total revenue for the quarter as compared to 57% of total revenue for full year 2023.

• Wireless Infrastructure grew to 35% of total revenue for the current quarter, compared to 9% of total revenue for full year 2023.

• Released 12 new products into production during the quarter.

• Completed strategic acquisition of GaN device portfolio from Gallium Semiconductor, opening opportunities in the telecom, radar, and industrial markets for these new products.

Subsequent Events

• On August 5, 2024, the Company completed a $22.0 million private placement, with net cash proceeds of approximately $21.6 million after deduction of expenses. We plan to use the new capital to accelerate the Company’s growth, pay down outstanding debt and strengthen our competitive position through investing in new market penetration, expanded product offerings, additional R&D initiatives, and purchases of new capital equipment.

• Restructured primary credit facility by reducing outstanding principal balance and interest rate while extending maturity until December 31, 2028.