• Record revenue for a third quarter of $4.5 million, 34.4% increase over prior year period
• Gross Margin expands 956 basis points over prior year period to 65.3%
• Closed on $22 million private placement, strengthening financial condition
• Reduced outstanding primary loan facility to $4.5 million at quarter end

GREENSBORO, N.C. — (BUSINESS WIRE) — November 14, 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 September 30, 2024.

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Guerrilla RF reports record revenue for a third quarter of $4.5 million, representing a 34.4% increase over prior year period. (Graphic: Business Wire)

“We continued to execute on our growth plans during the quarter by releasing new products into production. We released five new GaN products and four other products into production during Q3 2024, as the total number of new products released during 2024 increased to 23. This compares favorably to the total of new products we released in the 2023 (12) and the 2022 (18) calendar years. By releasing an increasing number of products already this year, we believe we are laying the foundation for sustained revenue growth,” said Ryan Pratt, Founder and CEO. “Guerrilla RF also received the Electronic Industry Awards’ “Highly Commended” award, recognizing four of our parts for exceptional performance in the Automotive Product of the Year category.

“Additionally, we achieved record revenue of $4.5 million compared with previous third quarters, which are historically our softest quarters, while further improving our gross profit margin and maintaining cost discipline. Strong 5G deliveries more than compensated for soft order flow from our Automotive customers,” added Pratt. “Looking ahead, based on our year-to-date revenue of $15.7 million, we expect to generate 2024 revenue at the lower end of our guidance range of $20.0 million to $25.0 million. As we continue to invest heavily in R&D to position the Company for accelerated revenue growth, we also expect quarterly Adjusted EBITDA (a non-GAAP measure) to hold steady for the next few quarters at around a $1.8 million loss, the amount we generated for the third quarter 2024.”

Third Quarter Highlights

• Revenue increased 34.4% to $4.5 million as compared to $3.4 million in the year ago quarter, primarily due to higher demand for our Wireless Infrastructure products (up 277% compared to the prior year period).
• Other products contributed to growth, including our Catalogue products and our Wireless Audio products (up 90% and 300%, respectively from the year ago period).
• The Company experienced significant growth in international sales (up 183% compared to the prior year period).
• Gross profit expanded 956 basis points to 65.3% of revenues as compared to 55.7% for the prior year period.
• Contribution margin of 77.2% increased 590 basis points from 71.3% in the year ago quarter, as a result of changes in product mix and a shift to higher margin Wireless Infrastructure products. Over these same periods, overhead spending remained at $0.5 million, and as a percentage of sales it decreased significantly from 15.7% to 11.9% in the current quarter.
• Operating loss was $2.6 million as compared to $3.7 million for the year ago quarter. This decrease in operating loss was primarily due to higher revenues and gross profits which grew at a significant pace while total operating expenses remained constant at $5.6 million compared to the year ago quarter. Relative to total revenue, operating expenses decreased as a percentage (121% in the current quarter vs. 166% in the year ago quarter). R&D costs decreased 10% when compared to the year ago quarter. Sales and marketing increased 21%, while administrative costs were reduced by 5% compared to the year ago quarter.
• Net loss per share was $0.71 and $0.62 for the third quarter of fiscal 2024 and 2023, respectively.
• Significantly reduced outstanding primary loan facility to $4.5 million from $12.0 million while extending the maturity to December 31, 2028, and reducing the interest rate.
• Net cash used in operating activities narrowed to $1.8 million as compared to $2.2 million in the year ago quarter.
• Interest expense decreased $0.2 million to $0.5 million for the current quarter, compared to $0.7 million for the year ago quarter. The decrease was attributable to the amendment and paydown of two debt facilities. On August 5, 2024, the Company paid down its primary loan facility by $7.5 million leaving a remaining balance of $4.5 million. This resulted in a $1.5 million charge related to debt extinguishment. Additionally, the Company utilized less of its asset-based loan, during the current quarter. As of the quarter end, the amount drawn under the asset-based loan facility was $0.5 million compared to $1.0 million at September 30, 2023.
• Adjusted EBITDA (a non-GAAP measure) was a loss of $1.7 million for the current quarter as compared to an Adjusted EBITDA loss of $3.1 million for the year ago quarter.
• Product backlog (a non-GAAP measure) was $5.4 million at the end of the current quarter as compared to $6.0 million at the end of the year ago quarter.
• Automotive Market product sales continued to be soft during the current quarter, declining to 24.6% of total revenue for the quarter as compared to 50.5% of total revenue for the year ago quarter.
• Wireless Infrastructure product sales grew to 28.8% of total revenue for the current quarter, compared to 10.7% of total revenue for the year ago quarter.
• Released a total of nine new products into production during the current quarter (including 5 new GaN products), bringing the total number of new products released in 2024 to 23.
• The Company recorded a charge of $2.6 million for the current quarter remeasurement of its warrant liabilities. Both historical and warrants issued during the current quarter were accounted for as a liability at quarter end.