INSEEGO CORP. Q4 FY2024 earnings call

• The company underwent significant transformation, including recapitalization, balance sheet restructuring, and divesting non-core assets.
• Strategic focus areas: driving FWA and MiFi businesses (evolving product roadmap, expanding portfolio, investing in new segments), accelerating software and services roadmap (enhancing Inseego Connect, API support, AI capabilities), and revisiting operations strategy.
• Product roadmap evolution to align with carrier requirements, tiered portfolio expansion, and strengthening go-to-market strategy with carrier partnerships and value-added resellers.

In Q4 2024, total revenue was $48.1 million, a 33%+ year-over-year increase. The primary growth drivers were mobile solutions (hotspot product) with over 59% YOY growth and services/other revenue (Inseego Subscribe) with 62% YOY growth. For full year 2024, revenue was $191.2 million, up 14.3% YOY, with product revenue up 8.3% and services revenue up over 40%. Fixed Wireless Access saw sequential growth from Q3 but a slight YOY decline due to factors like carrier inventory management.

• Q1 2025 revenue guidance: $30 million to $33 million; adjusted EBITDA guidance: $2 million to $3 million.
• Expect full year 2025 revenue growth, with sequential quarterly revenue growth starting from Q2 as initiatives to introduce new products and diversify the customer base take effect.

Q: Scott Searle asked about inventory burn down and 2025 growth expectations.

A: Steven Gatoff responded that while Q1 has revenue challenges, the company anticipates growth starting in Q2 and sees opportunities in existing and new customers.

Q: Lance Vitanza inquired about customer relationships from Juho's Qualcomm background and procurement/supply logistics.

A: Juho Sarvikas discussed engaging with major players and expecting changes in supply chain engagement during 2025. Steven Gatoff mentioned OpEx step-ups early in 2025 due to new go-to-market strategies.

Q: Tore Svanberg asked about revenue mix evolution and OpEx run rate.

A: Juho Sarvikas talked about FWA and MiFi growth strategies, and Steven Gatoff explained OpEx will step up early in 2025 with new product investments