Guerrilla RF, a start-up company headquartered in Greensboro, NC, that provides high performance MMICs for the wireless infrastructure market, announced the financial results for the fourth quarter and full year ended December 31, 2022. Net Revenue for the year touched $11.6 million for the year ended December 31, 2022, this is an increase of approximately 10.7% compared to 2021.
Product revenue to the automotive vertical (Company’s largest vertical) decreased 5.1% in 2022 to $4.1 million, which is consistent with industry-wide contraction. Product revenue to Repeaters (second largest vertical) increased 13.4% to $2.7 million, while revenue to 5G infrastructure (third largest vertical) increased 7.7% to $2.1 million.
“Guerrilla RF became a publicly traded company in 2022, less than ten years after its founding,” said Ryan Pratt, founder and CEO. “It was a year of record revenues, strong gross margins, and increased ASPs. We closed out the year strong as we saw cycle times return to pre-COVID levels, and book-to-bill improve to greater than 1 in Q4, 2022. We won numerous design awards, expanded our product portfolio and customer base, and invested to drive future revenue growth.”
Key Business Highlights of 2022
- Increased R&D investment by 76.7% to $8.1 million to seek to capture market share in fast-growing markets of electric vehicles, 5G infrastructure, cellular repeaters, and satellite communications
- Record number of customer samples shipped, up 28.3% year-over-year
- Secured a $580,000 purchase order from a top-tier electric vehicle manufacturer
- Eight new design wins confirmed with a strategic automotive customer, which the Company anticipates will generate an aggregated peak volume of 30 million units per year
- Received first design wins for a new digital step attenuator (DSA) product which is used to control and regulate signal strength in communications systems in markets ranging from automotive, cable TV, defense and aerospace, microwave radio, to wireless infrastructure and test equipment. Introduced the company’s first silicon-on-insulator (SOI) product into production - SOI technology enables continued miniaturization of electronics as well as high-performance radio frequency systems
- Average lead time for fulfilling orders returned to pre-COVID levels
- Introduced 18 new products to meet accelerating customer demand, and expanded product portfolio
- Triad Business Journal named CEO Ryan Pratt a “2022 Power Player”
- Strengthened financial and technology expertise by appointing industry professionals Susan Barkal and Virginia Summerell to the Board of Directors
- Shares up-listed to OTC Markets’ top-tier OTCQX on July 28, 2022
Key Financial Results for the Year Ending December 31, 2022
- Total revenues were $11.6 million for the year ended December 31, 2022, an increase of approximately 10.7% compared to 2021
- Gross profit of $6.8 million (58.3%) for the year ended December 31, 2022, as compared to $6.1 million (58.6%) for 2021, a 10.2% increase
- Research and development (R&D) expense was $8.1 million for the year ended December 31, 2022, compared to $4.6 million for 2021, an increase of approximately 77% resulting from continued investment in new products intended to increase future revenues
- Sales and marketing expense was $4.6 million for the year ended December 31, 2022, compared to $2.8 million for 2021, an increase of approximately 68% primarily due to increased headcount and efforts to position the Company’s products in numerous industries as the leading RF solution
- General and administrative expense was $5.1 million for the year ended December 31, 2022, compared to $2.5 million for 2021, an increase of approximately 109%. The increase was largely due to increased expenses necessary to support a public company
- Net loss for the year ending December 31, 2022, was $12.0 million or $0.36 per share versus a net loss of $2.8 million or $0.24 per share for 2021
- As of December 31, 2022, the Company maintained cash and cash equivalents of $4.3 million
Based on the latest information available, Guerrilla RF is offering the following guidance: First quarter 2023 revenue is expected to be between $2.8 million and $3.3 million
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