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Jun 30, 2022
Wrap Technologies Q2 2022 Earnings Report
Reported results for the second quarter ended June 30, 2022.
Key Takeaways
Wrap Technologies reported net revenues of $1.2 million for Q2 2022, a decrease compared to $1.9 million in Q2 2021. Gross profit was $0.5 million, resulting in a 39% gross margin. Net loss per share was ($0.12), compared to ($0.20) in Q2 2021. The company is focused on a multi-year strategic roadmap for growth, profitability, and enhanced value creation.
New management completed its initial business review and developed a multi-year strategic roadmap for growth, profitability, and enhanced value creation.
Operating expense was $5.2 million in Q2 2022, representing a 32% year-over-year decline.
Net Revenues were $1.2 million in Q2 2022, compared to $1.9 million in Q2 2021, reflecting the Company’s transition to the next generation BolaWrap.
Gross Profit was $0.5 million in Q2 2022, resulting in a 39% Gross Margin, compared to a loss of ($0.1) million in Q2 2021.
Forward Guidance
Management anticipates full-year sales will grow in 2022 as supply chain disruptions ease and the transition from the BolaWrap 100 to the BolaWrap 150 accelerates. The company is targeting a cash flow break-even point by the end of 2023 and sees the potential for profitability by the end of 2024.
Positive Outlook
- Full-year sales are expected to grow in 2022 as supply chain disruptions ease.
- Transition from BolaWrap 100 to BolaWrap 150 accelerates.
- Increased sales momentum is expected in the back half of 2022 internationally.
- Strong sales growth is expected for the BolaWrap 150 and Wrap Reality in 2023 and beyond.
- Continued cost savings and expense management should lead to further reduction of the Company’s cash burn going forward.
Challenges Ahead
- Near-term growth is difficult to project.
- Transition from BolaWrap 100 to BolaWrap 150 has impacted recent quarters.
- Geopolitical tensions have impacted recent quarters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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