Wrap Technologies Q3 2022 Earnings Report
Key Takeaways
Wrap Technologies reported a 6% decrease in net revenue to $1.70 million compared to the prior year period, but Americas sales grew 36% to $1.48 million. Gross profit improved to $0.91 million with a gross margin of 54%. The company's net loss improved 35% to $(3.87) million, and operating expenses decreased by $1.91 million.
Americas revenue increased by 36%, reaching the highest quarterly sales in the company's history.
Gross profit margin improved to a record 54% due to BolaWrap 150 traction and production efficiencies.
Operating expenses decreased by $1.91 million, driven by cost controls in SG&A and R&D.
Net loss improved by 35% as a result of increased sales focus and cost containment efforts.
Wrap Technologies
Wrap Technologies
Wrap Technologies Revenue by Geographic Location
Forward Guidance
Wrap Technologies is reiterating its expectation for year-over-year sales growth in 2022 and anticipates sequentially increased sales in Q4 and overall in 2023. Management is targeting a cash flow break-even point by the end of 2023 and potential profitability by the end of 2024.
Positive Outlook
- Sales are expected to grow year-over-year in 2022.
- Sequentially increased sales are anticipated in the fourth quarter and overall in 2023.
- New sales are expected from domestic and international expansion with existing customers and new orders.
- Cash burn is expected to decrease significantly going forward.
- The company's current cash position should fund ongoing operations without the need to raise additional capital.