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Dec 31, 2022
Wrap Technologies Q4 2022 Earnings Report
Reported record revenues and successful execution of strategic roadmap, driving significantly reduced cash burn.
Key Takeaways
Wrap Technologies reported a 47% increase in net revenue to $3.59 million for Q4 2022, driven by record deals in the Americas and EMEA region. Gross profit improved to $1.70 million, and the net loss improved by 33% to $(3.54) million. The company is targeting quarterly adjusted EBITDA break-even by the end of 2023 and profitability by the end of 2024.
Net revenue increased 47% to $3.59 million, driven by record deals in the Americas and EMEA.
Gross profit improved to $1.70 million, a 130% year-over-year increase.
Net loss improved 33% to $(3.54) million due to increased sales focus, stronger margins, and cost containment efforts.
Trained law enforcement agencies grew 32% year-over-year, and certified officer instructors grew 30%.
Wrap Technologies
Wrap Technologies
Forward Guidance
Wrap Technologies anticipates year-over-year growth in revenue each quarter in 2023 and reiterates its expectation to achieve quarterly adjusted EBITDA break-even point by the end of 2023 and profitability by the end of 2024.
Positive Outlook
- Expected year-over-year revenue growth each quarter in 2023.
- Sequential revenue growth throughout the remainder of the 2023 fiscal year.
- High double-digit growth rate on an annualized basis.
- Growth expected from expanding sales with existing customers domestically and internationally.
- New contract signings in both domestic and international regions.
Challenges Ahead
- Revenue expected to decline sequentially in Q1 2023 due to seasonal budget cycles of law enforcement agency customers.
- Government procurement cycles and timing are outside the Company’s control.
- Reliance on significant purchases at individual agencies where the timing can be difficult to predict.
- Wrap may change the outlook provided during the year as actual and anticipated results vary from these assumptions.
- Wrap undertakes no obligation to update any forward-looking statements.