Q3 2024 Enwave Corp Earnings Call Transcript
Key Points
- EnWave Corp (NWVCF) reported the highest quarterly base royalties ever at 425k.
- The company achieved an adjusted EBITDA profit of 85k, marking only the second time in the past eight quarters.
- Quarterly revenue increased to 2.6 million, up 136,000 year-over-year.
- Gross margin significantly improved to 44% due to new large-scale REV machine orders and royalty growth.
- The company signed multiple new commercial licenses and agreements, including a Technology Evaluation and License Option Agreement with a North American food company led by a Michelin-starred chef.
- SG&A expenses, including R&D, increased by 178k, or 15%, primarily due to higher personnel costs, legal fees, and increased sales efforts.
- The company remains cautious about providing future royalty rate guidance due to uncertainties in the timing of new purchase orders and facility readiness.
- The cannabis industry, a potential market for EnWave's technology, is still in a stage of consolidation and cost reduction, limiting immediate growth opportunities.
- The average utilization rate of installed REV machines varies significantly among partners, with some still working towards higher utilization.
- Despite the positive outlook, the company acknowledges that past quarters have been challenging, indicating potential volatility in performance.
Good morning, welcome to EnWave Corporation's Q3 2024 earnings conference call. My name is Kevin, and I will be your operator for today's call. Joining us for today's presentation are the companyâs President and CEO, Brent Charleton; and Dylan Murray, EnWave's CFO. (Operator Instructions)
Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.enwave.net.
Now, I would like to turn the call over to EnWave's CEO, Mr. Brent Charleton. Sir, please proceed.
Thanks to everyone who have joined us today for EnWave's quarterly conference call. Today we will discuss our Q3 performance and provide a business outlook for the rest of fiscal 2024 and beyond. Consistent with past quarterly earnings calls, the information we will present today contains forward looking information that is based on our management's
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