3Q23 Results: Revenue Grows 51.7% Y/Y as Order Activity and Gross Margin Shoot Up
Key Statistics
- Revenue grew 51.7% Y/Y to $0.7 million, compared with $0.5 million in 3Q22. Growth in the top-line figure was primarily driven by sales of WAM-V autonomous vehicles and better margins derived from Strategic Consulting Services. Complete results can be accessed here.
- A key driver of the revenue trajectory is the order activity, which is up 111% to $3.8 million YTD, with significant additional order activity in various stages of negotiation. OPTT is optimistic about reaching $9 million in orders by the end of FY23.
- For the first nine months of FY23 (9M23), OPTT’s Strategic Consulting Services division contributed ~38% ($0.6 million) of total revenue ($1.7 million); 82% and 4% of total YTD revenue came from the North and South American markets, respectively, while the remainder came from Asia and Australia.
- Gross margin rose 41.8% Y/Y to 18.5% from -23.3% in 3Q22. The MAR business and the higher-margin Strategic Consulting Services have driven the improvement in gross margin.
- Operating expenses increased 25.4% Y/Y to $6.8 million due to incremental investments in people (ex., expanding the sales team) and systems to support growth and partly because of the timing of projects and programs. OPTT recorded a net loss of $6.1 million (-$0.11/share), compared with a net loss of $5.5 million (-$0.10/share) in 3Q22.
- As of January 31, 2023, OPTT had total assets worth ~$59.1 million, mainly cash, unrestricted cash, cash equivalents, and short-term investments (~$41.1 million). Contract liabilities (~$1.3 million) and accrued expenses (~$1.6 million) constituted most of the total liabilities of ~$6.1 million. OPTT has accumulated a deficit of $270.5 million and no bank debt.
EARNINGS SNAPSHOT
Revenue grew 51.7% Y/Y to $0.7 million, compared with $0.5 million in 3Q22. Growth in the top-line figure was primarily driven by sales of WAM-V autonomous vehicles and better margins derived from Strategic Consulting Services.
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