Ondas Holdings, Inc. ((ONDS)) has held its Q4 earnings call. Read on for the main highlights of the call.
Ondas Holdings Inc. recently held its earnings call, revealing a mix of optimism and challenges. The company expressed a positive outlook, highlighting strategic achievements such as a partnership with Palantir and securing significant military contracts. Despite these advancements, Ondas faces hurdles with revenue traction for Ondas Networks and ongoing operating losses.
Record Revenue Growth Anticipation
Ondas is gearing up for a promising year in 2025, with expectations of record revenue growth. The company anticipates total revenues of $25 million, primarily driven by Ondas Autonomous Systems (OAS). This growth is set to be a significant milestone, showcasing the potential of their autonomous systems division.
Strategic Partnership with Palantir
A major highlight from the earnings call was the announcement of a strategic partnership with Palantir Technologies. By leveraging Palantir’s Foundry AI platform, Ondas aims to enhance operational efficiencies and scale its OAS operating platform, marking a pivotal step in their growth strategy.
Successful Military Contracts
Ondas has successfully secured two major programs of record with a key military customer in the Middle East. These contracts for the Optimus and Iron Drone Raider platforms significantly expand their total addressable market, underscoring the company’s growing influence in the defense sector.
Significant Backlog and Improved Financial Position
The company ended the year with a $10 million backlog, mainly attributed to OAS, and raised $35 million in Q4. This positions Ondas with strong liquidity, providing a solid foundation for future growth initiatives.
Growth in Defense and Homeland Security Markets
Ondas Autonomous Systems is making strides in the defense and homeland security markets, with plans to secure multiple additional military customers by 2025. This expansion is a testament to the company’s strategic focus on these critical sectors.
Ondas Networks Revenue Challenges
Despite the positive developments, Ondas Networks has faced challenges with revenue traction. The extended timelines related to the 900 megahertz network activity with Class 1 railroads have been a significant factor in this struggle.
Operating Losses and Cash Utilization
The company reported an operating loss of $8.5 million for Q4 2024, with cash used in operations amounting to $33.5 million for the full year. These figures reflect the early stage of platform adoption and the financial challenges that come with it.
Revenue Decrease Year-over-Year
Ondas experienced a decrease in full-year 2024 revenues, dropping to $7.2 million from $15.7 million in 2023. This decline is largely attributed to extended timelines at Ondas Networks and disruptions in Israel, highlighting areas needing attention.
Forward-Looking Guidance
Looking ahead, Ondas Holdings Inc. provided guidance for 2025, projecting a record year of revenue growth driven by OAS. With a significant backlog and a growing order book, the company aims to expand existing programs, secure additional military customers, and invest in operational efficiencies through its partnership with Palantir. Despite facing challenges, Ondas is committed to scaling operations and expanding customer engagements, targeting transformative growth in defense, homeland security, and critical infrastructure markets.
In conclusion, Ondas Holdings Inc.’s earnings call painted a picture of both promise and challenges. While the company is poised for significant growth in 2025, driven by strategic partnerships and military contracts, it must navigate the hurdles of revenue traction and operating losses. Investors and stakeholders will be keenly watching how Ondas addresses these challenges while capitalizing on its growth opportunities.