The earnings call highlighted significant achievements, including a successful deal with Qualcomm that improved financial stability and a strong design win pipeline. Despite some operational challenges, such as shipment delays and increased R&D expenses, the overall outlook remains positive with expectations of growth and financial recovery.

Company Guidance

During the Sequans Communications Q3 2024 earnings call, the company provided several key metrics and guidance for the future. Sequans successfully closed a $200 million deal with Qualcomm, which significantly improved its financial stability by eliminating nearly all debt and enhancing its cash position to $173.6 million by the end of Q3. The company anticipates achieving breakeven by 2026, driven by a robust design win pipeline estimated to generate $250 million in revenue over the next three years. This includes ongoing projects in metering, tracking, and fleet management. Sequans foresees a doubling of Q4 product revenue compared to Q3 and expects further growth in 2025 as new design wins enter mass production. The company plans to maintain cash operating expenses below $10 million per quarter in 2025 while focusing on R&D investments in next-generation 5G RedCap and eRedCap solutions. Additionally, Sequans projects continued licensing revenue, including from existing agreements with Qualcomm, contributing to anticipated sequential revenue growth in upcoming quarters.

Successful Qualcomm Deal

Sequans closed the Qualcomm transaction, securing $200 million in funding, enhancing financial stability and validating technological leadership in the cellular IoT space.

Debt Repayment and Financial Stability

In October, Sequans fully repaid all mature debt and cleared overdue payables, marking a significant turning point towards greater operational flexibility.

Revenue Growth and Pipeline

Q3 2024 revenue increased by 29.5% to $10.1 million from $7.8 million in Q3 2023. The company has a $250 million design win pipeline for the next three years, with ongoing projects in metering, tracking, and fleet management.

High Gross Margin

Gross margin in Q3 2024 was 82.5%, reflecting the impact of higher-margin license revenue.

Positive Future Outlook

Sequans expects a 10% sequential growth in Q4 2024 and aims to achieve breakeven by 2026 with anticipated revenue growth and cost efficiencies.

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Sequans Communications S A (SQNS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SQNS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 31, 2018	2018 (Q2)	- / -0.28	-0.24	-16.67% (-0.04)	―	―
Oct 30, 2018	2018 (Q3)	- / -0.32	-0.28	-14.29% (-0.04)	―	―
Feb 19, 2019	2018 (Q4)	- / -0.44	-0.28	-57.14% (-0.16)	―	―
May 09, 2019	2019 (Q1)	- / -0.32	-0.32	0.00% (0.00)	―	―
Jul 30, 2019	2019 (Q2)	- / -0.32	-0.28	-14.29% (-0.04)	―	―
Nov 06, 2019	2019 (Q3)	- / -0.32	-0.32	0.00% (0.00)	―	―
Feb 11, 2020	2019 (Q4)	- / -0.30	-0.44	31.82% (+0.14)	―	―
Apr 23, 2020	2020 (Q1)	- / -0.36	-0.32	-12.50% (-0.04)	―	―
Jul 28, 2020	2020 (Q2)	- / -0.28	-0.32	12.50% (+0.04)	―	―
Oct 27, 2020	2020 (Q3)	- / -0.70	-0.8	12.50% (+0.10)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SQNS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$2.55	$2.71	+6.27%
Aug 23, 2024	$1.36	$2.88	+111.76%
May 01, 2024	$1.22	$1.23	+0.82%
Mar 07, 2024	$1.80	$1.40	-22.22%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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