The following is a summary of the Quarterhill Inc. (QTRHF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Quarterhill Inc reported Q1 revenue of $34.9 million, a 23% increase from the previous year.
The company's adjusted EBITDA turned positive at $0.2 million, a significant improvement from a negative of $3.8 million the previous year.
A substantial revenue backlog of over $500 million supports good revenue visibility for upcoming years.
The gross margin percentage increased to 18% in Q1 2024, up from 13% in Q1 2023, mainly attributed to better margins on tolling projects and reduced expenses.
Total operating expenses for Q1 2024 decreased to $10.5 million from $11.6 million in Q1 2023, due to cuts in sales, general and administrative expenses, and research and development costs.
Business Progress:
Progress was made within its two business units: tolling and enforcement, noticeable through a 5-year contract extension with the Illinois Tollway.
The company acquired a growing software provider, Red Fox, focused on automatic vehicle detection and classification.
Savings of approximately $3 million in 2024 and an annual $4 million thereafter is expected due to workforce adjustments.
Quarterhill has plans to expand their European market and logistics verticals, alongside investing more into their core tolling and enforcement technology.
Improving cash flow and optimizing cost structure are among the key financial targets for the company.
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