Oblong Announces Financial Results for Fourth Quarter 2023 and Provides Business Update
Oblong, Inc. (Nasdaq: OBLG) reported financial results for Q4 and fiscal year 2023, focusing on operational optimization, funding, and strategic partnerships. The company raised $5.9 million in 2023 to strengthen its balance sheet. CEO Peter Holst highlighted a twofold growth strategy: organic expansion and seeking inorganic growth through partnerships or acquisitions. The company is exploring strategic alternatives such as business combinations, reverse mergers, or a sale. Q4 2023 financials show $6.0 million in cash, $0.9 million revenue, a net loss of $1.2 million, and an AEBITDA loss of $0.9 million.
Positive
The company raised $5.9 million in funding in 2023 to strengthen its balance sheet
CEO Peter Holst outlined a growth strategy focusing on organic expansion and seeking inorganic growth through partnerships or acquisitions
The company is exploring strategic alternatives such as business combinations, reverse mergers, or a sale
Q4 2023 financial results show $6.0 million in cash, $0.9 million revenue, a net loss of $1.2 million, and an AEBITDA loss of $0.9 million
Negative
Total revenue decreased from $1.4 million in Q4 2022 to $0.9 million in Q4 2023
The company reported a net loss of $1.2 million in Q4 2023, the same as in Q4 2022
AEBITDA loss was $0.9 million in Q4 2023, compared to $1.2 million in Q4 2022
The financial results reported by Oblong, Inc. reflect a contraction in total revenue year-over-year, from $1.4 million in the fourth quarter of 2022 to $0.9 million in the same period of 2023. This decrease is a significant indicator of the company's performance and could influence investor sentiment. The consistency of the net loss at $1.2 million across both quarters suggests that while the company's revenue streams have diminished, its cost structure may have seen parallel reductions, possibly due to the operational optimization mentioned. However, the reduction in Adjusted EBITDA loss from $1.2 million to $0.9 million indicates an improvement in operational efficiency despite the drop in revenue.
From a market expansion perspective, the CEO's statement on exploring strategic alternatives, including acquisitions or mergers, indicates a proactive approach towards growth. This could be appealing to investors looking for companies with a clear strategy for market expansion. The focus on early-stage technology ventures aligns with the current market trend of investing in innovative startups with high growth potential. However, the success of such a strategy is contingent upon the company's ability to effectively integrate new acquisitions and realize synergies.
The raise of $5.9 million in funding in 2023, which is expected to provide liquidity through mid-2025, is a positive signal of investor confidence and financial stability. This financial cushion could give Oblong the flexibility to navigate market conditions and invest in strategic initiatives. However, it's important to note that while the current cash position of $6.0 million with no debt is a strong point, the company's ability to turn this liquidity into profitable growth is yet to be seen. Stakeholders should monitor the deployment of these funds, ensuring they are used to generate a return on investment.
Given the current tech landscape's competitive nature, Oblong's strategic financing and lack of debt could provide it with an advantage over leveraged competitors, especially in a rising interest rate environment. However, the key will be how effectively the company can leverage its financial position to achieve the growth and scalability it aims for, without diluting shareholder value.
Oblong's strategic focus on early-stage technology companies for potential partnerships or acquisitions could be indicative of a high-risk, high-reward strategy. The pursuit of transformative technology aligns with the broader market interest in innovation-driven growth. However, the inherent risks associated with early-stage investments, such as the uncertainty of product viability and market acceptance, must be weighed against the potential long-term benefits. Investors should closely evaluate the company's criteria for selecting these ventures and the due diligence process to mitigate investment risks.
The financial results, particularly the revenue decrease, could impact the stock performance in the short term as markets react to immediate financial health. Long-term implications will depend on the company's execution of its growth strategy and its ability to capitalize on the identified market opportunities. Investors should consider the balance between the potential for future growth and the current financial health of the company when making investment decisions.
03/19/2024 - 04:15 PM
DENVER --(BUSINESS WIRE)--
Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), an innovator in collaboration solutions, today reported financial results for the fourth quarter and fiscal year ending December 31, 2023, and provided updates on the Company’s business and strategy.
During 2023, the Company diligently optimized its operations, streamlined expenditures, and strengthened Oblong’s balance sheet to position itself as a lean and agile innovator in the tech landscape. Oblong raised $5.9 million
"Our strategy for growth and enhancing shareholder value is twofold. We aim to grow organically by expanding our market presence while actively seeking inorganic growth opportunities through strategic partnerships or acquisitions," said Peter Holst, CEO of Oblong. "Our exploration of strategic alternatives is diverse, encompassing the consideration of a range of transformative actions. These include the possibility of a business combination; a reverse merger; or outright sale of the company. Each option is being carefully evaluated to ensure it aligns with our overarching goal of sustainable growth and value creation. Specifically, we are interested in early-stage technology companies creating transformative approaches to leveraging technology for the betterment of human life. These companies may complement our existing offerings but could also open new avenues for expansion by tapping into significant market opportunities. In our quest to find the right partners, we are particularly focused on ventures that have demonstrated their ability to innovate and capture early-stage interest of their target markets, indicating a clear path to scalability and a substantial market presence."
Fourth Quarter 2023 Financial Results
As of December 31, 2023, the Company had $6.0 million
Total revenue was $0.9 million $1.4 million
Net loss of $1.2 million $1.2 million
Adjusted EBITDA (“AEBITDA”) loss of $0.9 million $1.2 million
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure, is defined as net loss before depreciation and amortization, stock-based compensation and expense, impairment charges, casualty loss, severance, income tax expense (benefit), and interest and other income, net. AEBITDA loss is not intended to replace operating loss, net loss, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, AEBITDA loss is an important measure used by management to assess the operating performance of the Company and to compare such performance between periods. AEBITDA loss as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Therefore, AEBITDA loss should be considered in conjunction with net loss and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow used in operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net loss, operating loss or any other GAAP measure of liquidity or financial performance. A GAAP to non-GAAP reconciliation of net loss to AEBITDA loss is shown under “GAAP to Non-GAAP Reconciliation” later in this release.
About Oblong, Inc.
Oblong (Nasdaq:OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 and enterprise customers. For more information, visit www.oblong.com and Oblong’s Twitter and Facebook pages.
Forward looking and cautionary statements
This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to (i) the Company’s exploration of strategic alternatives, including the Company’s goal to forge partnerships with select early-stage technology companies and the mission to deliver innovative technology solutions, and (ii) the Company’s liquidity and operating expense projections. There can be no assurance that the strategic review being undertaken will result in a merger, sale or other business combination involving the Company. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the volatility of market price for our securities, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2023 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.
OBLONG, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except par value and stated value)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
5,990
$
3,085
Accounts receivable, net
424
415
Inventory, net
239
723
Prepaid expenses and other current assets
243
649
Total current assets
6,896
4,872
Property and equipment, net
—
3
Intangibles, net
—
604
Operating lease, right-of-use assets
17
142
Other assets
12
40
Total assets
$
6,925
$
5,661
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
211
184
Accrued expenses and other current liabilities
1,038
1,074
Current portion of deferred revenue
132
436
Current portion of operating lease liabilities
17
219
Total current liabilities
1,398
1,913
Long-term liabilities:
Deferred revenue, net of current portion
26
114
Operating lease liabilities, net of current portion
—
17
Total long-term liabilities
26
131
Total liabilities
1,424
2,044
Commitments and contingencies
Stockholders’ equity:
Preferred stock Series F, convertible; $.0001 par value; $2,064,063
—
—
Common stock, $.0001 par value; 150,000,000 shares authorized; 16,692,000 shares issued and 16,685,000 shares outstanding at December 31, 2023 and 2,071,000 shares issued and 2,063,000 outstanding at December 31, 2022
2
—
Treasury stock, 8,000 common shares at December 31, 2023 and 2022
(181
)
(181
)
Additional paid-in capital
233,911
227,645
Accumulated deficit
(228,231
)
(223,847
)
Total stockholders’ equity
5,501
3,617
Total liabilities and stockholders’ equity
6,925
5,661
OBLONG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands) (Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$
944
$
1,426
$
3,810
$
5,476
Cost of revenue (exclusive of depreciation and amortization and casualty loss)
655
1,130
2,899
3,930
Gross profit
289
296
911
1,546
Operating expenses (gains):
Research and development
4
65
20
1,699
Sales and marketing
68
270
309
1,431
General and administrative
1,147
1,174
4,870
5,278
Impairment charges
260
25
262
12,740
Casualty (gain) loss, net
—
(50
)
(400
)
483
Depreciation and amortization
86
85
345
1,903
Total operating expenses
1,565
1,569
5,406
23,534
Loss from operations
(1,276
)
(1,273
)
(4,495
)
(21,988
)
Interest and other income, net
(44
)
(41
)
(138
)
(40
)
Loss before income taxes
(1,232
)
(1,232
)
(4,357
)
(21,948
)
Income tax expense (benefit)
(11
)
(15
)
27
(7
)
Net loss
$
(1,221
)
$
(1,217
)
$
(4,384
)
$
(21,941
)
GAAP to Non-GAAP Reconciliation:
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net loss
$
(1,221
)
$
(1,217
)
$
(4,384
)
$
(21,941
)
Depreciation and amortization
86
85
345
1,903
Interest and other income, net
(44
)
(41
)
(138
)
(40
)
Income tax (benefit) expense
(11
)
(15
)
27
(7
)
Impairment charges
260
25
262
12,740
Casualty loss (gain)
—
(50
)
(400
)
483
Severance
—
—
—
294
Stock-based compensation and expense
31
31
504
61
Adjusted EBITDA Loss
$
(899
)
$
(1,182
)
$
(3,784
)
$
(6,507
)
View source version on businesswire.com: https://www.businesswire.com/news/home/20240319264133/en/
Investor Relations Contact
investors@oblong.com
Source: Oblong, Inc.
What is the ticker symbol for Oblong, Inc.?
The ticker symbol for Oblong, Inc. is OBLG.
What were Oblong's total revenue and net loss for Q4 2023?
Oblong reported total revenue of $0.9 million and a net loss of $1.2 million for Q4 2023.
How much funding did Oblong raise in 2023?
Oblong raised $5.9 million in funding in 2023.
What is AEBITDA loss?
Adjusted EBITDA (AEBITDA) loss is a non-GAAP financial measure defined as net loss before certain expenses like depreciation, stock-based compensation, and interest income.
What strategic alternatives is Oblong exploring?
Oblong is exploring strategic alternatives such as business combinations, reverse mergers, or a sale.
What is the CEO of Oblong, Inc.?
Peter Holst is the CEO of Oblong, Inc.
What is the cash position of Oblong as of December 31, 2023?
Oblong had $6.0 million in cash and cash equivalents as of December 31, 2023.
