Socket Mobile Reports Fourth Quarter 2024 and Full Year Results
Rhea-AI Summary
Socket Mobile (NASDAQ: SCKT) reported its Q4 and full-year 2024 financial results. Q4 revenue reached $4.8M, up 10% YoY and 25% QoQ, with a gross margin of 51.0%. The company posted a Q4 operating loss of $411K, improving from $476K loss year ago.
Full-year 2024 revenue increased 10.2% to $18.8M, with a gross margin of 50.4%. Annual operating loss improved to $2.5M from $3.1M in 2023. The company expanded its product lineup with new XtremeScan Mag devices and launched S320, their first countertop QR Code Payment Reader. Socket Mobile also introduced Alfred, an AI-powered developer support tool, and updated their CaptureSDK for iOS 18 compatibility.
Positive
- Revenue up 10.2% YoY to $18.8M in 2024
- Q4 revenue increased 25% QoQ to $4.8M
- Gross margin improved to 50.4% in 2024 from 49.7% in 2023
- Operating loss reduced to $2.5M from $3.1M YoY
Negative
- Operating loss of $411K in Q4 2024
- Net loss per share worsened to ($0.30) in 2024 from ($0.27) in 2023
- Slower than expected adoption in warehousing and logistics sectors
- Q4 gross margin declined to 51.0% from 52.8% YoY
News Market Reaction
On the day this news was published, SCKT declined 1.64%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fourth Quarter 2024 Financial Highlights:
- Revenue of
$4.8 million 10% increase compared to$4.4 million 25% increase sequentially compared to$3.9 million - Gross margin of
51.0% compared with52.8% in the prior year quarter and49.0% in the preceding quarter. - Operating loss was
$411,000 $476,000 $1,031,000 - Diluted earnings per share of
$0.00 $0.08 $0.15
Full Year 2024 Financial Highlights:
- Revenue for the full year of 2024 was
$18.8 million $17.0 million 10.2% year-over-year. - Gross margin for 2024 was
50.4% compared to49.7% in 2023. - Operating loss was
$2.5 million $3.1 million - Net loss per share of (
$0.30 $0.27
"Our financial performance in both Q4 and 2024 improved compared to 2023, driven by the growth of our business serving retail POS application providers. Adoption in the warehousing and logistics sectors is taking longer than expected. Through our evaluation, we've identified key areas for improvement and are taking steps to strengthen our position," said Kevin Mills, President, and Chief Executive Officer.
"In 2024, we focused on expanding our market presence with the launch of several new products. The XtremeScan product family grew with the introduction of XtremeScan Mag devices—XS630, XS640, XG630, and XG640—designed for the increasing number of workers who use a single phone for both personal and business needs. The Bring Your Own Device (BYOD) category represents a significant yet underserved market where we see strong growth potential. The BYOD XtremeScan products are complementary to the Xtreme version and use dedicated iPhones.
Additionally, we introduced the S320, our first countertop QR Code Payment Reader, offering a versatile solution for retail POS application providers. Beyond QR Code payment processing, the S320 supports age verification, access control, ticket validation, loyalty programs, and couponing. We also updated our CaptureSDK and our entire line of barcode scanners and NFC reader/writers to be fully compatible with iOS 18," continued Mr. Mills.
"As part of our ongoing efforts to enhance customer engagement, we launched a new website and an updated developer portal, Alfred—an AI-powered tool that provides CaptureSDK developers with 24/7 multilingual support. The improved platform offers streamlined navigation and content, making it easier for users to access resources and explore our full range of solutions."
"Looking ahead, we remain committed to innovation, expanding our product offerings, and strengthening our market position. By improving our technology and customer support, we are building a solid foundation for the future. We appreciate the support of our customers and partners as we move forward," concluded Mills.
Conference Call
The management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly and year-end results and outlook for the future. The dial-in number to access the live conference call is (800) 237-1091, toll-free from within the
About Socket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile's cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding new mobile computers and data collection products, including details on the timing, distribution, and market acceptance of the products, and statements predicting trends, sales, market conditions, and opportunities in the markets in which we sell our products. Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that our new products may be delayed or not rollout as predicted, if ever, due to technological, market, or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
Socket Mobile Investor Contact:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
© 2025, Socket Mobile, Inc. All rights reserved.
– Financial tables to follow –
Socket Mobile, Inc. | ||||
Year ended Dec 31, | Three months ended Dec 31, | |||
(Unaudited) | 2023* | (Unaudited) | 2023* | |
Revenue | $ 4,831 | $ 4,398 | ||
Cost of revenue | 9,311 | 8,571 | 2,366 | 2,078 |
Gross profit | 9,452 | 8,463 | 2,465 | 2,320 |
Gross profit percent | 50.4 % | 49.7 % | 51.0 % | 52.8 % |
Research & development | 4,721 | 4,832 | 1,119 | 1,188 |
Sales & marketing | 4,414 | 4,016 | 1,106 | 1,003 |
General & administrative | 2,779 | 2,736 | 651 | 605 |
Total operating expenses | 11,914 | 11,584 | 2,876 | 2,796 |
Operating income (loss) | (2,462) | (3,121) | (411) | (476) |
Interest expense | (331) | (242) | (102) | (72) |
Loss before income taxes | (2,793) | (3,363) | (513) | (548) |
Deferred income tax benefit (expense) | 551 | 1,444 | 551 | 1,460 |
Net income (loss) | $ (2,242) | $ (1,919) | $ 38 | $ 912 |
Net income (loss) per share: | ||||
Basic | $ (0.30) | $ (0.27) | $ 0.00 | $ 0.11 |
Fully diluted | $ (0.30) | $ (0.27) | $ 0.00 | $ 0.08 |
Weighted average shares outstanding: Basic Fully diluted |
7,558 7,558 |
7,230 7,230 |
7,605 7,703 |
7,327 9,486 |
*Derived from audited financial statements. |
Socket Mobile, Inc. | ||
(Unaudited) |
| |
Cash | $ 2,492 | $ 2,827 |
Accounts receivable | 1,588 | 1,700 |
Inventories | 4,942 | 5,409 |
Deferred costs on shipments to distributors Other current assets | 143 431 | 323 441 |
Property and equipment, net | 2,787 | 3,033 |
Deferred tax assets | 10,663 | 10,112 |
Intangible assets, net | 1,432 | 1,559 |
Operating leases right-of-use assets | 2,604 | 3,088 |
Other long-term assets | 264 | 250 |
Total assets | $ 27,346 | $ 28,742 |
Accounts payable and accrued liabilities | $ 1,977 | $ 2,185 |
Subordinated convertible notes payable, net of discount | 150 | 150 |
Subordinated convertible notes payable, net of discount-related party | 3,818 | 2,836 |
Deferred revenue on shipments to distributors | 392 | 826 |
Deferred service revenue | 31 | 33 |
Operating lease liabilities | 2,817 | 3,292 |
Total liabilities | 9,185 | 9,322 |
Common stock | 69,374 | 68,391 |
Accumulated deficit | (50,175) | (47,933) |
Treasury stock | (1,038) | (1,038) |
Total equity | 18,161 | 19,420 |
Total liabilities and equity | $ 27,346 | |
*Derived from audited financial statements. |
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SOURCE Socket Mobile, Inc.
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