ConnectM Files 10-Q, Announces Third Quarter 2024 Financial Results
Results In-Line with Previously Announced Third Quarter Preliminary Results
Third Quarter Revenue Increased 39% to $6.1 Million YoY and 11% from Second Quarter 2024
FY2024 Projected Revenue of $20.0 Million, Representing a 20% YoY Increase
On Track to Achieve Operating Cash Flow Breakeven by The First Quarter of 2025
MARLBOROUGH, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) ("ConnectM" or the "Company"), a technology company focused on the electrification economy, has filed its 10-Q with the Securities and Exchange Commission (the "SEC") and released its financial results for the quarter ended September 30, 2024.
Third Quarter and First Nine Months 2024 Financial Results
-- Revenue for the third quarter of 2024 increased to $6.1 million compared
to $4.4 million in the same year ago period. Revenue in the first nine
months of 2024 increased 12% to $17.3 million, when compared to $15.5
million in the same prior year period.
-- Cost of revenue for the third quarter of 2024 increased to $4.2
million compared to $3.7 million in the same year ago period. Cost
of revenue in the first nine months of 2024 was $11.0 million, in
line with $11.0 million in the same prior year period.
-- Net loss attributable to shareholders for the third quarter of 2024 was
$12.2 million compared to $2.6 million in the comparable prior year
period. For the first nine months of 2024, net loss attributable to
shareholders increased to $17.0 million, as compared to a net loss of
$5.0 million in the comparable prior year period.
2024 Operational Updates
-- Successfully completed De-SPAC and began trading on the Nasdaq Global
Market in July 2024.
-- Launched AI-powered heat pump integrated with ConnectM's Energy
Intelligence Network powered by the Company's proprietary data model, for
residential and light commercial use, optimized for performance, energy
efficiency and reducing customer costs.
-- Entered into agreement to acquire a controlling interest in
DeliveryCircle, a nationwide technology enabled final mile delivery
company which connects businesses looking for a last-mile delivery
solution. This strategic acquisition expands ConnectM's Transportation &
Logistics segment in the United States.
-- Eliminated $13.7 million of debt with debt-to-equity swap to deleverage
the balance sheet.
Subsequent Events
-- Entered into Managed Services Agreement ("MSA") with Devlin Energy,
expanding ConnectM's business portfolio mix and revenue generation with
an array of residential and commercial distributed energy capabilities.
-- Completed acquisition of Green Energy Gains Inc., a Massachusetts Home
Performance Contractor of energy and weatherization assessments, and
instrumental in the distribution and installation of ConnectM's electric
heat pumps, augmenting the Company's Building Electrification segment.
-- ConnectM's AI-powered heat pump received AHRI's (Air-Conditioning Heating
and Refrigeration Institute) Cold Climate Certification, awarded to
products that demonstrate superior heating efficiency.
Outlook
For the fourth quarter and full year 2024, the Company expects revenues of approximately $7 million and $24 million respectively.
About ConnectM Technology Solutions, Inc.
ConnectM is a technology company focused on advancing the electrification economy by integrating electrified energy assets with its AI-powered technology solutions platform. The Company provides residential and light commercial buildings and all-electric original equipment manufacturers with a proprietary Energy Intelligence Network platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. Leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, ConnectM aims to make electrification more user-friendly, affordable, precise, and socially impactful. As a vertically integrated company with wholly owned service networks and a comprehensive technology stack, ConnectM empowers customers to reduce their reliance on fossil fuels, lower overall energy costs, and minimize their carbon footprint.
For more information, please visit: https://www.connectm.com/
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," "project" or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control.
In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the "Cautionary Note Regarding Forward-Looking Statements" section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
MZ North America
(203) 741-8811
ConnectM@mzgroup.us
CONNECTM TECHNOLOGY SOLUTIONS, INC.
(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION)
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER
31, 2023 (AUDITED)
(in thousands, except share and per share amounts)
September 30, December 31,
2024 2023
--------------- ----------------
Assets
Current assets
Cash $ 1,882 $ 1,160
Accounts receivable, net 1,863 685
Contract asset -- 344
Convertible note receivable -- 445
Inventory 320 277
Deferred offering costs -- 1,297
Due from Monterey Capital
Acquisition Corporation -- 2,491
Forward purchase agreement 2,196 --
Prepaid expenses and other assets 1,191 651
---------- ---------
Total current assets 7,452 7,350
Right-of-use asset - operating lease 199 284
Right-of-use asset - finance lease 167 252
Property, plant and equipment, net 996 1,138
Goodwill 3,037 2,247
Intangible assets, net 1,851 1,841
Investment recorded at cost 45 45
---------- ---------
Total Assets $ 13,747 $ 13,157
========== =========
Liabilities and Stockholders'
Deficit
Current liabilities
Accounts payable $ 10,357 $ 3,860
Accrued expenses 4,631 1,718
Due to Libertas 1,057 --
Due to related party 686 --
Current portion of debt, related
party 85 85
Current portion of debt, net of
debt discount 15,966 11,935
Current portion of convertible
debt, at fair value 4,392 2,179
Current portion of operating lease
liability 114 115
Current portion of finance lease
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