Actelis Networks Achieves Positive EBITDA and 372% Revenue Growth in Q2 2024

Actelis Networks (NASDAQ: ASNS) has reported a remarkable turnaround in its Q2 2024 financial results, marking a significant milestone with its first positive EBITDA since 2022. The company's performance showcases a dramatic improvement across key financial metrics, potentially signaling a new chapter in its growth trajectory within the IoT and cybersecurity markets.

The standout figure from Actelis' report is the 372% sequential revenue growth from Q1 2024, with Q2 2024 revenue reaching $3.43 million. This represents an 81% year-over-year increase, underscoring the rapidly growing demand for Actelis' innovative solutions. The company's gross margin also saw a substantial boost, rising to 57% in Q2 2024 from 30% in the previous quarter, driven by both revenue growth and effective cost management strategies.

Actelis has made significant strides in reducing its operating expenses, reporting a 20% decrease in Q2 2024 compared to the same period last year. This cost-cutting initiative, combined with revenue growth, has led to a dramatic improvement in the company's bottom line. The net loss for Q2 2024 was reduced to just $78,000, a substantial improvement from the $1.59 million loss reported in Q2 2023. Perhaps most notably, Actelis achieved a positive Non-GAAP adjusted EBITDA of $11,000, marking its first positive quarter since 2022.

The financial turnaround is complemented by several key business achievements. Actelis secured and delivered a $2.3 million order from Washington D.C.'s Department of Transportation, further solidifying its position in the intelligent transportation sector. The company has also successfully deployed its hybrid-fiber, cyber-hardened solution in Bakersfield, CA, demonstrating the real-world applicability and value of its technology in enhancing urban infrastructure and security.

Actelis' newly launched GigaLine 800 and GigaLine 900 Multi-Dwelling Unit (MDU) solutions are generating significant market interest, with numerous customer trials underway. The company has already received its first order for the GigaLine 800, worth $160,000, from a contractor to a major military carrier, indicating early market acceptance of these new products.

To support its growth initiatives, Actelis has bolstered its financial position by raising nearly $5 million in June 2024. As of June 30, 2024, the company's shareholders' equity stood at $1.06 million, and on a pro forma basis, including the recent fundraise, it reached $3.0 million—surpassing Nasdaq's continued listing requirement of $2.5 million.

Tuvia Barlev, Chairman and CEO of Actelis, expressed pride in the company's Q2 2024 progress, stating, "Our team's relentless efforts have translated into significant customer successes and the successful execution for key customers. We are delivering on the commitments we made to drive growth and innovation, and the results speak to the impact of our strategic initiatives."

Looking ahead, Actelis is focused on scaling its recent successes, expanding its SaaS offerings through strategic partnerships, and continuing to optimize operational costs while maintaining high margins. The significant order from Washington D.C.'s Department of Transportation and successful deployments in cities like Bakersfield not only demonstrate the strength of Actelis' technology but also highlight the trust major urban centers place in the company to modernize and secure their infrastructure.

As the IoT market continues to expand, particularly in sectors like intelligent transportation and critical infrastructure, Actelis appears well-positioned to capitalize on these opportunities. With its improved financial performance, recent business achievements, and ongoing strategic initiatives, the company may be poised for significant growth in the coming quarters.

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Source Statement

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