Highlights Include Sale of a Non-strategic Business Unit, Significant Reduction of Debt, and Implementation of a Share Repurchase Program to Strengthen the Company and Enhance Long Term Shareholder Value
SEATTLE, March 26, 2025 /PRNewswire/ -- Mynd.ai, Inc. (the "Company" or "Mynd") (NYSE American: MYND) today announced financial results for the fiscal year ended December 31, 2024.
- Revenue of $267.4 million for the full year, compared to $411.8 million in the prior year with the decrease primarily driven by the headwinds in the overall education market due to normalization to pre-pandemic levels
- Gross Margin improved 40 basis points versus 2023 to 24.8%, largely due to optimization of cost of materials, warranty, and freight costs
- Operating loss improved by $8.0 million to $38.0 million, as compared to $46.0 million in 2023
- Net loss from continuing operations, before income taxes totaled $35.7 million, a $12.7 million improvement compared to 2023
- Cash balance at year-end of $75.3 million, compared to $87.8 million in 2023
- Reduced outstanding indebtedness at year-end by $21.0 million
- Repurchased 151,923 American Depositary Shares, representing 1,519,230 ordinary shares, pursuant to our share repurchase program
"We are very pleased with the progress our team made during 2024, our first full year as a public company," said Vin Riera, Chief Executive Officer. "We feel that completing the sale of our non-strategic early childhood development business unit in October 2024, paying down debt, optimizing our cost structure, and initiating a share repurchase program were all meaningful steps towards strengthening our company. Despite a number of industry-wide challenges in the education sector stemming from inflation, threat of tariffs and uncertainty around Federal funding for education, we were able to capitalize on our brand loyalty, significant install base of over one million classrooms and strong distributor and partner network to maintain our strong market presence."
Arthur Giterman, Chief Financial Officer, added, "Our financial performance in 2024 reflects our commitment to improving operational efficiency to help combat significant industry headwinds impacting our interactive flat panel display business. Year over year, the Company made improvements in our gross margin and significantly reduced both our operating loss as well as our net loss from operations. Although we expect economic headwinds to continue during 2025, we are actively responding by continuing to optimize our operating cost structure, enhancing our go-to-market strategy and expanding our portfolio of product offerings. We are excited about the warm reception that our recently launched ActivPanel 10 and its modular infrastructure has received, and believe that providing our customers with the ability to select their preferred operating system will better position the Company to more effectively compete in the market."
Forward-Looking Statements
This press release contains "forward-looking statements," as defined by federal securities laws. Forward-looking statements reflect Mynd's current expectations and projections about future events at the time and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," "optimistic," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Mynd's Annual Report on Form 20-F, filed with the SEC on March 26, 2025, as such factors may be updated from time to time in Mynd's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Mynd's filings with the SEC. While forward-looking statements reflect Mynd's good faith beliefs, they are not guarantees of future performance. Mynd disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Mynd (or to third parties making the forward-looking statements).
Discussion of non-GAAP Financial Measures
We believe that providing non-GAAP ("Generally Accepted Accounting Principles") information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors not only to better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis, in addition to GAAP, and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based in part upon the achievement of consolidated revenue and Adjusted EBITDA targets.
About Mynd.ai, Inc.
Seattle-based Mynd is a global leader in interactive technology offering best-in-class hardware and software solutions that help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Our award-winning interactive displays and software can be found in more than 1 million learning and training spaces across 126 countries. Our global distribution network of more than 4,000 reseller partners and our dedicated sales and support teams around the world enable us to deliver the highest level of service to our customers.
Financial Tables Follow
Mynd.ai. Inc. | ||||
As of December 31, | ||||
2024 | 2023 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 75,317 | $ 87,804 | ||
Accounts receivable, net of allowance for credit losses of $211 and $2,599, respectively | 30,506 | 63,736 | ||
Inventories | 28,638 | 53,944 | ||
Prepaid expenses and other current assets | 11,601 | 14,408 | ||
Due from related parties | 1,561 | 1,683 | ||
Current assets of discontinued operations | — | 5,590 | ||
Total current assets | 147,623 | 227,165 | ||
Non-current assets: | ||||
Goodwill | 44,130 | 44,928 | ||
Property, plant, and equipment, net | 14,595 | 7,037 | ||
Intangible assets, net | 39,521 | 43,700 | ||
Right-of-use assets | 3,448 | 2,413 | ||
Deferred tax assets, net | 34 | 58,035 | ||
Other non-current assets | 3,268 | 1,810 | ||
Non-current assets of discontinued operations | — | 21,949 | ||
Total non-current assets | 104,996 | 179,872 | ||
Total assets | $ 252,619 | $ 407,037 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 40,485 | $ 59,138 | ||
Accrued expenses and other current liabilities | 45,959 | 49,134 | ||
Loans payable, current | 10,931 | 31,942 | ||
Contract liabilities | 11,281 | 14,004 | ||
Accrued warranties | 15,749 | 17,871 | ||
Lease liabilities, current | 1,047 | 1,618 | ||
Due to related parties | 4,621 | 5,061 | ||
Current liabilities of discontinued operations | — | 7,404 | ||
Total current liabilities | 130,073 | 186,172 | ||
Non-current liabilities: | ||||
Loans payable, non-current | 58,077 | 64,859 | ||
Loans payable, related parties, non-current | 5,006 | 4,670 | ||
Contract liabilities, non-current | 18,581 | 21,762 | ||
Lease liabilities, non-current | 2,761 | 1,030 | ||
Deferred tax liabilities | 9,756 | — | ||
Non-current liabilities of discontinued operations | — | 7,950 | ||
Total non-current liabilities | 94,181 | 100,271 | ||
Total liabilities | 224,254 | 286,443 | ||
Shareholders' equity: | ||||
Ordinary shares par value of $0.001; 990,000,000 shares authorized. 456,477,820 10,000,000 shares, $0.001 par value, without designation; none authorized, issued | 456 | 456 | ||
Treasury shares, at cost, 1,519,230 and none shares, respectively | (342) | — | ||
Additional paid-in capital | 479,480 | 473,590 | ||
Accumulated other comprehensive income | 3,344 | 3,513 | ||
Accumulated deficit | (454,573) | (358,854) | ||
Total Mynd.ai, Inc. shareholders' equity | 28,365 | 118,705 | ||
Non-controlling interest | — | 1,889 | ||
Total shareholders' equity | 28,365 | 120,594 | ||
Total liabilities and shareholders' equity | $ 252,619 | $ 407,037 | ||
Mynd.ai. Inc. | ||||||
Year Ended December 31, | ||||||
2024 | 2023 | 2022 | ||||
Revenue | $ 267,381 | $ 411,757 | $ 584,684 | |||
Cost of revenue | 201,140 | 311,272 | 443,598 | |||
Gross profit | 66,241 | 100,485 | 141,086 | |||
Operating expenses, net: | ||||||
General and administrative | 33,427 | 30,964 | 34,608 | |||
Research and development | 25,253 | 34,604 | 41,459 | |||
Sales and marketing | 42,115 | 51,477 | 60,848 | |||
Transaction-related costs | — | 19,288 | 502 | |||
Restructuring | 3,484 | 10,195 | 238 | |||
Total operating expenses | 104,279 | 146,528 | 137,655 | |||
Operating (loss) income | (38,038) | (46,043) | 3,431 | |||
Other income (expense): | ||||||
Interest expense | (10,371) | (4,658) | (1,833) | |||
Interest income | 2,659 | 223 | 6 | |||
Gain on embedded derivative | 11,389 | 432 | — | |||
Gain on forgiveness of debt | — | — | 4,923 | |||
Other (expense) income | (1,384) | 1,598 | 591 | |||
Total other income (expense) | 2,293 | (2,405) | 3,687 | |||
Net (loss) income from continuing operations, before income taxes | (35,745) | (48,448) | 7,118 | |||
Income tax (expense) benefit | (68,732) | 9,658 | 25,982 | |||
Net (loss) income from continuing operations | (104,477) | (38,790) | 33,100 | |||
Income (loss) from discontinued operations, net of tax | 8,725 | (605) | (12,637) | |||
Net (loss) income | (95,752) | (39,395) | 20,463 | |||
Net (loss) income from continuing operations attributable to non- | — | — | — | |||
Net (loss) income from discontinued operations attributable to | (33) | 33 | — | |||
Net (loss) income attributable to non-controlling interests | (33) | 33 | — | |||
Net (loss) income from continuing operations attributable to | (104,477) | (38,790) | 33,100 | |||
Net income (loss) from discontinued operations attributable to | 8,758 | (638) | (12,637) | |||
Net (loss) income attributable to ordinary shareholders | $ (95,719) | $ (39,428) | $ 20,463 | |||
Net (loss) income per ordinary share | ||||||
From continuing operations: Basic and Diluted | $ (0.23) | $ (0.09) | $ 0.08 | |||
From discontinued operations: Basic and Diluted | $ 0.02 | $ (0.00) | $ (0.03) | |||
Total basic and diluted | $ (0.21) | $ (0.09) | $ 0.05 | |||
Weighted average shares outstanding used in calculating net (loss) | 456,471,923 | 427,986,755 | 426,422,220 | |||
Mynd.ai. Inc. | ||||||
Year Ended December 31, | ||||||
2024 | 2023 | 2022 | ||||
Net (loss) income | $ (95,752) | $ (39,395) | $ 20,463 | |||
Other comprehensive (loss) income, net of tax of nil: | ||||||
Change in foreign currency translation reserve | 497 | (1,033) | (3,367) | |||
Release of foreign currency translation reserve to net loss as a | (566) | — | — | |||
Total comprehensive (loss) income | (95,821) | (40,428) | 17,096 | |||
Less: comprehensive income attributable to non-controlling | 67 | 33 | — | |||
Comprehensive (loss) income attributable to Mynd.ai Inc. | $ (95,888) | $ (40,461) | $ 17,096 | |||
Mynd.ai. Inc. | ||||||
Year Ended December 31, | ||||||
2024 | 2023 | 2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net (loss) income | $ (95,752) | $ (39,395) | $ 20,463 | |||
(Income) loss from discontinued operations, net of tax | (8,725) | 605 | 12,637 | |||
Net (loss) income from continuing operations | (104,477) | (38,790) | 33,100 | |||
Adjustments to reconcile net (loss) income from continuing operations to net | ||||||
Depreciation and amortization | 5,698 | 4,973 | 4,520 | |||
Deferred taxes | 67,669 | (10,828) | (25,982) | |||
Non-cash lease expense | 1,737 | 1,958 | 1,818 | |||
Non-cash interest expenses | 4,844 | 325 | — | |||
Gain on forgiveness of debt | — | — | (4,923) | |||
Share-based compensation | 3,698 | — | — | |||
Amortization of RDEC credit | (1,182) | (839) | (460) | |||
Accrued tax credit RDEC | — | (1,732) | — | |||
Change in fair value of derivative liability | (11,389) | (432) | — | |||
Increase in inventory provision | — | 4,630 | 3,951 | |||
Write-off of prepaid subscriptions | — | 5,668 | — | |||
Other | 90 | 71 | 30 | |||
Change in operating assets and liabilities: | ||||||
Accounts receivable | 33,365 | (679) | 25,346 | |||
Inventories | 25,251 | 54,734 | (20,003) | |||
Prepaid expenses and other assets | 1,270 | (5,482) | 701 | |||
Prepaid subscriptions | — | 1,632 | (7,300) | |||
Due from related parties | 533 | 482 | (4,376) | |||
Accounts payable | (17,675) | (23,651) | (1,820) | |||
Accrued expenses and other liabilities | (2,439) | (1,329) | (10,225) | |||
Accrued warranties | (2,037) | 3,883 | 3,266 | |||
Due to related parties | 1,491 | 1,083 | 3,469 | |||
Contract liabilities | (5,743) | 6,966 | 7,779 | |||
Lease obligations - operating leases | (1,579) | (1,903) | (2,084) | |||
Net cash (used in) provided by operating activities - continuing operations | (875) | 740 | 6,807 | |||
Net cash provided by (used in) operating activities - discontinued operations | 1,661 | (3,098) | (12,079) | |||
Net cash provided by (used in) provided by operating activities | 786 | (2,358) | (5,272) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property, plant and equipment | (1,283) | (389) | (829) | |||
Internal-use software development costs | (8,465) | (4,434) | (1,028) | |||
Repayment (issuance) of loan receivable, related party | — | 8,019 | (7,919) | |||
Proceeds from disposition of GEH Singapore | 20,000 | — | — | |||
Acquisition of businesses, net of cash | — | 10,375 | (6,000) | |||
Net cash provided by (used in) investing activities - continuing operations | 10,252 | 13,571 | (15,776) | |||
Net cash used in investing activities - discontinued operations | (5,942) | 5,763 | — | |||
Net cash provided by (used in) investing activities | 4,310 | 19,334 | (15,776) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Repayment of Revolver | (38,000) | (80,300) | (49,305) | |||
Debt issuance costs paid | (90) | — | — | |||
Proceeds from Revolver | 17,000 | 62,000 | 63,000 | |||
Proceeds from convertible note | — | 64,884 | — | |||
Contingent consideration payments | (1,007) | (2,174) | — | |||
Repayment of Paycheck Protection Program Loan | (192) | (192) | (5) | |||
Repayment of NetDragon group loans | — | — | (3,210) | |||
Proceeds from NetDragon group loans | — | 219 | 869 | |||
Share repurchase | (342) | — | — | |||
Net cash (used in) provided by financing activities - continuing operations | (22,631) | 44,437 | 11,349 | |||
Net cash provided by financing activities - discontinued operations | — | — | — | |||
Net cash (used in) provided by financing activities | (22,631) | 44,437 | 11,349 | |||
Net change in cash | (17,535) | 61,413 | (9,699) | |||
Cash and cash equivalents, beginning of year | 91,784 | 29,312 | 40,508 | |||
Exchange rate effects | 1,068 | 1,059 | (1,497) | |||
Cash and cash equivalents, end of year | $ 75,317 | $ 91,784 | $ 29,312 | |||
Supplemental disclosure of non-cash investing and financing activities | ||||||
Continuing operations: | ||||||
Convertible notes issued in exchange for accrued PIK interest | $ 3,309 | $ — | $ — | |||
Decrease in goodwill due to measurement period adjustments relating to | $ 1,228 | $ — | $ — | |||
Lease assets acquired in exchange for lease liabilities | $ 2,838 | $ — | $ — | |||
Forgiveness of related party payables | $ 2,412 | $ — | $ — | |||
Accrued purchase price related to acquisition of businesses | $ — | $ — | $ 1,688 | |||
Accrued value of earnout related to acquisition of businesses | $ — | $ — | $ 377 | |||
Noncash consideration transferred for acquisition of businesses | $ — | $ 22,848 | $ — | |||
Discontinued operations: | ||||||
Lease assets acquired in exchange for lease liabilities | $ 5,044 | $ — | $ — | |||
Supplemental disclosure of cash transactions: | ||||||
Cash paid for interest | $ 5,387 | $ 5,223 | $ — | |||
Cash received for tax refunds, net | $ 1,397 | $ 914 | $ 969 | |||
Cash flows are presented on a consolidated basis and cash and cash equivalents presented in current assets of discontinued operations in the consolidated balance sheets as of December 31, 2023 were $3,980.
Mynd.ai. Inc. | |||||
Year Ended December 31, | |||||
2024 | 2023 | 2022 | |||
(in thousands) | |||||
Net (loss) income | $ (95,752) | $ (39,395) | $ 20,463 | ||
(Income) loss from discontinued operations, net of tax | (8,725) | 605 | 12,637 | ||
Interest expense | 10,371 | 4,658 | 1,833 | ||
Interest income | (2,659) | (223) | (6) | ||
Income tax expense (benefit) | 68,732 | (9,658) | (25,982) | ||
Depreciation and amortization | 5,698 | 4,973 | 4,520 | ||
Share-based compensation | 3,698 | — | — | ||
Gain on embedded derivative | (11,389) | (432) | — | ||
Other expense (income), net | 1,384 | (1,598) | (591) | ||
Transaction-related costs(1) | — | 19,288 | 502 | ||
Restructuring costs(2) | 3,484 | 10,195 | 238 | ||
Litigation costs and penalties(3) | 1,021 | 405 | 1,046 | ||
Gain on forgiveness of debt(4) | — | — | (4,923) | ||
Adjusted EBITDA | $ (24,137) | $ (11,182) | $ 9,737 | ||
(1) Transaction-related costs are non-recurring costs related to one or more acquisitions. |
(2) Refers to employee severance costs, contract termination costs, facility restructuring, and business restructuring efforts undertaken by management. |
(3) Refers to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with litigation, as well as any related penalties incurred for such litigation. |
(4) Refers to forgiveness of loan provided by the U.S. Small Business Administration provided under the Payroll Protection Program (PPP). |
SOURCE Mynd.ai
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