Sonim Technologies Reports Second Quarter and Six Month 2019 Financial Results

Q2 2019 Net Revenues Up 39% to $43.7 Million, Driving 41% Increase in Gross Profit and 15% Increase in Adjusted EBITDA Over Q2 2018

 

SAN MATEO, Calif. – July 24, 2019 – Sonim Technologies, Inc. (Nasdaq: SONM), a leading U.S. provider of ultra-rugged mobility solutions designed specifically for task workers physically engaged in their work environments, reported financial results for the second quarter and six months ended June 30, 2019.

Second Quarter 2019 Financial Highlights

  • Net revenues increased 39% to $43.7 million from $31.5 million in Q2 2018
  • Gross profit increased 41% to $14.8 million from $10.5 million in Q2 2018
  • On a GAAP basis, net loss totaled $6.1 million
  • Adjusted EBITDA (a non-GAAP metric reconciled below) increased 15% to $1.0 million from $894,000 in Q2 2018

 

Six Month 2019 Financial Highlights

  • Net revenues increased 41% to $70.2 million from $49.6 million in the first six months of 2018
  • Gross profit increased 53% to $24.2 million from $15.8 million in the first six months of 2018

 

Third Quarter and Fiscal 2019 Financial Outlook

  • For the third quarter ending September 30, 2019, the company expects net revenues to increase to between $49 million and $52 million, representing growth of 25% to 31% compared to $39.5 million in Q3 2018.
  • For the fiscal year ending December 31, 2019, the company continues to expect net revenues to increase between 25% and 30% compared to $135.7 million reported in fiscal 2018 and to achieve adjusted EBITDA profitability of between 4% and 6% of net revenues for the year as a whole.

 

Management Commentary

“Our success in the second quarter was driven by continued, effective sales execution, leading to the sustained operational momentum we’ve now realized over the last several quarters,” said Bob Plaschke, CEO of Sonim Technologies. “More specifically, the 39% topline growth we generated in Q2 was propelled by the first full quarter of sales of our XP3 device, along with increasing demand for our existing models, including the XP8 and XP5s. On a broader scale, our growth has been reinforced by several positive industry tailwinds and mandates, including FirstNet and the early stages of the transition from legacy land mobile radio (LMR) and push-to-talk (PTT) to smartphone and LTE networks. As the leading provider of next generation ultra-rugged mobile solutions, we are ideally posit