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ConnectM Technology Solutions, Inc. Reports 39% Revenue Increase in Third Quarter 2024, Projects 20% Annual Growth

Quiver Quantitative ·  Dec 16 06:40

ConnectM Technology Solutions reported Q3 2024 revenue of $6.1 million, a 39% increase year-over-year, with projected FY2024 revenue of $20 million.

Quiver AI Summary

ConnectM Technology Solutions, Inc. reported its third quarter financial results for 2024, showing a revenue increase of 39% year-over-year to $6.1 million, and an 11% rise from the previous quarter. For the first nine months of 2024, revenue also grew by 12% to $17.3 million. However, the company posted a net loss attributable to shareholders of $12.2 million for the quarter, significantly higher than the previous year's loss of $2.6 million, totaling a net loss of $17.0 million for the first nine months. ConnectM is projecting an annual revenue of $20 million for FY2024, a 20% increase year-over-year, and aims to achieve operating cash flow breakeven by Q1 2025. The company has made strategic moves including launching an AI-powered heat pump, acquiring interests in DeliveryCircle and Green Energy Gains Inc., and successfully eliminating $13.7 million in debt through a debt-to-equity swap.

Potential Positives

  • Third quarter revenue increased by 39% year-over-year to $6.1 million and showed an 11% increase compared to the second quarter of 2024.
  • Projected revenue for fiscal year 2024 is set at $20 million, indicating a 20% year-over-year increase.
  • The company is on track to achieve operating cash flow breakeven by the first quarter of 2025.
  • The acquisition of a controlling interest in DeliveryCircle enhances ConnectM's Transportation & Logistics segment, broadening its service offering and market reach.

Potential Negatives

  • Net loss attributable to shareholders significantly increased from $2.6 million in the prior year period to $12.2 million for the third quarter of 2024, indicating worsening financial performance.
  • The company's total liabilities grew substantially to $40.8 million, up from $22.6 million in the previous year, raising concerns about financial stability.
  • Despite a notable increase in revenue, the company reported a net loss for both the third quarter and the first nine months of 2024, highlighting ongoing challenges in achieving profitability.

FAQ

What were ConnectM's third-quarter revenue figures?

ConnectM reported a third-quarter revenue of $6.1 million, a 39% increase year-over-year.

How does the third-quarter revenue compare to the second quarter?

The third-quarter revenue of $6.1 million represents an 11% increase from the second quarter of 2024.

What is ConnectM's projected revenue for FY2024?

ConnectM projects a revenue of $20 million for FY2024, reflecting a 20% year-over-year increase.

When does ConnectM expect to achieve operating cash flow breakeven?

The company is on track to achieve operating cash flow breakeven by the first quarter of 2025.

What key acquisitions did ConnectM complete recently?

ConnectM completed the acquisition of DeliveryCircle and Green Energy Gains Inc. to expand its operational segments.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.


$CNTM Insider Trading Activity

$CNTM insiders have traded $CNTM stock on the open market 14 times in the past 6 months. Of those trades, 14 have been purchases and 0 have been sales.

Here's a breakdown of recent trading of $CNTM stock by insiders over the last 6 months:

  • MAHESH CHOUDHURY (See Remarks) has traded it 9 times. They made 9 purchases, buying 220,768 shares and 0 sales.
  • BHASKAR PANIGRAHI (See Remarks) has traded it 5 times. They made 5 purchases, buying 237,898 shares and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Full Release




~ 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:






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 liability



114




99


Current portion of contingent consideration



199







Contract liabilities



662




1,121


Income taxes payable



386








Total current liabilities





38,649






21,112



Non-current portion of operating lease liability



118




173


Non-current portion of debt, related party



99







Non-current portion of finance lease liability



115




203


Noncurrent portion of debt, net of debt discount



1,417




1,150


Contingent consideration



377








Total liabilities





40,775






22,638











Commitments and Contingencies (Note 9)













Mezzanine Equity








Series Seed Convertible Preferred Shares; 0 and 2,139,050 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively








2,200


Series Seed-1 Convertible Preferred Shares; 0 and 302,642 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively








293


Series A-1 Convertible Preferred Shares; 0 and 2,467,990 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively








3,195


Series B-1 Convertible Preferred Shares; 0 and 2,158,357 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively








3,984


Series B-2 Convertible Preferred Shares; 0 and 995,509 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively








2,311



Total mezzanine equity














11,983











Stockholders' Deficit:








Preferred stock Series A, $0.001 par value, 10,000,000 and 1,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 0 shares issued or outstanding as of September 30, 2024 and December 31, 2023, respectively











Common stock, $0.0001 par value, 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 21,124,057 and 5,291,381 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively



2







Additional paid-in-capital



11,425




1,307


Accumulated deficit



(39,910

)



(22,860

)

Accumulated other comprehensive income



144




115


Stockholders' deficit



(28,340

)



(21,438

)

Noncontrolling interests



1,311




(26

)


Total stockholders' deficit





(27,029



)





(21,464



)



Total liabilities, mezzanine equity and stockholders' deficit




$



13,747





$



13,157














































































































































































































































































































































































































































































































































































































































CONNECTM TECHNOLOGY SOLUTIONS, INC.


(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE


AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudited)


(in thousands, except share and per share amounts)






Three Months Ended September 30,




Nine Months Ended September 30,





2024




2023




2024




2023


Revenues


$

6,074



$

4,384



$

17,299



$

15,484


Costs and expenses:













Cost of revenues



4,200




3,716




11,010




11,020


Selling, general and administrative expenses



4,900




2,843




11,773




8,780


Loss on impairment of intangible assets













406







Loss from operations



(3,026

)



(2,175

)



(5,890

)



(4,316

)














Other income (expense):













Interest expense



(667

)



(472

)



(1,820

)



(902

)

Loss on extinguishment of debt













(592

)






Change in fair value of convertible notes



(1,623

)



182




(1,623

)



182


Change in fair value of forward purchase agreement



(8,575

)








(8,575

)






Gain on forward purchase agreement modification



1,443









1,443







Other income (expense), net



270




(149

)



59




4


Total other income (expense)



(9,152

)



(439

)



(11,108

)



(716

)














Loss before income taxes



(12,178

)



(2,614

)



(16,998

)



(5,032

)














Income tax benefit





















Net loss


$

(12,178

)


$

(2,614

)


$

(16,998

)


$

(5,032

)














Net income (loss) attributable to noncontrolling interests



60




(7

)



52




(28

)

Net loss attributable to shareholders'


$

(12,238

)


$

(2,607

)


$

(17,050

)


$

(5,004

)














Foreign currency translation adjustments



19




26




29




92


Comprehensive loss


$

(12,159

)


$

(2,588

)


$

(16,969

)


$

(4,940

)














Comprehensive income (loss) attributable to noncontrolling interest



60




(7

)



52




(28

)

Comprehensive loss attributable to common stockholders


$

(12,219

)


$

(2,581

)


$

(17,021

)


$

(4,912

)














Weighted average shares outstanding of common stock



20,171,922




21,124,057




15,643,799




21,124,057


Basic and diluted net loss per share, common stock


$

(0.61

)


$

(0.12

)


$

(1.09

)


$

(0.24

)












































































































































































































































































































































































































































































































































































































































































































































































































CONNECTM TECHNOLOGY SOLUTIONS, INC.


(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED


SEPTEMBER 30, 2024 AND 2023 (Unaudited)


(in thousands)






For the Nine Months Ended September 30,







2024






2023



CASH FLOWS FROM OPERATING ACTIVITIES:








Net Loss


$

(16,998

)


$

(5,032

)

Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation expense



188




201


Amortization of intangible assets



319




377


Amortization of debt discount



60




250


Stock-based compensation expense



36







ROU amortization on finance leases



86




134


ROU amortization on operating leases



85




135


Gain on disposal of property and equipment








(22

)

Loss on impairment of intangible assets



406







Loss on extinguishment of debt



592







Unrealized loss (gain) on fair value measurement of debt



1,623




(182

)

Change in fair value of forward purchase agreement



8,575







Gain on modification of forward purchase agreement



(1,443

)






Changes in operating assets and liabilities:







Accounts receivable



(559

)



(52

)

Contract asset



344







Inventory



(42

)



(178

)

Prepaid expenses



(26

)



(68

)

Accounts payable



2,722




531


Accrued expenses



1,296




386


Operating lease liabilities



(56

)



(133

)

Contract liabilities



(459

)



130



Net cash used in operating activities







(3,251



)







(3,523



)










CASH FLOWS FROM INVESTING ACTIVITIES:








Purchase of property and equipment



(59

)



(49

)

Proceeds from the sale of property and equipment








57


Investment in cost method investment








(45

)

Issuance of convertible note








(375

)

Cash paid for noncontrolling interest



(60

)






Cash acquired in Delivery Circle Acquisition



699







Cash paid for capitalized software development costs



(129

)



(35

)


Net cash provided by (used in) investing activities





451






(447



)










CASH FLOWS FROM FINANCING ACTIVITIES:








Gross proceeds from the business combination



80,095







Cash paid in connection with forward purchase agreement



(37,624

)






Proceeds from forward purchase agreement



766







Proceeds from the issuance of debt



5,874




6,828


Proceeds from the issuance of convertible notes



740




900


Proceeds from related party debt



99







Cash paid for debt issuance costs



(788

)



(731

)

Payments of deferred offering costs



(1,243

)



(1,782

)

Payments of debt



(1,765

)






Advance to Monterey Capital Acquisition Corporation



(1,934

)






Advance from lender



1,057




(1,840

)

Payments on convertible notes



(50

)






Payments for redemptions of preferred stock



(41,653

)






Payment on finance leases



(73

)



(111

)


Net cash provided by financing activities





3,501






3,264










Effect of exchange rate changes on cash and cash equivalents



21




102


Increase (decrease) in cash and cash equivalents



722




(604

)

Cash, beginning of year



1,160




1,923



Cash, end of year




$



1,882





$



1,319











Supplemental disclosures of cash flow information:








Cash paid for interest


$

486




275


Cash paid for taxes


$





$












Supplemental disclosures of noncash financing information:








Recognition of right-of-use asset, operating


$





$

200


Recognition of right-of-use asset, finance


$





$

56


Vehicles acquired through issuance of debt


$





$

316


Conversion of preferred stock to common stock


$

11,982



$




Conversion of convertible debt to common stock


$

3,779



$




Recapitalization of ACA noncontrolling interests


$

111



$




Prepaid insurance financed through funding agreement


$

435



$





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