GuruFocus - Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- WiSA Technologies Inc (NASDAQ:WISA) reported a significant financial improvement with Q3 revenue reaching $1.2 million, marking an increase of 240%.
- The company successfully improved its gross margins by transitioning its small Platin audio speaker line to a direct-to-consumer model.
- WiSA Technologies Inc (NASDAQ:WISA) reduced its inventory by 17%, indicating efficient inventory management.
- The company ended the quarter with a solid cash position of $3.9 million.
- WiSA Technologies Inc (NASDAQ:WISA) has started shipping its W A IP for transmit in a set-top box, expected to be available for the Christmas season, initially in Europe and globally in 2025.
- The company is undergoing a significant transformation with the acquisition of assets from Datavault Holdings, which may present integration challenges.
- WiSA Technologies Inc (NASDAQ:WISA) has not provided specific guidance for 2025, creating uncertainty about future financial performance.
- The company's gross margin improvements are primarily tied to the transition of product lines, which may not be sustainable long-term.
- There is a reliance on the successful commercialization of new technologies and patents, which carries inherent risks.
- The transaction with Datavault Holdings involves a $200 million stock deal and a $10 million unsecured promissory note, which could impact financial stability if not managed carefully.
A: Brett Moyer, CEO: Yes, there was some contribution from WISA E, but it was still primarily driven by Gen 1 WISA HT.
Q: Do you have any initial expectations for WISA E in the fourth quarter, and can you remind us of your 2025 expectations?
A: Brett Moyer, CEO: We haven't provided guidance for 2025, but we expect a significant uptick in WISA E-related revenue in Q4 compared to Q3.
Q: Do you expect gross margins to remain around 30% for Gen 1 WISA HT, or is there any variability?
A: Brett Moyer, CEO: It's fair to model 30-35% for WISA HT. As we move forward with WISA E and software licensing, we anticipate significantly higher gross margin percentages.
Q: Can you walk us through some near-term monetization drivers for Datavault and Audio as you enter 2025?
A: Nate Bradley, CEO of Datavault Holdings: Key drivers include sports and entertainment venues, live events, and the use of holograms in high science. We focus on ad networks for Audio and data exchanges for Datavault.
Q: How do you monetize the digital twin side of the business, and what visibility will analysts have?
A: Nate Bradley, CEO of Datavault Holdings: Monetization involves a 70/30 split, with 30% of the trade yield coming to Datavault. We will announce partnerships on both the buy and sell sides, with Datavault serving as a meta terminal for clients.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.