NASDAQ$LUNA

Luna Innovations Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong fourth-quarter and full-year 2022 results.

Luna Innovations reported a strong fourth quarter with a 31% increase in revenue year over year, driven by growth in multiple areas including OEM accounts, fiber sensing solutions, Terahertz products, and Communications test vertical. The company's gross margin also improved to 61% compared to 58% in the prior year. Looking ahead, Luna Innovations provided guidance for 2023, expecting total revenues in the range of $125 million to $130 million.

  • Revenues of $31.7 million, up 31% year over year
  • Revenues in constant currency of $32.5 million, up 34% year over year
  • Gross margin of 61%, compared to 58% for the prior year
  • Adjusted EBITDA of $4.7 million, compared to $3.1 million for the prior year

Headline financials

Total Revenue

$31.7M

No prior period
EPS (adj)

$0.02

No prior period
Capital Expenditures

-$625K

No prior period
Free Cash Flow

-$5.86M

No prior period
Net Income

$853K

No prior period
Operating Income

$1.46M

No prior period
Gross Profit

$19.3M

No prior period
Cash & Equivalents

$6.02M

No prior period
Total Assets

$151M

No prior period
Stock-Based Comp

$1.03M

No prior period

Revenue & EPS history

Luna Innovations · Revenue · Quarterly

$31.7M

Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Luna Innovations · $19.5M total across 2 segments · Q4 2019

  • Products and licensing
    $13M+63.1%
  • Technology development
    $6.45M+16.2%

Forward guidance

For fiscal year and Q1 2023, Luna expects total revenues in the range of $125 million to $130 million for full year 2023 and Adjusted EBITDA in the range of $14 million to $18 million for full year 2023. For Q1 2023, Luna expects total revenues in the range of $23 million to $25 million.

Tailwinds

  • Total revenues in the range of $125 million to $130 million for full year 2023
  • Adjusted EBITDA in the range of $14 million to $18 million for full year 2023
  • Total revenues in the range of $23 million to $25 million for Q1 2023

Headwinds

  • Luna is not providing an outlook for net income
  • Changes in the items that Luna excludes from net income to calculate Adjusted EBITDA, such as share-based compensation, tax expense, and significant non-recurring charges, among other things, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of Luna's routine operating activities.
  • The outlook above does not include any future acquisitions, divestitures, or unanticipated events.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.3%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+4.7%

Avg return

30 days after

59%

33 / 56 earnings

Positive

+23.5%

Q2 2019

Best reaction

-29.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2023+1.1%+3.7%+23.0%
Q2 2023-12.6%-12.7%-29.2%
Q1 2023+4.4%-4.3%-7.4%
Q4 2023-29.3%-28.0%-25.4%
Q3 2022+18.8%+22.7%+55.4%
Q2 2022-5.8%-4.5%-17.5%
Q1 2022-3.2%-4.9%-28.7%
Q4 2021+8.7%+19.2%-1.9%
Q3 2021-11.7%-1.7%-9.7%
Q2 2021-11.1%-11.5%-15.1%
Q1 2021+5.7%+5.1%+10.6%
Q4 2020+3.5%+2.4%-7.2%
Q3 2020+15.4%+11.6%+32.6%
Q2 2020+18.0%+7.9%+7.3%
Q1 2020-6.1%-8.2%+22.5%
Q4 2019+4.3%-8.2%-20.4%
Q3 2019+9.5%+11.7%+28.5%
Q2 2019+23.5%+20.9%+48.1%
Q1 2019+0.5%+0.7%+6.5%
Q4 2018+15.9%+5.4%+7.9%
Q3 2018-0.3%-2.2%-12.9%
Q2 2018+21.5%+8.8%+9.7%
Q1 2018-12.9%-9.7%-10.0%
Q4 2017+14.6%+22.5%+30.4%
Q3 2017+14.2%+25.2%+47.7%
Q2 2017+19.0%+25.6%+24.0%
Q1 2017-0.6%+0.0%-11.0%
Q4 2016-11.7%-9.6%-18.1%
Q3 2016+0.8%+1.6%+10.2%
Q2 2016-21.3%-19.3%-9.3%
Q1 2016-4.5%
Q4 2015-2.6%
Q3 2015-2.5%
Q2 2015+5.3%
Q1 2015+5.8%
Q4 2014+5.3%
Q3 2014+9.2%
Q2 2014+2.4%
Q4 2013-5.4%
Q1 2014-5.4%
Q3 2013-6.2%
Q2 2013-4.5%
Q1 2013-5.4%
Q4 2012-5.4%
Q3 2012-4.1%
Q2 2012+0.7%
Q1 2011+2.3%
Q1 2012+3.0%
Q4 2011+0.6%
Q3 2011+6.3%
Q3 2010+6.3%
Q4 2009+0.6%
Q2 2011+0.6%
Q4 2010+0.6%
Q2 2010+1.6%
Q1 2010-4.7%

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