NASDAQ$WRAP

Wrap Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported results for the second quarter ended June 30, 2022.

Wrap Technologies reported net revenues of $1.2 million for Q2 2022, a decrease compared to $1.9 million in Q2 2021. Gross profit was $0.5 million, resulting in a 39% gross margin. Net loss per share was ($0.12), compared to ($0.20) in Q2 2021. The company is focused on a multi-year strategic roadmap for growth, profitability, and enhanced value creation.

  • New management completed its initial business review and developed a multi-year strategic roadmap for growth, profitability, and enhanced value creation.
  • Operating expense was $5.2 million in Q2 2022, representing a 32% year-over-year decline.
  • Net Revenues were $1.2 million in Q2 2022, compared to $1.9 million in Q2 2021, reflecting the Company’s transition to the next generation BolaWrap.
  • Gross Profit was $0.5 million in Q2 2022, resulting in a 39% Gross Margin, compared to a loss of ($0.1) million in Q2 2021.

Headline financials

Total Revenue

$1.17M

Previous: $1.93M-39.8%
EPS (adj)

-$0.12

Previous: -$0.20+40.0%
Capital Expenditures

-$168K

Previous: -$367K+54.2%
Free Cash Flow

-$4.95M

Previous: -$13.6M+63.6%
Net Income

-$4.79M

Previous: -$13.2M+63.8%
Operating Income

-$4.78M

Previous: -$7.8M+38.7%
Gross Profit

$457K

Previous: -$60K+861.7%
Cash & Equivalents

$6.58M

Previous: $13.1M-49.6%
Total Assets

$35.8M

Previous: $51.3M-30.2%
Stock-Based Comp

$547K

Previous: $2.15M-74.5%

Revenue & EPS history

Wrap Technologies · Revenue · Quarterly

$1.17M

Q2 2022-39.8%vs Q2 2021
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Revenue by segment

Wrap Technologies · $3.51M total across 1 segment · Q3 2023

  • Product Sales
    $3.51M

Forward guidance

Management anticipates full-year sales will grow in 2022 as supply chain disruptions ease and the transition from the BolaWrap 100 to the BolaWrap 150 accelerates. The company is targeting a cash flow break-even point by the end of 2023 and sees the potential for profitability by the end of 2024.

Tailwinds

  • Full-year sales are expected to grow in 2022 as supply chain disruptions ease.
  • Transition from BolaWrap 100 to BolaWrap 150 accelerates.
  • Increased sales momentum is expected in the back half of 2022 internationally.
  • Strong sales growth is expected for the BolaWrap 150 and Wrap Reality in 2023 and beyond.
  • Continued cost savings and expense management should lead to further reduction of the Company’s cash burn going forward.

Headwinds

  • Near-term growth is difficult to project.
  • Transition from BolaWrap 100 to BolaWrap 150 has impacted recent quarters.
  • Geopolitical tensions have impacted recent quarters.
  • Macroeconomic headwinds have impacted recent quarters.
  • Supply chain disruptions continue to be a challenge.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.5%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+10.7%

Avg return

30 days after

50%

16 / 32 earnings

Positive

+13.5%

Q3 2022

Best reaction

-12.7%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+3.5%
Q4 2025+2.7%+4.8%+9.6%
Q3 2025+1.9%-3.3%+19.0%
Q2 2025+1.3%-6.6%+35.8%
Q1 2025-2.6%-10.5%+13.7%
Q4 2024-5.3%-14.0%-10.5%
Q3 2024-7.3%-9.3%+13.9%
Q2 2024+8.7%+20.0%-3.3%
Q1 2024+9.8%+4.9%+28.0%
Q4 2023+0.0%+9.0%-5.1%
Q3 2023+9.0%+6.4%+6.4%
Q2 2023+1.7%-6.9%-3.4%
Q1 2023-3.9%-3.1%-18.1%
Q4 2022-11.7%-17.4%-25.2%
Q3 2022+13.5%+36.2%+97.2%
Q2 2022+10.3%+17.4%+1.6%
Q1 2022+2.7%-3.9%-12.7%
Q4 2021-8.5%-12.4%+44.3%
Q3 2021+0.2%+5.6%-12.1%
Q2 2021+2.2%+1.9%+12.4%
Q1 2021-9.4%-7.2%+38.1%
Q4 2020-0.2%+7.3%+3.3%
Q3 2020+0.2%+20.3%+13.0%
Q2 2020-12.7%-12.7%-23.0%
Q1 2020+0.8%-2.3%+34.1%
Q4 2019-10.8%-16.2%-23.1%
Q3 2019-4.6%-7.3%+23.8%
Q2 2019-7.2%+0.9%-10.1%
Q1 2019-2.5%-10.1%-4.8%
Q4 2018+6.3%+17.9%+13.9%
Q3 2018-2.6%-5.1%-3.3%
Q2 2018+0.0%+0.0%+77.6%
Q1 2017
Q1 2018
Q2 2017
Q4 2017
Q3 2016
Q3 2017
Q2 2016
Q4 2016
Q1 2016

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