NASDAQ$WRAP

Wrap Technologies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Wrap Technologies reported Q3 2022 results, showing sequential improvements driven by the BolaWrap 150 transition and strategic roadmap implementation.

Wrap Technologies reported a 6% decrease in net revenue to $1.70 million compared to the prior year period, but Americas sales grew 36% to $1.48 million. Gross profit improved to $0.91 million with a gross margin of 54%. The company's net loss improved 35% to $(3.87) million, and operating expenses decreased by $1.91 million.

  • Americas revenue increased by 36%, reaching the highest quarterly sales in the company's history.
  • Gross profit margin improved to a record 54% due to BolaWrap 150 traction and production efficiencies.
  • Operating expenses decreased by $1.91 million, driven by cost controls in SG&A and R&D.
  • Net loss improved by 35% as a result of increased sales focus and cost containment efforts.

Headline financials

Total Revenue

$1.7M

Previous: $1.81M-5.8%
EPS (adj)

-$0.09

Previous: -$0.15+40.0%
Capital Expenditures

$33K

Previous: -$811K+104.1%
Free Cash Flow

-$4.86M

Previous: -$6.8M+28.5%
Net Income

-$3.87M

Previous: -$5.99M+35.4%
Operating Income

-$4.82M

Previous: -$6.02M+19.9%
Gross Profit

$910K

Previous: $711K+28.0%
Cash & Equivalents

$23.7M

Previous: $39.9M-40.6%
Total Assets

$32.5M

Previous: $48.7M-33.2%
Stock-Based Comp

$872K

Previous: $1.3M-33.1%

Revenue & EPS history

Wrap Technologies · Revenue · Quarterly

$1.7M

Q3 2022-5.8%vs Q3 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

Wrap Technologies is reiterating its expectation for year-over-year sales growth in 2022 and anticipates sequentially increased sales in Q4 and overall in 2023. Management is targeting a cash flow break-even point by the end of 2023 and potential profitability by the end of 2024.

Tailwinds

  • Sales are expected to grow year-over-year in 2022.
  • Sequentially increased sales are anticipated in the fourth quarter and overall in 2023.
  • New sales are expected from domestic and international expansion with existing customers and new orders.
  • Cash burn is expected to decrease significantly going forward.
  • The company's current cash position should fund ongoing operations without the need to raise additional capital.

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 Q3 2022

Historical avgQ3 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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