NASDAQ$WRAP

Wrap Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Achieved record quarterly revenue driven by significant domestic and global orders for BolaWrap and Wrap Reality.

Wrap Technologies reported record quarterly revenue in Q3 2023, driven by strong international demand, particularly from the North African region, and a large-scale deployment order for BolaWrap 150 in the domestic Mid-Atlantic sector. The company also saw a second consecutive record quarter for Wrap Reality sales and integrated Wrap Intrensic into its Body-Worn Camera and Digital Evidence Management portfolio.

  • Record quarterly revenue was achieved through significant international orders in the North African region.
  • A full deployment order for BolaWrap 150 came from a large domestic agency in the Mid-Atlantic.
  • Wrap Reality sales recorded its most outstanding quarterly sales to date for the second quarter in a row.
  • Wrap Intrensic was successfully integrated, enhancing Body-Worn Camera and Digital Evidence Management portfolio.

Headline financials

Total Revenue

$3.63M

Previous: $1.7M+113.5%
EPS (adj)

-$0.07

Previous: -$0.09+22.2%
Capital Expenditures

-$133K

Previous: $33K-503.0%
Free Cash Flow

-$2.92M

Previous: -$4.86M+40.0%
Net Income

-$2.78M

Previous: -$3.87M+28.1%
Operating Income

-$2.75M

Previous: -$4.82M+42.9%
Gross Profit

$2.18M

Previous: $910K+139.2%
Cash & Equivalents

$14.9M

Previous: $23.7M-37.1%
Total Assets

$31.7M

Previous: $32.5M-2.6%
R&D Expense

$610K

No prior period
Stock-Based Comp

-$201K

Previous: $872K-123.1%

Revenue & EPS history

Wrap Technologies · Revenue · Quarterly

$3.63M

Q3 2023+113.5%vs Q3 2022
Beat estimate in 2 of 6 quarters(33%)
ActualEstimate

Revenue by segment

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

  • Product Sales
    $3.51M

Forward guidance

Wrap anticipates revenue growth in the fourth quarter and into 2024, and given the demand for Wrap's solutions, they foresee a continual increase in orders in the upcoming 18 months. The company expects operational expenses to remain flat to the adjusted number in third quarter for the foreseeable future.

Tailwinds

  • Anticipate revenue growth in the fourth quarter and into 2024
  • Foresee a continual increase in orders in the upcoming 18 months
  • Market's enthusiastic reception to offerings, both domestically and internationally
  • Well-positioned for sustainable growth
  • Integration of Wrap Intrensic continues to drive immediate and meaningful growth

Headwinds

  • One-time items related to legal expenses, the Company’s financing, and the acquisition of Intrensic affected operational expenses
  • Net loss for the third quarter 2023 would have been $1.94 million excluding one-time items
  • Cash, cash equivalents and short-term investments decreased from December 31, 2022
  • Wrap’s performance is subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control
  • The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.6%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+10.7%

Avg return

30 days after

48%

15 / 31 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
Q4 2025
Q1 2026+0.7%+3.5%
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%-7.3%+38.0%
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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