Actelis Networks (NASDAQ: ASNS) has announced its Q2 2024 financial results, marking a significant milestone with a positive EBITDA, a first for the company since 2022. This development, along with robust revenue growth and a reduction in operating expenses, underscores Actelis' strong execution and strategic focus on growth within the Internet of Things (IoT) and cybersecurity sectors.
The company reported a remarkable 372% sequential revenue growth from Q1 2024, generating $3.43 million in Q2 2024. This represents an 81% year-over-year increase, highlighting the growing demand for Actelis' innovative solutions. Additionally, the company's gross margin saw a notable improvement, rising to 57% in Q2 2024 from 30% in the previous quarter. This surge in profitability was driven by robust revenue growth and effective cost management.
Furthermore, Actelis successfully reduced its operating expenses by 20% in Q2 2024 compared to the previous year, demonstrating the efficacy of its ongoing cost reduction initiatives. The company also reported a net loss of just $78,000 in Q2 2024, a substantial improvement from the $1.59 million net loss in Q2 2023. Additionally, Actelis achieved a positive Non-GAAP adjusted EBITDA of $11,000 in the quarter, marking its first positive quarter since 2022.
Complementing its strong financial performance, Actelis has achieved significant business milestones. The company secured and delivered a $2.3 million order from Washington D.C.'s Department of Transportation, further cementing its position in the intelligent transportation space. Additionally, Actelis successfully deployed its hybrid-fiber, cyber-hardened solution in Bakersfield, CA, showcasing its technology's capability to enhance urban infrastructure and security.
The company's newly launched GigaLine 800 and GigaLine 900 Multi-Dwelling Unit (MDU) solutions are also generating considerable market interest, with a growing list of customer trials underway. A first order for the GigaLine 800 worth $160,000 from a contractor to a major military carrier was received, marking a significant milestone in the execution of the new products' potential.
Actelis has also strengthened its liquidity position by raising nearly $5 million in June 2024. As of June 30, 2024, shareholders' equity stood at $1.06 million, and on a pro forma basis, including this fundraise, shareholders' equity was $3.0 million—above Nasdaq's continued listing requirement of $2.5 million.
According to Tuvia Barlev, Chairman and CEO of Actelis, the company's progress in Q2 2024 is a testament to the team's relentless efforts and successful execution for key customers. Actelis is delivering on its commitments to drive growth and innovation, and the results reflect the impact of its strategic initiatives.
As Actelis continues to build on this momentum, the company remains focused on scaling these successes, expanding its SaaS offerings through strategic partnerships, and continuing to reduce operational costs while maintaining high margins. The significant order from Washington D.C.'s Department of Transportation and the successful deployments in cities like Bakersfield demonstrate not only the strength of Actelis' technology but also the trust that major urban centers place in the company to modernize and secure their infrastructure.
Looking ahead, Actelis appears well-positioned to capitalize on the expanding IoT market, particularly in sectors like intelligent transportation and critical infrastructure. With its strong financial performance, recent business achievements, and ongoing strategic initiatives, Actelis eyes significant growth potential.
