~ Results In-Line with Previously Announced Third Quarter Preliminary Results ~
~ Third Quarter Revenue Increased 39% to $6.1 Million YoY and 11% from Second Quarter 2024 ~
~ FY2024 Projected Revenue of $20.0 Million, Representing a 20% YoY Increase ~
~ On Track to Achieve Operating Cash Flow Breakeven by The First Quarter of 2025 ~
MARLBOROUGH, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) ("ConnectM” or the "Company”), a technology company focused on the electrification economy, has filed its 10-Q with the Securities and Exchange Commission (the "SEC”) and released its financial results for the quarter ended September 30, 2024.
Third Quarter and First Nine Months 2024 Financial Results
- Revenue for the third quarter of 2024 increased to $6.1 million compared to $4.4 million in the same year ago period. Revenue in the first nine months of 2024 increased 12% to $17.3 million, when compared to $15.5 million in the same prior year period.
- Cost of revenue for the third quarter of 2024 increased to $4.2 million compared to $3.7 million in the same year ago period. Cost of revenue in the first nine months of 2024 was $11.0 million, in line with $11.0 million in the same prior year period.
- Net loss attributable to shareholders for the third quarter of 2024 was $12.2 million compared to $2.6 million in the comparable prior year period. For the first nine months of 2024, net loss attributable to shareholders increased to $17.0 million, as compared to a net loss of $5.0 million in the comparable prior year period.
- Successfully completed De-SPAC and began trading on the Nasdaq Global Market in July 2024.
- Launched AI-powered heat pump integrated with ConnectM's Energy Intelligence Network powered by the Company's proprietary data model, for residential and light commercial use, optimized for performance, energy efficiency and reducing customer costs.
- Entered into agreement to acquire a controlling interest in DeliveryCircle, a nationwide technology enabled final mile delivery company which connects businesses looking for a last-mile delivery solution. This strategic acquisition expands ConnectM's Transportation & Logistics segment in the United States.
- Eliminated $13.7 million of debt with debt-to-equity swap to deleverage the balance sheet.
- Entered into Managed Services Agreement ("MSA”) with Devlin Energy, expanding ConnectM's business portfolio mix and revenue generation with an array of residential and commercial distributed energy capabilities.
- Completed acquisition of Green Energy Gains Inc., a Massachusetts Home Performance Contractor of energy and weatherization assessments, and instrumental in the distribution and installation of ConnectM's electric heat pumps, augmenting the Company's Building Electrification segment.
- ConnectM's AI-powered heat pump received AHRI's (Air-Conditioning Heating and Refrigeration Institute) Cold Climate Certification, awarded to products that demonstrate superior heating efficiency.
For the fourth quarter and full year 2024, the Company expects revenues of approximately $7 million and $24 million respectively.
About ConnectM Technology Solutions, Inc.
ConnectM is a technology company focused on advancing the electrification economy by integrating electrified energy assets with its AI-powered technology solutions platform. The Company provides residential and light commercial buildings and all-electric original equipment manufacturers with a proprietary Energy Intelligence Network platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. Leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, ConnectM aims to make electrification more user-friendly, affordable, precise, and socially impactful. As a vertically integrated company with wholly owned service networks and a comprehensive technology stack, ConnectM empowers customers to reduce their reliance on fossil fuels, lower overall energy costs, and minimize their carbon footprint.
For more information, please visit: https://www.connectm.com/
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may,” "should,” "could,” "would,” "expect,” "plan,” "anticipate,” "intend,” "believe,” "estimate,” "continue,” "project” or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control.
In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the "Cautionary Note Regarding Forward-Looking Statements” section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
MZ North America
(203) 741-8811
| CONNECTM TECHNOLOGY SOLUTIONS, INC.
(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 (AUDITED) (in thousands, except share and per share amounts) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,882 | $ | 1,160 | ||||
| Accounts receivable, net | 1,863 | 685 | ||||||
| Contract asset | - | 344 | ||||||
| Convertible note receivable | - | 445 | ||||||
| Inventory | 320 | 277 | ||||||
| Deferred offering costs | - | 1,297 | ||||||
| Due from Monterey Capital Acquisition Corporation | - | 2,491 | ||||||
| Forward purchase agreement | 2,196 | - | ||||||
| Prepaid expenses and other assets | 1,191 | 651 | ||||||
| Total current assets | 7,452 | 7,350 | ||||||
| Right-of-use asset - operating lease | 199 | 284 | ||||||
| Right-of-use asset - finance lease | 167 | 252 | ||||||
| Property, plant and equipment, net | 996 | 1,138 | ||||||
| Goodwill | 3,037 | 2,247 | ||||||
| Intangible assets, net | 1,851 | 1,841 | ||||||
| Investment recorded at cost | 45 | 45 | ||||||
| Total Assets | $ | 13,747 | $ | 13,157 | ||||
| Liabilities and Stockholders' Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 10,357 | $ | 3,860 | ||||
| Accrued expenses | 4,631 | 1,718 | ||||||
| Due to Libertas | 1,057 | - | ||||||
| Due to related party | 686 | - | ||||||
| Current portion of debt, related party | 85 | 85 | ||||||
| Current portion of debt, net of debt discount | 15,966 | 11,935 | ||||||
| Current portion of convertible debt, at fair value | 4,392 | 2,179 | ||||||
| Current portion of operating lease liability | 114 | 115 | ||||||
| Current portion of finance lease liability | 114 | 99 | ||||||
| Current portion of contingent consideration | 199 | - | ||||||
| Contract liabilities | 662 | 1,121 | ||||||
| Income taxes payable | 386 | - | ||||||
| Total current liabilities | 38,649 | 21,112 | ||||||
| Non-current portion of operating lease liability | 118 | 173 | ||||||
| Non-current portion of debt, related party | 99 | - | ||||||
| Non-current portion of finance lease liability | 115 | 203 | ||||||
| Noncurrent portion of debt, net of debt discount | 1,417 | 1,150 | ||||||
| Contingent consideration | 377 | - | ||||||
| Total liabilities | 40,775 | 22,638 | ||||||
| Commitments and Contingencies (Note 9) | ||||||||
| Mezzanine Equity | ||||||||
| Series Seed Convertible Preferred Shares; 0 and 2,139,050 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | - | 2,200 | ||||||
| Series Seed-1 Convertible Preferred Shares; 0 and 302,642 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | - | 293 | ||||||
| Series A-1 Convertible Preferred Shares; 0 and 2,467,990 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | - | 3,195 | ||||||
| Series B-1 Convertible Preferred Shares; 0 and 2,158,357 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | - | 3,984 | ||||||
| Series B-2 Convertible Preferred Shares; 0 and 995,509 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | - | 2,311 | ||||||
| Total mezzanine equity | - | 11,983 | ||||||
| Stockholders' Deficit: | ||||||||
| Preferred stock Series A, $0.001 par value, 10,000,000 and 1,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 0 shares issued or outstanding as of September 30, 2024 and December 31, 2023, respectively | - | - | ||||||
| Common stock, $0.0001 par value, 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 21,124,057 and 5,291,381 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 2 | - | ||||||
| Additional paid-in-capital | 11,425 | 1,307 | ||||||
| Accumulated deficit | (39,910 | ) | (22,860 | ) | ||||
| Accumulated other comprehensive income | 144 | 115 | ||||||
| Stockholders' deficit | (28,340 | ) | (21,438 | ) | ||||
| Noncontrolling interests | 1,311 | (26 | ) | |||||
| Total stockholders' deficit | (27,029 | ) | (21,464 | ) | ||||
| Total liabilities, mezzanine equity and stockholders' deficit | $ | 13,747 | $ | 13,157 | ||||
| CONNECTM TECHNOLOGY SOLUTIONS, INC. (SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudited) (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 6,074 | $ | 4,384 | $ | 17,299 | $ | 15,484 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenues | 4,200 | 3,716 | 11,010 | 11,020 | ||||||||||||
| Selling, general and administrative expenses | 4,900 | 2,843 | 11,773 | 8,780 | ||||||||||||
| Loss on impairment of intangible assets | - | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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