Ondas Inc. Q4 FY2024 earnings call

Introduction: Welcomed new leadership members including Markus Nottelmann (Ondas Networks), Oshri Lugasi, and Meir Kliner. ### 2024 Highlights: Overcame challenges, secured major defense programs, launched Iron Drone Demo team, and announced partnership with Palantir. ### Financial Results: Neil Laird walked through Q4 and full year 2024 financials, noting revenue fluctuations, operating expenses, and cash position. ### Business Updates: - Ondas Networks: Markus discussed rail network progress, including Metra and Class 1 railroad deployments, and 220/450 megahertz band activities. - OAS: Oshri and Meir shared updates on defense and autonomous systems, including Optimus and Iron Drone Raider deployments, partnerships, and operational milestones in various regions.

For Ondas Networks, revenues were relatively flat quarter-over-quarter, down from the prior year. For Ondas Autonomous Systems (OAS), revenues increased 260% quarter-over-quarter and 10% from the prior year's fourth quarter. Gross profit for Q4 2024 was 0.9 million (22%), up from the third quarter but slightly lower than the prior year's fourth quarter due to third-party products in revenue. Full year 2024 revenues for Ondas were 7.2 million, down from 15.7 million in 2023, with OAS contributing to growth but impacted by various factors. OAS's gross profit for the full year was 0.3 million, lower than 2023's 6.4 million.

2025 Outlook: Anticipates record revenue growth, primarily driven by OAS. OAS revenue outlook raised to at least $20M (up from initial $15M - $18M). Total revenue expected $25M. Leveraging partnership with Palantir to use Foundry AI for scaling OAS operations and unifying data/streamlining operations.

Risks: Uncertain revenue timing for Ondas Networks, impact of tariffs on product delivery and cost, regulatory deadlines and enforcement for rail network spectrum utilization.

Q: Could you give more color on visibility into the $10M backlog and timing of orders for OAS?

A: $10M backlog expected to be realized in Q1 and Q2 2025, engaged with various customers for new programs.

Q: How is the first responder opportunity in the U.S. market developing?

A: There is interest in Optimus, successful pilot program with a major public safety customer in Q1 2025.

Q: Color on gross margins for 2025?

A: Expect gross margins to recover in 2025, driven by OAS and improved volumes.

Q: Clarification on partnership with Palantir?

A: Leveraging Palantir's Foundry AI to unify data, streamline operations for OAS, with long-term benefits.

Q: Status of rail network FCC deadlines?

A: Railroads expect to meet deadlines, AAR has publicly stated intentions, with key deadlines in September 2025 and utilization requirements.