April 1, 2024

SKYX Platforms Corp. Posts Record 2023 Sales, Surpassing Estimates Amid Market Penetration Efforts

  • Revenue: Achieved a record $58.8 million in 2023, with Q4 sales hitting $22.2 million, significantly surpassing the estimated $27.835 million.
  • Net Income: Reported a net loss of $39.7 million or $(0.45) per share in 2023, compared to a net loss of $27.0 million or $(0.40) per share in 2022.
  • Gross Profit: Increased to $18.0 million in 2023, representing 31% of revenue, bolstered by the Belami E-commerce platform acquisition.
  • Cash Position: Improved cash and equivalents to $22.4 million as of December 31, 2023, up from $16.8 million the previous year.
  • Operating Cash Flow: Cash used in operating activities amounted to $12.9 million in 2023, a slight improvement from $13.8 million in 2022.
SKYX Platforms Corp. Posts Record 2023 Sales, Surpassing Estimates Amid Market Penetration Efforts
SKYX Platforms Corp. Posts Record 2023 Sales, Surpassing Estimates Amid Market Penetration Efforts

On April 1, 2024, SKYX Platforms Corp (NASDAQ:SKYX) released its 8-K filing, announcing its financial and operational results for the fourth quarter and fiscal year ended December 31, 2023. The company, known for its proprietary technology that simplifies the installation of electrical fixtures, reported record sales for 2023, with a significant increase in revenue to $58.8 million, including $22.2 million in the fourth quarter alone. This remarkable growth in sales underscores the company's successful market penetration in both retail and professional segments.Financial Highlights and ChallengesSKYX's gross profit for the year increased to $18.0 million, or 31% of revenue, largely due to the profitable acquisition of the Belami E-commerce platform. The company's cash position also strengthened, with $22.4 million in cash, cash equivalents, restricted cash, available cash, and investments available for sale as of December 31, 2023. However, the company faced challenges as it reported a net loss of $39.7 million, or $(0.45) per share, in 2023, which was a deeper loss compared to $27.0 million, or $(0.40) per share, in the previous year.The increase in sales and marketing expenses to $20.1 million in 2023 from $18.8 million in 2022 reflects the company's ongoing efforts to expand its market reach. Despite these increased costs, the company managed to slightly reduce its cash used in operating activities to $12.9 million in 2023 from $13.8 million in 2022.Operational Achievements and Market PositionSKYX's operational achievements in 2023 were significant, with the company filing for mandatory safety standardization with the National Electrical Code (NEC) for its ceiling outlet receptacle. This move, following over 12 years of standardization process and product specification approval voting by ANSI/NEMA, positions SKYX as a potential leader in ceiling safety standardization for homes and buildings.The company's management remains optimistic about the future, projecting that the e-commerce platform with over 60 websites will provide additional cash flow, which, combined with existing cash, is expected to fund operations for 18 months. Management also anticipates that SKYX will become cash flow positive during 2025.Comprehensive Financial ReviewAn analysis of the consolidated balance sheets reveals a robust improvement in total assets, from $43.2 million in 2022 to $76.3 million in 2023. The consolidated statements of operations and comprehensive loss show a significant increase in revenue from $32,022 in 2022 to $58.8 million in 2023. However, the cost of revenues also rose, leading to a net loss that increased year over year.The consolidated statements of cash flows indicate that the company's cash flows from operating activities have seen a marginal improvement, although they remain in the negative. The cash flows from investing activities turned positive, providing a net inflow of $3.2 million in 2023.Our year ended December 31, 2023, was highlighted by our first two full quarters of significant revenue, including sales and rollout of our advanced ceiling smart and standard plug & play platform products on many leading U.S. and Canadian websites. We believe we have accelerated our cadence of sales with a robust gross margin profile, notably managing the cash burn of SKYX. Our e-commerce platform with over 60 websites is expected to provide additional cash flow to the Company, which, when combined with our existing cash, we anticipate will be sufficient for 18 months of operations. Management believes that the Company will become cash flow positive during 2025.For a more detailed financial analysis and to view the full earnings report, investors and interested parties can access the company's annual report on Form 10-K, which will be filed with the SEC and made available on the company's investor relations website.ConclusionSKYX Platforms Corp. has demonstrated a capacity for growth and market penetration, as evidenced by its record sales in 2023. The company's strategic acquisitions and technology advancements are positioning it for future success. However, the net loss and cash burn present challenges that the company is looking to overcome as it moves towards its goal of becoming cash flow positive by 2025.Investors are encouraged to join the conference call hosted by SKYX management to discuss these results and ask questions. The call details are available in the earnings release.For further information and updates, please visit GuruFocus.com.Explore the complete 8-K earnings release (here) from SKYX Platforms Corp for further details.This article first appeared on GuruFocus.