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CANTON, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine and tissue innovations company focused on empowering healing through the development, manufacturing, and sale of products for the advanced wound care, and surgical and sports medicine markets, today reported financial results for the fourth quarter and the year ended December 31, 2024.

Fourth Quarter 2024 Financial Results Summary:

• Net revenue of $126.7 million for the fourth quarter of 2024, an increase of $27.0 million compared to net revenue of $99.7 million for the fourth quarter of 2023. Net revenue for the fourth quarter of 2024 consists of:
  • Net revenue from Advanced Wound Care products of $118.6 million, an increase of 27% from the fourth quarter of 2023.
  • Net revenue from Surgical & Sports Medicine products of $8.1 million, an increase of 24% from the fourth quarter of 2023.
• Net income of $7.7 million for the fourth quarter of 2024, compared to net loss of $0.6 million for the fourth quarter of 2023, an increase in net income of $8.3 million.
• Adjusted EBITDA of $18.2 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.5 million for the fourth quarter of 2023, an increase of $10.7 million.
• Adjusted net income of $8.8 million for the fourth quarter of 2024, compared to adjusted net income of $1.9 million for the fourth quarter of 2023, an increase of $6.8 million.

Fiscal Year 2024 Financial Results Summary:

• Net revenue of $482.0 million for the year ended December 31, 2024, an increase of $48.9 million compared to net revenue of $433.1 million for the year ended December 31, 2023. Net revenue for the year ended December 31, 2024 consists of:
  • Net revenue from Advanced Wound Care products of $453.6 million, an increase of 12% year over year.
  • Net revenue from Surgical & Sports Medicine products of $28.4 million, an increase of 3% year over year.
• Net income of $0.9 million for the year ended December 31, 2024, compared to net income of $4.9 million for the year ended December 31, 2023, a decrease of $4.0 million.
• Adjusted EBITDA of $49.8 million for the year ended December 31, 2024, compared to Adjusted EBITDA of $42.6 million for the year ended December 31, 2023, an increase of $7.2 million.
• Adjusted net income of $20.5 million for the year ended December 31, 2024, compared to adjusted net income of $12.7 million for the year ended December 31, 2023, an increase of $7.8 million.

“Our 2024 results exceeded expectations in a difficult environment, underscoring our strong execution, brand equity and the trust of our customers to help them navigate this complex market,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board for Organogenesis. “In 2025, we will continue to focus on our customers while we collaborate with policy and law makers to craft a solution that addresses spending while ensuring access to safe and effective therapies for all patients.”

Mr. Gillheeney, Sr. continued: “We expect to meet a key strategic milestone in 2025 by delivering the ReNu BLA submission by the end of the year. We believe this is a transformational opportunity for Organogenesis in that, if approved, ReNu will potentially address an unmet clinical need for all patients suffering from knee OA. ”

Fourth Quarter 2024 Financial Results:

	Three Months Ended December 31,								Change
	2024				2023				$				%
	(in thousands, except for percentages)
Advanced Wound Care	$	118,585			$	93,165			$	25,420				27	%
Surgical & Sports Medicine		8,071				6,486				1,585				24	%
Net revenue	$	126,656			$	99,651			$	27,005				27	%

Net revenue for the fourth quarter of 2024 was $126.7 million, compared to $99.7 million for the fourth quarter of 2023, an increase of $27.0 million, or 27%. The increase in net revenue was driven by an increase of $25.4 million, or 27%, in net revenue for Advanced Wound Care products, and an increase of $1.6 million, or 24%, in net revenue for Surgical & Sports Medicine products.

Gross profit for the fourth quarter of 2024 was $95.6 million, or 75% of net revenue, compared to $71.9 million, or 72% of net revenue for the fourth quarter of 2023, an increase of $23.7 million, or 33%.

Operating expenses for the fourth quarter of 2024 were $85.4 million compared to $73.2 million for the fourth quarter of 2023, an increase of $12.2 million, or 17%. R&D expense was $11.5 million for the fourth quarter of 2024, compared to $11.8 million for the fourth quarter of 2023, a decrease of $0.3 million, or 3%. Selling, general and administrative expenses were $73.9 million for the fourth quarter of 2024, compared to $61.4 million for the fourth quarter of 2023, an increase of $12.5 million, or 20%.

Operating income for the fourth quarter of 2024 was $10.2 million, compared to an operating loss of $1.3 million for the fourth quarter of 2023, an increase in operating income of $11.5 million, or 905%.

Total other expense, net, for the fourth quarter of 2024 was less than $0.1 million, compared to $0.5 million for the fourth quarter of 2023, a decrease of $0.5 million, or 95%.

Net income for the fourth quarter of 2024 was $7.7 million, or $0.05 per share, compared to a net loss of $0.6 million, or $0.00 per share, for the fourth quarter of 2023, an increase in net income of $8.3 million, or $0.05 per share.

Adjusted EBITDA was $18.2 million for the fourth quarter of 2024, compared to $7.5 million for the fourth quarter of 2023, an increase of $10.7 million, or 143%.

Adjusted net income was $8.8 million for the fourth quarter of 2024, compared to $1.9 million for the fourth quarter of 2023, an increase of $6.8 million, or 354%.

As of December 31, 2024, the Company had $136.2 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, compared to $104.3 million in cash, cash equivalents and restricted cash and $66.2 million in net debt obligations as of December 31, 2023.

Fiscal Year 2024 Financial Results:

	Year Ended December 31,								Change
	2024				2023				$				%
	(in thousands, except for percentages)
Advanced Wound Care	$	453,639			$	405,514			$	48,125				12	%
Surgical & Sports Medicine		28,404				27,626				778				3	%
Net revenue	$	482,043			$	433,140			$	48,903				11	%

Net revenue for the year ended December 31, 2024 was $482.0 million, compared to $433.1 million for the year ended December 31, 2023, an increase of $48.9 million, or 11%. The increase in net revenue was driven by an increase of $48.1 million, or 12%, in net revenue for Advanced Wound Care products and an increase of $0.8 million, or 3%, in net revenue for Surgical & Sports Medicine products.

Gross profit for the year ended December 31, 2024 was $366.3 million, or 76% of net revenue, compared to $326.7 million, or 75% of net revenue for the year ended December 31, 2023, an increase of $39.6 million, or 12%.

Operating expenses for the year ended December 31, 2024 were $367.6 million compared to $314.1 million for the year ended December 31, 2023, an increase of $53.5 million or 17%. R&D expense was $50.3 million for the year ended December 31, 2024, compared to $44.4 million for the year ended December 31, 2023, an increase of $5.9 million, or 13%. Selling, general and administrative expenses were $294.5 million for the year ended December 31, 2024, compared to $269.8 million for the year ended December 31, 2023, an increase of $24.8 million, or 9%. For the year ended December 31, 2024, the Company recorded impairment and write down expenses of $18.8 million and $4.0 million, respectively.

Operating loss for the year ended December 31, 2024 was $1.3 million, compared to operating income of $12.5 million for the year ended December 31, 2023, a decrease in operating income of $13.8 million, or 110%.

Total other expense, net, for the year ended December 31, 2024, was $1.5 million, compared to $2.1 million for the year ended December 31, 2023, a decrease of $0.6 million, or 29%.

Net income for the year ended December 31, 2024 was $0.9 million, or $(0.01) per share, compared to net income of $4.9 million or $0.04 per share, for the year ended December 31, 2023, a decrease in net income of $4.0 million, or $(0.05) per share.

Adjusted EBITDA was $49.8 million for the year ended December 31, 2024, compared to $42.6 million for the year ended December 31, 2023, an increase of $7.2 million, or 17%.

Adjusted net income was $20.5 million for the year ended December 31, 2024, compared to $12.7 million for the year ended December 31, 2023, an increase in adjusted net income of $7.8 million, or 61%.

As of December 31, 2024, the Company had $136.2 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, compared to $104.3 million in cash, cash equivalents and restricted cash and $66.2 million in net debt obligations as of December 31, 2023.

Fiscal Year 2025 Guidance:

For the year ending December 31, 2025, the Company expects:

• Net revenue between $480.0 million and $535.0 million, representing a range of roughly flat to an increase of approximately 11% year-over-year, as compared to net revenue of $482.0 million for the year ended December 31, 2024.
  • The 2025 net revenue guidance range assumes:
    • Net revenue from Advanced Wound Care products between $450.0 million and $500.0 million, a decrease of 1% to an increase of 10% year-over-year as compared to net revenue of $453.6 million for the year ended December 31, 2024.
    • Net revenue from Surgical & Sports Medicine products between $30.0 million and $35.0 million, an increase of 6% to 23% year-over-year as compared to net revenue of $28.4 million for the year ended December 31, 2024.
• Net income between $9.5 million and $38.8 million and adjusted net income between $15.3 million and $44.6 million.
• EBITDA between $27.0 million and $66.6 million and Adjusted EBITDA between $43.6 million and $83.2 million.

Fourth Quarter Earnings Conference Call:

Management will host a conference call at 5:00 p.m. Eastern Time today to discuss the results of the quarter and fiscal year, and to provide a corporate update with a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company’s website at investors.organogenesis.com. The webcast will be archived on the company website for approximately one year.

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data)
	December 31,
	2024				2023
Assets
Current assets:
Cash and cash equivalents	$	135,571			$	103,840
Restricted cash		580				498
Accounts receivable, net of allowance for credit losses of $9,576 and $6,860		109,861				81,999
Inventories, net		26,219				28,253
Prepaid expenses and other current assets		13,710				10,454
Total current assets		285,941				225,044
Property and equipment, net		89,128				116,228
Intangible assets, net		12,468				15,871
Goodwill		28,772				28,772
Operating lease right-of-use assets, net		37,110				40,118
Deferred tax asset, net		39,462				28,002
Other assets		5,005				5,990
Total assets	$	497,886			$	460,025
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity
Current liabilities:
Current portion of term loan	$	—			$	5,486
Current portion of finance lease obligations		1,170				1,081
Current portion of operating lease obligations – related party		3,671				8,413
Current portion of operating lease obligations		4,272				4,731
Accounts payable		28,911				30,724
Accrued expenses and other current liabilities		39,453				30,074
Total current liabilities		77,477				80,509
Term loan, net of current portion		—				60,745
Finance lease obligations, net of current portion		718				1,888
Operating lease obligations, net of current portion – related party		8,283				11,954
Operating lease obligations, net of current portion		25,198				25,053
Other liabilities		894				1,213
Total liabilities		112,570				181,362
Commitments and contingencies (Note 20)
Series A redeemable convertible preferred stock, $0.0001 par value; 130,000 and 0 shares authorized, issued and outstanding at December 31, 2024 and 2023, respectively; liquidation preference of $131,387 and $0 at December 31, 2024 and 2023, respectively.		122,419				—
Stockholders’ equity:
Preferred stock, $0.0001 par value; 870,000 and 1,000,000 shares authorized at December 31, 2024 and 2023, respectively; none issued or outstanding		—				—
Common stock, $0.0001 par value; 400,000,000 shares authorized; 126,458,784 and 132,044,944 shares issued; 125,730,236 and 131,316,396 shares outstanding at December 31, 2024 and 2023, respectively		13				13
Additional paid-in capital		302,994				319,621
Accumulated deficit		(40,110	)			(40,971	)
Total stockholders’ equity		262,897				278,663
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity	$	497,886			$	460,025

ORGANOGENESIS HOLDINGS INC. UNAUDITED  CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)  (amounts in thousands, except share and per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net revenue	$	126,656			$	99,651			$	482,043			$	433,140
Cost of goods sold		31,051				27,769				115,741				106,481
Gross profit		95,605				71,882				366,302				326,659
Operating expenses:
Selling, general and administrative		73,856				61,381				294,513				269,754
Research and development		11,530				11,770				50,271				44,380
Impairment of property and construction		—				—				18,842				—
Write down of capitalized internal-use software costs		—				—				3,959				—
Total operating expenses		85,386				73,151				367,585				314,134
Income (loss) from operations		10,219				(1,269	)			(1,283	)			12,525
Other expense, net:
Interest expense, net		61				(502	)			(1,544	)			(2,190	)
Other income (expense), net		(27	)			(25	)			20				57
Total other income (expense), net		34				(527	)			(1,524	)			(2,133	)
Net income (loss) before income taxes		10,253				(1,796	)			(2,807	)			10,392
Income tax (expense) benefit		(2,580	)			1,228				3,668				(5,447	)
Net income (loss) and comprehensive income (loss)	$	7,673			$	(568	)		$	861			$	4,945
Accretion of redeemable convertible preferred stock to redemption value		(412	)			—				(412	)			—
Cumulative dividend on redeemable convertible preferred stock		(1,386	)			—				(1,386	)			—
Net income (loss) attributable to common stockholders		5,875				(568	)			(937	)			4,945
Net income (loss), per share:
Basic	$	0.05			$	0.00			$	(0.01	)		$	0.04
Diluted	$	0.04			$	0.00			$	(0.01	)		$	0.04
Weighted-average common shares outstanding
Basic		129,679,843				130,916,950				131,673,278				131,231,317
Diluted		132,162,370				131,857,509				131,673,278				132,746,727

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (amounts in thousands, except share and per share data)
	Year Ended December 31,
	2024				2023				2022
Cash flows from operating activities:
Net income	$	861			$	4,945			$	15,532
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,623				10,448				5,845
Amortization of intangible assets		3,403				4,918				4,883
Reduction in the carrying value of right-of-use assets		8,348				8,083				7,303
Non-cash interest expense		394				427				434
Deferred interest expense		305				490				501
Deferred tax expense (benefit)		(10,719	)			2,012				1,980
Loss on disposal of property and equipment		1,140				235				4,482
Loss on lease termination		—				559				—
Loss on extinguishment of term loan		215				—				—
Provision recorded for credit losses		3,938				1,297				1,781
Adjustment for excess and obsolete inventories		8,210				6,580				9,648
Stock-based compensation		10,578				8,996				6,552
Impairment of property and construction (Note 8)		18,842				—				—
Write down of capitalized internal-use software costs (Note 8)		3,959				—				—
Changes in operating assets and liabilities:
Accounts receivable		(31,800	)			5,539				(8,770	)
Inventories		(6,204	)			(8,179	)			(9,410	)
Prepaid expenses and other current and other assets		(2,549	)			(10,115	)			(378	)
Operating leases		(14,066	)			(8,439	)			(7,006	)
Accounts payable		(2,372	)			(108	)			3,260
Accrued expenses and other current liabilities		9,164				3,138				(11,850	)
Other liabilities		(1,062	)			91				72
Net cash provided by operating activities		14,208				30,917				24,859
Cash flows from investing activities:
Purchases of property and equipment		(10,032	)			(24,364	)			(33,898	)
Net cash used in investing activities		(10,032	)			(24,364	)			(33,898	)
Cash flows from financing activities:
Term loan repayments under the 2021 Credit Agreement		(66,563	)			(4,688	)			(2,813	)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		120,688				—				—
Payments for the repurchase of common stock		(25,479	)			—				—
Principal repayments of finance lease obligations		(1,081	)			(485	)			(200	)
Proceeds from the exercise of stock options		1,247				—				2,070
Payments of withholding taxes in connection with RSUs vesting		(1,175	)			(332	)			(648	)
Payments of deferred acquisition consideration		—				—				(608	)
Net cash provided by (used in) financing activities		27,637				(5,505	)			(2,199	)
Change in cash, cash equivalents and restricted cash		31,813				1,048				(11,238	)
Cash, cash equivalents, and restricted cash, beginning of year		104,338				103,290				114,528
Cash, cash equivalents, and restricted cash, end of year	$	136,151			$	104,338			$	103,290
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,970			$	5,436			$	2,649
Cash paid for income taxes	$	6,965			$	3,052			$	1,201
Supplemental disclosure of non-cash investing and financing activities:
Cumulative effect adjustment for adoption of ASU No. 2016-13	$	—			$	615			$	—
Deferred acquisition consideration and earnout liability recorded for business acquisition	$	—			$	—			$	828
Change in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities	$	(432	)		$	841			$	1,928
Right-of-use assets obtained through operating lease obligations	$	5,109			$	5,869			$	1,350
Right-of-use assets obtained through finance lease obligations	$	—			$	3,454			$	—
Redeemable convertible preferred stock issuance costs included in accrued expenses	$	67			$	—			$	—
Prepaid rent reclassified to right-of-use assets	$	230			$	—			$	—
Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock	$	1,798			$	—			$	—

Non-GAAP Financial Measures

Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted net income to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA and Adjusted net income help identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that Adjusted EBITDA and Adjusted net income provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.

Adjusted EBITDA

Adjusted EBITDA consists of GAAP net income excluding: (i) interest expense, net, (ii) income tax expense, (iii) depreciation and amortization, (iv) amortization of intangible assets, (v) stock-based compensation expense, and (vi) additional infrequently occurring adjustments described in more detail below.

The following table presents a reconciliation of GAAP net income to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:

	Three Months Ended December 31,								Year Ended December 31,
($, in thousands)	2024				2023				2024				2023
Net income (loss)	$	7,673			$	(568	)		$	861			$	4,945
Interest expense, net		(61	)			502				1,544				2,190
Income tax expense		2,580				(1,228	)			(3,668	)			5,447
Depreciation and amortization		3,615				2,982				13,623				10,448
Amortization of intangible assets		834				1,229				3,403				4,918
EBITDA		14,641				2,917				15,763				27,948
Stock-based compensation expense		2,891				2,366				10,578				8,996
Restructuring charge (1)		—				1,918				—				3,796
Legal fees (2)		—				—				—				1,182
Sales retention (3)		—				272				—				694
Impairment of property and construction (4)		—				—				18,842				—
Write down of capitalized internal-use software costs (5)		—				—				3,959				—
Disposal of construction in progress (6)		645				—				645				—
Adjusted EBITDA	$	18,177			$	7,473			$	49,787			$	42,616

(1)  Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.

(2)  Amount reflects the legal and consulting fees incurred related to the published and subsequently withdrawn 2023 local coverage determinations, or LCDs.

(3)  Amount reflects the compensation expenses related to retention for those sales employees impacted by the published and subsequently withdrawn 2023 LCDs.

(4)  Amount reflects the impairment of a purchased building and associated unfinished construction work.

(5)  Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that we determined have no future value.

(6)  Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from our decision to move certain operations to the Smithfield Facility.

Adjusted net income

Adjusted net income is defined as GAAP net income (loss) plus (i) amortization of intangible assets and (ii) additional infrequently occurring adjustments described in more detail below, less the estimated tax on these adjustments.

The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted net income, for the periods presented:

	Three Months Ended December 31,								Year Ended December 31,
($, in thousands)	2024				2023				2024				2023
Net income (loss)	$	7,673			$	(568	)		$	861			$	4,945
Amortization of intangible assets		834				1,229				3,403				4,918
Restructuring charge (1)		—				1,918				—				3,796
Legal fees (2)		—				—				—				1,182
Sales retention (3)		—				272				—				694
Impairment of property and construction (4)		—				—				18,842				—
Write down of capitalized internal-use software costs (5)		—				—				3,959				—
Disposal of construction in progress (6)		645				—				645				—
Tax on above		(399	)			(923	)			(7,249	)			(2,859	)
Adjusted net income	$	8,753			$	1,928			$	20,461			$	12,676

(1)  Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.

(2)  Amount reflects the legal and consulting fees incurred related to the published and subsequently withdrawn 2023 LCDs.

(3)  Amount reflects the compensation expenses related to retention for those sales employees impacted by the published and subsequently withdrawn 2023 LCDs.

(4)  Amount reflects the impairment of a purchased building and associated unfinished construction work.

(5)  Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that we determined have no future value.

(6)  Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from our decision to move certain operations to the Smithfield Facility.

Projected EBITDA and Adjusted EBITDA

The following table presents a reconciliation of projected GAAP net income (loss) to projected non-GAAP EBITDA and projected non-GAAP Adjusted EBITDA included in our guidance for the year ending December 31, 2025:

	Year Ended December 31,
($, in thousands)	2025L				2025H
Net income	$	9,500			$	38,800
Interest income		(4,000	)			(4,000	)
Income tax expense		3,400				13,600
Depreciation and amortization		14,800				14,800
Amortization of intangible assets		3,300				3,300
EBITDA		27,000				66,600
Stock-based compensation expense		12,000				12,000
BLA submission fee to the FDA		4,600				4,600
Adjusted EBITDA		43,600				83,200

Note: Numbers may not foot or recalculate due to rounding.

Projected Adjusted Net Income (Loss)

The following table presents a reconciliation of projected GAAP net loss to projected non-GAAP adjusted net income included in our guidance for the year ending December 31, 2025:

	Year Ended December 31,
($, in thousands)	2025L				2025H
Net income	$	9,500			$	38,800
Amortization of intangible assets		3,300				3,300
BLA submission fee to the FDA		4,600				4,600
Tax on above		(2,100	)			(2,100	)
Adjusted net (loss) income	$	15,300			$	44,600

Note: Numbers may not foot or recalculate due to rounding.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected revenue, net income (loss), Adjusted net income, EBITDA, and Adjusted EBITDA for fiscal 2024 and the breakdown of expected revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories. Forward-looking statements with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the coverage and reimbursement levels for the Company’s products (including as a result of the recently proposed LCDs scheduled to take effect in April 2025); (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the Company has incurred losses in the current period and prior periods and may incur losses in the future; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to maintain production or obtain supply of its products in sufficient quantities to meet demand; (10) the impact of the suspension of commercialization of: (a) ReNu and NuCel in connection with the expiration of the FDA’s enforcement grace period for HCT/Ps on May 31, 2021 and (b) Dermagraft in the second quarter of 2022 pending transition of manufacturing to a new manufacturing facility or a third-party manufacturer; (11) whether the Company is able to obtain regulatory approval for and successfully commercialize ReNu; and (12) other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) of the Company’s Form 10-K for the year ended December 31, 2024 and its subsequently filed periodic reports. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

About Organogenesis Holdings Inc.

Organogenesis Holdings Inc. is a leading regenerative medicine company focused on the development, manufacture, and commercialization of solutions for the advanced wound care and surgical and sports medicine markets. Organogenesis offers a comprehensive portfolio of innovative regenerative products to address patient needs across the continuum of care. For more information, visit www.organogenesis.com.

Investor Inquiries:
ICR Healthcare
Mike Piccinino, CFA
[email protected]
443-213-0500

Press and Media Inquiries:
Organogenesis
[email protected]

DULUTH, Ga., Feb. 27, 2025 (GLOBE NEWSWIRE) — Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the fourth fiscal quarter ended January 3, 2025.

Fourth
Quarter Fiscal 2024 Highlights

• Net sales for the fourth quarter of fiscal 2024 were
  $353 million
  , up
  $20 million
  over prior year
• Gross margin achieved
  28.9%
  , up
  120
  basis points over prior year
• Adjusted gross margin increased by
  20
  basis points to
  29.2%
  from prior year
• Earnings per diluted share for the fourth quarter of fiscal 2024 was breakeven
• Adjusted earnings per diluted share was
  $0.31
• Drove sequential revenue growth and EBITDA margin improvement in both AAG and PVG segments
• Bike revenues grew
  8.3%
  over prior year
• Working capital improvements generated $63 million in debt paydown
• Cost reduction initiatives underway and progressing in line with expectations

Management Commentary

Mike Dennison, FOX’s Chief Executive Officer, commented, “We delivered on our financial commitments with sales and earnings per share in line with our guidance. Our end markets remain uneven and challenging to navigate, and we expect that backdrop to continue as we move into 2025. Given the market instability, we remain focused on the more controllable elements of the business through operational improvements and strategic cost management initiatives. Our decisive actions to improve working capital, strengthen OE partnerships and dealer relationships, and streamline operations are beginning to yield results demonstrated by sequential EBITDA margin improvements in our PVG and AAG segments and in our balance sheet. Combined, these actions improved cash generation allowing us to pay down our debt balance by $63 million in the fourth quarter. Our broader cost and operational initiatives are progressing well, with benefits beginning to flow through toward our $25 million target. As we navigate through uneven end market conditions in 2025, we are committed to delivering improvements in both EBITDA margins and free cash flow generation through our focus on operational excellence and network optimization.”

Fourth
Quarter 2024 Results

Net sales for the fourth quarter of fiscal 2024 were $352.8 million, an increase of 6.1%, as compared to net sales of $332.5 million in the fourth quarter of fiscal 2023. This increase reflects a $31.1 million or 33.3% increase in Specialty Sports Group (“SSG”), partially offset by a $8.6 million or 7.1% decrease in Aftermarket Applications Group (“AAG”) and a $2.2 million or 1.8% decrease in Powered Vehicles Group (“PVG”). The increase in SSG net sales from $93.4 million to $124.5 million is primarily related to the inclusion of a full-quarter net sales of $41.5 million from Marucci, which we acquired in November 2023, compared to net sales of $16.8 million included in prior year, and a $6.4 million increase in bike sales. Although bike sales improved compared to prior year, the ongoing channel inventory recalibration and, to a lesser extent, lower end consumer demand remain headwinds. The decrease in AAG net sales from $120.8 million to $112.2 million in the prior year period was driven by lower upfitting sales due to product mix, chassis availability, higher interest rates impacting dealers and consumers, and higher inventory levels at dealerships; however, the segment generated growth of 11.9% on a sequential basis from third quarter reflecting the Company’s strategic initiatives to improve performance. The decrease in PVG net sales from $118.3 million to $116.2 million is primarily due to lower industry demand in power sports and automotive because of higher interest rates and higher inventory levels.

Gross margin was 28.9% for the fourth quarter of fiscal 2024, a 120-basis point increase from gross margin of 27.7% in the fourth quarter of fiscal 2023. The increase in gross margin was primarily due to amortization of acquired inventory valuation markup from the Marucci acquisition in prior year, which was fully recognized by the end of the first quarter of fiscal 2024 and did not impact the current year’s fourth quarter. Adjusted gross margin, which excludes the effects of amortization of acquired inventory valuation markup and organizational restructuring expenses, increased 20 basis points to 29.2% from the same prior fiscal year period.

Total operating expenses were $90.6 million, or 25.7% of net sales, for the fourth quarter of fiscal 2024, compared to $81.0 million, or 24.4% of net sales in the fourth quarter of fiscal 2023. Operating expenses increased by $9.6 million primarily driven by the recognition of a full quarter of Marucci operating expenses following the November 2023 acquisition, partially offset by a decrease in other acquisition and integration-related expenses. Adjusted operating expenses were $76.4 million, or 21.7% of net sales in the fourth quarter of fiscal 2024, compared to $68.5 million, or 20.6% of net sales, in the fourth quarter of the prior fiscal year.

Tax benefit was $4.1 million in the fourth quarter of fiscal 2024, compared to tax benefit of $3.1 million in the fourth quarter of fiscal 2023. The decrease in the Company’s income tax expense was primarily due to a decrease in pre-tax income.

Net loss attributable to FOX stockholders in the fourth quarter of fiscal 2024 was $0.1 million, compared to net income attributable to FOX stockholder of $4.1 million in the fourth quarter of the prior fiscal year. Loss per diluted share for the fourth quarter of fiscal 2024 was $0.00, compared to earnings per diluted share of $0.10 for the fourth quarter of fiscal 2023. Adjusted net income in the fourth quarter of fiscal 2024 was $12.8 million, or $0.31 of adjusted earnings per diluted share, compared to adjusted net income of $20.3 million, or $0.48 of adjusted earnings per diluted share, in the same period of the prior fiscal year.

Adjusted EBITDA in the fourth quarter of fiscal 2024 was $40.4 million, compared to $38.8 million in the fourth quarter of fiscal 2023. Adjusted EBITDA margin in the fourth quarter of fiscal 2024 was 11.5%, compared to 11.7% in the fourth quarter of fiscal 2023.

Fiscal 2024 Results

Net sales for the year ended January 3, 2025, were $1,393.9 million, a decrease of 4.8% compared to fiscal 2023. This decrease reflects a $129.6 million or 23.5% decrease in AAG net sales and a $62.5 million or 11.9% decrease in PVG net sales, partially offset by a $121.9 million or 31.3% increase in SSG net sales. The decrease in AAG net sales from $551.1 million to $421.5 million is driven by lower upfitting sales due to product mix, chassis availability, higher interest rates impacting dealers and consumers, and higher inventory level at dealerships. The decrease in PVG net sales from $523.9 million to $461.4 million is primarily due to lower industry demand in power sports and automotive because of higher interest rates and higher inventory levels. The increase in SSG sales from $389.2 million to $511.1 million is related to the inclusion of a full-year net sales from Marucci, partially offset by a reduction in bike sales which reflects the industry’s ongoing channel inventory recalibration and, to a lesser extent, lower end-consumer demand.

Gross margin was 30.4% in fiscal year 2024, a 130-basis point decrease, compared to gross margin of 31.7% in fiscal year 2023. The decrease in gross margin for the fiscal year 2024 was primarily driven by shifts in our product line mix and operating leverage on lower volume. Adjusted gross margin, excluding the effects of the amortization of an acquired inventory valuation markup and organizational restructuring expenses, was 30.8% in fiscal year 2024, a 200-basis point decrease, compared to 32.8% in the fiscal year 2023.

Total operating expenses were $365.9 million, or 26.3% of net sales, for fiscal year 2024, compared to $304.7 million, or 20.8% of net sales in fiscal year 2023. Operating expenses increased by $61.2 million primarily due to the inclusion of Marucci operating expenses of $78.7 million, partially offset by cost controls. Adjusted operating expenses were $310.9 million, or 22.3% of net sales in fiscal year 2024, compared to $268.1 million, or 18.3% of net sales, in the prior fiscal year.

Net income attributable to FOX stockholders in fiscal year 2024 was $6.6 million, compared to $120.8 million in the prior fiscal year. Earnings per diluted share for fiscal year 2024 was $0.16, compared to $2.85 in the same period of fiscal 2023. Adjusted net income in fiscal year 2024 was $55.4 million, or $1.33 of adjusted earnings per diluted share, compared to $167.5 million, or $3.95 of adjusted earnings per diluted share in the same period of the prior fiscal year.

Adjusted EBITDA decreased to $167.0 million in fiscal year 2024, compared to $261.0 million in fiscal year 2023. Adjusted EBITDA margin decrease to 12.0% in fiscal year 2024, compared to 17.8% in fiscal year 2023.

Reconciliations to non-GAAP measures are provided at the end of this press release.

Balance Sheet Summary

As of January 3, 2025, the Company had cash and cash equivalents of $71.7 million, compared to $83.6 million as of December 29, 2023. Inventory was $404.7 million as of January 3, 2025, compared to $371.8 million as of December 29, 2023. As of January 3, 2025, accounts receivable and accounts payable were $165.8 million and $144.1 million, respectively, compared to $171.1 million and $104.2 million, respectively, as of December 29, 2023. Prepaids and other current assets were $85.4 million as of January 3, 2025, compared to $141.5 million as of December 29, 2023. The decrease in cash and cash equivalents was driven by the Marzocchi acquisition, debt payments, and capital expenditures, partially offset by a decrease in prepaids and other current assets driven by lower chassis deposits due to inventory optimization efforts. Inventory increased by $32.9 million driven by higher raw materials and finished goods due to an imbalance in expected versus fulfilled orders and an intentional build of high moving stocking units in our aftermarket businesses to fulfill demand during the holiday selling period. The change in accounts receivable is due to higher sales in fiscal quarter ended January 3, 2025 compared to fiscal quarter ended December 29, 2023. The change in accounts payable reflects the timing of vendor payments. Total debt was $705.1 million as of January 3, 2025, an improvement of $38.4 million compared to $743.5 million in the prior year period ended December 29, 2023, and a $63.3 million improvement versus third quarter ended September 27, 2024. Working capital improvements, especially the reduction in chassis prepayments, drove debt paydown as we continue to focus on generating free cash flow to reduce debt and interest expense.

Fiscal
2025
Guidance

For the first quarter of fiscal 2025, the Company expects net sales in the range of $320 million to $350 million and adjusted earnings per diluted share in the range of $0.12 to $0.32.

For the fiscal year 2025, the Company expects net sales in the range of $1.385 billion to $1.485 billion, adjusted earnings per diluted share in the range of $1.60 to $2.60, and a full year adjusted tax rate in the range of 15% to 18%.

Guidance does not include any effects from the ongoing tariff developments. Adjusted earnings per diluted share exclude the following items net of applicable tax: amortization of purchased intangibles, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and strategic transformation costs. A quantitative reconciliation of adjusted earnings per diluted share for the first quarter and full fiscal year 2025 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call & Webcast

The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (800) 579-2543, and international listeners may dial (785) 424-1789; the conference ID is FOXFQ424 or 36937424. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at http://www.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website.

Available Information

Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the investor relations section of its website (https://investor.ridefox.com/investor-relations/default.aspx) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

About Fox Factory Holding Corp. (NASDAQ: FOXF)

Fox Factory Holding Corp. is a global leader in the design engineering and manufacturing of premium products that deliver championship-level performance for specialty sports and on and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company acquires complementary businesses to integrate engineering and manufacturing expertise to reach beyond its core shock and suspension segment, diversifying its product offerings and increasing its market potential. It also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels.

FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.

Non-GAAP Financial Measures

In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”), FOX is including in this press release certain non-GAAP financial measures consisting of “adjusted gross profit,” “adjusted gross margin,” “adjusted operating expense,” “adjusted operating expense margin”, “adjusted net income,” “adjusted earnings per diluted share,” “adjusted EBITDA,” and “adjusted EBITDA margin,” all of which are non-GAAP financial measures. FOX defines adjusted gross profit as gross profit adjusted for the amortization of acquired inventory valuation markups and cost of good sold associated with organizational restructuring. Adjusted gross margin is defined as adjusted gross profit divided by net sales. FOX defines adjusted operating expense as operating expense adjusted for amortization of purchased intangibles, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and certain strategic transformation costs. FOX defines adjusted operating expense margin as adjusted operating expense divided by net sales. FOX defines adjusted net income as net income attributable to FOX stockholders adjusted for amortization of purchased intangibles, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and strategic transformation costs, all net of applicable tax. Adjusted earnings per diluted share is defined as adjusted net income divided by the weighted average number of diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net income adjusted for interest expense, net other expense, income taxes or tax benefits, amortization of purchased intangibles, depreciation, stock-based compensation, litigation and settlement related expenses, organizational restructuring expenses, acquisition and integration-related expenses and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. These adjustments are more fully described in the tables included at the end of this press release. Amounts related to non-controlling interest are excluded from all adjusting items.

FOX includes these non-GAAP financial measures to provide investors with additional insight on the Company’s operating performance and trends, as well as to supplement their understanding of the results of our core operations. In particular, the exclusion of certain items in calculating the non-GAAP financial measures consisting of adjusted gross profit, adjusted operating expense, adjusted net income and adjusted EBITDA (and accordingly, adjusted gross margin, adjusted operating expense margin, adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate adjusted gross profit, adjusted gross margin, adjusted operating expense, adjusted operating expense margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.

FOX FACTORY HOLDING CORP. Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited)
	As of				As of
	January 3, 2025				December 29, 2023
Assets
Current assets:
Cash and cash equivalents	$	71,674			$	83,642
Accounts receivable (net of allowances of $1,848 and $1,158, respectively)		165,827				171,060
Inventory		404,736				371,841
Prepaids and other current assets		85,443				141,512
Total current assets		727,680				768,055
Property, plant and equipment, net		246,393				237,192
Lease right-of-use assets		104,019				84,317
Deferred tax assets, net		44,364				21,297
Goodwill		639,505				636,565
Trademarks and brands, net		264,126				273,293
Customer and distributor relationships, net		161,585				184,269
Core technologies, net		23,154				25,785
Other assets		21,484				11,525
Total assets	$	2,232,310			$	2,242,298
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	144,067			$	104,150
Accrued expenses		91,427				103,400
Current portion of long-term debt		24,286				14,286
Total current liabilities		259,780				221,836
Revolver		153,000				370,000
Term Loans, less current portion		527,775				359,242
Other liabilities		90,611				69,459
Total liabilities		1,031,166				1,020,537
Non-controlling interest		(38	)			—
Stockholders’ equity
Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of January 3, 2025 and December 29, 2023		—				—
Common stock, $0.001 par value — 90,000 authorized; 42,574 shares issued and 41,684 outstanding as of January 3, 2025; 42,844 shares issued and 41,954 outstanding as of December 29, 2023		42				42
Additional paid-in capital		339,266				348,346
Treasury stock, at cost; 890 common shares as of January 3, 2025 and December 29, 2023		(13,754	)			(13,754	)
Accumulated other comprehensive (loss) income		224				9,041
Retained earnings		875,404				878,086
Total stockholders’ equity		1,201,182				1,221,761
Total liabilities and stockholders’ equity	$	2,232,310			$	2,242,298

FOX FACTORY HOLDING CORP. Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited)
	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Net sales	$	352,837			$	332,495			$	1,393,921			$	1,464,178
Cost of sales		250,861				240,234				970,345				999,366
Gross profit		101,976				92,261				423,576				464,812
Operating expenses:
General and administrative		33,038				34,890				139,857				124,582
Sales and marketing		31,379				25,787				121,207				100,451
Research and development		14,983				13,805				60,314				53,179
Amortization of purchased intangibles		11,173				6,527				44,528				26,509
Total operating expenses		90,573				81,009				365,906				304,721
Income from operations		11,403				11,252				57,670				160,091
Interest expense		13,520				7,915				54,942				19,320
Other expense, net		2,174				2,426				1,716				2,108
(Loss) income before income taxes		(4,291	)			911				1,012				138,663
(Benefit) provision for income taxes		(4,112	)			(3,140	)			(5,500	)			17,817
Net (loss) income	$	(179	)		$	4,051			$	6,512			$	120,846
Less: net loss attributable to non-controlling interest		(38	)			—				(38	)			—
Net (loss) income attributable to FOX stockholders	$	(141	)		$	4,051			$	6,550			$	120,846
Earnings per share:
Basic	$	0.00			$	0.10			$	0.16			$	2.86
Diluted	$	0.00			$	0.10			$	0.16			$	2.85
Weighted-average shares used to compute earnings per share:
Basic		41,699				42,169				41,681				42,305
Diluted		41,699				42,242				41,717				42,432

FOX FACTORY HOLDING CORP. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
	For the year ended
	January 3, 2025				December 29, 2023
OPERATING ACTIVITIES:
Net income	$	6,512			$	120,846
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		83,566				58,603
Provision for inventory reserve		5,631				6,184
Stock-based compensation		9,606				16,465
Amortization of acquired inventory step-up		4,485				13,008
Amortization of loan fees		3,748				905
Amortization of deferred gains on prior swap settlements		(4,334	)			(4,252	)
Proceeds from interest rate swap settlements		4,026				2,522
Loss on disposal of property and equipment		341				1,492
Deferred taxes		(23,310	)			(7,867	)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		10,372				64,527
Inventory		(26,503	)			31,613
Income taxes		(11,168	)			(19,094	)
Prepaids and other assets		48,463				(40,702	)
Accounts payable		23,234				(44,029	)
Accrued expenses and other liabilities		(2,837	)			(21,478	)
Net cash provided by operating activities		131,832				178,743
INVESTING ACTIVITIES:
Acquisitions of businesses, net of cash acquired		(25,785	)			(701,112	)
Acquisition foreign exchange hedge settlement		(1,118	)			—
Acquisition of other assets, net of cash acquired		(5,344	)			(2,432	)
Purchases of property and equipment		(44,040	)			(46,852	)
Net cash used in investing activities		(76,287	)			(750,396	)
FINANCING ACTIVITIES:
Proceeds from revolver		189,000				400,000
Payments on revolver		(406,000	)			(230,000	)
Proceeds from issuance of debt		200,000				393,528
Repayment of term debt		(19,286	)			(20,000	)
Purchase and retirement of common stock		(25,000	)			(25,000	)
Repurchases from stock compensation program, net		(2,608	)			(6,195	)
Deferred debt issuance/modification costs		(3,434	)			(3,354	)
Net cash (used in) provided by financing activities		(67,328	)			508,979
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(185	)			1,066
CHANGE IN CASH AND CASH EQUIVALENTS		(11,968	)			(61,608	)
CASH AND CASH EQUIVALENTS—Beginning of period		83,642				145,250
CASH AND CASH EQUIVALENTS—End of period	$	71,674			$	83,642

FOX FACTORY HOLDING CORP.

NET INCOME TO ADJUSTED NET INCOME RECONCILIATION

AND CALCULATION OF ADJUSTED EARNINGS PER SHARE

(in thousands, except per share data)

(unaudited)

The following table provides a reconciliation of net income attributable to FOX stockholders, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted net income (a non-GAAP measure), and the calculation of adjusted earnings per share (a non-GAAP measure) for the three and twelve months ended January 3, 2025 and December 29, 2023. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Net (loss) income attributable to FOX stockholders	$	(141	)		$	4,051			$	6,550			$	120,846
Amortization of purchased intangibles		11,173				6,527				44,528				26,509
Litigation and settlement-related expenses		1,103				433				4,329				2,724
Other acquisition and integration-related expenses (1)		1,962				7,494				8,054				19,214
Organizational restructuring expenses (2)		2,019				2,178				3,262				4,027
Loss on fixed asset disposals related to organizational restructure		—				1,027				—				1,027
Strategic transformation costs (3)		169				—				1,689				—
Tax impacts of reconciling items above		(3,449	)			(1,421	)			(12,991	)			(6,874	)
Adjusted net income	$	12,836			$	20,289			$	55,421			$	167,473
Adjusted EPS
Basic	$	0.31			$	0.48			$	1.33			$	3.96
Diluted	$	0.31			$	0.48			$	1.33			$	3.95
Weighted average shares used to compute adjusted EPS
Basic		41,699				42,169				41,681				42,305
Diluted		41,710				42,242				41,717				42,432

(1) Represents various acquisition-related costs and expenses incurred to acquire and integrate acquired entities into the Company’s operations and the impact of the finished goods inventory valuation adjustment recorded in connection with the purchase of acquired assets, per period as follows:

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Acquisition related costs and expenses	$	1,962			$	4,389			$	3,569			$	6,206
Purchase accounting inventory fair value adjustment amortization		—				3,105				4,485				13,008
Other acquisition and integration-related expenses	$	1,962			$	7,494			$	8,054			$	19,214

(2) Represents expenses associated with various restructuring initiatives.
(3) Represents costs associated with various strategic initiatives.

FOX FACTORY HOLDING CORP.

NET INCOME TO ADJUSTED EBITDA RECONCILIATION AND

NET INCOME MARGIN TO ADJUSTED EBITDA MARGIN RECONCILIATION

(in thousands, except percentages)

(unaudited)

The following tables provide a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and a reconciliation of net income margin to adjusted EBITDA margin (a non-GAAP measure) for the three and twelve months ended January 3, 2025 and December 29, 2023. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Net sales
Powered Vehicles Group	$	116,159			$	118,344			$	461,403			$	523,862
Aftermarket Applications Group		112,189				120,752				421,453				551,143
Specialty Sports Group		124,489				93,399				511,065				389,173
Net sales	$	352,837			$	332,495			$	1,393,921			$	1,464,178
Net (loss) income	$	(179	)		$	4,051			$	6,512			$	120,846
(Benefit) provision for income taxes		(4,112	)			(3,140	)			(5,500	)			17,817
Depreciation and amortization		21,867				15,083				83,566				58,603
Non-cash stock-based compensation		3,032				2,423				9,606				16,465
Litigation and settlement-related expenses		1,103				433				4,329				2,724
Other acquisition and integration-related expenses (1)		1,962				7,494				8,054				19,214
Organizational restructuring expenses (2)		2,019				2,104				3,218				3,952
Loss on fixed asset disposals related to organizational restructure		—				1,027				—				1,027
Strategic transformation costs (3)		169				—				1,689				—
Interest and other expense, net		14,575				9,313				55,539				20,400
Adjusted EBITDA	$	40,436			$	38,788			$	167,013			$	261,048
Net income margin	(0.1)		%			1.2	%			0.5	%			8.3	%
Adjusted EBITDA margin		11.5	%			11.7	%			12.0	%			17.8	%
Powered Vehicles Group	$	13,101			$	11,234			$	53,819			$	79,159
Aftermarket Applications Group		13,325				20,798				51,745				126,784
Specialty Sports Group		28,019				22,100				117,811				117,766
Unallocated corporate expenses		(14,009	)			(15,344	)			(56,362	)			(62,661	)
Adjusted EBITDA	$	40,436			$	38,788			$	167,013			$	261,048

(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory valuation adjustment recorded in connection with the purchase of acquired assets, per period as follows:

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Acquisition related costs and expenses	$	1,962			$	4,389			$	3,569			$	6,206
Purchase accounting inventory fair value adjustment amortization		—				3,105				4,485				13,008
Other acquisition and integration-related expenses	$	1,962			$	7,494			$	8,054			$	19,214

(2) Represents expenses associated with various restructuring initiatives, excluding $44 in stock-based compensation for the twelve-month period ended January 3, 2025 and $75 for the three and twelve month periods ended December 29, 2023. For the three and twelve month periods ended January 3, 2025, $1,125 and $1,243 are classified as cost of sales, and $894 and $1,975 are classified as operating expense, respectively. For the three and twelve month periods ended December 29, 2023, $1,016 and $2,865 are classified as cost of sales, and $1,087 is classified as operating expense, respectively.
(3) Represents costs associated with various strategic initiatives.

FOX FACTORY HOLDING CORP.

GROSS PROFIT TO ADJUSTED GROSS PROFIT RECONCILIATION AND

CALCULATION OF GROSS MARGIN AND ADJUSTED GROSS MARGIN

(in thousands, except percentages)

(unaudited)

The following table provides a reconciliation of gross profit to adjusted gross profit (a non-GAAP measure) for the three and twelve months ended January 3, 2025 and December 29, 2023, and the calculation of gross margin and adjusted gross margin (a non-GAAP measure). These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Net sales	$	352,837			$	332,495			$	1,393,921			$	1,464,178
Gross profit	$	101,976			$	92,261			$	423,576			$	464,812
Amortization of acquired inventory valuation markup		—				3,105				4,485				13,008
Organizational restructuring expenses (1)		1,125				1,016				1,243				2,865
Adjusted Gross Profit	$	103,101			$	96,382			$	429,304			$	480,685
Gross Margin		28.9	%			27.7	%			30.4	%			31.7	%
Adjusted Gross Margin		29.2	%			29.0	%			30.8	%			32.8	%

(1) Represents expenses associated with various restructuring initiatives.

FOX FACTORY HOLDING CORP.

OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE RECONCILIATION AND

CALCULATION OF ADJUSTED OPERATING EXPENSE MARGIN

(in thousands, except percentages)

(unaudited)

The following tables provide a reconciliation of operating expense to adjusted operating expense (a non-GAAP measure) and the calculations of operating expense margin and adjusted operating expense margin (a non-GAAP measure), for the three and twelve months ended January 3, 2025 and December 29, 2023. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results.

	For the three months ended								For the year ended
	January 3, 2025				December 29, 2023				January 3, 2025				December 29, 2023
Net sales	$	352,837			$	332,495			$	1,393,921			$	1,464,178
Operating expense	$	90,573			$	81,009			$	365,906			$	304,721
Amortization of purchased intangibles		(11,173	)			(6,527	)			(44,528	)			(26,509	)
Litigation and settlement-related expenses		(1,103	)			(433	)			(4,329	)			(2,724	)
Other acquisition and integration-related expenses (1)		(844	)			(4,389	)			(2,451	)			(6,206	)
Organizational restructuring expenses (2)		(894	)			(1,162	)			(2,019	)			(1,162	)
Strategic transformation costs (3)		(169	)			—				(1,689	)			—
Adjusted operating expense	$	76,390			$	68,498			$	310,890			$	268,120
Operating expense margin		25.7	%			24.4	%			26.3	%			20.8	%
Adjusted operating expense margin		21.7	%			20.6	%			22.3	%			18.3	%

(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations.
(2) Represents expenses associated with various restructuring initiatives.
(3) Represents costs associated with various strategic initiatives.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements with regard to expectations related to the acquisition of Marucci and the future performance of Fox and Marucci; the Company’s expected demand for its products; the Company’s execution on its strategy to improve operating efficiencies; the Company’s expectation regarding its operating results and future growth prospects; the Company’s expected future sales and future adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business including, but not limited to, the possibility that the expected synergies and value creation from the Marucci acquisition will not be realized, or will not be realized within the expected time period; the Company’s ability to maintain its suppliers for materials, product parts and vehicle chassis without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow and ability to maintain profitability; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases, such as COVID-19, causing disruptions in the U.S. and global economy and disrupting the business activities and operations of our customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to exchange rate fluctuations; the loss of key customers; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; product recalls and product liability claims; the impact of change in China-Taiwan relations on our business, our operations or our supply chain, the impact of the Russian invasion of Ukraine or the Israel-Palestine conflict or rising tension in the Middle East on the global economy, energy supplies and raw materials; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate increases in response thereto; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended December 29, 2023 and filed with the Securities and Exchange Commission on February 23, 2024, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT:

ICR
Jeff Sonnek
646-277-1263
[email protected]

NEW YORK, Feb. 27, 2025 (GLOBE NEWSWIRE) — Nasdaq announced today that it will delist the common stock of Adamas One Corp. Adamas One Corp.’s stock was suspended on September 05, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Hempacco Co, Inc. Hempacco Co., Inc.’s stock was suspended on September 06, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock Class A, unit, warrant of Iris Acquisition Corp. Iris Acquisition Corp’s stock was suspended on September 06, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares Class A, warrant, unit of Aura FAT Projects Acquisition Corp. Aura FAT Projects Acquisition Corp’s stock was suspended on September 09, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock, warrant, and unit of Newbury Street Acquisition Corporation. Newbury Street Acquisition Corporation’s stock was suspended on September 10, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock Class A, warrant, unit of Arogo Capital Acquisition Corp. Arogo Capital Acquisition Corp.’s stock was suspended on September 17, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares Class A, warrant, unit of Compass Digital Acquisition Corp. Compass Digital Acquisition Corp.’s stock was suspended on October 22, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Gritstone bio, Inc. Gritstone bio, Inc.’s stock was suspended on October 22, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares of Notable Labs, Ltd. Notable Labs, Ltd.’s stock was suspended on October 23, 2024 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock, warrant of Zapata Computing Holdings Inc. Zapata Computing Holdings Inc.’s stock was suspended on October 28, 2024 and has not traded on Nasdaq since that time.

For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com. Nasdaq’s rules governing the delisting of securities can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Web site: https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.

Full year SaaS revenue of $230.7 million, representing 43% year-over-year growth, 44% on a constant currency basis
Full year Total revenue of $330.5 million, representing 22% year-over-year growth, 22% on a constant currency basis
Total ARR of $327.0 million, representing 24% year-over-year growth, 25% adjusted for FX

JERSEY CITY, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2024. 

“Our fourth quarter was an outstanding close to 2024, and we are pleased with the team’s steady focus and broad-based execution,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Our results this year – as well as our outlook for 2025 – reflect the growing demand from companies around the world for platform solutions that enable them to prepare, secure and optimize their data for AI, as well as our ongoing improvement in effectively and efficiently delivering on that demand. Today, AvePoint stands at the forefront of addressing the pivotal challenges in data security, governance, and resilience, and we are excited for the many opportunities we see in 2025 and beyond to continue driving shareholder value.”

Fourth Quarter 2024 Financial Highlights

• Revenue: Total revenue was $89.2 million, up 20% from the fourth quarter of 2023 and up 20% on a constant currency basis. Within total revenue, SaaS revenue was $64.8 million, up 43% from the fourth quarter of 2023 and up 44% on a constant currency basis.
• Gross Profit: GAAP gross profit was $67.3 million, compared to $55.0 million for the fourth quarter of 2023. Non-GAAP gross profit was $67.3 million, compared to $56.1 million for the fourth quarter of 2023. Non-GAAP gross margin was 75.5%, compared to 75.2% for the fourth quarter of 2023.
• Operating Income/(Loss): GAAP operating income was $4.9 million, compared to $0.9 million for the fourth quarter of 2023. Non-GAAP operating income was $14.5 million, compared to $10.3 million for the fourth quarter of 2023.

Full Year 2024 Financial Highlights

• Revenue: Total revenue was $330.5 million, up 22% from the full year 2023 and up 22% on a constant currency basis. Within total revenue, SaaS revenue was $230.7 million, up 43% from the full year 2023 and up 44% on a constant currency basis.
• Gross Profit: GAAP gross profit was $248.0 million, compared to $194.4 million for the full year 2023. Non-GAAP gross profit was $250.2 million, compared to $198.5 million for the full year 2023. Non-GAAP gross margin was 75.7%, compared to 73.0% for the full year 2023.
• Operating Income/(Loss): GAAP operating income was $7.2 million, compared to a GAAP operating loss of $(15.4) million for the full year 2023. Non-GAAP operating income was $47.6 million, compared to $22.2 million for the full year 2023.
• Cash and short-term investments: $290.9 million as of December 31, 2024.
• Cash from operations: For the twelve months ended December 31, 2024, the Company generated $88.9 million of cash from operations, compared to $34.7 million in the prior year period.

Fourth Quarter 2024 Key Performance Indicators and Recent Business Highlights

• ARR as of December 31, 2024 was $327.0 million, representing growth of 24% year-over-year. Adjusted for FX, ARR grew 25% year-over-year.
• Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%.
• Introduced first-to-market benchmarking capabilities within AvePoint tyGraph for Microsoft 365 Copilot to provide organizations critical insights into their AI adoption and usage patterns.
• Announced the launch of AvePoint’s AI Lab in Singapore, to advance AI-driven research and innovation that will address global industry challenges and embed AI across the AvePoint Confidence Platform.
• Named to the inaugural Forbes America’s Best Companies List, which recognizes the top 300 companies in the U.S. across over 60 measures, including financial performance, customer and employee satisfaction, cybersecurity, and more.

Financial Outlook

For the first quarter of 2025, the Company expects:

• Total revenues of $87.8 million to $89.8 million, or year-over-year growth of 18% to 21%. On a constant currency basis, the Company expects revenue growth of 19% to 22%.
• Non-GAAP operating income of $11.1 million to $12.1 million.

For the full year 2025, the Company expects:

• Total ARR of $401.3 million to $407.3 million, or year-over-year growth of 23% to 25%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
• Total revenues of $380.0 million to $388.0 million, or year-over-year growth of 15% to 17%. On a constant currency basis, the Company expects revenue growth of 17% to 19%.
• Non-GAAP operating income of $52.3 million to $55.3 million.

Quarterly Conference Call

AvePoint will host a conference call today, February 27, 2025, to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 8306574. Investors can also join by webcast by visiting https://www.avepoint.com/ir/events-and-presentations. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

About AvePoint

Beyond Secure. AvePoint is the global leader in data security, governance, and resilience, going beyond traditional solutions to ensure a robust data foundation and enable organizations everywhere to collaborate with confidence. Over 25,000 customers worldwide rely on the AvePoint Confidence Platform to prepare, secure, and optimize their critical data across Microsoft, Google, Salesforce, and other collaboration environments. AvePoint’s global channel partner program includes approximately 5,000 managed service providers, value-added resellers, and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.

Non-GAAP Financial Measures and Other Key Metrics

To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. The company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Disclosure Information

AvePoint uses its Investor Relations website (https://avepoint.com/ir) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. These filings identify and address 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 AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

Investor Contact

AvePoint
Jamie Arestia
[email protected]
(551) 220-5654

Media Contact

AvePoint
Nicole Caci
[email protected]  
(201) 201-8143

AvePoint, Inc. Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
Revenue:
SaaS	$	64,847			$	45,260			$	230,667			$	160,961
Term license and support		9,432				12,270				44,560				52,744
Services		12,228				13,788				44,036				44,795
Maintenance		2,676				3,306				11,219				13,325
Total revenue		89,183				74,624				330,482				271,825
Cost of revenue:
SaaS		11,405				9,338				41,544				35,924
Term license and support		382				505				1,584				1,946
Services		9,980				9,576				38,757				38,807
Maintenance		154				199				641				783
Total cost of revenue		21,921				19,618				82,526				77,460
Gross profit		67,262				55,006				247,956				194,365
Operating expenses:
Sales and marketing		32,410				29,127				122,869				112,105
General and administrative		17,127				15,592				69,222				61,271
Research and development		12,872				9,409				48,699				36,340
Total operating expenses		62,409				54,128				240,790				209,716
Income (loss) from operations		4,853				878				7,166				(15,351	)
Other expense, net		(23,458	)			(1,687	)			(31,565	)			(3,263	)
Loss before income taxes		(18,605	)			(809	)			(24,399	)			(18,614	)
Income tax (benefit) expense		(1,427	)			(5,245	)			4,743				2,887
Net (loss) income	$	(17,178	)		$	4,436			$	(29,142	)		$	(21,501	)
Net income (loss) attributable to noncontrolling interest		7				167				(52	)			224
Net (loss) income available to common stockholders	$	(17,185	)		$	4,269			$	(29,090	)		$	(21,725	)
Earnings per share:
Basic	$	(0.09	)		$	0.02			$	(0.16	)		$	(0.12	)
Diluted	$	(0.09	)		$	0.02			$	(0.16	)		$	(0.12	)
Weighted average shares outstanding:
Basic		186,605				181,152				183,721				182,257
Diluted		186,605				198,570				183,721				182,257

 

AvePoint, Inc. Condensed Consolidated Balance Sheets (In thousands, except par value)
	December 31,				December 31,
	2024				2023
Assets
Current assets:
Cash and cash equivalents	$	290,735			$	223,162
Short-term investments		167				3,721
Accounts receivable, net		87,365				85,877
Prepaid expenses and other current assets		16,528				12,824
Total current assets		394,795				325,584
Property and equipment, net		5,289				5,118
Goodwill		17,715				19,156
Intangible assets, net		8,889				10,546
Operating lease right-of-use assets		15,954				13,908
Deferred contract costs		59,838				54,675
Other assets		16,575				13,595
Total assets	$	519,055			$	442,582
Liabilities, mezzanine equity, and stockholders’ equity
Current liabilities:
Accounts payable	$	2,352			$	1,384
Accrued expenses and other current liabilities		76,135				53,766
Current portion of deferred revenue		144,468				121,515
Total current liabilities		222,955				176,665
Long-term operating lease liabilities		9,909				9,383
Long-term portion of deferred revenue		8,840				7,741
Earn-out shares liabilities		—				18,346
Other liabilities		6,403				5,603
Total liabilities		248,107				217,738
Commitments and contingencies
Mezzanine equity
Redeemable noncontrolling interest		—				6,038
Total mezzanine equity		—				6,038
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000 shares authorized, 194,071 and 184,652 shares issued and outstanding as of December 31, 2024 and 2023, respectively		19				18
Additional paid-in capital		779,007				667,881
Accumulated other comprehensive income		576				3,196
Accumulated deficit		(510,448	)			(460,496	)
Noncontrolling interest		1,794				8,207
Total stockholders’ equity		270,948				218,806
Total liabilities, mezzanine equity, and stockholders’ equity	$	519,055			$	442,582

AvePoint, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Year Ended
	December 31,
	2024				2023
Operating activities
Net loss	$	(29,142	)		$	(21,501	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		5,382				4,687
Operating lease right-of-use assets expense		6,270				6,234
Foreign currency remeasurement loss		866				—
Stock-based compensation		39,059				36,048
Deferred income taxes		498				(864	)
Other		(67	)			1,068
Change in value of earn-out and warrant liabilities		37,276				11,454
Changes in operating assets and liabilities:
Accounts receivable		(4,898	)			(19,448	)
Prepaid expenses and other current assets		(3,350	)			(2,773	)
Deferred contract costs and other assets		(8,482	)			(7,687	)
Accounts payable, accrued expenses, operating lease liabilities and other current liabilities		16,046				609
Deferred revenue		29,436				26,867
Net cash provided by operating activities		88,894				34,694
Investing activities
Maturities of investments		5,353				2,620
Purchases of investments		(1,819	)			(3,497	)
Capitalization of internal-use software		(1,211	)			(1,434	)
Purchase of property and equipment		(3,044	)			(2,087	)
Issuance of notes receivables		(1,750	)			(1,250	)
Other investing activities		(130	)			—
Net cash used in investing activities		(2,601	)			(5,648	)
Financing activities
Repurchase of common stock		(33,053	)			(39,036	)
Proceeds from warrant exercises		17,182				—
Proceeds from stock option exercises		11,033				5,569
Redemption of redeemable noncontrolling interest		(6,130	)			—
Purchase of public warrants		(3,991	)			—
Company earn-out shares settled in cash		(572	)			—
Repayments of finance leases		(6	)			(64	)
Payments of debt issuance costs		—				(136	)
Net cash used in financing activities		(15,537	)			(33,667	)
Effect of exchange rates on cash		(3,183	)			595
Net decrease in cash and cash equivalents		67,573				(4,026	)
Cash and cash equivalents at beginning of period		223,162				227,188
Cash and cash equivalents at end of period	$	290,735			$	223,162
Supplemental disclosures of cash flow information
Income taxes paid	$	6,882			$	6,112
Company earn-out shares issuance	$	53,871			$	—

AvePoint, Inc. Non-GAAP Reconciliations (In thousands) (Unaudited)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
Non-GAAP operating income
GAAP operating income (loss)	$	4,853			$	878			$	7,166			$	(15,351	)
Stock-based compensation expense		9,252				9,073				39,059				36,048
Amortization of acquired intangible assets		356				350				1,420				1,456
Non-GAAP operating income	$	14,461			$	10,301			$	47,645			$	22,153
Non-GAAP operating margin		16.2	%			13.8	%			14.4	%			8.1	%
Non-GAAP gross profit
GAAP gross profit	$	67,262			$	55,006			$	247,956			$	194,365
Stock-based compensation expense		(201	)			869				1,315				3,161
Amortization of acquired intangible assets		239				239				961				964
Non-GAAP gross profit	$	67,300			$	56,114			$	250,232			$	198,490
Non-GAAP gross margin		75.5	%			75.2	%			75.7	%			73.0	%
Non-GAAP sales and marketing
GAAP sales and marketing	$	32,410			$	29,127			$	122,869			$	112,105
Stock-based compensation expense		(2,281	)			(2,251	)			(8,965	)			(9,518	)
Amortization of acquired intangible assets		(117	)			(111	)			(459	)			(492	)
Non-GAAP sales and marketing	$	30,012			$	26,765			$	113,445			$	102,095
Non-GAAP sales and marketing as a % of revenue		33.7	%			35.9	%			34.3	%			37.6	%
Non-GAAP general and administrative
GAAP general and administrative	$	17,127			$	15,592			$	69,222			$	61,271
Stock-based compensation expense		(5,032	)			(4,787	)			(20,483	)			(19,338	)
Non-GAAP general and administrative	$	12,095			$	10,805			$	48,739			$	41,933
Non-GAAP general and administrative as a % of revenue		13.6	%			14.5	%			14.7	%			15.4	%
Non-GAAP research and development
GAAP research and development	$	12,872			$	9,409			$	48,699			$	36,340
Stock-based compensation expense		(2,140	)			(1,166	)			(8,296	)			(4,031	)
Non-GAAP research and development	$	10,732			$	8,243			$	40,403			$	32,309
Non-GAAP research and development as a % of revenue		12.0	%			11.0	%			12.2	%			11.9	%

LYNNWOOD, Wash., Feb. 27, 2025 (GLOBE NEWSWIRE) — Zumiez Inc. (NASDAQ: ZUMZ) today announced it will report fiscal 2024 fourth quarter and year-end results on Thursday, March 13, 2025, following the closing of regular stock market trading hours. The Company will hold a conference call that day at 5:00 p.m. ET to review the results.

To access the conference call, please pre-register using this link (Registration Link). Registrants will receive confirmation with dial-in details. The conference call will also be available to interested parties through a live webcast at https://ir.zumiez.com. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.zumiez.com.

About Zumiez Inc.

Zumiez is a leading specialty retailer of apparel, footwear, accessories and hardgoods for young men and women who want to express their individuality through the fashion, music, art and culture of action sports, streetwear, and other unique lifestyles. As of February 1, 2025, we operated 730 stores, including 570 in the United States, 46 in Canada, 87 in Europe and 27 in Australia. We operate under the names Zumiez, Blue Tomato and Fast Times. Additionally, we operate ecommerce web sites at zumiez.com, blue-tomato.com and fasttimes.com.au.

Company Contact:

Darin White
VP of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1337

Investor Contact:

ICR
Brendon Frey
(203) 682-8200

REDWOOD CITY, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) — Seer, Inc. (Nasdaq: SEER), a leading life sciences company commercializing a disruptive new platform for proteomics, today reported financial results for the fourth quarter and full year ended December 31, 2024.

Recent Highlights

• Achieved revenue of $4.0 million for the fourth quarter of 2024 and $14.2 million for the full year 2024
• Shipped 10 instruments during 2024, bringing cumulative instruments shipped to 72 as of December 31, 2024
• Launched a new product application for the Proteograph XT workflow, specifically designed for cell lysis proteomics, unlocking unprecedented depth in intracellular proteomics
• Showcased new findings and advancements in cancer and RNA therapy research utilizing the Proteograph Product Suite at the US Human Proteome Organization Conference
• Repurchased approximately 6.5 million shares of Seer Class A common stock at an average cost of $1.82 per share during the full year 2024, reducing shares outstanding by approximately 10%
• Ended the year with approximately $300 million of cash, cash equivalents and investments

“Our customers have made important progress in validating the differentiated value of deep, unbiased proteomics at scale throughout the year, and I’m thrilled that the momentum is growing despite the challenging macroeconomic environment” said Omid Farokhzad, Chair and CEO of Seer. “We saw a surge in customer publications, strong demand for STAC, and we expanded upon our partnership with Thermo Fisher Scientific to accelerate adoption of our Proteograph Product Suite. I believe we are well-positioned for a stronger year in 2025 and my confidence in our platform, our value proposition, and the immense opportunity ahead has never been greater.”

Fourth Quarter 2024 Financial Results

Revenue was $4.0 million for the fourth quarter of 2024, a 10% decrease from $4.4 million for the corresponding prior year period, primarily due to lower instrument sales and no grant revenue recognized in the quarter. Product revenue for the fourth quarter of 2024 was $2.4 million, including $36 thousand of related party revenue, and consisted of sales of SP100 instruments and consumable kits. Service revenue was $1.6 million for the fourth quarter of 2024, including $353 thousand of related party revenue, and primarily consisted of revenue related to STAC service projects. Grant and other revenue was $51 thousand for the fourth quarter of 2024.

Gross profit was $2.0 million and gross margin was 51% for the fourth quarter of 2024.

Operating expenses were $25.5 million for the fourth quarter of 2024, including $6.0 million of stock-based compensation, an increase of 5% compared to $24.2 million for the corresponding prior year period, including $7.3 million of stock-based compensation. The increase in operating expenses was primarily driven by an increase in laboratory expenses.

Net loss was $21.7 million for the fourth quarter of 2024, compared to $17.8 million for the corresponding prior year period.

Full Year 2024 Financial Results

Revenue was $14.2 million for the full year 2024, a 15% decrease from $16.7 million for the corresponding prior year period, primarily due to lower product sales and no grant revenue recognized during the year. Product revenue for the full year 2024 was $10.2 million, including $1.5 million of related party revenue, and consisted of sales of SP100 instruments and consumable kits. Service revenue was $3.8 million for the full year 2024, including $828 thousand of related party revenue, and primarily consisted of revenue related to STAC service projects. Grant and other revenue was $223 thousand for the full year 2024.

Gross profit was $7.1 million and gross margin was 50% for the full year 2024.

Operating expenses were $107.2 million for the full year 2024, including $26.6 million of stock-based compensation, a decrease of 4% compared to $112.0 million for the corresponding prior year period, including $32.9 million of stock-based compensation.

Net loss was $86.6 million for the full year 2024, compared to $86.3 million for the corresponding prior year period.

Cash, cash equivalents and investments were approximately $300 million as of December 31, 2024.

2025 Guidance

Seer expects full year 2025 revenue to be in the range of $17 million to $18 million, representing growth of 24% at the midpoint over full year 2024.

Webcast Information

Seer will host a conference call to discuss the fourth quarter and full year 2024 financial results on Thursday, February 27, 2025 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at https://investor.seer.bio. The webcast will be archived and available for replay for at least 90 days after the event.

About Seer

Seer is a life sciences company developing transformative products that open a new gateway to the proteome. Seer’s Proteograph™ Product Suite is an integrated solution that includes proprietary engineered nanoparticles, consumables, automation instrumentation and software to perform deep, unbiased proteomic analysis at scale in a matter of hours. Seer designed the Proteograph workflow to be efficient and easy to use, leveraging widely adopted laboratory instrumentation to provide a decentralized solution that can be incorporated by nearly any lab. Seer’s Proteograph Product Suite is for research use only and is not intended for diagnostic procedures. For more information, please visit www.seer.bio.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on Seer’s beliefs and assumptions and on information currently available to it on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause Seer’s actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to statements regarding Seer’s expectations for future results of operations and its financial position, business strategy, partnerships, adoption of our products and outlook for fiscal year 2025. ​These and other risks are described more fully in Seer’s filings with the Securities and Exchange Commission (SEC) and other documents that Seer subsequently files with the SEC from time to time. Except to the extent required by law, Seer undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Contact:

Carrie Mendivil
[email protected]

Media Contact:

Patrick Schmidt
[email protected]

SEER, INC. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Revenue:
Product	$	2,351			$	2,669			$	8,695			$	8,506
Service		1,209				944				2,960				2,016
Related party		389				567				2,292				4,660
Grant and other		51				258				223				1,479
Total revenue		4,000				4,438				14,170				16,661
Cost of revenue:
Product		1,200				1,663				4,402				5,398
Service		566				390				1,465				685
Related party		61				204				712				1,430
Grant and other		148				180				536				642
Total cost of revenue		1,975				2,437				7,115				8,155
Gross profit		2,025				2,001				7,055				8,506
Operating expenses:
Research and development		12,619				11,165				50,585				53,019
Selling, general and administrative		12,894				13,068				56,571				58,950
Total operating expenses		25,513				24,233				107,156				111,969
Loss from operations		(23,488	)			(22,232	)			(100,101	)			(103,463	)
Other income (expense):
Interest income		3,565				4,720				16,666				17,764
Loss on equity method investment		(1,788	)			—				(2,649	)			—
Other income (expense)		67				(287	)			(417	)			(578	)
Total other income		1,844				4,433				13,600				17,186
Loss before provision for income taxes		(21,644	)			(17,799	)			(86,501	)			(86,277	)
Provision for income taxes		98				—				98				—
Net loss	$	(21,742	)		$	(17,799	)		$	(86,599	)		$	(86,277	)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.37	)		$	(0.28	)		$	(1.39	)		$	(1.35	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		59,091,817				64,157,125				62,348,012				63,850,490

SEER, INC. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts)
		December 31,
		2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	40,753			$	32,499
Short-term investments			195,657				283,725
Accounts receivable, net			3,997				4,831
Related party receivables			379				559
Other receivables			1,853				1,326
Inventory			7,436				4,491
Prepaid expenses and other current assets			3,248				3,082
Total current assets			253,323				330,513
Long-term investments			63,103				56,858
Operating lease right-of-use assets			22,791				25,177
Property and equipment, net			18,575				22,193
Restricted cash			524				524
Other assets			8,281				1,004
Total assets		$	366,597			$	436,269
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	4,621			$	1,370
Accrued expenses			7,937				9,212
Deferred revenue			408				206
Operating lease liabilities, current			2,312				2,295
Other current liabilities			50				139
Total current liabilities			15,328				13,222
Operating lease liabilities, net of current portion			23,652				25,964
Other noncurrent liabilities			48				179
Total liabilities			39,028				39,365
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized as of December 31, 2024 and 2023; zero shares issued and outstanding as of December 31, 2024 and 2023			—				—
Class A common stock, $0.00001 par value; 94,000,000 shares authorized as of December 31, 2024 and 2023; 55,083,123 and 60,253,707 shares issued and outstanding as of December 31, 2024 and 2023, respectively			1				1
Class B common stock, $0.00001 par value; 6,000,000 shares authorized as of December 31, 2024 and 2023; 4,044,969 shares issued and outstanding as of December 31, 2024 and 2023			—				—
Additional paid-in capital			719,804				702,868
Accumulated other comprehensive gain (loss)			136				(192	)
Accumulated deficit			(392,372	)			(305,773	)
Total stockholders’ equity			327,569				396,904
Total liabilities and stockholders’ equity		$	366,597			$	436,269