TEL AVIV - Gauzy Ltd. (NASDAQ:GAUZ), a provider of vision and light control solutions, today announced its preliminary unaudited revenue for the second quarter and the first half of 2024, signaling substantial growth.
The company expects second-quarter revenues to range between $24.0 million and $24.5 million, marking an increase from $19.9 million in the same quarter of the previous year. Revenues for the first half of 2024 are projected to be between $48.7 million and $49.2 million, up from $37.4 million in the prior-year period.
These figures represent an approximate growth of 22% for the second quarter and 31% for the first half of the year, based on the midpoints of the provided ranges. Gauzy's Co-Founder and CEO, Eyal Peso, attributed the robust revenue performance to key customers accelerating their purchasing commitments to meet strong demand.
Peso expressed confidence in the company's trajectory, highlighting the increased adoption of Gauzy's smart glass technologies by OEMs, the replacement of mirrors with their ADAS and CMS systems in city buses, and the incorporation of their products into new commercial and hospitality projects.
While these preliminary results reflect the company's current expectations, they are estimates and subject to change until the full financial results for the second quarter and first half, which are anticipated to be released in August 2024.
Gauzy Ltd. is headquartered in Tel Aviv, Israel, and operates globally, with subsidiaries and entities in several countries. The company's focus is on developing technologies that enhance user experiences across a variety of industries, emphasizing safety, sustainability, and comfort.
The forward-looking statements in the press release involve future events and are based on current expectations, subject to the inherent uncertainties of predicting future results and events. Gauzy has not updated or revised any forward-looking statements as new information becomes available or future developments occur.
This financial update is based on a press release statement from Gauzy Ltd. and has not been independently verified.
In other recent news, Gauzy Ltd has been given a 'Buy' rating by Stifel, which also projects a significant increase in the company's revenue. The company's financial performance has been strong, with a 48% year-over-year increase in revenue for the fiscal year 2023, totaling $78 million. Stifel expects Gauzy's sales to continue growing at a rate of 42% in both fiscal years 2024 and 2025, driven by new program wins across key segments.
The firm also anticipates that Gauzy will achieve positive adjusted EBITDA by the end of fiscal year 2024 and maintain positive operating leverage going into fiscal year 2025. This projection is based on anticipated higher volumes and improving input costs.
Stifel has set a price target of $18 for Gauzy, based on a forward (fiscal year 2025) enterprise value (EV) to sales multiple of approximately 2 times, or around 17 times EV/EBITDA. This valuation is seen as reasonable, considering Gauzy's solid track record and increasing backlog of orders. These recent developments indicate confidence in Gauzy's continued financial and operational performance in the coming years.
InvestingPro Insights
Gauzy Ltd. (NASDAQ:GAUZ) has demonstrated a remarkable revenue growth in the first half of 2024, as indicated by its preliminary unaudited results. The company's estimated second-quarter revenues show a significant increase, highlighting the strong demand for its smart glass technologies.
As investors consider Gauzy's potential, it's essential to examine some key financial metrics and InvestingPro Tips that could provide further context to the company's financial health and stock performance.
InvestingPro Data reveals that Gauzy's market capitalization stands at $178.16 million, reflecting the market's current valuation of the company. Despite the positive revenue projections, the company's P/E Ratio is reported at -2.45, indicating that it has not been profitable over the last twelve months as of Q1 2024. Moreover, the substantial revenue growth of 51.92% over the last twelve months suggests that the company is expanding its market share and increasing sales at an impressive rate.
InvestingPro Tips indicate that analysts are optimistic about Gauzy's sales growth in the current year, which aligns with the company's recent revenue report. However, it is important to note that Gauzy operates with a significant debt burden and has been quickly burning through cash. These factors could impact the company's financial stability and ability to sustain its growth trajectory over the long term.
Investors looking to gain deeper insights into Gauzy Ltd.'s financials and stock performance can explore additional InvestingPro Tips by visiting https://www.investing.com/pro/GAUZ. There are more tips available, including analysis on the company's liquidity, profitability expectations, and stock volatility. For those interested in a comprehensive InvestingPro subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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