COLUMBIA, Md. - BigBear.ai Holdings, Inc. (NYSE: BBAI), a provider of artificial intelligence-powered decision intelligence solutions, disclosed its financial results for the fourth quarter and full year ended December 31, 2023, and shared its 2024 revenue outlook. The company announced a successful acquisition of Pangiam, a leader in Vision AI, which is expected to enhance BigBear.ai's capabilities in national security, supply chain management, and digital identity markets.
The company reported a slight revenue increase to $40.6 million for the fourth quarter of 2023, up from $40.4 million in the same period of the previous year. The gross margin also improved to 32.1% in the fourth quarter of 2023, up from 29.2% in the fourth quarter of 2022. This growth was attributed to better margins on federal contracts and a shift away from lower-margin work.
BigBear.ai experienced a net loss of $21.3 million in the fourth quarter of 2023, which was an improvement from a net loss of $29.9 million in the fourth quarter of 2022. The loss for the recent quarter includes $9.4 million of non-cash expenses due to the change in fair value of warrants issued in 2023 and $6.1 million of equity-based compensation expense.
The company achieved its second consecutive quarter of positive adjusted EBITDA at $3.7 million. Furthermore, the second half of 2023 marked the first instance of positive cash flow since BigBear.ai's public debut in December 2021. The company's balance sheet was strengthened by approximately $54 million in cash proceeds before fees, from warrants exercised in the first quarter of 2024.
Looking forward, BigBear.ai provided a revenue outlook for the year ending December 31, 2024, projecting revenues between $195 million and $215 million, inclusive of the results from Pangiam post-acquisition.
The company's CEO, Mandy Long, expressed pride in the company's foundational work during the past year, which included restructuring and setting strategic priorities amidst a challenging macroeconomic environment. Kevin McAleenan, the former CEO of Pangiam, has been appointed as President and is expected to play a crucial role in the business combination.
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