On June 13, 2024, Iteris Inc (ITI, Financial) released its 8-K filing for the fiscal fourth quarter and full year ended March 31, 2024. Iteris Inc, a provider of smart mobility infrastructure management solutions, reported notable financial results, surpassing analyst estimates for both revenue and earnings per share (EPS).
Company Overview
Iteris Inc is a leading provider of smart mobility infrastructure management solutions. The company's offerings include traveler information systems, transportation performance measurement software, traffic analytics software, transportation operations software, transportation-related data sets, advanced sensing devices, managed services, traffic engineering services, and mobility consulting services. Iteris' cloud-enabled end-to-end solutions help public transportation agencies, municipalities, commercial entities, and other transportation infrastructure providers monitor, visualize, and optimize mobility infrastructure to ensure safety, efficiency, and sustainability.
Fiscal 2024 Fourth Quarter Financial Highlights
Iteris Inc reported revenues of $42.8 million for the fourth quarter of fiscal 2024, a 1% increase compared to the same period last year. This figure slightly exceeded the analyst estimate of $42.54 million. The company's gross margins improved significantly, rising by 558 basis points to 37.4% year over year. Iteris also achieved record net new bookings of $53.3 million, a 20% increase year over year, and a backlog of $123.8 million, up 8% year over year.
GAAP net income for the quarter was $0.1 million, or $0.00 per diluted share, an improvement of $0.01 per share from the same period in the prior year. Adjusted EBITDA for the quarter was $2.8 million, or 6.7% of revenue, doubling from the previous year's $1.4 million. Adjusted Net Income was $2.9 million, or $0.07 per diluted share, a $0.04 per share improvement from the prior year.
Fiscal 2024 Full Year Financial Highlights
For the full fiscal year 2024, Iteris Inc reported record revenues of $172.0 million, a 10% increase over the previous year, surpassing the analyst estimate of $171.76 million. Gross margins for the year were 37.6%, up 1,063 basis points year over year. The company also reported record net new bookings of $181.6 million, a 7% increase year over year.
GAAP net income for the year was $3.1 million, or $0.07 per share, a significant improvement from the net loss of $14.9 million, or $(0.35) per share, in the previous year. Adjusted EBITDA for the year was $12.9 million, or 7.5% of revenue, compared to a loss of $6.6 million in fiscal 2023. Adjusted Net Income for the year was $12.7 million, or $0.29 per diluted share, a $0.46 per share improvement from the prior year.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $42.8M | $42.4M | $172.0M | $156.1M |
| Gross Margin | 37.4% | 31.8% | 37.6% | 26.0% |
| Net Income | $0.1M | $(0.5)M | $3.1M | $(14.9)M |
| Adjusted EBITDA | $2.8M | $1.4M | $12.9M | $(6.6)M |
| Adjusted Net Income | $2.9M | $1.5M | $12.7M | $(7.0)M |
Management Commentary
"Our fiscal 2024 full-year results demonstrate Iteris has achieved a critical inflection point," said Joe Bergera, president and CEO of Iteris. "With the impact of COVID-19 and associated supply chain disruptions in our rearview mirror, we are pleased to see the financial and operational benefits of our platform strategy reflected in four consecutive quarters of year-over-year revenue and earnings growth."
Analysis and Outlook
Iteris Inc's fiscal 2024 performance highlights the company's resilience and strategic execution amidst challenging market conditions. The significant improvements in gross margins and net income, coupled with record revenues and bookings, underscore the effectiveness of Iteris' platform strategy and its ability to capitalize on market opportunities.
Looking ahead, Iteris Inc anticipates continued growth driven by positive market tailwinds, including federal funding from the Infrastructure Investment and Jobs Act. The company's fiscal 2025 outlook projects total revenues between $188.0 million and $194.0 million, representing organic growth of 11% year over year at the midpoint of the guidance range. Adjusted EBITDA margin is expected to improve to a range of 8.0% to 10.0% of revenue.
Overall, Iteris Inc's strong financial performance and strategic positioning make it a compelling consideration for value investors seeking exposure to the smart mobility infrastructure management sector.
Explore the complete 8-K earnings release (here) from Iteris Inc for further details.
