KVH Industries (KVHI, Financial) has announced the launch of the Secure Suite, a new service designed to enhance the safety of its CommBox Edge Communications Gateway. This advanced threat detection and response service actively monitors and blocks malicious traffic in real time, aiming to bolster the security of vessel communications, operations, and networks.
The Secure Suite is compatible with multiple versions of the CommBox Edge, including the CommBox Edge 6, Edge 2 belowdeck devices, and the CommBox Edge virtual machine. This ensures a straightforward and flexible upgrade to the existing network and bandwidth management features offered by the CommBox Edge platform.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for KVH Industries Inc (KVHI, Financial) is $7.00 with a high estimate of $7.00 and a low estimate of $7.00. The average target implies an upside of 40.00% from the current price of $5.00. More detailed estimate data can be found on the KVH Industries Inc (KVHI) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, KVH Industries Inc's (KVHI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for KVH Industries Inc (KVHI, Financial) in one year is $5.98, suggesting a upside of 19.6% from the current price of $5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the KVH Industries Inc (KVHI) Summary page.
KVHI Key Business Developments
Release Date: March 06, 2025
- Total Revenue: $26.9 million for Q4 2024, a 4.5% decrease from Q4 2023.
- Airtime Gross Margin: 28.2% in Q4, down from 36.5% in the prior quarter.
- Excluding Depreciation Airtime Gross Margin: 41.4% in Q4, compared to 48.6% in the prior quarter.
- Total Subscribing Vessels: Just below 7,100 at the end of Q4, approximately 4% up from the prior quarter.
- Product Gross Profit: $0.3 million in Q4, compared to a negative $0.6 million in Q4 of the previous year.
- Operating Expenses: $9.3 million in Q4, down $1 million or 10% from the prior quarter.
- Adjusted EBITDA: $0.5 million for Q4.
- Capital Expenditures: $0.8 million for Q4.
- Adjusted EBITDA less CapEx: Negative $0.3 million for Q4.
- Ending Cash Balance: $50.6 million, up approximately $0.8 million from the beginning of the quarter.
- 2025 Revenue Guidance: $115 million to $125 million.
- 2025 Adjusted EBITDA Guidance: $9 million to $15 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KVH Industries Inc (KVHI, Financial) has successfully transitioned to offering multi-orbit multi-channel solutions, including LEO solutions like Starlink, which is the fastest growing product line in the company's history.
- The company shipped over 1,000 Starlink units and 200 VSAT terminals in the fourth quarter, marking a record for terminal shipments.
- KVH Industries Inc (KVHI) has expanded its portfolio with the Commbox Edge, a cutting-edge appliance for advanced remote bandwidth management, and demand for this product remains strong.
- The introduction of the TracNet Coastal Cellular Wi-Fi system offers high-speed data at competitive costs, enhancing the company's connectivity solutions.
- KVH Industries Inc (KVHI) has added OneWeb to its satellite communications service portfolio, positioning the company for future growth with hybrid connectivity solutions.
Negative Points
- Total revenue for the fourth quarter was $26.9 million, a 4.5% decrease from the fourth quarter of 2023.
- Airtime gross margin decreased to 28.2% from the prior quarter's 36.5%, primarily due to churn from the geo-based VSAT network.
- The company experienced a contraction in non-US Coast Guard GEO Airtime revenue by around $1 million in the fourth quarter.
- Adjusted EBITDA less CapEx was negative $0.3 million for the fourth quarter, indicating challenges in generating free cash flow.
- The company anticipates continued revenue contraction in 2024, although it has implemented cost reduction initiatives to mitigate this impact.
