VirTra (VTSI, Financial) announced its first-quarter revenue of $7.2 million, slightly down from $7.3 million in the same period last year. The company's first-quarter bookings reached $6.4 million, showing a significant rise from $2.9 million in Q1 2024. Over the past year, total bookings amounted to $33.4 million, showcasing robust momentum despite challenges with federal funding, such as delayed disbursements and temporary budget resolutions.
As of March 31, 2025, VirTra's backlog stood at $21.2 million, divided among Capital at $9.9 million, Service at $5.8 million, and STEP contracts at $5.5 million. The CEO of VirTra highlighted a strong start to 2025 with enhanced operational performance and a substantial backlog, although bookings experienced a quarterly slowdown due to seasonal trends and cautious demand within the defense and law enforcement sectors.
The STEP program remains crucial during sluggish procurement cycles, offering cost-effective access to immersive training systems. Progress was also made in the U.S. Army's IVAS program, with advancements in recoil kit testing in preparation for potential production. Additionally, the V-XR platform has garnered growing interest, with initial deliveries set for Q2. VirTra's renewed focus on sales and marketing has been through reentering the General Services Administration procurement program, streamlining agency purchases with standardized product bundles. Looking forward, the company aims to leverage these opportunities for growth while maintaining a focus on meeting evolving customer training needs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for VirTra Inc (VTSI, Financial) is $8.25 with a high estimate of $9.50 and a low estimate of $7.00. The average target implies an upside of 76.66% from the current price of $4.67. More detailed estimate data can be found on the VirTra Inc (VTSI) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, VirTra Inc's (VTSI, 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 VirTra Inc (VTSI, Financial) in one year is $5.13, suggesting a upside of 9.85% from the current price of $4.67. 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 VirTra Inc (VTSI) Summary page.
VTSI Key Business Developments
Release Date: March 27, 2025
- Q4 Revenue: $5.4 million, down from $10.9 million in the prior year period.
- Full Year 2024 Revenue: $26.4 million, compared to $38.8 million in 2023.
- Q4 Bookings: $12.2 million, a 37% sequential increase from Q3 2024.
- Full Year 2024 Bookings: $29.6 million, a decline of $4.2 million year-over-year.
- Q4 Gross Profit: $3.7 million or 69% of total revenue.
- Full Year 2024 Gross Profit: $19.4 million or 74% of total revenue.
- Q4 Net Operating Expense: $4.2 million, a 13% increase from the prior year period.
- Full Year 2024 Net Operating Expense: $17.4 million, compared to $17 million in 2023.
- Q4 Net Loss: $0.9 million or negative $0.08 per diluted share.
- Full Year 2024 Net Income: $1.4 million or $0.12 per diluted share.
- Full Year 2024 Adjusted EBITDA: $2.9 million, compared to $12.4 million in 2023.
- Cash and Cash Equivalents: $18 million as of December 31, 2024.
- Backlog as of December 31, 2024: $22 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VirTra Inc (VTSI, Financial) achieved sequential bookings growth in every quarter of 2024, indicating a strong recovery in demand and sales execution.
- The company closed the year with a $22 million backlog, positioning it well for revenue conversion as market conditions stabilize.
- VirTra Inc (VTSI) secured international contracts, expanding its presence in Europe and Latin America, and recorded its first V-XR platform sale in Canada.
- The company has significantly expanded its scenario catalog and leveraged AI efficiencies to accelerate content production, enhancing its leadership in immersive training.
- VirTra Inc (VTSI) completed the final development phase for the US Army's Integrated Visual Augmentation System (IVAS) program ahead of schedule, marking a significant milestone.
Negative Points
- Total revenue for the fourth quarter was $5.4 million, a significant decrease from $10.9 million in the prior year period, due to federal budget delays and grant distribution pauses.
- For the full year 2024, revenue was $26.4 million compared to $38.8 million in 2023, reflecting a challenging funding environment.
- Net operating expense for the fourth quarter increased by 13% from the prior year period, driven by investments in personnel and expanded sales and marketing efforts.
- The company reported a net loss of $0.9 million for the fourth quarter, compared to net income of $3.5 million in the same period of 2023.
- Federal grant disbursement delays have impacted near-term order conversion timing, creating uncertainty in revenue recognition.
