Q2 2024 Telos Corp Earnings Call Transcript
Key Points
- Telos Corp (TLSRP.PFD) exceeded both revenue and profit guidance for the second quarter of 2024, delivering $28.5 million in revenue, which was above the guidance range.
- The company's GAAP gross margin was 34.1%, surpassing the guidance range due to a favorable mix within security solutions and strong performance in secure networks.
- Telos Corp's TSA PreCheck program has significantly expanded, tripling its enrollment center locations from 28 to 83, with plans to reach 500 locations by 2025.
- The company has secured new orders and renewals for its Xacta business with notable clients, including the New Zealand government and a Fortune 100 technology company.
- Telos Corp anticipates minimal impact on 2025 revenue potential from protested program awards if resolved favorably by the end of 2024, showing confidence in future growth.
- Telos Corp reported an adjusted EBITDA loss of $2.9 million, although this was better than the expected loss range.
- The company experienced an $8 million cash outflow from operations and an $11.3 million free cash flow outflow, reflecting a year-over-year decline.
- Revenue guidance for the third quarter is lower, with expectations of $22 million to $24 million, impacted by extended protests on program awards.
- Secure networks revenue is expected to decline significantly, by high 60% to mid-60% year over year, due to program completions.
- The company faces ongoing challenges with program award protests, which could delay revenue realization and impact financial performance.
Good day, and thank you for standing by. Welcome to the Telos Corporation's second-quarter 2024 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Allison Phillipp, Director of Corporate Communications. Please go ahead.
Good morning. Thank you for joining us to discuss Telos Corporation's second-quarter 2024 financial results. With me today is John Wood, Chairman and CEO of Telos; and Mark Bendza, Executive Vice President and CFO of Telos.
Let me quickly review the format of today's presentation. Mark will begin with remarks on our second-quarter 2024 results. Next, John will discuss business highlights from the second quarter. Then, Mark will follow up with third-quarter guidance before turning back to John to wrap up. We will then open the line for Q&A where Mark Griffin, Executive Vice President of Security Solutions, will also join us.
The earnings
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
