Financial News

Oblong Announces Financial Results for Fourth Quarter and Full Year 2021

  • Revenue related to our Mezzanine products increased 24% sequentially from Q3 to Q4 2021 driven by a significant order from a global Aerospace and Defense Company

Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the award-winning maker of multi-stream collaboration solutions, today reported financial results for the fourth quarter and full year ending December 31, 2021.

  • The Company’s total revenue increased 10% sequentially to $2.0 million for the fourth quarter of 2021 versus $1.8 million for the third quarter of 2021.
  • Revenue related to our Mezzanine™ collaboration suite of products increased 24% sequentially to $1.0 million for the fourth quarter of 2021 versus $0.8 million for the third quarter of 2021.
  • As of December 31, 2021, the Company had $9.0 million of cash and no debt.

“While the global pandemic has had a material effect on demand for our products over the last two years, it appears many of our longtime customers are now gradually re-opening their office environments and, in parallel, re-engaging in commercial discussions to upgrade their collaboration spaces. While Q4 revenue was driven largely by a full suite sale to one of our global clients, we believe their scale of deployment, and use case in combination with AR/VR systems, will become increasingly relevant in the future. Although the ongoing global effects of COVID-19 remain uncertain, workplaces are opening and being re-designed with next generation collaboration technologies and hybrid work at the forefront. It’s been a challenging few years but, we believe there is now a light at the end of this long tunnel as we all adapt to a new way of working,” commented Pete Holst, President and CEO of Oblong.

  • Net loss of $2.7 million for the fourth quarter of 2021, compared to net income of $1.2 million for the fourth quarter of 2020. During the fourth quarter of 2020, the Company recorded a non-cash gain on extinguishment of debt of $3.1 million.
  • Adjusted EBITDA (“AEBITDA”) loss of $2.1 million for the fourth quarter of 2021, compared to an AEBITDA loss of $0.4 million for the fourth quarter of 2020. AEBITDA loss is a non-GAAP financial measure. See “Non-GAAP Financial Information” below for additional information regarding this non-GAAP financial measure, and “GAAP to Non-GAAP Reconciliation” for a reconciliation of this non-GAAP financial measure to net income (loss).
  • The Company’s total revenue was $2.0 million for the fourth quarter of 2021 versus $3.9 million for the fourth quarter of 2020.

Non-GAAP Financial Information

Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure, is defined as net income (loss) before depreciation and amortization, stock-based compensation and expense, impairment charges, gain on extinguishment of debt, severance, income tax expense, and interest and other (income) expense, net. AEBITDA loss is not intended to replace operating loss, net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, AEBITDA loss is an important measure used by management to assess the operating performance of the Company and to compare such performance between periods. AEBITDA loss as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Therefore, AEBITDA loss should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow used in operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net income (loss), operating loss or any other GAAP measure of liquidity or financial performance. A GAAP to non-GAAP reconciliation of net income (loss) to AEBITDA loss is shown under “GAAP to Non-GAAP Reconciliation” later in this release.

About Oblong, Inc.

Oblong (Nasdaq:OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 enterprise customers and is a Cisco Solutions Plus integration partner. For more information, visit Oblong’s website, Twitter and Facebook pages.

Forward-looking and cautionary statements

This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to (i) the Company’s potential future growth and financial performance, (ii) the success of its products and services, (iii) relationships with distribution partners and customers, and (iv) the redesign of office environments. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the volatility of market price for our securities, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2021 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.

OBLONG, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands)

 

 

December 31,

2021

 

December 31,

2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash

$

8,939

 

 

$

5,058

 

Current portion of restricted cash

61

 

 

158

 

Accounts receivable, net

849

 

 

3,166

 

Inventory

1,821

 

 

920

 

Prepaid expenses and other current assets

1,081

 

 

691

 

Total current assets

12,751

 

 

9,993

 

Property and equipment, net

159

 

 

573

 

Goodwill

7,367

 

 

7,367

 

Intangibles, net

7,562

 

 

10,140

 

Operating lease - right of use asset, net

659

 

 

903

 

Other assets

109

 

 

167

 

Total assets

$

28,607

 

 

$

29,143

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt, net of discount

$

 

 

$

2,014

 

Accounts payable

259

 

 

313

 

Current portion deferred revenue

783

 

 

1,217

 

Accrued expenses and other liabilities

959

 

 

1,201

 

Current portion of operating lease liabilities

492

 

 

830

 

Total current liabilities

2,493

 

 

5,575

 

Long-term liabilities:

 

 

 

Long-term debt, net of current portion and net of discount

 

 

403

 

Operating lease liabilities, net of current portion

236

 

 

602

 

Deferred revenue, net of current portion

381

 

 

506

 

Total long-term liabilities

617

 

 

1,511

 

Total liabilities

3,110

 

 

7,086

 

Total stockholders’ equity

25,497

 

 

22,057

 

Total liabilities and stockholders’ equity

$

28,607

 

 

$

29,143

 

OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands)

 

 

Three Months Ended

Year Ended

 

December 31,

December 31,

 

2021

2020

2021

2020

Revenue

$

1,973

 

$

3,923

 

$

7,739

 

$

15,333

 

Cost of revenue (exclusive of depreciation and amortization)

 

1,254

 

 

1,611

 

 

5,021

 

 

7,280

 

Gross profit

 

719

 

 

2,312

 

 

2,718

 

 

8,053

 

Operating expenses:

 

 

 

 

Research and development

 

929

 

 

649

 

 

2,913

 

 

3,711

 

Sales and marketing

 

658

 

 

670

 

 

2,195

 

 

3,392

 

General and administrative

 

1,285

 

 

1,549

 

 

6,363

 

 

6,724

 

Impairment charges

 

3

 

 

492

 

 

305

 

 

1,150

 

Depreciation and amortization

 

638

 

 

749

 

 

2,736

 

 

3,140

 

Total operating expenses

 

3,513

 

 

4,109

 

 

14,512

 

 

18,117

 

Loss from operations

 

(2,794

)

 

(1,797

)

 

(11,794

)

 

(10,064

)

Interest and other expense (income), net

 

6

 

 

39

 

 

(205

)

 

371

 

Gain on extinguishment of debt

 

 

 

(3,117

)

 

(2,448

)

 

(3,117

)

Net income (loss) before taxes

 

(2,800

)

 

1,281

 

 

(9,141

)

 

(7,318

)

Income tax (benefit) expense

 

(90

)

 

103

 

 

(90

)

 

103

 

Net income (loss)

 

(2,710

)

 

1,178

 

 

(9,051

)

 

(7,421

)

 

 

 

 

GAAP to Non-GAAP Reconciliation:

 

 

 

 

Net income (loss)

$

(2,710

)

$

1,178

 

$

(9,051

)

$

(7,421

)

Depreciation and amortization

 

638

 

 

749

 

 

2,736

 

 

3,140

 

Interest and other expense (income), net

 

6

 

 

39

 

 

(205

)

 

371

 

Income tax (benefit) expense

 

(90

)

 

103

 

 

(90

)

 

103

 

Impairment charges

 

3

 

 

492

 

 

305

 

 

1,150

 

Gain on extinguishment of debt

 

 

 

(3,117

)

 

(2,448

)

 

(3,117

)

Severance

 

 

 

 

 

67

 

 

536

 

Stock-based compensation and expense

 

62

 

 

109

 

 

987

 

 

198

 

Adjusted EBITDA Loss

$

(2,091

)

$

(447

)

$

(7,699

)

$

(5,040

)

 

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