Neonode ( (NEON) ) has released its Q4 earnings. Here is a breakdown of the information Neonode presented to its investors.
Neonode Inc., a publicly traded company based in Stockholm, Sweden, specializes in advanced optical sensing solutions for contactless touch, gesture control, and in-cabin monitoring, with its technology deployed in over 90 million products worldwide.
In its 2024 financial results, Neonode reported a challenging year with a significant transition as it shifted focus from manufacturing to technology licensing. Revenues from continuing operations fell by 18.8% to $3.1 million, while the company recorded a loss from continuing operations of $5.9 million, or $0.37 per share.
Key financial metrics revealed a decrease in license revenues by 29.3%, primarily due to reduced demand from legacy customers. However, the company saw a substantial increase in non-recurring engineering revenues, which surged by over 1,500%, driven by new projects with commercial vehicle OEMs and NEXTY Electronics. Operating expenses remained relatively stable, decreasing slightly by 0.2% to $9.5 million.
Despite the decline in traditional revenue streams, Neonode’s strategic pivot towards licensing, particularly in automotive safety and touch displays, shows promise. The company’s financial position remains stable, with cash and accounts receivable totaling $17.2 million, providing a solid foundation for future growth.
Looking ahead, Neonode’s management is optimistic about the potential of their licensable technology platforms, MultiSensing and zForce, to generate future license revenues as new customer projects progress to production. The company is committed to expanding its market presence by delivering innovative solutions to its clients.