Wed, May 21, 10:05 AM (23 days ago)
### VEEA INC. (VEEA) Q1 2025 Financial Summary **Overview:** VEEA Inc. reported a net income of $4.3 million for Q1 2025, a significant improvement from a net loss of $6.5 million in Q1 2024. This turnaround was driven by changes in fair value of convertible note option liability, warrant liabilities, and earn-out share liability. However, the company continues to face operational challenges and financial uncertainties. **Financial Performance:** - **Revenue:** $14.3 million (down 15% YoY from $16.8 million). - **Gross Profit:** $1.9 million (down from $4.8 million in Q1 2024). - **Operating Expenses:** $5.8 million (down from $6.1 million in Q1 2024). - **Net Income:** $4.3 million (up from a loss of $6.5 million in Q1 2024). **Profit Margins:** - **Gross Margin:** Approximately 13.4% (down from 28.5% in Q1 2024). - **Operating Margin:** Negative, indicating ongoing operational losses. **Cash Flow:** - **Net Cash Used in Operating Activities:** $3.7 million (down from $10.7 million in Q1 2024). - **Net Cash Provided by Financing Activities:** $2.4 million (up from $10.4 million in Q1 2024). **Earnings Changes:** - **Earnings per Share (EPS):** $0.12 (up from -$0.31 in Q1 2024). **Quarterly Performance Discussion:** - **Revenue Trends:** Revenue declined due to reduced sales of VeeaHub devices and services. - **Operating Expenses:** Increased product development and sales and marketing expenses. - **Fair Value Adjustments:** Significant gains from changes in fair value of convertible note option liability, warrant liabilities, and earn-out share liability. **Trends and Uncertainties:** - **Market Acceptance:** Continued focus on digital equity, energy solutions, and smart retail. - **Funding:** Plans to fund operations through equity and debt offerings, including an equity line of credit (ELOC) program. - **Uncertainties:** Dependence on market conditions, regulatory environment, and competitive landscape. **Future Operations Impact:** - **Growth Strategy:** Focus on scaling business, increasing revenue, and achieving profitability. - **Financial Health:** Continued reliance on external funding and strategic partnerships. **Ticker:** VEEA