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Shares of ClearOne, Inc. CLRO have declined 7% since reporting fourth-quarter and 2024 results. In contrast, the S&P 500 has posted a modest rise of 0.5% during the same period. Over the past month, ClearOne shares have plunged 41.3%, significantly underperforming the broader index’s 2.6% decline.
Revenue & Earnings Performance
ClearOne reported fourth-quarter 2024 revenues of $3 million, marking a 29% decline from $4.2 million in the fourth quarter of 2023. However, this represented an 18.1% improvement over the third quarter’s $2.5 million, driven by increased shipments of video products and wireless microphones. Gross profit for the quarter was $0.9 million, down 44% year over year but up from $0.6 million in the preceding quarter. The gross margin stood at 30%, a notable improvement from 24% in the third quarter of 2024 but down from 38% a year earlier, impacted by inventory obsolescence.
The company recorded a GAAP net loss of $2.2 million, or 9 cents per share, against a net income of $2.6 million, or 11 cents per share, in the year-ago quarter. The year-over-year decline was mainly due to the absence of a $4-million gain from a patent cross-license agreement recognized in fourth-quarter 2023. On a non-GAAP basis, the net loss widened to $2.1 million from $1.2 million a year ago, though it was essentially flat sequentially.
ClearOne, Inc. Price, Consensus and EPS Surprise
ClearOne, Inc. price-consensus-eps-surprise-chart | ClearOne, Inc. Quote
Operating Metrics & Cost Management
ClearOne reduced its quarterly operating expenses 12% to $2.9 million from $3.3 million in the fourth quarter of 2023. Non-GAAP operating expenses also declined to $2.8 million from $3.2 million. The decrease reflects the ongoing impacts of cost-cutting initiatives implemented throughout 2024. For the full year, operating expenses totaled $11.8 million, a 10% reduction from $13.1 million in 2023. These reductions helped offset part of the top-line weakness, though not enough to avoid a full-year GAAP net loss of $9.0 million, sharply wider than the prior year’s $0.6 million loss.
Non-GAAP adjusted EBITDA for the fourth quarter was negative $1.9 million compared with a loss of $0.7 million in the fourth quarter of 2023. On an annual basis, adjusted EBITDA loss came in at $8.2 million, widening from a loss of $4.1 million in 2023.
Management Commentary
CEO Derek Graham highlighted the company’s strategic focus on accelerating product shipments while maintaining a lean cost structure. He attributed sequential revenue growth and margin expansion to operational discipline and enhanced demand for ClearOne’s video and wireless solutions. Graham noted that while full-year revenues declined due to the lingering effects of past production shortfalls and the absence of Microsoft Teams certification for its products, the company is actively working to address these challenges.