Guardforce AI Reports Impressive H1 2024 Results with 50% Gross Profit Surge and Positive Net Income

Guardforce AI reports 50% gross profit surge in H1 2024 By Investing.com

NEW YORK - Guardforce AI Co., Limited (NASDAQ: GFAI, GFAIW), an integrated security solutions provider with a focus on AI and Robotics-as-a-Service (RaaS), has announced a significant increase in its financial performance for the first half of 2024. The company reported a 50% rise in gross profit compared to the same period last year, driven by improvements in gross profit margin and a positive shift to adjusted net income. For the first six months of 2024, the gross profit margin increased to approximately 18.4%, up from 12.0% in the first half of 2023. This improvement was partly due to strategic cost-control initiatives and a growth in higher-margin businesses, such as Guardforce Digital Machine (GDM), which saw a revenue increase of 74.3% compared to H1 2023. The company's selling, distribution, and administrative expenses saw a significant decrease of 25.7%, contributing to an operating loss reduction of 82.5% to approximately $2.1 million in H1 2024. Adjusted net income (Non-IFRS) turned positive at roughly $0.1 million, a notable improvement from the adjusted net loss of approximately $1.8 million in the prior year. During this period, Guardforce AI consolidated its legacy business, securing long-term contracts with key clients and expanding its retail client base. Notably, Guardforce Cash Solutions Security in Thailand won a 5-year contract to operate a Consolidate Cash Center in Chiang Mai, becoming the largest CCC operator for the Bank of Thailand with 50% of its operations. The company also made significant strides in its AI technology, developing GFAI Agents as the core technology foundation for AI-driven travel and purchase solutions. These efforts have expanded services to over 25,000 retail stores, providing a solid foundation for Guardforce AI's goal of becoming a leading AI solution provider. Despite the positive developments, net revenue decreased slightly by 2.4% to approximately $17.6 million due to the impact of foreign currency exchange rates. However, revenue from the secured logistics business increased by 5.2% compared to H1 2023. Guardforce AI's Chairwoman and CEO, Lei (Olivia) Wang, expressed satisfaction with the company's transformative journey and its focus on developing AI solutions tailored for the retail and travel sectors. The company's achievements in the first half of the year are seen as laying the groundwork for continued growth and a sustainable business model. As of June 30, 2024, Guardforce AI had cash and cash equivalents and restricted cash of approximately $15.5 million, positioning the company to pursue further growth and development in its specialized sectors. This article is based on a press release statement from Guardforce AI Co., Limited. As Guardforce AI Co., Limited (NASDAQ: GFAI, GFAIW) celebrates its financial performance gains in the first half of 2024, investors and industry watchers are closely monitoring its market position and financial metrics. The latest data from InvestingPro provides some key insights into the company's financial health and stock performance. The company's market capitalization stands at a modest $11.44 million, reflecting its size and investor valuation in the current market. Guardforce AI's Price / Book ratio, at 0.45 as of the last twelve months ending Q4 2023, suggests that the stock is trading at a low multiple of its book value, which can be an indicator of undervaluation. This is one of the InvestingPro Tips that highlights the company's current market perception. Despite a reported 50% rise in gross profit for the first half of 2024, the company's Gross Profit Margin for the last twelve months, as of Q4 2023, was at 4.2%, which points to challenges in maintaining profitability. This aligns with another InvestingPro Tip that Guardforce AI suffers from weak gross profit margins. Investors should also note the company's stock price volatility. Over various periods leading up to the present, the stock has seen significant declines, with a 1-month price total return of -20.69% and a 6-month return of -67.79%, underscoring the stock's unstable trajectory. For those considering an investment in Guardforce AI, the company's financials and stock performance provide a mixed picture. While there are signs of potential undervaluation, the challenges in profitability and stock stability cannot be overlooked. For a more comprehensive analysis, there are over 15 additional InvestingPro Tips available at https://www.investing.com/pro/GFAI, offering deeper insights into Guardforce AI's financial standing and future prospects.

EXCLUSIVE: Guardforce H1'24 Earnings: 50% Jump in Gross Profit, Turns Net Income Positive, Expands AI Solutions - Guardforce AI Co (NASDAQ:GFAI), Guardforce AI Co (NASDAQ:GFAIW)

Gross profit rose 50% in H1 2024, driven by margin improvements and cost controls On Tuesday, Guardforce AI Co GFAI GFAIW reported financial results and provided a business update for the first half of 2024 ended June 30, 2024. Net revenue decreased by 2.4% year-on-year to $17.6 million in for the six months ended 2024, mainly due to reduced foreign currency exchange rates between Thai Baht and U.S. Dollars. Despite the impact of foreign currency exchange rates, revenue for the secured logistics business increased by 5.2% year over year. Also Read: EXCLUSIVE: Guardforce AI Deploys Advertising Robots in New York, Prepares To Launch Spatial Computing Tech Gross profit increased by 50% Y/Y to $3.2 million, driven partly by an improvement in gross profit margin, which increased 18.4% by 640 bps Y/Y. Gross profit margin growth reflected cost control initiatives and a higher profit margin from its continued growing GDM business and Cash-In-Transit business with its retail customers. Adjusted net income was $0.1 million for the six months ended June 2024 compared to an adjusted net loss of $1.8 million a year ago. Selling, distribution, and administrative expenses decreased 25.7% year over year to $5.0 million. Operating loss improved by 82.5% year over year to $2.1 million, mainly due to reduced fixed asset depreciation and inventory provisions. As of June 30, 2024, the company had $15.5 million in cash and equivalents. Chair and CEO Lei (Olivia) Wang stated, "Our primary focus is developing GFAI Agents, which serve as the key technological backbone for our AI-driven travel and purchase solutions. By concentrating on high-margin services within the retail and travel sectors, alongside implementing cost-control initiatives, we've achieved notable results. We expanded services to over 25,000 retail stores, turned adjusted net income positive, and achieved an approximately 50.0% increase in gross profit in H1 2024 compared to H1 2023." Guardforce consolidated legacy business by securing long-term contracts with key clients, driving growth in higher-margin solutions. Guardforce Cash Solutions Security (Thailand) Company (GFCS) won a 5-year contract to operate a Consolidate Cash Center (CCC) in Chiang Mai, Thailand. The company will become the largest CCC operator on behalf of the Bank of Thailand, operating 50% of its CCC operations. Beijing Wanjia Security System Limited secured two long-term contracts with existing key clients, expanding security alarm solutions to an additional 3,900 stores, representing an over 50% increase year over year and bringing the total number of stores serviced to 12,000 across Mainland China. The total number of retail stores served in the security sector surpassed 25,000. Guardforce developed GFAI Agents as the core technology foundation for AI Purchase and AI Travel Solutions. The company launched a decentralized spatial computing solution that utilizes robots' unused computing power to process complex tasks beyond advertising. Price Action: GFAI stock closed higher by 0.88% at $1.15 on Monday. Also Read: EXCLUSIVE: Guardforce AI Secures New Contracts with Top Retail Brands, Boosts Operations Market News and Data brought to you by Benzinga APIs