SKYX Platforms Corp. (SKYX:NASDAQ) generated record revenue in full-year 2023 (FY23), and in Q4/23, and in the year's final quarter, it secured a large contract and several collaborations, the company announced in a news release. This Florida-based firm provides smart electrification products for residential and commercial uses, has 77 issued and pending patents, and owns 60 lighting and home décor websites.
"The company came out with stellar results last night after the close that showed BIG increases in revenue last year and HUGE increases in market penetration and increasingly widespread acceptance of its products," Technical Analyst Clive Maund commented in an April 2 report.
During Q4/23, which ended December 31, 2023, SKYX generated US$22.2 million (US$22.2M), and in FY23, it generated US$58.8M in revenue from sales of its smart home and advanced plug-and-play products. The FY23 figure is materially higher than the company's revenue in FY22, of US$32,022.
About 31% of FY23 revenue, or US$18M, was gross profit for the year, to which SKYX's acquisition of the Belami e-commerce platform contributed. The company spent US$20.1M on sales and marketing in 2023 versus US$18.8M in 2022.
"Our year ended December 31, 2023, was highlighted by our first two full quarters of significant revenue, including sales and rollout of our advanced ceiling smart and standard plug and play platform products on many leading U.S. and Canadian websites," management said in the release. "We believe we have accelerated our cadence of sales with a robust gross margin profile, notably managing the cash burn of SKYX."
Overall, in 2023, SKYX posted a net loss of US$39.7M, or US$0.45 per share. The prior year, the net loss was US$27M, or US$0.40 per share.
SKYX ended FY23 with US$22.4M in cash, cash equivalents, restricted cash, available cash, and investments available for sale, more than US$16.8M the year before.
"Our e-commerce platform with over 60 websites is expected to provide additional cash flow to the company, which, when combined with our existing cash, we anticipate will be sufficient for 18 months of operations," management said.
Achievements Since October 1
Regarding sales of its products to the residential market, SKYX saw them get into thousands of U.S. residences last year. Recently, the company landed a developer client for which it will supply its advanced smart home platform technologies into 1,000 homes to start and, ultimately, provide 30,000 units for its upcoming projects. SKYX is now selling to the Canadian residential market, too.
SKYX has branched out into the market's retail and professional segments, opening accounts with 100 such customers during the International Builders' Show in Las Vegas and landing sales via its e-commerce lighting and home decor platform. The firm continues to expand sales in both.
SKYX kicked off this year, 2024, by garnering two awards at CES, or the Consumer Electronics Show, for its All-In-One third-generation SKYX Platform. To date, the company's products have won five CES awards.
Since the start of Q4/23, SKYX has joined forces with four companies to further penetrate each of its target markets. General Electric extended its global licensing partnership agreement with SKYX for five years pertaining to the latter's products. Kichler agreed to include SKYX's plug-and-play technology in its light fixtures and ceiling fans.
Quoizel, a lighting company, manufacturer, and supplier to leading big-box stores, and Golden Lighting, an elegant lighting provider, each agreed to integrate SKYX's products into its online, retail and professional channels.
Creating New Standard
With its products, SKYX Platforms aims to make the new standard for homes and buildings to be safe and smart, the company said. In September of last year, it filed for a mandatory safety standardization with the National Electrical Code for its ceiling outlet receptacle to be used in residential and commercial buildings.
Experts have pointed out SKYX certainly has the technology behind its products to make this happen.
Rick Seidman, chief executive officer of Quoizel, a company with which SKYX is collaborating, said this about it. "In my 32 years in the lighting business, it is by far the most disruptive technology I have seen and will transform the lighting industry from the old existing hardwire installation method to a safe plug-and-play installation method."
Another major advantage for SKYX, noted Technical Analyst Maund, is the size of the potential market for its products. Maund described it as "truly gigantic." In fact, by the end of this year, SKYX expects its products to be in tens of thousands of homes, it said.
As such, Analyst Leo Carpio at Joseph Gunnar & Co. forecasts another significant increase in SKYX's year-over-year revenue in FY2024, he wrote in a 2023 research report. For FY24, he estimates revenue to be US$143.2M (up from US$58.8M in FY23) and earnings per share to be (US$0.02), up from (US$0.45).
Smart Tech Growing
The use of smart technology is growing in the residential and commercial sectors in the U.S. and Canada.
Concerning residential, the smart home technology market in the U.S. should keep expanding, Statista data show. By 2028, market revenue is expected to hit US$55 billion (US$55B), having risen at a 9.7% compound annual growth rate (CAGR) up from US$38.8B in 2024. Also, by 2028, the number of U.S. smart home technology users should reach 785M, reflecting a 118% increase.
As far as Canada, the near-term forecast for the smart appliances market there is also one of growth, at a similar rate, notes Statista. By 2028 market volume is expected to reach US$1.4B, up from US$1B in 2024 and expanding at a 9.82% CAGR. The number of households with smart appliances is projected to be about 4.1M also by 2028.
With respect to commercial, Research and Markets forecasts, the global market for smart buildings is to grow at an 11.6% CAGR between 2022 and 2030 to US$176.9B from US$73.7B. Within the same period, the smart buildings market in Canada is projected to expand at a 10.5% CAGR.
The Catalysts: More Partnerships
In the coming months, SKYX expects to announce it has entered into collaborations with more U.S. companies, it said.
Another catalyst, a bit further out, is SKYX turning cash flow positive, which management anticipates happening next year.
Analysts: Return Potential Significant
Just days ago, Maund recommended SKYX as a Strong Buy, as the stock is thought to be forming a big double bottom at a low level, he wrote, and the recent financial and operational accomplishments are encouraging.
"The latest stunning results show that the company is rapidly advancing on all fronts," he wrote.
Two other analysts rate SKYX Buy: Benchmark Co.'s Michael Legg and Joseph Gunnar & Co.'s Carpio. Given where SKYX is trading today, Legg's target price on the tech company implies a gain of 324% for investors, according to TipRanks. Carpio's target suggests a return of 154%.
Ownership and Share Structure
According to Reuters, 15 strategic entities own 43.52%, or 42.16M shares, of SKYX Platforms. The three with the greatest stake are KRNB Holdings LLC with 9.44% or 9.14M shares, Motel 7 SQL LLC with 6.32% or 6.12M shares, and Strul Associates LP with 5.69% or 5.51M shares.
Of this group of strategic investors, individual insiders comprise 31.2%, Yahoo! Finance reported. Director Dov Shiff is the insider with the most shares, 16%. Founder and Executive Chairman Rani Kohen owns 10%, and Chief Executive Officer John Campi holds 0.9%.
"Insiders have a US$36M stake in this US$116M business," the Yahoo! article noted. "This shows alignment with shareholders."
Reuters data show that 77 institutions hold 11.31% or 10.96M shares of SKYX. The Top 3 institutional investors are BlackRock Institutional Trust Co. with 3.5% or 3.39M shares, The Vanguard Group Inc. with 2.48% or 2.41M shares, and Geode Capital Management LLC with 1.21% or 1.17M shares.
Retail investors own the remaining 42.4%.
SKYX Platforms has 92.17M outstanding shares and 55.71M free float traded shares.
Over the past 52 weeks, the company traded between US$1.12 and US$3.96 per share.
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