Oblong, Inc. (OBLG) Bundle
A Brief History of Oblong, Inc.
Oblong, Inc. is a technology company focusing on innovative visual collaboration tools, primarily through its Mezzanine™ product line. The company has undergone significant financial changes and operational shifts over the years, particularly in response to market demands and challenges posed by the COVID-19 pandemic.
Company Overview
As of September 30, 2024, Oblong, Inc. had total assets amounting to $5,993,000 and total liabilities of $1,322,000. The stockholders' equity stood at $4,671,000.
Financial Performance
In the third quarter of 2024, Oblong reported total revenue of $578,000, which reflects a decrease of 33.7% compared to $872,000 in the same quarter of 2023. The nine-month period ending September 30, 2024, showed total revenue of $1,815,000, down from $2,866,000 for the same period in 2023.
Cost and Gross Profit
The cost of revenue for the third quarter of 2024 was $499,000, leading to a gross profit of $79,000, compared to a gross profit of $224,000 in the same quarter of 2023. For the nine months ended September 30, 2024, the gross profit was $196,000.
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $1,151,000, slightly higher than the $1,149,000 recorded in the third quarter of 2023. In the nine months ended September 30, 2024, total operating expenses were $3,470,000.
Net Income (Loss)
For the three months ended September 30, 2024, Oblong reported a net loss of $1,072,000, compared to a net loss of $925,000 in the third quarter of 2023. The nine-month net loss for 2024 was $3,159,000.
Stock and Equity Structure
As of September 30, 2024, Oblong had 1,071,545 shares issued and 1,071,356 shares outstanding. The company has also been active in managing its capital structure, including the issuance of Series F Preferred Stock and common warrants.
Recent Developments
In September 2024, Oblong reduced its workforce, incurring severance costs of $106,000. This strategic move was part of efforts to manage operating expenses and preserve capital amid declining revenues.
Revenue Breakdown
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Managed Services | $510,000 | $603,000 |
| Collaboration Products | $68,000 | $269,000 |
| Total Revenue | $578,000 | $872,000 |
Cash Position
As of September 30, 2024, Oblong had $5,619,000 in cash and cash equivalents, with a working capital of $4,665,000.
Stockholder Equity Changes
| Date | Series F Preferred Stock Issued | Common Stock Issued | Total Stockholders' Equity |
|---|---|---|---|
| Dec 31, 2023 | 1,930 | 573,644 | $5,501,000 |
| Sep 30, 2024 | 545 | 1,071,545 | $4,671,000 |
Overall, Oblong, Inc. continues to navigate through a challenging economic landscape while adapting its operational strategies to maintain financial stability and growth.
A Who Owns Oblong, Inc. (OBLG)
Ownership Structure
As of September 30, 2024, Oblong, Inc. had a total of 150,000,000 shares of common stock authorized, with 1,071,545 shares issued and 1,071,356 shares outstanding. The company also had 545 shares of Series F Preferred Stock issued and outstanding.
Major Shareholders
The following table summarizes the major shareholders of Oblong, Inc. as of September 30, 2024:
| Shareholder Type | Shares Held | Percentage of Total Shares |
|---|---|---|
| Common Stockholders | 1,071,356 | 100% |
| Series F Preferred Stockholders | 545 | 0.051% |
Recent Stock Performance
As of September 30, 2024, the closing price of Oblong, Inc. stock was approximately $3.41 per share.
Financial Overview
For the nine months ended September 30, 2024, Oblong, Inc. reported total revenues of $1,815,000, with a net loss of $3,159,000. The company had cash and cash equivalents amounting to $5,619,000.
Income Statement Highlights
The following table presents key financial metrics from the income statement of Oblong, Inc. for the nine months ended September 30, 2024:
| Metric | Amount (in Thousands) |
|---|---|
| Total Revenue | $1,815 |
| Cost of Revenue | $1,619 |
| Gross Profit | $196 |
| Total Operating Expenses | $3,470 |
| Net Loss | $(3,159) |
Warrants and Preferred Stock
As of September 30, 2024, Oblong, Inc. had the following outstanding warrants and preferred stock:
| Type | Outstanding | Exercise Price | Expiration Date |
|---|---|---|---|
| Common Stock Warrants | 2,345,603 | $3.41 | Q3 2028 - Q4 2029 |
| Series F Preferred Stock | 545 | Convertible | N/A |
Market Capitalization
Based on the latest share price, Oblong, Inc. had a market capitalization of approximately $3.65 million calculated as follows:
Market Capitalization = Share Price Outstanding Shares = $3.41 1,071,356 ≈ $3,650,000.
Liquidity Position
As of September 30, 2024, Oblong, Inc. reported a working capital of $4,665,000. The company incurred a net cash outflow of $2,521,000 from operating activities during the nine months ended September 30, 2024.
Oblong, Inc. (OBLG) Mission Statement
Company Overview
Oblong, Inc. is a provider of innovative collaboration solutions, particularly focused on enhanced video conferencing and collaboration technologies. The company's mission is to revolutionize the way teams connect, communicate, and collaborate, leveraging advanced technologies to create immersive experiences. This mission aligns with their flagship product, Mezzanine™.
Mission Statement
As of 2024, Oblong, Inc. articulates its mission as follows: "To empower teams with cutting-edge collaboration tools that enhance productivity and foster innovative thinking, enabling organizations to thrive in a digital-first world."
Strategic Objectives
- To enhance customer experience through innovative technology solutions.
- To expand market presence and increase adoption of collaboration products.
- To pursue strategic partnerships and acquisitions that align with growth objectives.
Financial Performance Indicators
Oblong's financial performance reflects its commitment to growth and innovation. The following table summarizes key financial data as of September 30, 2024:
| Financial Metric | Value |
|---|---|
| Cash and Cash Equivalents | $5,619,000 |
| Working Capital | $4,665,000 |
| Net Loss (Nine Months Ended September 30, 2024) | $3,159,000 |
| Total Revenue (Nine Months Ended September 30, 2024) | $1,815,000 |
| Total Operating Expenses (Nine Months Ended September 30, 2024) | $3,470,000 |
| Gross Profit Margin (Nine Months Ended September 30, 2024) | 11% |
Market Positioning
Oblong, Inc. positions itself as a leader in collaborative technologies, targeting businesses looking to enhance their communication and teamwork capabilities. The company's focus on innovation and user experience is critical in a competitive landscape.
Recent Developments
In September 2024, Oblong took strategic steps to streamline operations, including a workforce reduction to preserve capital. This decision is part of a broader strategy to optimize operational efficiency in response to market demands.
Future Outlook
Looking forward, Oblong aims to leverage its existing technology and explore new market opportunities. The company is committed to enhancing its product offerings and increasing market share through innovative solutions tailored to customer needs.
How Oblong, Inc. (OBLG) Works
Business Overview
Oblong, Inc. operates primarily in the technology sector, focusing on collaboration and managed services. The company is known for its innovative visual collaboration products, which are utilized in various professional environments, including conference rooms and offices. As of 2024, Oblong has been navigating a competitive landscape that has impacted its revenue streams.
Financial Performance
For the three months ended September 30, 2024, Oblong reported total revenue of $578,000, reflecting a significant decrease from $872,000 in the same period in 2023. The breakdown of the revenue by segment is as follows:
| Revenue Segment | 2024 Revenue (in $000s) | 2023 Revenue (in $000s) |
|---|---|---|
| Managed Services | 510 | 603 |
| Collaboration Products | 68 | 269 |
| Total Revenue | 578 | 872 |
In the nine months ended September 30, 2024, the total revenue was $1,815,000, down from $2,866,000 in the same period in 2023. The costs associated with generating this revenue were $1,619,000 in 2024, compared to $2,244,000 in 2023, resulting in a gross profit of $196,000 for 2024 compared to $622,000 for 2023.
Gross Profit and Operating Loss
The gross profit margins for the three months ended September 30, 2024, were significantly lower, with a gross profit of $79,000 (14% of revenue) compared to $224,000 (26% of revenue) in 2023. The operating loss for the same period was reported at $1,072,000, up from a loss of $925,000 in 2023.
| Financial Metric | 2024 (in $000s) | 2023 (in $000s) |
|---|---|---|
| Gross Profit | 79 | 224 |
| Operating Loss | (1,072) | (925) |
Operating Expenses
Oblong's total operating expenses for the three months ended September 30, 2024, were $1,151,000, slightly higher than the $1,149,000 reported in 2023. The breakdown of operating expenses is as follows:
| Expense Category | 2024 (in $000s) | 2023 (in $000s) |
|---|---|---|
| Research and Development | 38 | 5 |
| Sales and Marketing | 66 | 81 |
| General and Administrative | 1,047 | 977 |
| Total Operating Expenses | 1,151 | 1,149 |
Liquidity Position
As of September 30, 2024, Oblong reported cash and cash equivalents amounting to $5,619,000, with working capital of $4,665,000. The company incurred a net loss of $3,159,000 for the nine months ended September 30, 2024.
Customer Concentration and Revenue Sources
During the third quarter of 2024, one customer accounted for 97% of the Managed Services revenue, highlighting a significant concentration risk. The revenue breakdown by geographic area shows that domestic revenue was $227,000 compared to $356,000 in 2023, while foreign revenue totaled $351,000, down from $516,000 in 2023.
| Geographic Revenue | 2024 (in $000s) | 2023 (in $000s) |
|---|---|---|
| Domestic | 227 | 356 |
| Foreign | 351 | 516 |
| Total Revenue | 578 | 872 |
Stock Performance and Capital Structure
As of September 30, 2024, Oblong had 1,071,545 shares of common stock issued and 1,071,356 shares outstanding. The company executed a reverse stock split in August 2024, converting every 40 shares into one new share. The company has also issued various warrants, with common warrants outstanding amounting to 2,345,603 as of the same date.
| Stock Metrics | As of September 30, 2024 |
|---|---|
| Total Shares Issued | 1,071,545 |
| Total Shares Outstanding | 1,071,356 |
| Common Warrants Outstanding | 2,345,603 |
Outlook and Future Considerations
Oblong anticipates that its existing cash and cash equivalents will sustain operations into mid-2026. However, the company acknowledges the need for additional capital to support future growth and operational initiatives.
How Oblong, Inc. (OBLG) Makes Money
Revenue Streams
Oblong, Inc. generates revenue through two primary segments: Managed Services and Collaboration Products. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Managed Services | $1,540 | 85% |
| Collaboration Products | $275 | 15% |
| Total Revenue | $1,815 | 100% |
Managed Services
Managed Services consists primarily of network services, video collaboration services, and professional services. For the three months ended September 30, 2024, Managed Services revenue was $510, with a significant portion derived from network services, which accounted for 87% of the total managed services revenue:
| Service Type | Revenue (in thousands) | Percentage of Managed Services Revenue |
|---|---|---|
| Network Services | $502 | 87% |
| Video Collaboration Services | $6 | 1% |
| Professional Services | $2 | — |
| Total Managed Services Revenue | $510 | 100% |
Collaboration Products
Collaboration Products include visual collaboration tools such as Mezzanine™. For the three months ended September 30, 2024, revenue from Collaboration Products was $68, which represents a significant decline compared to previous periods. This decrease is attributed to lower demand in traditional office settings:
| Product Type | Revenue (in thousands) | Percentage of Collaboration Products Revenue |
|---|---|---|
| Visual Collaboration Products | $68 | 12% |
| Professional Services | $0 | — |
| Total Collaboration Products Revenue | $68 | 100% |
Cost Structure
For the nine months ended September 30, 2024, Oblong reported total costs of revenues amounting to $1,619, leading to a gross profit of $196. The gross profit margin for Managed Services was 35%, while Collaboration Products experienced a gross profit margin of -127%:
| Segment | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Profit Margin |
|---|---|---|---|
| Managed Services | $995 | $545 | 35% |
| Collaboration Products | $624 | $(349) | (127%) |
| Total | $1,619 | $196 | 11% |
Operating Expenses
Oblong's total operating expenses for the nine months ended September 30, 2024, were $3,470, which included research and development, sales and marketing, and general administrative expenses:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $153 |
| Sales and Marketing | $177 |
| General and Administrative | $3,140 |
| Total Operating Expenses | $3,470 |
Net Income and Loss
For the nine months ended September 30, 2024, Oblong reported a net loss of $3,159, attributed to high operating expenses and decreased revenue:
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Nine Months Ended September 30, 2024 | $(3,159) |
| Nine Months Ended September 30, 2023 | $(3,163) |
Cash and Liquidity Position
As of September 30, 2024, Oblong had $5,619,000 in cash and cash equivalents, with a working capital of $4,665,000. The company believes this liquidity will suffice to fund operations into mid-2026:
| Liquidity Metrics | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $5,619 |
| Working Capital | $4,665 |
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Resources:
- Oblong, Inc. (OBLG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Oblong, Inc. (OBLG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Oblong, Inc. (OBLG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.