#USA #Menlo Park #Autonomous Vehicles #Cyngn #DriveMod

Cyngn Reports Fourth Quarter and Year-End Financial Results of 2024

Cyngn Inc., a prominent player in autonomous vehicle technology, recently announced its financial performance for the fourth quarter and the entire year ending December 31, 2024. This update serves as a testament to the company’s ongoing growth in navigating the autonomous solutions market, characterized by significant bookings and advancements in technology.

Key Developments

In Q4 2024, Cyngn achieved approximately $1.3 million in new bookings for its DriveMod vehicles through direct sales. Notably, the company secured a contract to deploy DriveMod Tuggers at a major consumer packaged goods firm, marking a significant expansion of its market reach.

In the automotive sector, Cyngn reported multiple deployments, including a successful partnership with Coats, a key player in North American automotive service equipment. According to Steve Bergmeyer, Continuous Improvement and Quality Manager at Coats, Cyngn's self-driving tugger is integral to their strategy of enhancing automation within operations, promising improved efficiency and reduced costs.

To support its growth trajectory, Cyngn raised $33 million in December 2024, aimed at scaling customer deployments and increasing market penetration. Additionally, the company highlighted advancements in its proprietary computer vision technology in collaboration with NVIDIA, reinforcing its commitment to innovation.

Financial Performance

Examining the financial results, Cyngn reported a revenue of $368 thousand for 2024, a decrease from $1.5 million in 2023. This decline was primarily attributed to the shift from Non-Recurring Engineering (NRE) contracts to EAS (Enterprise Autonomy Suite) software subscriptions from DriveMod vehicle deployments.

Total costs and expenses for the year were $23.2 million, representing a modest decrease of 6.5% year-over-year. Factors contributing to this reduction included lower revenue costs associated with EAS revenue compared to previous NRE contracts.

Despite these cost management efforts, the net loss for 2024 escalated to $(29.3) million, compared to $(22.8) million in 2023. This loss per share also reflected an increase, with figures reaching $(2,213) based on a weighted average of approximately 13.2 thousand shares outstanding.

In terms of quarterly performance, Q4 2024 saw a revenue spike to $306.4 thousand, significantly surpassing the $40.4 thousand earned in the same period of the previous year. The revenue chiefly stemmed from EAS software subscriptions related to DriveMod deployments.

The associated costs for Q4 were recorded at $5.8 million, reflecting a 7.4% increase from the prior year. This rise was driven by an uptick in the cost of revenue and general administrative expenses, although research and development costs experienced a notable reduction due to capitalizing on designated customer-related expenses.

Future Outlook

As Cyngn looks ahead, the company is strategically positioning itself to capitalize on increasing opportunities in the industrial sector. By hiring Marty Petraitis as VP of Sales, an industry veteran, Cyngn aims to leverage his expertise to further penetrate the fleet purchase market. The organization is particularly focused on scaling its customer portfolio and tailoring solutions to meet the demands of heavy manufacturing industries.

With the introduction of its next-generation DriveMod Tugger, boasting expanded capacity and enhanced autonomous capabilities, Cyngn is set to unlock new sales avenues and broaden the application of its technology across diverse operational environments.

In summary, Cyngn's fourth quarter and yearly results reflect a dynamic phase of growth and transformation. The company is adapting to the evolving market landscape of autonomous vehicles while investing in technological advancements to sustain future success.