Itron, Inc. (NASDAQ: ITRI) has released its financial results for the fourth quarter and full year ending December 31, 2023, showing significant growth compared to the same periods in 2022.
The key financial highlights for the quarter and full year include:
- Revenue increased by 23% for the quarter, reaching $577 million, and by 21% for the full year, totaling $2.2 billion.
- Gross profit saw a substantial increase of 39% for the quarter, amounting to $196 million, and 37% for the full year, totaling $714 million.
- GAAP net income attributable to Itron, Inc. was $44 million for the quarter and $97 million for the full year, signifying an increase of $22 million and $107 million, respectively.
- GAAP diluted earnings per share (EPS) for the quarter were $0.96, marking an increase of $0.47, and $2.11 for the full year, reflecting an increase of $2.33.
- Non-GAAP diluted EPS increased by $0.52 for the quarter, reaching $1.23, and by $2.23 for the full year, totaling $3.36.
- Adjusted EBITDA surged by 99% for the quarter, amounting to $68 million, and by 137% for the full year, totaling $226 million.
- Free cash flow also experienced significant growth, reaching $39 million for the quarter and $98 million for the full year, reflecting increases of $57 million and $93 million, respectively.
The company's president and CEO, Tom Deitrich, expressed satisfaction with the results, highlighting the record quarterly revenue levels for the networked solutions and outcomes segments. He emphasized the importance of Itron's leadership in providing grid edge intelligence, data insights, analytics, and automation to support customers' efforts in modernizing critical infrastructure.
In terms of specific financial metrics, total company gross margin increased by 390 basis points to 34.0%, driven by cost efficiencies and a higher margin product mix. GAAP operating expenses increased by $19 million for the quarter, while non-GAAP operating expenses increased by $20 million compared to the prior year. Both GAAP and non-GAAP operating incomes saw significant increases, attributed primarily to higher gross profit.
Net income attributable to Itron, Inc. for the quarter was $44 million, or $0.96 per diluted share, compared to $22 million, or $0.49 per diluted share in 2022. Non-GAAP net income increased to $57 million, or $1.23 per diluted share, compared to $32 million, or $0.71 per diluted share in 2022.
Cash flow also showed improvement, with net cash provided by operating activities at $48 million for the quarter and free cash flow at $39 million, compared to $(13) million and $(18) million, respectively, in the prior year.
Following the strong performance, Itron provided its outlook for the first quarter of 2024 and full year 2024 financial guidance. The company expects revenue between $575 and $585 million and non-GAAP diluted EPS between $0.80 and $0.90 for the first quarter of 2024. For the full year 2024, Itron anticipates revenue between $2.275 to $2.375 billion and non-GAAP diluted EPS between $3.40 to $3.80.
Overall, Itron's financial results for the fourth quarter and full year of 2023 demonstrate substantial growth across key metrics, driven by strong operational execution and improved supply chain conditions. Following these announcements, the company's shares moved 22.1%, and are now trading at a price of $91.46. Check out the company's full 8-K submission here.
